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Bogota, only Colombian city among the Top 10 to do business in Latin America

August 20, 2013
  • Although Bogota held its ranking in the eighth position, the city's results in some specific indicators show that Bogota has improved its competitiveness.
  • This is an important acknowledgment of the initiatives being carried out in terms of legal stability for investors, that have allowed for an increase in confidence and an improvement in the city's business climate. 
  • The city is capable of housing regional operations on account of its extensive offering of skilled labor, good air connectivity and telecommunications, and broad access to international markets. 
  • The second Colombian city in this ranking is Medellin, at number 20, holding the same position as last year.   Cartagena was ranked 24, Cali moved up to 27, and Barranquilla up to 33.
  • Methodology for the Urban Competitiveness Index (ICUR) used by AméricaEconomía for its annual ranking.   

Bogota continues to be ranked among the Top 10 most attractive cities to do business in Latin America, and is the only city in Colombia to belong to this select group, according to Chilean AméricaEconomía, in its most recent special report.  In 2013, the Colombian capital managed to hold its eighth place in the ranking, first achieved in 2010; this even when faced with strong competition among the main cities in the region, which seek to consolidate themselves as business hubs, attractive for investors. 

Juan Gabriel Perez, Executive Director at Invest in Bogota, explains:  "Even though Bogota held its eighth position, the results of some of the city's specific indicators show that Bogota has improved its competitiveness; for example, Bogota was ranked second in fiscal incentives and pro-investment climate, above Miami, Lima, Panama City and Sao Paulo.  

This is an important acknowledgment of the initiatives being carried out in terms of legal stability for investors, that have allowed for an increase in confidence and an improvement in the city's business climate

Best cities with fiscal incentives and pro-investment climate according to total number of executives (%)

Source: 2013 Executive survey, América Economía Intelligence. ´

 

Perez continues:  "Another noteworthy aspect is that Bogota was classified as the fourth city to serve as a regional platform for international businesses, after Miami, Sao Paulo and Santiago. The city is capable of housing regional operations on account of its extensive offering of skilled labor, good air connectivity and telecommunications, and broad access to international markets".

 

Best cities to serve as regional platforms for international businesses, according to total number of executives (%)

Source: 2013 Executive survey, América Economía Intelligence. ´

 

In the general ranking, Miami continues to lead, followed by Sao Paulo and Santiago, cities which have established their strong positions on account of their business dynamics and market potentials. Panama City has been gaining recognition due to its logistical benefits, security conditions, and for being a hub for important companies, which contributed to its inclusion into the Top 5. Lima was ranked ninth, just after Bogota.

The second Colombian city in this ranking is Medellin, at number 20, holding the same position as last year. Cartagena was ranked 24, Cali moved up to 27, and Barranquilla up to 33.

 

Best cities to do business in Latin America*, 2013

Source: América Economía Intelligence, 2013.  Invest in Bogota Process
*Miami is included in the ranking, on account of its commercial relationship with the Region.

 

Invest in Bogota's director concludes:  "Bogota enjoys an admirable position, and is close to being recognized as one of the region's main business hubs. However, it is important to continue with the structural reforms required to improve its business environment, as there are other cities which are taking strides in this direction and which, in the future, could pose a threat for Bogota's competitive position.  It is necessary for the public and private sectors to work hand in hand on innovative strategies and initiatives that will allow for a strengthening of Bogota's competitive advantages, in order to move towards the achievement of the common goal of increasing the revenues and well-being of the city's residents. 

 

Methodology

The AméricaEconomía ranking is built based on the Urban Competitiveness Index (ICUR) methodology and calculation, a complex tool that allows for a sorting of the cities surveyed from their greater to their lower business capacity / potential.  It analyzes the quantitative variables and the perception that companies and executives consider when making the decision to base their operations in a given city. Variables assessed include:  macro-economic and social-political structure of the country where the cities belong to, dynamics and strengths of the local economy, services available to companies, quality of life, security, physical and digital connectivity, intellectual capital and environmental sustainability, among others.