BOSNIA & HERZEGOVINA Trends and Developments Contributed by: Nebojša Marić, Marić & Co
Information and Communications Technology (ICT) The ICT sector in Bosnia and Herzegovina is experiencing significant growth, particularly in software development, IT outsourcing, and digital transformation services. The country has become a regional hub for outsourcing, with highly skilled IT professionals offering competi - tive services at lower costs compared to West - ern Europe. Foreign investors, especially from the EU and the USA, are increasingly targeting local tech firms for acquisition or strategic part - nerships. An Actis-led consortium acquired a portfolio of approximately 1,800 macro towers from Telekom Srbija, with around 700 towers located in Bos - nia and Herzegovina. This marks a significant investment in digital infrastructure aimed at sup - porting the roll-out of new telecommunications technologies, including 5G. The entity of Republika Srpska signed a EUR29,000,000 contract with China’s ELINC for digital security software, emphasising the region’s focus on enhancing its cybersecurity capabilities. ABB, a Swiss company, has agreed to acquire a majority stake in Meshmind, a Bosnian software service provider. This move aims to strengthen ABB’s research and development in areas like AI and Industrial IoT. The Government of the Federation of Bosnia and Herzegovina has launched an initiative to improve the digitalisation of the educational system, which includes the introduction of new technologies in classrooms and training for teaching staff. This initiative could significantly impact the development of future generations in the ICT sector.
Retail TEMU, an international online marketplace known for its extensive selection of affordable products, recently expanded into the Bosnian market in September 2024, highlighting signifi - cant shifts in the retail sector, driven by a growing e-commerce trend in Bosnia and Herzegovina. The popularity of TEMU and similar platforms shows how retail is increasingly shaped by the convenience and affordability of online shop - ping, which pressures traditional stores to adopt e-commerce models to stay competitive. Shein, a global leader in online fast fashion retail, is available to customers in Bosnia and Herzegovina as of January 2025. This popular platform marks a significant step in the expan - sion of international brands into the Bosnian market, bringing new energy and challenges to the domestic e-commerce sector. With the entry of Lidl into the BiH market and the intensification of highway construction, ques - tions have once again arisen about when the Swedish giant company IKEA will open its stores in BiH. Although IKEA has not yet entered the BiH market, the company is expected to con - sider expanding into the country in the coming years. Technology In the 2024 local elections in Bosnia and Her - zegovina, voters at 458 polling stations across 24 electoral units encountered new voting tech - nological solutions. These innovations included biometric voter identification through fingerprint verification, as well as authentication and trans - mission of results. Optical scanners and auto - mated ballot counting were also introduced, marking a significant advancement in the use of technology for voter authentication and the elec -
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