Daria Sito–Sucic

SARAJEVO (Reuters), – Supply chain disruptions caused in part by COVID-19, the war in Ukraine, and Chinese lockdowns have hit Western European markets. Balkan companies hope to profit from this closeness and their low labour costs.

A Sarajevo forum for business focused on “near-shoring”, which is partnering closer to home than in foreign markets, reported that interest in their European partners was on the rise over the last year.

German-owned company GS-TMT, located in Travnik in central Bosnian is opening a new facility to satisfy increased demand from German and Austrian buyers for electric bikes and mechanical parts.

Snjezana Korpruner said that the company’s growth, which employed 462 people, dropped 16% in 2020 due to the coronavirus pandemic, but rose 32% last years and will likely rise an additional 42% by 2022. The revenues are estimated at more than 60 million Bosnian marks ($32.4 million).

Kopruner stated that the reason our revenue rose is because we took over production of some goods previously produced in China.

According to Sophia Kluge, German-Serbian Chamber of Commerce, a recent survey of German employers revealed that they consider the Western Balkans countries (including Albania, Bosnia and Kosovo, Montenegro and North Macedonia) as attractive investment destinations because of their low labor costs, taxes, and geographic position.

Kluge declared, “The Western Balkans is an European region and it’s as close as you can get.”

While citing political instability, infrastructure and governance as the main challenges facing them, German employers have stressed “cultural proximity” to workers in the area and shared positive experiences with them.

She said, “It was the gut feeling that made some choose this region to invest in.”

Ekrem Trajlic is a Bosnian director of Bosnalijek. The company exports mostly to Russia, Middle East, and Balkans. He was optimistic about the possibility of expanding the European buyer network.

Turajlic explained that European clients are showing more interest in suppliers located closer than Asia.

Martin Grabe of Germany Trade & Invest said the Western Balkan countries were generally seen as stable but that they had to clearly choose the path they will take and whether they will work towards integration into the European Union.

(14 = 1.853 Bosnian marka)