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Investor Presentaiton

Options for interventions (2/2) LOCAL PRODUCTION Majority of firms in key sectors are having some issues with their supply chain and by far the worst hit are textiles and fabricated metals (less than 30% of them have a sufficient supply of raw materials or intermediate products for their production/services) Local and global shift in supply chains towards closer supply sources indicated the need for strengthening local production. Coupled with country branding and promotion of domestic products and services, this initiative could contribute to making the market more resilient to future crises. • • . DIGITAL TRANSFORMATION 42% of survey respondents rated SDG 9. Industry, Innovation, and Infrastructure as a key goal for sustainable recovery. Digital electronic / cyber initiatives, especially related to legislative and regulatory frameworks, have to be accelerated. Lack of functioning digital signature as one of the key problems in doing business in BiH. LEGISLATION IMPROVEMENT • • • 40% of respondents from FBiH and 23% of them from RS stated that inadequate legal framework is the most important factor limiting their business. Legislation frameworks for certain industries (e.g. hotel industry) have to be improved in order to fill the gaps exacerbated during the crisis. In some instances the relief measures cannot be utilized by the businesses that should have benefited from it due to specifics how the measures have targeted the industries. • • SUSTAINABILITY 38.6% of respondents stated that the COVID- 19 will have negative impact on the achievement of SDGs by 2030, 20.93% stated that the impact will be mixed, while 12% had a positive perspective. As recognized by some of the focus group representatives, the crisis represents a unique opportunity to purse an environmentally friendly approach with recovery options. • Development of a green public procurement, changes to environmental taxes as a part of larger reforms of the tax system are examples to be considered. 13
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