The Investment Policy Review (IPR) of Bosnia and Herzegovina recognizes the large untapped potential to attract much higher levels of foreign direct investment (FDI), as well as to diversify the flows of investment beyond traditional sectors and source countries.

In this regard, it calls for streamlining and harmonizing business licensing and operational procedures throughout Bosnia and Herzegovina to increase the predictability, clarity and transparency of the business environment.

Strengthening policy cooperation and coordination would also contribute to reducing the risks of unhealthy competition for investment among various levels of authorities and avoid a harmful race to the bottom, particularly in the granting of fiscal concessions and incentives.

Finally, enhancing the effectiveness of the investment promotion efforts will be essential to increasing the visibility and attractiveness of the country as an investment destination.

By adopting clear, strategic guidelines on investment, including target sectors, source countries and expected benefits as well as coordinated actions among the various stakeholders, the investment promotion efforts could become more effective.