Nothing will redefine French-Serbian economic relations like high technologies, which will give them a completely new dimension. It is now already certain that links between the two economies are expanding from traditional sectors of cooperation – like the automotive sector, food industry, construction and infrastructure – to encompass the fields of ICT, artificial intelligence and biotechnology, but also green and energy transitions, including nuclear energy
Just a few facts need be cited to explain the importance of strengthening Serbia’s strategic partnership with France in the field of high technologies when it comes to the further development of the Serbian economy on the basis of knowledge and innovation. France is among the drivers of the Global Partnership on Artificial Intelligence, which Serbia will chair in the next three years. It is also a world leader in the applying of artificial intelligence (in various segments of business and life – from industry, via telecommunications and transport, to healthcare), in the digital transformation of traditional industries, IT solutions for smart roads, railways and cities, and in the development of the start-up community… Around 3,000 new high-tech companies were established in France last year, which is more than in any other European country, while the recent business summit in Versailles saw France manage to attract a record €15 billion in foreign investment from global tech giants, six billion euros of which will be invested in the development of artificial intelligence, with almost five billion to be dedicated to decarbonisation projects. In the process of transitioning to sustainable operations and renewable energy sources, France’s experiences, knowledge transfer and investments – as a country that produces 70 per cent of its electricity at nuclear power plants – are more than invaluable for Serbia.
Around 3,000 new high-tech companies were established in France last year, which is more than in any other European country
A new chapter in economic cooperation between France and Serbia officially opened in April 2024, with the Paris agreements between presidents Aleksandar Vučić and Emmanuel Macron, the documents then signed and discussions with French companies that already do business in Serbia, but also those interested in Serbia as their next investment destination. Analysts have confirmed the evaluations of state officials regarding the huge space to advance trade and investment cooperation in traditional sectors, as well as opportunities for new partnerships in the area of high technologies. The joint activities of the two countries’ largest business associations have intensified in recent months. The Chamber of Commerce & Industry of Serbia and France’s Medef network have made great progress on preparations for a major business forum that will be held at the Serbian House in Paris on 31st July, during the Olympic Games in France, and which will focus – apart from on the food industry and construction – on cooperation in the area of new technologies, with special emphasis on connecting IT companies.
Serbian-French economic cooperation has to date been marked by growing trade in goods, which has tripled since 2012 and exceeded a billion euros for the first time in 2018, while it has since increased to a value of 1.8 billion euros. Together with exchanged services worth 500 million euros, last year’s total trade exchange between the two countries reached 2.3 billion euros. With a population of 68 million, the French market – on which Serbian exporters last year sold goods worth a mere 770 million euros – is among the European markets where Serbia is expected to improve its export performance significantly in the coming period.
Viewed on the basis of individual products, frozen raspberries – despite a decline in the previous year – have been and remain Serbia’s top product in exports to France, with Serbian raspberry growers selling a fifth of their total world exports of this “red gold” on the French market. That which the raspberry represents in goods is represented by software in the exchange of services. The value of exports of computer services exceeded that of raspberries exported to the French market for the first time last year.
Cooperation between the two economies is nevertheless most strongly marked by the investments of French companies. A whopping 80 per cent of total French investment in the Western Balkans has been invested in Serbia. According to the records of the NBS, Serbia’s central bank, French net direct investments between 2010 and year’s end 2023 totalled 1.3 billion euros. And according to some estimates, when both initial and operational investments are taken into account, French companies have invested in excess of 2.5 billion euros in the Serbian economy.
A whopping 80 per cent of total French investment in the Western Balkans has been invested in Serbia. According to NBS records, French net direct investments between 2010 and year’s end 2023 totalled 1.3 billion euros
Around 300 companies under majority French ownership operate in Serbia today. They are present in almost all production and service sectors – from the automotive and food industries, via the machinery, wood, textiles, rubber and plastics industries, to the retail, construction, transport, tourism and ICT sectors. The experiences and business results of French companies in Serbia – such as Michelin, Lafarge, Tarkett, Schneider Electric, Mecafor, Novares, Hutchinson, Lohr, Streit Groupe, Le Belier, Lactalis, Savencia, Soufflet, Sicoberry, Accor, Atos etc. – represent the best recommendations to future French investors.
The trend of French companies investing in large infrastructure projects in Serbia, on the basis of the public-private partnership model, has marked the last decade. The concession-based investment in Nikola Tesla Airport elevated Vinci Airports to the top of the list of French investors in Serbia. Company Suez (now Veolia), in a consortium with Japanese company Itochu, is part of the concession for constructing and managing the Vinča facility for communal waste treatment and heat and electricity production, which was completed this year. Four French companies are already engaged in the design and construction of the Belgrade Metro. Local infrastructure development projects implemented together with the French Development Agency, which has its regional hub in Belgrade, are also underway.
New opportunities for French-Serbian partnerships have been created with Belgrade’s preparations to host Expo 2027, the launch of implementation of Serbia’s “Leap into the Future” national investment programme, which is worth 18 billion euros, and the construction of the Bio4campus as Southeast Europe’s future biotech hub.