Invest in Bogotá has released its latest report on Foreign Direct Investment (FDI), analyzing the city’s performance in 2024 and setting goals for 2025 in a context shaped by new trade conditions imposed by the United States. According to the report, Bogotá has become a key player in attracting foreign investment in Latam. The city’s strategic advantages, diverse economic landscape, and business-friendly policies continue to drive interest from global investors.
New Trade Conditions and Their Impact on Foreign Investment
One of the main developments highlighted in the report is the implementation of a 10% tariff on Colombia, a measure taken by the Trump government as part of the so-called “Liberation Day,” during which several countries were affected by trade restrictions. However, among the nations impacted, Colombia was one of the least affected. This policy shift has caused businesses to reconsider their investment strategies, with many seeing Bogotá as a resilient and attractive destination for foreign investment in the Latam market.
When asked about this measure’s effects on foreign investment, Carlos Suárez, director of Invest in Bogotá, stated that while it may present a challenge, it could also open new opportunities for the city.
“This situation could prove beneficial for Bogotá, as a company investing in the city to produce and export from Colombia would face a lower tariff than if it were operating from China or other countries with higher levies,” he explained. The ability to offer competitive advantages over other global markets enhances the city’s position among the top destinations for businesses seeking to expand in the region.
Despite this potential upside, the expert warned against excessive optimism, emphasizing that while the city remains in a strong position, it must continue to develop its infrastructure and investment-friendly policies to maintain momentum.
“The city’s position does not appear to be affected in the medium term, as it enjoys the stability of the services sector,” Suárez added. With a robust services industry and a growing focus on technology and innovation, Bogotá can sustain foreign investment in Latam flows despite global economic fluctuations.
Bogotá Among the Top 3 Cities in Latin America for FDI in 2024
The report highlighted that Bogotá solidified its position as the third-largest recipient of foreign investment in Latam, behind only Mexico City and São Paulo. In 2024, the Bogotá region secured 105 FDI projects, representing an 11.7% growth compared to the previous year. This growth underscores the city’s resilience and attractiveness in a competitive global investment landscape.
Regarding the most benefited sectors, 50% of the investment was concentrated in services and retail. The steady expansion of these industries has strengthened Bogotá’s ability to provide stable returns for investors. The city’s favorable business climate and strategic location make it one of the cities with the highest investment in Latam.
The central investor countries in Bogotá were:
- The United States, with a 28.6% share
- Spain, with 9.5%
- Mexico, with 8.6%
- China, the Asian country with the most prominent presence, with 6.7%
These figures demonstrate that global companies recognize Bogotá as a viable and competitive destination for foreign investment in Latam. As companies seek to diversify their operations, the city’s economic growth and stability will continue to make it an attractive hub for international business.
Outlook for 2025 and Bogotá’s Competitive Edge
Despite the new trade landscape, the investment agency projects that Bogotá will remain among the top three cities in Latin America for foreign investment in Latam in 2025. Two key segments will support this: large-scale events and developing a high-impact entrepreneurship ecosystem.
Bogotá’s ability to host international business events, conventions, and trade fairs positions it as a hub for global business discussions and networking. The city’s infrastructure allows it to cater to large-scale investment forums, fostering more business engagements and partnerships.
Additionally, the entrepreneurial ecosystem in Bogotá continues to flourish. With numerous startups gaining international recognition, the city is becoming a magnet for venture capital and innovation-driven businesses. The local government’s initiatives to support new companies and attract technological investments further solidify its role as a leading business center in the region.
Invest in Bogotá projects that, despite external economic pressures, the city will sustain and potentially expand its market share in foreign investment in Latam. The report anticipates that the services sector will continue to attract the highest investment in Latam, given Bogotá’s strong talent pool and technological advancements.
Furthermore, the city’s strategic geographic location provides an added advantage. As a gateway to South America, businesses investing in Bogotá can leverage its connectivity to major regional and international markets. This positioning, combined with favorable business regulations, contributes to Bogotá’s consistent ranking as one of the cities with the highest investment in Latam.
Conclusion: Bogotá’s Bright Future in Foreign Investment
Bogotá’s remarkable growth in foreign investment in Latam is a testament to its resilience, strategic policies, and economic stability. While global economic conditions and trade policies will continue to evolve, the city’s strong services sector, focus on entrepreneurship, and ability to attract major international events will ensure its sustained prominence.
As 2025 approaches, Bogotá is poised to remain in the top three cities in Latin America with the highest investment in Latam. Its capacity to adapt to changing global trends while maintaining a favorable business environment ensures its continued appeal to investors worldwide. With the right strategies in place, Bogotá is well on its way to securing its position as a regional leader in foreign direct investment.