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11 reasons for investing in eastern Serbia

The closest neighbor of the EU and 330km from the border with the EU
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Skilled and adaptable workforce with competitive labor costs
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Extensive interventions are in progress to improve the transport infrastructure in the region
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Large offer of locations for greenfield and brownfield investments at more than competitive prices
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A large number of potential local suppliers
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Numerous examples of successful investments
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Quality business environment with excellent incentives from the state
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Foreign trade of the region (import-export) doubled in the last 5 years
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Preserved environment and significant natural resources
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Dedicated local self-government that sees investors, above all, as partners
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Key facts

  • The closest neighbor of the EU - Eastern Serbia has 330 km of border with the EU (Romania and Bulgaria).
  • Area of 7,133 km²
  • Two administrative districts - Zajecar and Bor, two cities - Zajecar and Bor and six municipalities: Knjazevac, Boljevac, Sokobanja, Negotin, Majdanpek and Kladovo.
  • 200,785 inhabitants
  • More than 6,300 entrepreneurs and 1,700 companies.
  • About 54,000 people are employed with an average salary of about 69,810 dinars (net), while there are about 14,000 unemployed.

ECONOMY

Population:

CITY/MUNICIPALITY DISTRICT POPULATION
Bor Bor district 41,280
Kladovo 18,002
Majdanpek 14,663
Negotin 29,062
District total 103,007
Boljevac Zajecar district 10,373
Knjaževac 25,459
Sokobanja 13,325
Zaječar 48,621
District total 97,778
Eastern Serbia Total 200,785

People with secondary school education dominate the educational structure of the region, including 35.2% women and 48% men, while there are 10% women and 11.6% men with university and master degree.

 It is estimated that today more than 30,000 people are in the diaspora.

Total investments in assets in 2021 in Eastern Serbia amounted to 584.2 million euros, and the structure of investments looked like this (in 000€):

Territory Total Construction works
Domestic equipment
Imported equipment
Other
Eastern Serbia TOTAL
584,223 242,846 66,518 194,054 80,804
Boljevac 5,116 1,614 3,180 280 42
Bor 431,514 184,706 27,649 143,368 75,790
Zaječar 44,175 15,421 18,272 8,471 2,012
Kladovo 28,245 12,710 3,157 12,263 115
Knjaževac 3,906 897 1,256 1,446 308
Majdanpek 60,609 25,327 6,912 26,325 2,045
Negotin 8,697 1,101 5,504 1,717 375
Sokobanja 1,960 1,070 589 185 117

Source: Chamber of Commerce of Zajecar and Bor administrative districts

Looking back five years, in the period from 2017 to 2021, the total export of the region of Eastern Serbia has tripled. Compared to 2017, when it amounted to slightly more than 428 million euros, it increased to 1.37 billion euros in 2021.

The increase in export is significantly higher compared to the growth of export of the Republic of Serbia.

Total export for the period 2017-2021 (in 000 €):

Territory 2017 2018 2019 2020 2021
Bor 211,889 211,438 365,362 417,537 1,165,681
Kladovo 14,851 15,515 17,949 24,589 23,867
Majdanpek 60,179 63,311 56,545 3,491 1,575
Negotin 23,609 18,902 65,753 54,063 31,898
Boljevac 7,753 6,068 7,243 6,324 7,306
Zaječar 70,809 65,957 45,455 31,307 91,766
Knjaževac 38,987 41,489 48,809 40,291 48,145
Sokobanja 60 94 128 316 157
Total Eastern Serbia 428,153 422,800 607,260 577,919 1,370,395

 

Import had a similar trend to the growth of export, which grew from 408 million euros in 2017 to 718 million in 2021. In the observed period, Eastern Serbia constantly recorded a surplus.

Total import in the period 2017-2021 (in 000 €):

 

Territory 2017 2018 2019 2020 2021
Bor 192,494 212,911 422,264 509,092 564,856
Kladovo 13,889 15,055 15,455 10,754 19,515
Majdanpek 72,706 65,506 53,047 4,694 7,313
Negotin 17,685 20,349 25,753 23,365 63,229
Boljevac 4,238 3,209 3,719 3,470 4,777
Zaječar 84,715 80,511 77,140 51,614 30,515
Knjaževac 22,306 22,494 22,885 17,888 27,420
Sokobanja 230 298 426 628 426
Total Eastern Serbia 408,289 420,340 620,715 621,505 718,050

 

On the territory of Eastern Serbia in 2022, about 54,000 people were employed, i.e. about a quarter of the total population. The structure of the number of employees by activities is dominated by services. Today, about a quarter of the total number of employees work in the processing industry of Eastern Serbia, and mining with nearly 10% of employees is of exceptional importance for the region.

Average salaries without taxes, in the period from 2015-2022 recorded a significant increase from 41,149 dinars in 2015 to nearly 70.000 dinars in 2022.

In 2022, there were 14,000 registered unemployed in Eastern Serbia. The number of the unemployed has been decreased for more than 1/3 in the last five years, from 20,710 unemployed in 2018 to 14,000 in 2022.

In Eastern Serbia there were 1,766 active companies in 2021 and almost 4 times more registered entrepreneurs (6,396). The number of active entrepreneurs has been constantly growing in the last five years.

One of the most significant investments in Eastern Serbia is certainly the purchase of the Bor Mining and Smelting Complex by the Chinese company Zijin, which has so far invested nearly 700 million dollars, and the planned investments in the mine are more than 3 billion dollars in the municipalities of Bor and Majdanpek.

The largest investment in tourism in Serbia is located in Eastern Serbia - in the municipality of Knjazevac, and that is the construction of a ski center on Stara Planina - construction of ski and supporting infrastructure and hotels) in which over 42 million euros have been invested so far.


Significant investments in the region:

 

Zijin (China)

Bor


 

Poseidon Property (United Kingdom)

Zaječar


United Serbian Breweries („Heineken” i „Efes”)

Zaječar


 

Rhein-Donau Yard (Netherlands – Romania)

Kladovo 


Telefonica Cable (Poland)

Zaječar


 

Falc East (Italy)

Knjaževac


Strabag (Austria)

Zaječar


 

Dutch Design Studio (Netherlands)

Kladovo


Hatiba (Germany)

Knjaževac


 

Bio Energy Point (Serbia)

Boljevac


Eliksir (Serbia)

Negotin

 

 Agromehanika (Serbia)

Boljevac


The region of Eastern Serbia also has significant resources for tourism development: the Danube River with Iron Gate Gorge and Djerdap National Park, mountain massifs dominated by Stara Planina, with a ski center, but also Crni Vrh, Kučaj Mountains, Deli Jovan, Mali and Veliki Krš, Miroč, Veliki Greben, Homolje mountains, Ozren, Rtanj, Devica, Tupižnica, Tresibaba, and Vrlejica, then thermo-mineral springs - primarily Sokobanja, as well as Gamzigradska Banja Spa and Brestovačka Banja Spa. There are potentials for further development of tourism in Nikoličevska Banja Spa, Rgoška Banja Spa, Jošanica Banja spa and many others.

Cultural heritage is represented by archeological sites, cultural monuments, ethno-values of traditional villages: archeological sites Gamzigrad-Felix Romuliana (under UNESCO protection), Lepenski Vir, Ravna-Timacum minus, Diana-Zanes, Fetislam, Trajan's tablet, Trajan's bridge, Vrelo -Šarkaman, Sokograd, Vrmdžanski grad, wine cellars in Rajac, Rogljevo and Smedovac, as well as numerous churches and monasteries.  

Number of tourists and number of overnight stays in 2022:

Territory Tourists Overnight stays
Total Domestic Foreign Total Domestic Foreign
Bor 10,694 8,700 1,994 43,780 34,990 8,790
Kladovo 39,743 31,328 8,415  109,602  86,811  22,791
Majdanpek 20,566 17,810 2,756  48,980  44,152  4,828
Negotin 6,422 5,386 1,036  28,749  24,910  3,839
Zaječar 14,680 10,107 4,573  43,606  32,502  11,104
Boljevac 15,852 13,850 2,002  55,126  49,804  5,322
Knjaževac 25,423 21,455 3,968  103,743  90,124  13,619
Sokobanja 161,284 154,704 6,580  783,205  764,649  18,556
Total Eastern Serbia 294,644 263,340 31,324  1,216,791  1,127,942  88,849

Source: Republic Statistical Office

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