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The ‘sexiest’ Colombian cities for investing

May 25, 2017

The hard work being done by Bogota, Cali and Medellin to attract direct investment to their territories has shown significant results. No wonder, then, that the "American Cities of the Future 2017/2018" ranking, researched by the FDI Intelligence division of the Financial Times, ranks it among the top 10 of 49 American cities evaluated. 

The hard work being done by Bogota, Cali and Medellin to attract direct investment to their territories has shown significant results. No wonder, then, that the "American Cities of the Future 2017/2018" ranking, researched by the FDI Intelligence division of the Financial Times, ranks it among the top 10 of 49 American cities evaluated. A significant record.

These capitals were recognized in the category: "Major American Cities of the Future 2017/2018 FDI Strategy", which assesses cities with over two million inhabitants in their metropolitan area and the cost-benefit relationship obtained by the firms investing there, rubbing shoulders with Chicago, New York, Montreal, Los Angeles and Miami, which held the top five positions.

Bogota, Cali, Sao Paulo, Medellín and San Antonio completed the podium of the top 10 capitals in their strategies aimed at attracting major capital flows to their regions and the country which, as well as value, create jobs.

In 2016 Colombia received Foreign Direct Investment (FDI) flows of USD 13.59 billion, according to the Bank of the Republic. The Bogota Region alone received USD 2 billion through 80 projects of foreign companies that have created 7,600 new jobs, according to estimates me by Invest in Bogota.

Commodities

Juan Gabriel Pérez, CEO of Invest in Bogota, explains that the United States has now become the main investment partner in the city-region, representing 23.8% of all projects.

He emphasizes investments made by companies such as telecommunications firm MVS USA, with a total of USD 146.6 million; Sanford Group, with USD 60 million; Air Liquide - health services - which has invested USD 52 million and Obviam USD 40 million. The last two were thanks in large part to the agency’s efforts.

The capital of the Republic behaves in a very particular manner. Unlike the nation as a whole, the largest share of FDI received by the Bogota-Region is located in sectors other than commodities. According to Invest in Bogota estimates, while in Colombia the average percentage of FDI during the last 10 years personal, social and business services activities has only been 20%, this proportion in the case of the Bogota Region has been over 50%.

Invest in Bogota’s director explains that one of the agency’s strategies has been to travel around and seek out companies in many different places, including Asian countries, showing them the potential of the city and invite them to establish anchor organizations in different productive sectors.

In the case of Cali, Alejandro Ossa, director of Invest Pacific, indicates that the strategy of this investment promotion agency is supported by four pillars: increasing investment in strategic sectors of the Valle del Cauca; position the department as a destination for foreign direct investment; strengthen relationships with actors that influence investment and guarantee the sustainability of the agency.

This task is being undertaken in cooperation with public entities, the unions and the businessmen themselves in the region. The agency’s plan is that between 2015 and 2019 , 90 new projects are established and that investments are made for a total of USD 566 million with the creation of 5,000 new jobs.

Ossa explains that there has been a change in the investment sectors. While in 2015 and in previous years resources focused on services, in 2016 they moved into the manufacturing and agricultural sector.

Last year 16 new projects were supported by the Agency, plus others that were not the result of its efforts. These projects have generated an investment of USD 126 million and 1,000 direct jobs. Activities such as agrochemicals, packaging, auto parts, supplies for the cosmetics industry and mass consumption have been gaining strength in the region. The projection for this year is to attract 21 business projects that involve an investment of some USD 130 million, according to estimates made by Invest Pacific.

 

Published in: Dinero.com