19 de February 2018
Foreign investment: only Sao Paulo outperforms Bogota
In recent years it has received investments for USD 19.7 billion, according to Invest in Bogota estimates.
Over the last decade Bogota has emerged as one of the cities in Latin America with the best results when it comes to Foreign Direct (FDI), greenfield and expansion investments.
Calculations made by the foreign investment promotion agency place the city in second place in the regional ranking with about USD 19.700 million invested in the development of over 900 business projects, a figure surpassed only by that of Sao Paulo, Brazil, and above cities such as Lima, Santiago and Buenos Aires.
Despite the slowdown of investments in the extractive sector in the country, Bogota has built its reputation as an investment destination in the region thanks to its workforce of more than 4.6 million people, a strategic location in the eyes of the major international markets and a robust economy that exceeds even that of some entire countries in the region such as Paraguay, Uruguay and Bolivia. This is accompanied by a strategy that identifies key sectors and countries with investment potential.
A city for doing business
Bogota has managed to get companies such as Convergys, We Work, GAES, Systra, Castem, HBO and Amazon Web Services to settle in the city or decide to reinvest and reinforce their development in the context of the city’s smart specialization strategy.
"Apart from positioning Bogota as a development hub and regional export platform More than 900 projects have come to the city in the last decade, this has led to the creation of over 115,000 jobs," says Juan Gabriel Pérez, CEO of Invest in Bogota.
It is estimated that during 2017 the city received more than 160 foreign projects and a quarter of them came with the support of the city’s foreign investment promotion agency. According to estimates by the entity, initiatives of the Mayor’s Office and the Bogota Chamber of Commerce, new investment will have exceeded USD 1.4 billion, from 24 countries, at the end of last year.
Over the last decade, Bogota ranked first in the regional echelon in the creation of jobs through FDI. The 115,000 new jobs in the city exceed the 78,000 of Sao Paulo and about 67,000 that were created in Mexico City.
In terms of sectors, the IT industry is the one that has attracted most capital to the city, with about USD 3 billion in the last ten years. For their part, the consumer products and financial services sectors appear in second and third places with USD 2.63 billion and USD 2.58 billion, respectively.
This positioning of Bogota as one of the leading investment destinations in Latin America is also reflected in international rankings. According to the ranking of best cities for business, published by América Economía, Bogota ranks fifth in the region, way above the 16th position it held in 2003.
Likewise, in its 2017-2018 ranking of cities of the future, Di Magazine lists it as the fifth Latin American city of the future, two notches above the ranking given to it in the 2015-2016 edition. In addition, the city is highlighted as the fifth leading global city in Latin America according to AT Kearney, which in 2017 praised the business activities, political commitment, human capital and cultural experience of Bogota.
"We are proud to see how the city’s internationalization strategy, led by Invest in Bogota, has encouraged the business opportunities and development of the capital. The task now is to further develop the strategic sectors in which Bogota is competitive, facilitating investment in value-added projects that will allow the city to continue to be seen as an attractive destination on the continent,” concluded Perez.
Source: The New Century
Inputs provided by Invest in Bogota.