Foreign direct investment in Colombia’s Bogotá grew by 78% in 2021

RIO DE JANEIRO, BRAZIL – Outgoing center-right President Iván Duque may be unpopular for his economic reforms, but he leaves a solid legacy for his successor to build on.

According to IMF estimates, the economy will achieve substantial growth figures and be at the forefront of the countries in the region.

Bogotá’s foreign direct investment (FDI) grew by 78% in 2021. An estimated 115 projects worth US$1.551 billion came to the Colombian capital that year, mainly from the United States, Mexico, and Spain.

This was reported Friday by the Invest in Bogotá promotion agency, which said in a statement that these projects have contributed to the creation of more than 20,000 direct jobs.

“The increase in foreign direct investment is in line with the city’s significant economic recovery. We found that the main countries of origin of the projects are the United States (34%), Mexico (10%), Spain (9%), Argentina (6%), and China (5%),” said the executive director of Invest in Bogotá, Isabella Muñoz.

The main sectors that attracted foreign investment to the Colombian capital last year were software development, information technology (IT) and outsourcing services (26%), communications (16%), business services (8%), consumer goods (7%) and leisure and entertainment (7%).

MERGERS AND ACQUISITIONS

In addition to new and expanding foreign direct investment, Bogotá and the surrounding region received investment through mergers and acquisitions in 140 transactions worth more than US$2.05 billion last year.

The countries with the most mergers and acquisitions were the United States (46%), Brazil (11%), Mexico (9%), Chile (8%), and Spain (7%). In comparison, the most dynamic sectors were software and IT services (37%), business services (15%), financial services (9%), and food and tobacco (8%).

“We celebrate that Bogotá is now one of the most attractive cities for investors in the region,” said Bogotá Economic Development Secretary Alfredo Bateman.

However, he said, the city faces the challenge of “continuing to build confidence, strengthening the ecosystem to attract more capital, but most importantly, ensuring that all these projects lead to jobs and prosperity for all Bogotans.”

VISION FOR THE FUTURE

Bogotá is also striving to regain its momentum before the pandemic in foreign investment. Therefore, this year, the communications, software development, IT, and outsourcing services sectors will be the leading industries to receive these funds.

“At Invest in Bogotá, we have been working to strengthen the strategy of attracting companies through foreign direct investment and, more recently, attracting events and meetings in the capital,” Muñoz said.

The executive director added, “We are aware of the importance of foreign direct investment as a driver of economic and social development, so we focus on identifying opportunities that contribute to job creation, technology, knowledge transfer, and investments that promote the Sustainable Development Goals in the city.