11 de May 2015
Bogota seeks business development and cooperation opportunities in Mexico
Bogota is seeking to strengthen its relationship with Mexico by sharing experiences to improve cities’ competitiveness, open new markets for foreign commerce, become a valid option for Mexican enterprises seeking to expand in value-added sectors, and stimulate social and economic development—thus benefiting people from both cities.
One of the most dynamic markets on the continent, the Colombian capital has excellent growth prospects, making it an attractive destination for Mexican enterprises.
Since 2003, Bogota has received 23% of all Mexican greenfield investments in Colombia. In 2014, Mexican investment in Colombia grew by 27%—with investments worth US$ 465 million—compared with the previous year. In the last decade, Mexican foreign direct investment (FDI) in Colombia has risen by 125%.
Over the last eight years, Mexico has made greenfield investments totaling US$ 430 million in Bogota.
Mexican greenfield investments in Bogota mainly target the telecommunications sector. In 2014, investments in this sector increased due to an investment worth US$ 199.3 by America Movil (Claro). Investment by sector can be classified as follows: 52% in telecommunications, 23% in software and IT services, 13% in food and tobacco, 5% in hotels and tourism, 2% in pharmaceuticals, 2% in business services, 2% in entertainment, and 1% in beverages.
Martha Lucía Zamora, the District’s General Clerk, stated “With this mission, we want to strengthen the areas for cooperation within the framework of the memorandum of understanding between Mexico DF and Bogota signed by the current mayors, Dr. Gustavo Petro Urrego and Miguel Ángel Mancera. The purpose is to strengthen cooperation in areas of mutual interest, especially in implementing projects that can build bonds of trust and benefit the people of both cities. The said areas of cooperation include transportation, mobility and viability, urban development, environment, healthcare, and international relations.
Mónica de Greiff, Chairman of the Bogota Chamber of Commerce explained “Bogota seeks to strengthen relationships with Mexico by sharing experiences to improve cities’ competitiveness,open new markets for foreign commerce, become a valid option for Mexican enterprises seeking to expand in value-added sectors, and stimulate social and economic development—thus benefiting people from both areas. Therefore, Mexico is invited to be the guest of honor at this year’s Bogota Audiovisual Market (BAM) and Bogota Music Market (BOmm) programs hosted by the Bogota Chamber of Commerce.”
Juan Gabriel Pérez—Executive Director of Invest in Bogota, a public–private initiative—stated “The Colombian capital city is attractive to Mexican enterprises, as it has one of the most dynamic markets in the region and the greatest growth potential on the continent. It can offer businesses competitive advantages that exceed those of its Latin American peers due to its economic strength, highly qualified human talent, favorable business environment, privileged geographical location, easy access to markets, and excellent quality of life.”
Currently, investment opportunities in Bogota are available in varied sectors, including services (IT services, BPO and shared services, creative industries, business services and consulting, services for the petroleum and gas industry, and clean technologies), manufacturing (automotive and transport, cosmetics, chemicals, and processed foods), biotechnology and life sciences (biotechnology, pharmaceutical supplies, medical supplies and equipment), and infrastructure and city projects (transport infrastructure and logistics, city projects, and hotel management and tourism).
Pérez continued “Since 2003, 23% of the Mexican Greenfield investment in Colombia has been allocated to Bogota. In 2014, Mexican investment in Colombia grew by 27% compared with the previous year, with US$ 465 million invested. Over the last decade, Mexican FDI in Colombia rose by 125%.”
In the last eight years, Mexico has made greenfield investments of US$ 430 million in Bogota. In terms of countries investing in Bogota in the last decade, Mexico ranked second among Latin American countries. It was also one of the top eight countries investing in Bogota, following the US, Spain, France, Germany, Chile, the UK, and Portugal. Mexican greenfield investments in Bogota were mainly made in the telecommunications sector. Investments in this sector increased in 2014 due to an America Movil (Claro) investment worth US$ 199.3 million. Investment by sector can be categorized as follows: 52% in telecommunications, 23% in software and IT services, 13% in food and tobacco, 5% in hotels and tourism, 2% in pharmaceuticals, 2% in business services, 2% in entertainment, and 1% in beverages.
Approximately 27 Mexican enterprises are located in Bogota (for example, Orbis, fDi, and América Economía). Of the 100 América Economía Latin American companies, 14 are Mexican companies with a presence in Bogota: Cinepolis, FEMSA, Coca-Cola FEMSA (KOF), Alsea, América Móvil, Telmex, Televisa, CEMEX, Grupo Bimbo, Mexichem, Aeroméxico, Xignux, Vitro, and Televisión Azteca.
Carlos Fidel Simancas Narváez, District Secretary of Economic Development, concluded “We hope to make important bilateral progress in foreign commerce, tourism, and international cooperation strategies to strengthen district policies and projects in the areas of science, technology and innovation, productive clusters, supply, logistics, and food security. We also hope to explore potential markets and export models to boost the productivity and competitiveness of Bogota’s corporate sectors.”