Banja Luka: Republic of Srpska grants incentives for direct investments in the total amount of 7 million BAM

At the 141st session of the Republic of Srpska Government held today, the Government of the Republic of Srpska gave its consent to the proposal of the ranking list for the allocation of incentives for direct investments in the total amount of 7 million BAM.

The direct investment incentive project is being implemented in cooperation with the World Bank and is partly co-financed by the World Bank.

Incentives are intended to support the implementation of investment projects implemented by economic entities in the field of manufacturing. The subject of awarding incentives was a project of an economic entity that refers to the procurement of modern technologies and equipment that is not older than 12 years; or development and innovation.

267 business entities applied for the public call for granting incentives for direct investments in 2021, out of which 207 business entities met the conditions of the public call, the competent ministry announced.

Out of the total number of registered economic entities, the requests of 60 economic entities were rejected, which even after the requested amendment did not submit evidence of the fulfilment of the conditions required by the public invitation. The most common reasons for rejection refer to an insufficient number of employees, activity code, unpaid taxes, incomplete documentation, non-compliance with the required methodology or deadlines of the public call.

Incentives for direct investments supported the projects of economic entities that employ a total of 19,862 workers, which is about 330 workers more compared to the number of workers employed on December 31, 2020, who invested in the procurement and introduction of modern equipment and technology in the value of about 64 million BAM.

Observed by industry sectors, most investments are made in the metal and electrical industry sector, followed by the wood sector and the paper production industry. Significant investments are related to the procurement of new production lines, digitalization of production processes, CNC machines, robots, lasers and the like.

In addition to the above, it is important to emphasize that in the textile and footwear industry, which is recognized as an industry with low capital accumulation, significant investments are being made in digitalization of the production process (introduction of lektra system), and in the development of their own product.

The ranking list with the amounts of funds per individual business entity can be found on the website of the Ministry of Economy and Entrepreneurship of the Republic of Srpska.

In the following period, the Decision on the award of incentives and the signing of contracts with beneficiaries of incentives will follow. Economic entities will be informed about the dates and place of signing the contract.