The state of Bosnia and Herzegovina (BiH) remains strongly affected by events of the war in the 1990s. Living conditions are to be improved through reconstruction and sustainable economic development, thereby providing a basis for peaceful coexistence of the country’s people. This is also a primary objective of German Financial Cooperation (FC) with BiH, in place since 1999, and is being implemented by KfW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
The total amount of new commitments in 2022 is EUR 39.5 million. This is made up of EUR 15 million in finance, EUR 6 million for vocational training and EUR 18.5 million in energy production.
The funded projects play a key role in modernising the infrastructure, climate change mitigation and the development of the country’s private sector. The main funded areas are:
KfW is promoting the reconstruction of hydropower plants and financing the country’s first wind farms to better exploit the huge potential for renewable energies. The low energy efficiency of the Bosnian-Herzegovinian economy is also to be increased.
Sustainable, cost-effective and reliable energy supplies are helping the Bosnian economy to grow too. Providing funding for the energy sector also supports Bosnia and Herzegovina on the path to EU accession.
Small and medium-sized enterprises make up the backbone of the Bosnian economy. They provide 99% of all jobs (80% in the industrial sector) while also being responsible for a large share of the country’s CO2 emissions. KfW funds are supporting investment by SMEs in employment opportunities as well as in energy-saving and emission-reducing technologies.