1. Investment Opportunities in Bosnia and Herzegovina April 14th, 2009 Eldin Kajević Consul General Consulate General of Bosnia and Herzegovina In Chicago

2. Agenda General economic indicators Top investor countries Why invest in Bosnia and Herzegovina Attractive Economic Sectors – Energy – Agriculture – Tourism

3. Small Country, Huge Potential! Strategic location (closest route from central Europe to Adriatic) Population: 4 million, crossroad of three abrahamic religions Possibility to export to about 600 mill. people market without customs and duties GDP growth (5%) Stable currency with low inflation and stable banking sector Competitively priced and well educated labor force but high unemployment

4. General Economic Indicators Value Added Tax: 17% 200420052006200720082009 GDP (billion EUR) 8.18.79.811.112.612.2 GDP per capita (EUR) 2,1012,2792,5622,8963,2873,187 Real GDP growth rate (%) 6.33.96.16.25.7-3 Annual inflation rate (%) 0.43.8 6.11.57.4-0.4 Average wages (EUR) 258275300322385404 Annual unemployment rate (%) 43.243.031.029.023.424.1 Currency reserves (mill EUR) 1,7792,1602,7873,4253,2193,176 Deposits of household (mill EUR) 1,2731,6292,0792,6412,6622,895

5. Top Investor Countries in B&H 1994 - 2008 – Total amount 5.3 billion €

6. Why Invest in B&H? Up to 90% of investment protected - Multilateral Investment Guarantee Agency [MIGA] and the Overseas Private Investment Corporation [OPIC] Stable financial sector -Foreign ownership at banking sector at 86%. “B2” by Moody’s Agency, “B+” by S&P, both with stable outlook Favourable legislation -National treatment of foreign investors, - Right to freely employ foreign nationals $15 billion worth of projects presented at Sarajevo Business Forum April 6-7, 2010 (www.sarajevobusinessforum.com)www.sarajevobusinessforum.com

7. Energy Sector Opportunities Utilization Coefficient 38,8% 1500 Water Flows

8. Energy Sector Opportunities The first hydroelectric power plant was built 110 years ago High energy demand of the South Eastern Europe, currently at the deficit level of 22TWh provides outstanding market niches for investment opportunities in energy sector Enormous potential for investors in hydroelectric plant construction projects on Drina, Neretva, Bosna, Una, Trebisnica and Vrbas rivers Development of more than 200 small hydroelectric power plants on smaller rivers

9. Energy Sector Opportunities Coal – The coal reserve is estimated to be over 10 billion ton and the current consumption rate at 8 million per year Wind – 30% higher utility coefficient than the EU average and the highest potential in the Balkan region Other renewable sources: – Geo-thermal – Solar – Bio-mass

10. Agriculture Europe’s largest livestock producer prior to WWI Fertile land, high soil productivity, water, mild climate, cheap labor supply and lower cost Half of the land has never been cultivated Skilled and affordable labor - employment in agricultural sector forms 21 percent, its share in GDP is 7.4 percent

11. Tourism 1984 Winter Olympic Games in Sarajevo Crossroad of three Abrahamic religions (Islam, Christianity and Judaism), signs are everywhere across the country, leaving open niches for religious tourism Rafting, hiking and extreme sports Eco -tourism and thermal springs To achieve higher visibility, focus on publicity campaigns and marketing activities

12. 3 Things to Remember! Small country blessed with natural resources! 1500 water flows – clean water and clean energy, renewable energy sources Up to 90% of investment protected – MIGA and OPIC $15 billion worth of projects available for interested investors

13. Thank you! Hvala! www.fipa.gov.ba Consulate General of Bosnia and Herzegovina 500 North Michigan, Suite 750 Chicago, IL 60611 Ph: 312-951-1245 www.cgbhchicago.com