06 de August 2014
Bogota on its Birthday No. 476
Market Research and Intelligence
Invest in Bogota
Table of Contents
I. Bogota in Numbers
II. Economic Strength
III. Foreign Trade
V. Human Resources
VI. Business Environment
VII. Investment Opportunities in Strategic Sectors
VIII. Quality of Life
Juan Gabriel Pérez, Executive Director of Invest in Bogota, says that “Bogota is a dynamic, prosperous, multicultural and creative city, one of the main business centers in Latin America and an attractive destination for foreign investment. The city offers investors a workforce of 4 million young technicians and professionals to ensure the scalability of any operation, a strategic location and a dynamic, diversified economy.”
I. Bogota in Numbers:
II. Economic Strength:
Bogota, the capital of Colombia, is a very dynamic market and is the focal point of the national economy. The city has a population of approximately 7.8 million inhabitants, which represent 16.3% of Colombia’s population. The city reached an economic growth rate of 3.7%, which exceeds the region’s average, which grew 3.1%.
Bogota produces 24.4% of Colombia's total GDP, an equivalent of 90.2 billion dollars. The capital's GDP is greater than that of countries such as Ecuador, Uruguay, Costa Rica, Panama, Bolivia and Paraguay.
Bogota's economy is diversified with emphasis on the service sector, which represents nearly 60% of the city's GDP.
54% of Colombia's financial transactions are concentrated in Bogota:
III. Foreign Trade:
Bogota's privileged location and the different free trade agreements in force in Colombia provide companies with access to an extended market of more than 1,450 million potential consumers and 44 trillion dollars.
Colombia has trade agreements in force with all the countries of South America, Canada, the United States, Mexico, El Salvador, Guatemala, Honduras, most of the European Union and the European Free Trade Associations. There are others under negotiation or to be formalized with Costa Rica, South Korea, Panama, Israel, Japan and Turkey.
Invest in Bogota calculations based on DANE-SIEX
Bogota's share in Colombia's total free trade is 27.8%. In 2013, exports amounted to USD 3,232 million and there were imports for USD 29,601 million (CIF), showing evidence of a deficit trade balance.
Bogota is the country's hub with the global economy; in fact, it has the airport with the most cargo movement in Latin America and ranks third in passenger movement. In addition, Bogota receives 53% of the total foreigners entering the country.
Bogota is strategically located in the center of the continent - a five-hour plane ride from New York, Mexico City and Sao Paulo - and has excellent air connectivity, with 36 direct flights every day to the main cities in the world. Thanks to its location and air connections, many companies have chosen Bogota as their regional headquarters, shared service centers and logistics centers to serve Latin America.
V. Human Resources:
Bogota offers a numerous, highly qualified work force:
Bogota's work force consists of approximately 4.5 million individuals and concentrates 38.4% of the country's graduates, representing 868,106 professionals. Every year, 100 thousand students graduate from higher education in the Capital, 28,000 of whom are graduate students. Between 2001 and 2012, 265,002 students received degrees in Economy, Administration and Accounting, 193,060 in Social and Human Sciences and 193,056 in Engineering, Architecture, City Planning and related degrees, which are the most common among students in the capital. (Labor Observatory).
47% of the country's research groups are concentrated in Bogota, along with 44% of the country's total PhDs. In addition, the capital has six universities ranking among the top 100 in Latin America.
VI. Business Environment:
Bogota has positioned itself among the leading, most competitive cities in the region, thus ensuring a favorable business environment. This is demonstrated by different indices:
- Ranking 6th among the 50 Best Cities to do Business in Latin America. Miami is included due to its business relationship with the region.
- 4th among 51 cities in Latin America for the attraction of investment in 2014 (IdN & CEPEC)
- 5th City of the Future among 49 Latin American cities. (fdi Magazine of the Financial Times Group)
- 7th in Latin America and 48th among 417 cities in the world in the International Ranking of Corporate Tourism 2013 (ICCA-International Congress and Convention Association).
- 4th in the Ranking of Global Cities of Latin America (A.T. Kearney & the Chicago Council on Global Affairs).
VII. Investment Opportunities in Strategic Sectors:
The Greenfield investment that arrived to Bogota over the last 10 years amounted to approximately USD 11,500 million and the number of Greenfield projects during the same period rose 32% on average per year.
Between 2003 and 2013, the main countries of origin for investments in new projects (Greenfield) in Bogota were: United States, Spain, France, Chile and Germany.
Investment was concentrated mainly in the service sectors (53%).
As one of the primary cities in which to do business in Latin America, Bogota offers major investment opportunities. At present, nearly 1,500 companies with the participation of foreign capital have been established in the city.
There is a tendency in the city toward specialization in services with high added value to serve the local and regional market. These sectors are dynamic and attractive for investment, and they are characterized by accelerating the transfer of knowledge and new technologies, generating a large number of qualified jobs and contributing to the city's development.
These sectors include Offshore services, which due to the extensive experience, competitive costs, abundant qualified human resources, strategic location and constant government support, make Bogota the ideal destination to carry out outsourcing operations involving services, BPO, KPO, shared service centers and software, among others. In addition, there is great potential in audiovisual production, corporate infrastructure, oil services, training centers, value-added manufacturing and R+D+I activities.
Strategic sectors with investment potential in Bogota:
VIII. Bogota has excellent quality of life:
Bogota is becoming a more and more vibrant cultural epicenter for the region, with an extensive, diverse offering that includes music, theater, art, film, dance and literature. The city has 58 museums, 70 art galleries, 45 theaters, one of the most important theater festivals in Latin America (FITB, that brings together companies from 66 countries and 2.8 million spectators), a contemporary art far (artBO, that receives more than 25 thousand visitors and 65 galleries from 20 countries), a network of public libraries and diverse festivals and alternative spaces for film. As a member of the Unesco Creative Cities Network, Bogota has a consolidated musical scene that hosts the best domestic and foreign talent and offers festivals such as Estéreo Picnic, Rock al Parque, and the Bogota International Music Festival.
With the largest fleet of electric taxis on the continent, a boom of sustainable construction with at least 6 LEED GOLD certifications and more than twenty LEED SIVER certifications, a growing fleet of hybrid buses for mass transport and projects for urban renovation with the bicycle playing the leading role, Bogota is recognized as a Smart City: Fast Company named Bogota the third most intelligent city in Latin America and in 2013 it became the first Latin American venue for Smart City Expo. In addition, the city offers a broad ecosystem for the sector of technological development: it has the first innovation and development center in Colombia, an alliance between Blackberry and the Universidad Javeriana, and Vive Lab Bogota, a space for experimentation developed by the Universidad Nacional for innovation focused on intelligent solutions for the city.
Bogota is a green city that is concerned with integrating national resources into the urban development that characterized it in past decades. It now has more than 5,000 urban parks and 14 wetlands that serve as a flora and fauna reserve and contribute to the improvement of air quality. Es también un destino para el turismo ecológico, rural y de aventura: lugares como el embalse del Neusa, el Jardín Botánico José Celestino Mutis o el Parque Nacional Chingaza son imprescindibles para los amantes de la naturaleza. In addition, you can ride through Bogota on a bicycle: it has 344 kilometers of bicycle paths, a public bicycle loaning project and 127 kilometers of bicycle lanes. This project has been replicated in more than 50 cities around the world.
Bogota is experiencing a gastronomic boom that has ranked it as one of Latin America's gastronomic capitals. The offer of national, international and fusion dishes is increasingly varied, with local chefs working to rescue or reinvent the country's culinary traditions, and others that arrive in the city to pen restaurants or provide guidance. There are 19 district markets and a growing network of urban gardens that supply the six gastronomic zones distributed around the city: the G Zone (which is the gourmet zone), the T Zone (thanks to the design of the streets in a T shape), the C Zone (located in La Candelaria neighborhood) and the M Zone (due to its location in the Macarena neighborhood), in addition to Parque de la 93 and Usaquén.