Bosnia and Herzegovina (BiH) has a highly complex and decentralized political system, with administrative responsibilities divided across state, entity, and cantonal levels. This fragmentation creates serious obstacles to promoting innovation and the adoption of new technologies. The Ministry of Foreign Trade and Economic Relations (MoFTER) coordinates the “Small Business Act for Europe” working group (SBA WG), a platform that aims to improve small business policies in line with EU standards.
The group brings together representatives from institutions responsible for economic development in BiH, including the Ministry of Development, Entrepreneurship and Crafts in the Federation of BiH (FMRPO), the Ministry of Economy and Entrepreneurship in Republika Srpska (RSMPP), and the Government of Brčko District/ Department for Economic Development, Sports, and Culture (BD). Even though there is cooperation, these institutions still have limited staff and resources, which makes it harder for them to fully support innovation and small business growth.
In the field of e-government in BiH, the mentioned institutions and organizations have been identified as key institutions in charge of fulfilling the objectives of the public administration reform process in terms of service delivery to citizens.

GIZ will implement a targeted set of activities that combine technical assistance (TA) and financial assistance (FA) in a harmonized,
impact-driven manner.
The Action focuses on improving the technological bases of key BiH stakeholders for e-government by supporting the optimization of key information and communication technology (ICT) infrastructure and the development of a digital identification system for citizens. This will contribute to creating capacities for innovative policy approaches enabled by new digital technologies and to the establishment of a national Digital Identity Wallet in a mid-term perspective.
Both technical and financial assistance should be provided in a coordinated manner to achieve the set goals in this output.
The Action aims to build the capacities of selected meso organizations (intermediaries) to successfully promote and access the funding offered by the Digital Europe Programme (DEP), thus fostering digital transformation activities in both the public and private sectors. This line of activities will also provide a foundation for SMEs to integrate new digital approaches by improving access to finance and technical assistance (TA) for targeted digital transformation and eco-innovation.
Moreover, interventions aim to enhance Business Support Organizations (BSOs) through advisory services and capacity development, enabling them to serve as effective providers of services related to accessing DEP funding. Additionally, DIHs will be capacitated to gain access to DEP funding for their projects aimed at assisting the digital transformation of the public and private sectors.
Special attention will be given to capacity building of business service organizations, including digital innovation hubs, development agencies, universities, and others related to better access to Digital Europe Programme funding. It is expected that the mentioned organization improve its human capacities and submit relevant proposals for funding and thus act as mediators in the development of digital transformation ecosystem in the country.
The interventions should lead to the following envisaged results:
More robust, safe, and cost-effective digital infrastructure in state institutions that will support the creation and provision of e-services,
BiH Digital Identification System is stepping up its development in the form of an advanced technical pilot of the Digital ID Wallet for citizens.
BiH stakeholders in the digital ecosystem, including SMEs are benefitting from Digital Europe Programme and developing long-term capacities for fostering digital transformation in the country.
Civil servants have increased their awareness of various aspects of digital transformation.