First in Croatia with the Certificate of Favorable Business Environments

Bjelovar and Ivanec are the first cities in Croatia to meet the criteria for obtaining the international BFC certificate, which signifies a positive entrepreneurial climate in municipalities and cities of Southeast Europe, in accordance with international standards.

Bjelovar, the city where building permits are obtained the fastest in Croatia, has satisfied more than 75 percent of the set criteria of the first regional project for attracting investments at the local level, emphasizes Saša Drezgić from the Faculty of Economics at the University of Rijeka, the coordinating body for the issuance of certificates in Croatia.

It has recently been confirmed that Ivanec will also receive the BFC sign, which means that this Croatian city should also become internationally recognized as an environment favorable for investors. The BFC (Business Friendly Certification) certificate signals to investors that local communities have adapted to their needs, are prompt in issuing building permits and registering new business entities, transparent in tax policy, with secured communal infrastructure, and successful in promoting existing resources and new investments.

The project is financed by the German government, through the German Society for International Cooperation (GIZ) and the Open Regional Fund. The holder of this pilot project is the Serbian National Alliance for Local Economic Development (NALED), which collaborates with regional partners.

The first certificates will officially be awarded in the middle of this month, thus concluding the trial phase of the project, in which five cities or municipalities from Croatia and Serbia and four from Bosnia and Herzegovina and North Macedonia participated.

From Croatia, in addition to Bjelovar and Ivanec, three more cities were included – Rijeka, Crikvenica, and Osijek. Verification committees are still visiting the involved local communities, and it is currently known that, along with Bjelovar and Ivanec, Prijedor and Sanski Most in Bosnia and Herzegovina have also met the conditions.

Media representatives from the region have recently visited the municipalities and cities that participated in the project, whose government representatives, although very satisfied with the program itself, mostly warned of resistance to changes in local administration, as well as the misalignment of state policy and legislation with local needs.

Ernst Bode, the CEO of Messer, which operates in all four countries participating in the project, emphasizes that municipalities with the BCF certificate have an advantage when deciding on new investments in the region. By accelerating the slow administration, he estimates that industrial production in this area could even double.

The implementation of the project in Croatia foresees the establishment of a database of ready data for potential investors and the promotion of certified cities at all levels – from the Croatian Chamber of Commerce to the relevant ministries.

– The intention is for investors not to come randomly anymore, but for cities and municipalities to design and plan their development themselves – emphasizes Drezgić. He notes that Croatia must open up to new areas of investment as there is no longer room for the acquisition of banks and telecommunications, which has mostly been the previous practice.

The first certificates for favorable business environments will be awarded at a conference in Zagreb in mid-June, when the entire project is expected to exit the trial phase and fully come to life in the region. This creates prerequisites for announcing a public call to all interested municipalities and cities to participate in the project of enhancing their competitiveness.