EBRD and EU support local brewery in Bosnia and Herzegovina

Brewing has a long tradition in Bosnia and Herzegovina. Beer is among the population’s favorite drinks, especially in the summertime when demand can go up by a staggering 300 per cent.

This year the sales have been even higher than usual, most likely due to the football World Cup, explains Mr. Edin Ibrahimpasic, CEO of Bihacka Pivovara.

The EBRD has supported the drink’s producer with a €1 million loan through a local partner bank, Sparkasse Bank Sarajevo. This helped the company to buy a new beer-filling line and system and other equipment, allowing it to improve beer production and packaging.

All drinks meet the necessary European Union (EU) standards to be exported. While they’re only locally distributed, for now, this provides the brewery with the option of expanding to other markets in the future.

The EU provided funds for the project, which ensure that the most suitable equipment is chosen and its installation verified later on. They also include an incentive payment to participating businesses to help create a market for such investments in the future.

“One of our key goals in Bosnia and Herzegovina is to support the growth of small and medium-sized enterprises, which are the key engine of the local economy,” says Ian Brown, head of the EBRD office in Sarajevo.

Andrea Vera, Head of Operations Section for Economic Development, Trade, Infrastructure and Natural Resources at the EU Delegation to Bosnia and Herzegovina, highlights the need for Bosnia and Herzegovina to improve its business climate and create opportunities for economic recovery.

“The EU has provided around €70 million to support the SME sector in the country over the past 15 years. With our technical assistance and grant funding, SMEs have received tangible support to grow in competitive sectors such as tourism, agro-processing, and the wood and metal industries.”

The activities have supported a broad range of beneficiaries, ranging from glass producers to wood manufacturers and agribusinesses.

In the case of Bihac Pivovara, the EBRD and EU have been long-time partners in the brewery’s development. It also benefited from a credit line several years ago to invest in various energy efficiency measures, including the replacement of an old boiler and buying other energy-saving equipment.

“Our brewery has grown to employ over 100 staff since we started our work,” Mr. Ibrahimpasic says. “Our continuous investments have helped us to become a greener and highly competitive business which can offer excellent products to its customers.”

Original source: EBRD
Published on 15 November 2018