Sida's work in Bosnia and Herzegovina
Many challenges remain in Bosnia and Herzegovina 30 years after the war. In a country with one of the most complex political systems in the world, Sida is working to bring the country closer to EU membership – as a way to improve living conditions for all people in the country.
Sida's support in Bosnia and Herzegovina 2024
Important thematic areas in Bosnia and Herzegovina
Why does Sida work in Bosnia and Herzegovina?
Economic development is slow
The country’s economic development is steady but slow. Around one sixth of the population lives below the national poverty line. Poverty is more prevalent in rural areas. Unemployment in the country is high, especially among young people and women, while migration from the country causes a shortage of some occupations.
Continuing problems with discrimination
The country’s Roma minority is severely affected by both poverty and discrimination in areas such as education and health care. Women are discriminated against in the labour market and in political decision-making. People with disabilities often live in difficult conditions and LGBTIQ people face discrimination.
Many leave the country
The migration from the country continues to be high primarily among young people, mainly because of difficulties in finding a good job and because of the negative trend of widespread corruption and ethnic divisions.
Examples of what Sida has contributed to
Sida's development cooperation in Bosnia and Herzegovina
Sida’s development cooperation aims to contribute to moving the country towards EU membership, which is why Sida supports projects that strengthen good governance, human rights, gender equality and the country’s democratic development.
Political rhetoric has hardened in recent years, leading to increased political, geographical and ethnic tensions. The political system, resulting from the 1995 peace agreement, is complex. There are 14 governments at different levels and three heads of state – who need to coordinate and agree. The country is characterized by political gridlock, corruption and heavy bureaucracy that hinders reforms. Few people engage in politics and civil society because they feel they have no influence. Here are some examples of projects Sida supports to contribute to the country’s democratic development:
Sida supports several municipalities to strengthen accountability, empower citizens and develop better public services for citizens. Through the Local Councils (Mjesne Zajednice) project, the United Nations Development Programme (UNDP) creates forums for empowering citizens to influence political decisions and hold decision-makers accountable.
Sida provides support to independent media and investigative journalism, including the Centre for Investigative Reporting (CIN), which investigates and reports on corruption cases. Their reports on corruption in the construction of small hydropower plants have led politicians and citizens to recognize the problem and demand stricter regulation.
Sida supports women victims of violence through several women’s rights organisations and UN Women. The organisations both run shelters and lobby decision-makers to provide better protection for women victims of violence. Their joint advocacy work has helped women who have been victims of violence to gain the right to have a trusted person accompany them through the process of reporting the violence.
Almost thirty years after the war, the country is grappling with the consequences of the war. In many ways, the country is stuck in a frozen conflict that prevents society from developing towards better social services, inclusion of all social groups and co-operation between different parts of the country. Sida supports work for peace and reconciliation. Here are some examples of projects that Sida supports:
Many people disappeared during the war in the former Yugoslavia in the 1990s. In Bosnia and Herzegovina, approximately 30 000 people went missing as a result of the war. Through the International Commission for Missing Persons (ICMP), Sida supports efforts to identify missing persons. The work of finding and identifying missing persons is difficult but important to ensure the right to truth for the relatives and to strengthen transitional justice.
Sida, through the Stockholm Environment Institute (SEI), has supported the development of the first ever national environment and climate strategy. A number of actors and interest groups have participated in the work. Such as governments and institutions at different levels, as well as civil society and universities. The process has taken into account the perspectives of economically vulnerable people, equity and gender equality, resulting in a final document that lays a solid foundation for a just climate transition. The strategy has been formulated and decisions now remain to be taken. Once the strategy is adopted, Sida and SEI stand ready to support the implementation of the national strategy.
Bosnia and Herzegovina’s economic growth comes from a variety of sectors and markets. Most companies are state-owned and it is difficult for many small and medium-sized enterprises (SME) to enter the market. Unemployment is high, especially among young people, women and the country’s ethnic minorities. Sida supports projects that contribute to greater economic justice and jobs with good working conditions. Here are some examples of projects that Sida supports:
Through the Small Business Act programme, Sida contributes to changing regulations and legislation in line with EU legislation. The aim is to gradually make it easier for small and medium-sized enterprises to work and create good working conditions. Among other things, the support has led to the introduction of SME strategies at different levels in the state administration.
Through the Challenge to Change fund, which provides financial support for innovative businesses that create employment, Sida’s support has led to the creation of 600 new jobs.
In cooperation with the United States Agency for International Development (USAID), Sida supports entrepreneurs who have migrated from Bosnia and Herzegovina to run businesses in the country and reinvest in their former home country. By making it easier for them to borrow money from banks, conditions are created for the companies to develop their business. The support has led to more small and medium-sized enterprises operating in the country, increased employment and economic development. Most companies that have taken loans through the guarantee have stated that the loans have been instrumental in their growth. 62 companies with a total of 1,700 employees were covered by the loan guarantee in 2023.
Sida supports the Mozaik Foundation, which enables young people who are unemployed to start their own businesses. This is done through an internet-based learning platform, internships and start-up grants.
The Swedish government has decided to phase out the strategy. It will be completed by June 30, 2026. A new joint strategy for Eastern Europe, Western Balkans and Türkiye will be announced during 2025.
Updated: August 11, 2025