Newsletter 37 – 2020, a positive year for foreign direct investment in Valle del Cauca
Foreign investment has been a key engine for the region’s recovery, generating new employment opportunities and contributing to its social and economic development. This is reflected in the 16 foreign direct investment projects that arrived in Cali and Valle del Cauca in 2020, with the support of Invest Pacific, which plans to generate about 1.800 new jobs starting this year, with investment amounts of more than USD$ 205 million.
Some of these new investments are bilingual contact center companies, delivery technology platforms and software development that have arrived in search of a skilled and bilingual human resource. Additionally, there were also investments and reinvestments in sectors such as agribusiness, pharmaceutical and food and beverage, that continue to grow in the region.
These investments come from countries such as: France, Chile, United States, Israel, Nicaragua, Mexico, Argentina, Venezuela, Germany and Panama, which continue to rely on competitive advantages, such as strategic location, business network, qualified human talent, among many others, that our territory offers.
Among these investments in 2020 stands out the multinational chain of pharmacies Farmatodo, which this year began its expansion plan in Cali, with the opening of its first two stores. Managro, of Israeli origin, which acquired the operations, brands and machinery of Pacific Fruits in Palmira, thereby further strengthening the agribusiness sector of Valle del Cauca.
There is also Alorica, a US-based world-class call center and technology services company that is in the process of establishing a global bilingual contact center service operation in Cali; Patagonian IT, from Argentina, dedicated to software development and innovation, and Avantica, which opened its new software development center in Cali.
Additionally, there are important reinvestments of multinationals that continue to expand their operation in our territory and during this year they did so despite the effects of the pandemic. These include: Cargill, a recognized American poultry industry company; Fareva, a French pharmaceutical company; and Virtutex Ilko, a Chilean company that manufactures household products and exports to the central and south American market.
“For 2021, we will continue to strengthen our strategies to encourage the presence of more multinationals in the region, ensuring that investor confidence is maintained, and facilitating joint efforts to generate formal employment opportunities for the rapid economic recovery of the territory. Today, Valle del Cauca has over 196 multinational companies in manufacturing, logistics, agribusiness and global services, which contribute with more than 37.7% of the department’s exports, diversifying the country’s export basket,” said Alejandro Ossa, executive director of Invest Pacific.
All these results have been made possible thanks to the leadership from entities working alongside with Invest Pacific to favor this positive investment environment.
Among these key allies are: Valle del Cauca Governor’s Office, through its Office of Economic Development and Competitiveness; Mayor’s Office of Cali, through its Office of Economic Development; Mayor’s Office of Palmira, through its Office of Entrepreneurship and Development; Cali’s Chamber of Commerce, ProColombia, and many more guilds, companies and universities.
The sectors that will boost FDI in 2021
For this year we are looking forward to 20 FDI projects in the region related to tech operations, software development, construction materials, packaging, hass avocado, ingredients for the food industry, among others, that will contribute to the creation of 1,500 jobs and more than 120 million dollars in investment.
It is predicted to have the establishment of european companies dedicated to the manufacturing of construction materials and packaging; as well as the expansion and reinvestment of other manufacturing operations. Likewise, Valle del Cauca will continue to position itself as an exporting and productive platform, promoting the nearshore strategy for investment attraction.
It is also contemplated the investment of hass avocado and ingredient production companies mainly from Europe and Latin America, which have manifested their interest in investing in Valle del Cauca this 2021.
Furthermore, our goal is to make the city of Cali the focal point for BPO and IT & Software operations, for which Invest Pacific has been accompanying various outsourcing companies that are evaluating their investment decision as well as others that are currently in their expansion process. There is already a latin american software developer that will establish its branch in Colombia, being Cali one of the top finalists for its decision, and a leading global software developer already established in Colombia with expansion plans in Cali for this new year.