In point of operational conditions, Bogota stands out as being quite good for the doing of business. The city is an appealing ecosystem for the positioning of a business in Latin America due to conditions as the set-up times and costs of businesses, according to the World Bank Doing Business report; low office rental costs as compared with other cities of Latin America, according to Jones Lang LaSalle; competitive cargo airfares as compared with other cargo terminals of the region, according to IATA and ACI; as well as the workforce costs, according to the CEPAL.
Business set-up times and costs in Bogota (2018)
Fuente: Doing Business, 2018.
According to the sub-regional Doing Business publication issued for 2018, Bogota has the third best business environment in Latin America. The cost of creating a company in Bogota is one of the lowest as compared with the rest of the countries in the region. In Colombia, this value represents 14% of per capita income, as compared with the average figure for Latin America and the Caribbean which is 31.40%. In turn, the time required to set up a new company is less than the time required in other capitals such as Lima, Buenos Aires, and São Paulo.
Average cost of air freight to Miami in the main cities of Latin America – USD/kg (2020)
Fuente: Statista, IATA, ACI, El Dorado International Airport.
On the other hand, in point of costs, the competitiveness of Bogota Region as compared with its regional peers is outstanding. According to figures presented by airport authorities and international follow-up and surveillance entities, the air freight costs from Bogota to Miami were the lowest during 2020. Likewise, rental costs in Bogota were less than those in Santiago, Mexico DF, and Buenos Aires, the latter city being one of the costliest in the continent.
Office rental space costs in Latin American cities (USD/m²/month, first half of 2020)
Average exchange rate for 2020: USD 1 = COP 3,600.
Source: Jones Lang LaSalle, Latin America Office Market Overview, H1 2020.
Finally, the salary factor positions Colombian cities as a qualified option for the setting up of multinational operations in the Latin American platform. Our additional costs with respect to the minimum wage amount to 32% only, which places Colombia in a better position than Argentina, Brazil, Mexico, and Costa Rica.
Comparative chart of salary costs in Latin America
Source: Measurement of salary costs in Latin America and the Caribbean, BID, 2016.