ECONOMY OF THE REGION

MAIN ECONOMIC BRANCHES IN MUNICIPALITIES OF THE REGION

Banja Luka region dominates in total participation in the number of small and medium enterprises in the Republic of Srpska.Banja Luka region includes 4224 micro and small, 178 medium, 70 large companies and from that number 3858 are private, 549 companies in state ownership and 65 collective companies.

Total number of persons employed in micro, small and medium enterprises in 2004 amounts to 68 141 (representing 45, 5% of total number employees in mSME’s in the Republic of Srpska). Micro companies employ 7114, small 19 632 and medium 41 395 persons.

Banja Luka region has a long tradition in industry (wood industry, metal processing, food, tobacco, textile industry) and developed tercial branch such as trade, transport and crafts. Regional natural resources enable intensive economic development based on agriculture (farming, fruit growing, cattle breeding and fish growing), infrastructural and natural potentials (tourism).

AGRICULTURE AND FOOD PROCESSING INDUSTRY

The most important sectors are: farming (vegetables and wheat growing), fruit growing (apples, pears and plumbs), cattle breeding and fishing (trout and carp fish growing). Food industry dominates with production of meat, milk processing, fruit and vegetables processing, milling, bakeries and pasta production industry. This industry includes 377 companies which equals 8, 4% of totally registered companies.

FORESTRY AND WOOD PROCESSING

Forests in the region are lowland and offspring. Next to production of wood for further processing, forestry provides other advantages such as collecting mushrooms, medical herbs, hunting and fishing.

Wood processing includes production of cut wood and panels and production of final products made of wood (furniture and constructions). This branch of industry includes 348 companies or 7, 8% of totally registered companies.

CELULOSE-PAPER PRODUCING INDUSTRY, PRINTING AND PUBLISHING

Has a significant place in industrial production. Companies from this industrial branch work in production of paper, card-board, packaging and paper products as well as printing-publishing industry. These economic branches are organized as 56 micro and small enterprises or 1, 2% of totally registered companies.

TEXTILE AND LEATHER PROCESSING INDUSTRY

Includes production of clothes, lingerie and confection. Almost 90% of companies in this sector are involved in service providing while a very small number of companies produce its own collections. This branch is dependant from import of raw materials: fibers and leather. It includes 162 active companies or 3, 6% of totally registered companies.

ELECTRIC, CHEMICAL AND RUBBER INDUSTRY

Includes production of equipment for distribution of electricity, electrical equipment for motor vehicles, control instruments, orthopedic appliances, colors and pigments, fertilizers, plastic and ethereal oils. 175 companies or 3, 9% of companies are active in this branch industry.

METALURGY, METAL PROCESSING AND NONMETAL INDUSTRY

Includes ferrous metallurgy and non ferrous metallurgy, metal processing, metal construction, production of traffic appliances, ceramic appliances, fire resistant products asbestos and kaolin. This industry branch includes 274 enterprises or 5, 5% of totally registered companies.

ENERGY

Regional energy sector includes production, transfer and distribution of electricity, production of coal (hard and brown coal, lignite, and peat), industrial gas production.

Production of electricity satisfies needs of the Republic of Srpska and partially exports electricity. Main producers of hydro-energy are hydro-power stations located on Vrbas River. This industrial branch includes 39 companies or 1, 0% of totally registered companies.

CONSTRUCTION, CONSTRUCTION MATERIAL INDUSTRY, COMMUNAL AND SERVICING ACTIVITIES

Includes enterprises in the area of high-raise buildings, low-raise buildings, final and installing work in construction and projecting. Production of construction material includes: stone, sand, gypsum, brick and concrete products, lime and other.

This branch industry includes 657 enterprises or 14, 7% of totally registered companies.

TRANSPORTATION AND COMMUNICATION

Includes road, train, air and mail transport, freight forwarding and telecommunication with 380 active enterprises or 8, 5% of totally registered companies.

TRADE, CATERING AND TOURISM

Trade is one of main branches in the region employing the largest number of employees. A sale is conducted in modern buildings such as mega stores, supermarkets and other.

Tourism includes exceptional natural beauties, historical and cultural monuments, spa, hunting area and traditional hospitality of local community (mountains, spa, rural, transit and congress tourism) and catering as significant economic branch with bright future in this region.

This branch includes 2031 enterprises or 54, 4% of totally registered companies in the region.

 Chamber of Commerce and Industry of Banja Luka region