Bosnia-Herzegovina

As for the governmental spending for military expenditure, Bosnia-Herzegovina has decreased significantly its related budget, when compared to the 7.6% of 2002. More specifically, of the 2016 BiH budget, about 14.5% was projected to be spent on Social protection, 6.2% on Health, 6% on Public services, 4.9% on Education, 2.6% on Economic affairs and only 1% of the GDP on Defence. In more detail, in 2002, BiH spent US $ 437.6 million on Defence, while in 2015, the government spent only US $ 193.04 million.

Bosnia’s Arms industry, despite the country’s slow progress, has managed to triple its exports in the last 5 years, with an annual recorded export worth some US $40-50 million (2014 data). After the reconstruction that took place following the end of the Bosnian war (1995), the country has managed to rebuild and modernize its factories, selling arms and ammunition to over 50 countries worldwide, and having a total turnover of some €100 million.

The production of ammunition and specially designed components, explosives and optical equipment, as well as parts related to the defence industry, tanks and military vehicles, as also the overhaul of military equipment, have been at the forefront of the related industry’s activities in BiH. Significant players of the national Defence Industry, are included in the below tables:

  • UNIS GROUP is responsible for research, development, production, sale and marketing of products and services, manufactured by its member factories. These are:

Company

Products/Services

BNT – Tvornica masina I hidraulike (TMiH), d.d.

Arms, mortars, guns & howitzers, rocket launchers & systems

BINAS d.d. Bugojno
  • Fuses (for artillery, mortars, rockets, anti-armour weapons)
  • Gun primers for artillery & rockets
  • HE 40mm cartridges for grenade launchers
  • Explosives processing & pyrotechnical components manufacturing

PS VITEZIT d.o.o. Vitez

Various types of explosives, detonating fuses, etc.

TRZ d.d. Hadzici
  • Overhaul, modification and upgrading of all types of motorcars and arms
  • Production of protection equipment

UNIS GINEX d.d. Gorazde
  • Explosives & chemicals
  • Primers, detonators, pyrocartridges igniters and fuses for several types of arms and ammunition

ZRAK d.d. Sarajevo

Optical & optoelectronic devices & laser technique (Fire control systems, sighting, observation & measuring devices for infantry, artillery and tanks)

PRETIS d.d. Vogosca

Ammunition for various types of mortars, guns, rockets and infantry weapons

IGMAN d.d Konjic

Ammunition for most types of weapons, including blanks and special ball ammo
  • Additional BiH defence companies are included in the below table:

Company

Products/Services

ORAO, Bijeljina
  • Aircraft – turbojet engines & components
  • Overhaul of turbojet engines

Factory of Special Purpose Engines (FMSN), Pale
  • Auto-components  and  vehicle  engines  (574  kW  to  735  kW) for  tanks,  heavy military vehicles and large construction machines

FAST, I. Sarajevo

Production of:

  • Auto-components, gearboxes and transmissions for various types of tanks, infantry fighting vehicles and boats

CAJAVEC, Banja Luka
  • Telecommunication equipment
  • Measuring-detecting devices
  • Military electronics (Rocket control, anti-aircraft systems)

ZRAK, Teslic
  • Optical & optoelectronic devices & laser technique (Fire control systems, sighting, observation & measuring devices for infantry, artillery and tanks)

RZT Travnik
  • Overhaul & modification of optical, optoelectronic, radio and other electronic devices

According to the latest detailed data available (2009), the main BiH Arms and Military equipment (AME) importers, were Serbia, the Czech Republic, Austria, Slovenia and Hungary.

In a different perspective, according to the Sipri database, recorded military exports from BiH, include Armoured Vehicles and Artillery, directed to Cameroon and Afghanistan respectively, in 2002, 2011 and 2013.

 

2002

2011

2013

Total

Type

Armoured vehicles

Artillery

Artillery

 

Value (in US $ million (1990) prices)

4

14

3

21

Country

Cameroon

Afghanistan

Afghanistan

 

Source: http://armstrade.sipri.org/

It seems that BiH’s Military industry, has found the path to achieve some initial international exports. New contracts have been placed with the local industry in recent years, leading to a notable expansion of the sector, increasing significantly associated employment and creating further economic development opportunities for the country.