- Posted by Colombia
- On Wednesday June 14th, 2017
- 0 Comments
- bank of the republic, Bogotá, Colombia, economic, fdi intelligence, foreign investment, free trade agreements, Latin America, major american cities of the future
Among the Colombian capitals, Bogota, Cali and Medellin were recognized by the fDi Intelligence (one of the most important foreign direct investment research centers in the world) in the category of: Major American Cities of the Future 2017/2018, which values cities with more than two million inhabitants, plus their metropolitan area and the cost-benefit ratio obtained by companies investing there. The top five includes New York, San Francisco, Houston, Toronto and Montreal.
Bogota, Cali, Sao Paulo, Medellin and San Antonio completed the list of the 10 best capitals with a strategy to attract investment to their regions and also to the country that will not only add value but will be a source of employment.
In 2016, Colombia received a Foreign Direct Investment (FDI) flow of US $13,593 million, according to data from the Bank of the Republic. Only the region of Bogota got US $ 2 billion, through some 80 projects of foreign companies that generate around 7,600 new jobs, according to estimates from Invest In Bogota.
United States has consolidated its position as the main partner and investor in the region, by accounting 23.8% of total projects. The investments of companies such as MVS USA, the telecommunications sector, Sanford Group, Air Liquide and Obviam outstand in the analysis.
The capital of the Republic shows a particular behavior. Unlike the nation, the greater proportion of FDI that the Bogota region receives is not for the commodities sector.
One of the strategies of Invest in Bogota agency has been to look for companies in other countries, among them Asians, to show them the potential the city has and to bet on key organizations in different productive sectors.
In the case of Cali, Invest Pacific indicates that the strategy of this promotion of investment agency is based on four fundamental axes: to increase the contributions in the strategic sectors of the Valley in order to position the department like a destination of FDI; strengthen relations with the actors that influence the fundings and ensure the agency’s sustainability.
This work is carried out by public entities, guilds and the entrepreneurs of the region. The agency’s plan is to achieve 90 new projects between 2015 and 2019, to generate investment amounts of US $566 million and near 5,000 new jobs.
While in 2015 and in previous years resources were aimed for services, in 2016 they were focused on manufacturing and agriculture sectors.
Last year, there were 16 new projects that generated an investment of US $126 million and 1,000 direct jobs. Activities such as: agrochemicals, packaging, auto parts, supplies for the cosmetic and mass consumption industries; have been gaining momentum in the region.
In 2016, the Medellín and the Metropolitan Area Cooperation and Investment Agency (ACI) reported the management of US $211.6 million of FDI for the city, a figure that led to the generation of more than 3,000 jobs. This was a result from the arrival of 12 new companies and the reinvestments of corporations already installed in the city.
The economic sector with the largest number of FDI projects was Software and IT, construction and services, which represent 74% of the economic activities that were received.
Medellin’s strategy to attract contributors focuses on several fronts. On one hand, promotion as an investment destination, positioning internationally a proposal of being a valuable city in which the conditions of competitiveness of Medellín and Antioquia outstand. Another front is the support of ACI Medellin to foreign companies interested in developing their projects in this metropoli. In addition, they work on the initiatives that the municipality develops to improve its economic competitiveness and its attractiveness as a destination for living and doing business.
There is no doubt that agencies such as Invest Bogota, Invest Pacífic and ACI play a determinant role in their regions and that a good part of the investment that comes to them is a product of their management. Reason why their work is not only reflected in international rankings, but also in the creation of jobs for their regions.