12 de February 2021

Attracting up to 50% more foreign investment, one of Bogotá's challenges for 2021

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The Ministry of Commerce, Industry and Tourism, the Chamber of Commerce of Bogota, the District Secretariat of Economic Development, and Invest in Bogota analyzed the economic outlook for the city in 2021, as well as the strategies with which, during the pandemic, the country's capital seeks to continue its path of recovery and attract new investment.

Economy in Bogota

Representatives of the national government, private companies and the administration of Bogota analyzed the opportunities that this year brings to the capital of the country, as well as some of the sectors and economic activities that the city can take advantage of to enhance the attraction of foreign investment.

During the webinar "Challenges and opportunities that 2021 will bring to Bogota", Juan Gabriel Pérez, executive director of Invest in Bogota, presented the results of a recent survey of 72 international companies carried out by the investment promotion agency of the capital, that shows that, despite the difficulties caused by the pandemic, Bogota continues to be an investment destination that companies trust.

"This exercise showed us that 96% of the companies we consulted continue to consider the Bogota Region as an ideal destination for the development of their operations," said Pérez, who also revealed that, according to the survey, investors perceive that the most useful mechanisms for the economic reactivation of the city are related to the development of district strategies for the generation of employment and a greater articulation between actors from the public and private sectors.

In a scenario in which economic reactivation is progressively consolidated throughout 2021, and subject to a high degree of uncertainty, Invest in Bogota estimates that new and expanding Foreign Direct Investment in the Bogota Region may grow in 2021 between 35% and 50% compared to 2020.

This growth will be linked to the success of the strategies developed by the national government in this same area. In this regard, the Vice Minister of Foreign Trade, Laura Valdivieso, assured that the Ministry of Commerce, Industry and Tourism is working on various fronts such as incentives to attract foreign investment, the modernization regime of free trade zones, mechanisms to facilitate procedures - including the creation of a single investment window - and the nearshoring strategy, aimed at attracting companies that want to move their operations to destinations that are closer to the final consumer to mitigate risks in supply chains.

About the nearshoring strategy, Vice Minister Valdivieso highlighted that the Government has identified 115 investment opportunities for Colombia, 21 of which could be developed in Bogotá, mainly in sectors such as processed foods, pharmaceuticals, medical devices, materials and construction equipment, among others.


Economic growth and support for the city's businesses

The virtual event also served to analyze the economic outlook of the city and the strategies with which it seeks to continue generating employment and better conditions for companies in Bogota. Paula Cucalón, director of competitiveness Bogota Region in the District Secretariat for Economic Development, highlighted that compared to the projections of economic growth of the city for 2021, which are between 2.5% and 5%, the district administration points to for the economy to grow to the top of that range.

Faced with the “Bogotá a Cielo Abierto” strategy, launched last year by the city administration, Cucalón highlighted that the program allowed 8,800 establishments to increase their sales by 85%. For 2021, the challenge for the Mayor's Office is to consolidate the strategy and increase the number of authorized areas for open-air trading.

The vice president of competitiveness at the Bogota Chamber of Commerce, Juan Carlos González, highlighted the important role that digitization has had as part of the transformation of the city's companies amid the pandemic. "At the Bogota Chamber of Commerce, we are committed to supporting economic reactivation and that is why we have services and support available to entrepreneurs to support the digital transformation in MSMEs, which represent 97% of the business of the city."

González highlighted programs such as "CREAR: confianza, reactivación y acceso ", recently launched by the CCB, which seeks to help about 8,000 entrepreneurs in training and support processes, and that more than 2,500 gain access to credit through the financial system for improve your liquidity.

The webinar "Challenges and opportunities that 2021 will bring to Bogota" is part of the Bogota Big Ideas content ecosystem, created by Invest in Bogota as a space for conversation on issues that transcend the city, with a global perspective. The webinar can be viewed on the Invest in Bogota YouTube channel.