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Bogota leading non-oil Direct Foreign Investment in the country

June 21, 2012
  • FDI fosters economic development of cities.

  • Bogota has experienced over two years of consecutive growth in terms of investment flows. Over the past 10 years, FDI in Bogota has accounted for 78% of non-oil investments in the country.

  • There has been a steady flow of investment coming from Latin American countries, towards Bogota. 

Bogota is the most attractive destination for non-oil Foreign Direct Investment in Colombia, and is the city that focuses the highest flow of capital resources towards added value sectors.

The inflow of foreign investment fosters economic development of cities; it promotes the generation of qualified labor, technological and knowledge transfers, and productive leveraging; it also increases productivity and competitiveness of local businesses.

The improvement of Bogota's competitiveness in terms of its business environment, quality of life and incentives on investment, has increased investor confidence and has driven the arrival of new capital.
  

 

FDI inflows into Bogota

 

Investment flows towards the city have been growing at a steady rate for over two years, and estimations indicate that this trend will continue, at least in the medium term.

Adriana Suarez, Executive Director of Invest in Bogota, explains: "as of 2011, Foreign Direct Investment flows into Bogota totaled US$2.828 million, which represented a 74% growth compared to 2010; it is expected that FDI flows during 2012 will exceed US$3.200 million; this is higher than the average from the previous years". 
 

* Not including oil or portfolio investments.

Source: Colombian Central Bank, based on Investment Records. Calculations by Invest in Bogota. 

 
Suarez continues to explain: "During the past 10 years, FDI in Bogota has accounted for 78% of non-oil investment in the country, and the city has consolidated itself as the main recipient of investments in greenfield projects for specialized services, trade and industry".
 


Economic sectors with foreign investment in Bogota 

 

A sectorial analysis carried out by the agency for the promotion of investment in Bogota, indicates that, as of December, 2011, the services industry accounted for 61% of the investments being made in Bogota. The most noteworthy were the real-estate (37%), financial (18%) and transportation (2%) sectors. Following the services industry are activities related to trade, industry and construction.
 
Compared to the previous year, the most dynamic sectors were: real-estate (202%), manufacturing (88%), trade (75%) and financial (51%). Some sectors showed a reduction in the amounts of capital investments received; such sectors were: transportation (-40%), electrical power (-31%), hotels (-16%) and construction (-3%).
 


Origin of investment flows

 

According to Adriana Suarez, "During 2011, Spain became the main country investing in Bogota, followed by Chile and the United States. Compared to 2010, the growth in Spanish investments was 72%, but more surprising still was the growth in Chilean investment, at about 192%. Investment from the US grew only by 6%.

During 2011, there was an evident growth in investments from Latin America. Brazil follows Chile with investments close to US$188 million, followed by Argentina, with US$106 million, Venezuela, with US$32 million and Mexico, with US$28 million.

 

FDI* inflows into Bogota in 2011, by country of origin. 

* Not including investments oil or portfolio investments.

Source: Colombian Central Bank, based on Investment Records. Calculations by Invest in Bogota.