European companies have increased their overseas investments in the last 20 years, venturing further afield, outside EU borders with the EU27 stock of outward foreign direct investment (FDI) into non-EU countries reaching €3.3 trillion by 2008. EU investors accounted for 36% of global outflows in 2011 totaling USD 557 billion, clearly demonstrating Europe’s commitment to, and association with, investing abroad. According to a United Nations report, international FDI rose by 11% in 2013 to an estimated €1.06 trillion with the majority going to developing countries, highlighting, once again, the global trend towards business expansion abroad.
Optimistic figures from the European Commission on November 5th 2013, predicts that GDP will expand by 1.4% in 2014, following little or no growth in 2013, indicating that modest economic recovery is underway in Europe. This, coinciding with the fact that FDI facilitates access to foreign markets and impacts positively on a firm’s competitiveness, begs the question – where should European companies be looking to, to invest? A good place to start is to determine what countries are attracting international firms, promoting a healthy business environment and playing host to a large number of corporate meetings and events.
Unsurprisingly, its wealth in oil, gas and minerals are a major pull and UNCTAD’s World Investment Report 2013 announced a 12% increase in inward FDI to South America in 2012, bringing the figure up to $144 billion, proving that this continent sure is a good host! South America has a growing reputation as a pivotal centre for global culture, organising the world famous Carnival in Rio de Janeiro and hosting both the Brazil World Cup in 2014 and the Rio Olympics in 2016. But don’t be fooled – this location offers much more than just festivals and football.
The future continues to look bright with the drop in the peso encouraging steady growth in 2014. Colombia is one of the main South American countries bolstering the economy, offering business–friendly policies and providing a safe domestic security set-up. According to the World Bank’s ‘Doing Business 2014’ survey, Columbia ranks 43rd out of 183 countries, as it continues to refine its image, improve its economy and dispel incorrect information about Colombian culture.
Bogota offers numerous investment incentives including free trade zones, income tax deductions and local tax exemptions. In excess of 1,300 major companies operate in Bogota including global giants 3M, Hino, IBM, SAP, Siemens, Sony and Unisys. Add to this the strategic location, the skilled workforce, the competitive operating costs, the attractive business incentives, the high quality of life, the established company success stories, and the only thing you are left wondering is how it has taken you so long to acknowledge this location in the first place!
Hurry up – the secret is getting out.
Need to know : The Bogota International Convention Center has a 4, 500m2 exhibition space, several rooms for events of different sizes, a main hall that can facilitate 4,000 seated people and a food and drink area to cater for various events.
Contact The Bogota Convention Bureau and Invest in Bogota to find out about business in the capital.