Focus industries

Find detailed information about the most important sectors that are promoted in Bogota to expand your business and invest in one of the most growing and dynamic cities in the region.

Biotechnology

With great availability of human talent, a big amount of universities, research establishments and technology centers, Bogota counts with:

• 115 post-secondary education institutions and 35 universities, four of them are in the top 50 universities of Latin America.
• 2.161 research groups that represent 41% of the total amount of the country. During the last decade, research groups have recorded a compound annual growth rate (CAGR) of 24%.
• During the last decade, more than 291.000 technicians, technologists, professionals and postgraduate students graduated in Bogotá, in subjects related to biotech.
• 518 PhDs in sectors related to biotechnology that stand for 41% of the country.
• 39% of the technicians and technologists of the national territory.

Bogota: The biotech cluster of Colombia

• 40% of the biotechnology research groups in Colombia equal to 34 units, 60% are focused on red and green biotech.
• In the last ten years, Colombia recorded the sixth place in patenting in Latin America with 5.429 granted patents. Bogotá obtained about 57% of those patents. With a compound annual growth rate (CAGR) of 5,7%, the country surpasses the average in Latin America (3,6%). 
• In the past decade, the pharmaceutical chemistry and mechanical engineering sectors represented 33% and 31% of the patents granted in the country. The biotechnology segment reported 290 patents, 5% of the total.

Energy

Recently, Bogota has positioned itself as an important hub for the energy sector in Latin-America, thanks to the growing production activity in the O&G sector since 2003. The abundance of hydroelectric potential and the recent institutions regulating unconventional energy distribution in Colombia have created an attractive business environment.  

The price of energy in Colombia is highly dependent on weather conditions, there is an opportunity for reducing price volatility by increasing non-conventional energy supply.

Income Tax Deduction

Any production and efficient use of renewable energy sources. Capex and R&D.

Requirements:

• Renewable energy, new investments, new projects and efficient use of energy approved by UPME.
• Previous approval of the environmental benefit certificate by the Ministry of Environment – ANLA.

VAT Exemption

For new investments and pre-investment for production and efficient use of renewable energy. Destined for evaluation and measurement of potential resources.

Requirements:

• Goods and services must be included in the UPME  045 resolution of February 4^th, 2016.
• Previous approval of the environmental benefit certificate by the Ministry of Environment – ANLA.
• Renewable energy new investments, new projects and efficient use of energy approved by UPME.

Tariff Exception

Imports of resources related to machinery, equipment, materials, and supplies used exclusively for pre-investment and new investment of renewable energy activities.

For new investments and pre-investment for production and efficient use of renewable energy.

Destined for evaluation and measurement of potential resources.

Requirements:

• Previous approval of the environmental benefit certificate by the Ministry of Environment – ANLA.
• Renewable energy new investments, new projects and efficient use of energy approved by UPME.
• Send to the one-stop trade office (VUCE) – the request for prior license appending both certificates. 
• Tariff exemption must be requested to DIAN in a minimum of 15 days before the import is done.
• Goods and services must be included in the UPME  045 resolution of February 4^th, 2016.

Accelerated Depreciation

Applicable for machinery, equipment, and construction necessary for pre-investment, investment and operation of the renewable energy generation activity.

Requirements:

• Previous approval of the environmental benefit certificate by the Ministry of Environment – ANLA.
• Renewable energy new investments, new projects and efficient use of energy approved by UPME.
• Hold a position of energy supplier using renewable sources with new investments being made after approval of 1715 Act of 2014.

Opportunity Understanding 

• The regulatory framework for the development of renewable energy sources in Colombia is ready.
• The national government is committed to adopting serious action in order to suppress entry barriers to the production of renewable energy (part 41 of 1715 Act).
• New renewable energy supply is an important alternative for the energy challenge Colombia is facing now.
• Renewable energy production is a great opportunity for Colombia's economic development in matters of investment, employment, new technology and research production.

Technology-based services

For more than 20 years, Bogota’s IT sector has provided Remote Infrastructure Management Services (RIMS) and Application Development and Maintenance (ADM) services for clients in a wide range of verticals. Thus, the abundance of trained human resources and top quality technological infrastructure, have consolidated the enabling environment to establish Bogota as an offshore platform for local and multinational companies.

Why Locate in Bogota

• Scalability: In Bogota there is a population of approximately 65,000 graduates of engineering professionals related to the IT sector. Consequently, the labour market of Bogota, over 4,6 million people, is constantly strengthened, generating a greater scalability potential for IT operations in the city.
• Talent-rich. Human resources: 49% of Engineering graduates are in Bogota. 
• Cost structure: The IT industry in Bogota offers an excellent cost-benefit ratio for wages when compared to other Latin-American cities.
• Strategic Location: According to the World Competitiveness Yearbook -IMD. Colombia was the first country in Latin America and one of the 10 countries in the region with the highest investment in Telecommunications. Additionally, three submarine cables have come into operation during the last year, completing an access to 10 submarine cables. This is a remarkable figure when considering the five existing in 2010. 
• IT Infrastructure. In Bogota, all the necessary professional services for the industry are available, including a complete and robust IT value chain. Likewise, the city is making an effort to develop a tech-park project which will create a new incentive for companies seeking to settle in the city.

Infrastructure

Bogota's contribution to Colombia's gross domestic product (GDP) is 26.1% and represents 18.9% of the country’s total workforce.

In 2016, the city’s GDP grew by 4.2%, achieved a GDP per capita of USD $5,898 and reduced unemployment by 22%. It also achieved an average investment rate of 27.3% for the same year.

Bogota represents 18% of Colombia's Construction sector.

Colombia approved more than 25 million m² of construction projects in 2016 for different purposes of which 31.7% are in the Bogota region. It is notable that a significant area is dedicated to housing.

Why locate in Bogota?

Its strategic location and daily flight connections make Bogota an ideal place to serve regional markets. Bogota has become a hub for international infrastructure companies. The city has the largest portfolio of mega-infrastructure projects making it an attractive destination for any foreign company in the sector.

District Development Plan

Under the District Development Plan "Bogotá Best for All" approved by the Council as part of Agreement 645 of 2016, the following priorities were identified:

• Modernization of the physical and technological infrastructure in healthcare.
• Construction of new schools.
• "Better mobility for all".

City projects

Various planned-projects include architectural renewal, technological upgrading, operation and maintenance of infrastructure, social and economic engineering.

Mobility Projects

For mobility projects, the Mayor's Office plans to invest 37% Development Plan's total budget. The most relevant projects in this area are the following:

• West Light Rail - comprising 43.9 km of track (including Airport branch) and 17 stations. Public-Private Partnership Project of Private Initiative. Approximate investment: COP $1.6 trillion.
• First Line of Bogota Metro - soon to be the most important infrastructure project in the country.

Creative and Cultural Industries

A member of UNESCO's Creative Cities of Music network and home to world-class festivals and fairs, Bogotá has positioned itself as an epicenter for the creative industries in Latin America, being the main destination of foreign direct investment (greenfield) in America Latina, above cities such as Sao Paulo, Miami or Buenos Aires for the Creative and Cultural Industries sector.

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