Fifty municipalities and cities are kicking off a regional race to attract new investments
Fifty municipalities and cities from the region are entering the Program for Certification of „business-friendly“ Municipalities and Cities in Southeast Europe (BFC SEE) this spring, aiming to earn the epithet „business-friendly“ by providing services according to the highest international standards. Obtaining this certification will enable them to systematically improve conditions for attracting investments and stimulate the development of the domestic economy.
The BFC program has been implemented since 2012, and so far, more than 100 municipalities and cities in the region have undergone the certification process, with 21 holding a valid BFC certificate, and 17 undergoing recertification. The inclusion of new local self-governments and a higher level of standardization of services provided to the economy will enable further development of a market of nearly 20 million inhabitants with a total GDP of almost 200 billion euros and better working conditions for 1,150,000 businesses in these areas - stated Saša Pavlović, Vice President of the BFC Club and Mayor of Požarevac, announcing an introductory meeting with mayors and presidents of municipalities planned for the spring.
Fifteen municipalities and cities in Serbia have successfully obtained the BFC SEE certificate, with some local self-governments doing so multiple times. These include Ruma, Pirot, Leskovac, Stara Pazova, Pančevo, Novi Sad, Šabac, Sombor, Pećinci, Ćuprija, Požarevac, Bor, Čačak, Paraćin, and Niš. Currently, Novi Sad, Kragujevac, Raška, Loznica, Mionica, Lapovo, Kula, Šabac, Pećinci, Velika Plana, Sombor, and Užice are entering the BFC program.
Many of these local self-governments have found themselves on the prestigious fDi list by the Financial Times for the most favorable investment destinations. For example, this year, Leskovac, one of the leaders in participation in the BFC program, took first place in the category of smaller European cities attractive for investment. Other cities on the list include Kragujevac, Subotica, Zrenjanin, Belgrade, and Šimanovci.
The greatest progress in the business environment through the BFC certification process has been achieved by local self-governments from Montenegro - 35%, and Republika Srpska (BiH) - 25%, followed by municipalities and cities from Serbia - 23%, the Federation of Bosnia and Herzegovina (BiH) - 23%, and Croatia - 19%.
The certification process lasts for 12 months during which local self-governments need to meet a series of demanding criteria such as development strategy, capital investment plan, office for local economic development, economic council, and efficient system for issuing building permits. The latest 4th edition of the BFC standard also includes additional criteria that pay special attention to digitalization, sustainable and socially responsible development, environmental protection, fostering innovation, and EU integration at the local level. Compliance with the criteria is confirmed by an independent international verification commission.
According to the analysis of progress during the certification process, local self-governments from the region have recorded the highest percentage of compliance with criteria in the field of issuing building permits and supporting the business community and attracting investments - more than 90%, while the least fulfilled criteria relate to monitoring the dynamics of the local labor market and providing adequate infrastructure and municipal services.
Concerning certified cities and municipalities in Serbia, better results compared to the regional average have been achieved in the criteria of supporting entrepreneurship development and attracting investments, while possessing a local development strategy and providing adequate infrastructure and municipal services are areas where Serbian municipalities record the lowest level of fulfilled criteria compared to the region. Fulfilling the set criteria helps local communities, the economy, and citizens by creating better conditions for living and working, which is also reflected in better rankings of our country in domestic and international reports and rankings such as the fDi list by the Financial Times or the Regional index on conditions for sustainable economic development - concludes Pavlović.
The BFC SEE program is implemented under the auspices of the Partnership for a Competitive Region (CORE Partnership), which brings together more than 20 institutions and organizations from Croatia, Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia, Albania, and Kosovo*, with the support of the German Development Cooperation implemented by GIZ.
