International BCC Newsletter # 37 by boletin_VRIC

1. GUEST COLUMNIST

UNLOCKING WOMEN'S POTENTIAL IN INTERNATIONAL BUSINESS

Unlocking Women's Potential in International Business In a world where globalization and technological innovation redefine how we conduct business, it is vital to recognize the importance of inclusion and actively promote the empowerment of women in international business. Even with the strides made toward gender equality, significant challenges persist that hinder women’s full participation in the global economy. Women represent an invaluable workforce, yet their potential is often suppressed by structural, cultural, and economic barriers. Drawing from my experience, I have identified three essential strategies to boost women’s active participation in international business:

1. Education and Training: Empowerment begins with education. Equipping women with essential skills to navigate an increasingly competitive landscape is fundamental. Investing in comprehensive training programs that address technical and soft skills can help bridge the leadership gap. Special focus on areas like technology, management, and entrepreneurship is crucial in preparing women for leadership roles.

2. Support Networks and Mentorship: Creating robust support networks and mentorship opportunities is essential for career advancement. Mentorship programs that connect seasoned professionals with women at the beginning of their careers provide valuable guidance and emotional support. These relationships can open doors and create opportunities that may otherwise seem out of reach, fostering a culture of collaboration and empowerment.

3. Inclusive Policies: Organizations and governments must implement inclusive policies that advance gender equality in the workplace. This includes establishing flexible work environments, providing access to financing specifically for women-led businesses, and facilitating access to free childcare for working mothers. Such measures can significantly alleviate the burden on working mothers and empower them to fully engage in their careers. Additionally, cultivating a business culture that prioritizes diversity and introducing gender quotas in leadership positions can serve as a significant step toward achieving equity.

Empowering women is not merely a matter of social justice; it also represents a smart business strategy. Research consistently shows that companies with greater gender diversity in leadership tend to be more innovative and profitable.

In conclusion, the journey to strengthen women’s roles in the global business arena demands collaboration. Governments, organizations, and entrepreneurs must unite to create an environment where women can flourish and significantly contribute to economic growth. By doing so, we not only uplift women but also enhance sustainable economic development in our communities.

By Maria Fernanda Garza ICC Honorary Chair CEO Orestia Mexico

GOOD NEWS FROM COLOMBIA AND BOGOTÁ

GOOD NEWS FROM COLOMBIA

 Historic COP16: Colombia welcomes the world with a grand opening ceremony. At the opening of the event, Colombian Environment Minister Susana Muhamad made a global call to make "Peace with Nature." Colombia is hosting more than 190 countries at COP16, a key meeting for the protection of biodiversity, with a cultural event that highlighted the human connection with nature, led by indigenous peoples, Afro-descendant and rural communities. For more information, see the following links: 1 and 2.

 Exports of non-mining and energy goods consolidate their growth in 2024 with an increase of 7.4% as of August. Colombia exported US$14.3 billion in products of this type to the world so far this year. “In the national context, from the commerce, industry and tourism sector we continue to work with entrepreneurs in the regions, making available to them the entire range of programs and instruments to help them in their process and consolidation of internationalization,” said the Minister of Commerce, Luis Carlos Reyes. For more information, visit the following link.

 Two years after the reestablishment of relations with Venezuela, bilateral trade continues to grow. When analyzing the behavior of the land border so far this year, trade reached US$277.8 million between January and August, an increase of 64.3% compared to the same period in 2023, when it was US$169.1 million. For more information, visit the following link

 Six goals and 76 billion pesos: Colombia's plan to combat biodiversity loss: During COP16, the country presented its decisions to the United Nations to protect its species and ecosystems by 2030. For the first time, there are conversations of protecting freshwater ecosystems. For more information, visit the following link

 Colombia and the Republic of India signed a bilateral agreement that opens the doors to audiovisual productions between the two countries. Producers from both countries will be able to access incentives offered by both parties. For more information, visit the following link

 Colombia was elected for the first time in history as a member of the United Nations Human Rights Council. On October 9, 2024, with a vote of 175 votes in favor, Colombia is elected as a member of the United Nations Human Rights Council, to occupy one of the 47 seats of the multilateral body responsible for strengthening, promoting and protecting human rights throughout the world. For more information, visit the following link

GOOD NEWS FROM BOGOTÁ-REGION

 The Colombian capital is once again consolidating its position as a leader in innovation and urban development in Latin America by hosting Smart City Expo Bogotá 2024 for the second time. Under the motto “Innovation that transforms – Safe and resilient cities”, this edition was attended by more than 60 speakers and more than 30 companies that presented innovative solutions and the latest trends in smart cities. The Bogotá Science, Technology and Innovation Campus was highlighted, whose construction will begin in 2025 and will cover 240 hectares. For more information, visit the following link

 Bogotá’s El Dorado Airport is the best connected in Latin America and enters the global top 20. In ‘Bogotá, my City, my Home’, tourism is the driving force of development, where our airport continues to evolve and is considered one of the best in the world, as well as the busiest in Latin America based on capacity. For more information, visit the following link

 The District and Bancóldex allocate COP 47,000 million to support local businesses and MSMEs in Bogotá. With the purpose of strengthening local businesses and micro, small and medium-sized enterprises, the District, through the District Secretariat for Economic Development and Bancóldex, will promote the economic activity of entrepreneurs. For more information, visit the following link.

 The Employment Quality Index highlights Bogotá´s improvement in terms of perception by its workers. The index highlights extra benefits and type of contract as key factors in job satisfaction, although concerns persist about commuting and salaries. For more information, visit the following link.

3. BCC NEWS AND UPCOMING EVENTS

 The BCC at COP16: We are partners of the companies that sow the future. The Chamber organized the event on sustainability, “Biodiversity: an opportunity for profitable and sustainable businesses” sharing practices, trends and business opportunities with the business community. Initiatives and success stories were promoted. For more information, visit the following link

 The BCC is proud to be part of the 'Bogotá Nutrition Mission', which has delivered 23.5 tons of food. The Office of the Mayor of Bogotá and the BCC estimate that the program has impacted 2,067 children and 1,559 families since its creation in May. For more information, visit the following link

 Global Entrepreneurship Week 2024 is coming to Bogotá. From November 18 to 22, the BCC will have a variety of activities designed to inspire, connect and provide tools that will help boost business ideas, grow startups and develop innovation. For more information, visit the following link

 The ABC of the XVII edition of Expo Agrofuturo 2024 at Corferias. This is one of the most important fairs in the agricultural sector in Latin America, which brought together nearly 350 exhibitors from more than 15 countries from October 23 to 25. For more information, visit the following link

4. ECONOMIC DEVELOPMENTS

4.1 ECONOMIC MONITORING INDICATOR (EMI)

According to the Economic Monitoring Indicator (EMI), in August 2024 there was a variation of -0.5% in the EMI, compared to July 2024, when an increase of 2.5% was recorded.

Chart 1 Monthly growth of the Economic Monitoring Indicator

Source: DANE. ISE, 2024.

During August 2024, the activities that showed the greatest annual increase in the EMI were Wholesale and retail trade (3.3%) and Financial and insurance activities (3.0%). The activity that registered the greatest decrease was Manufacturing industries and Construction, which showed an annual reduction of 1.4% during this period.

4.2 INFLATION

Bogotá experienced a low increase in monthly price variation in September 2024 compared to the same month of the previous year, while Colombia also recorded a low monthly increase in prices. In September 2023, the monthly variation in Colombia was 0.54% and in Bogotá 0.61%, while in September 2024 it was 0.24% and 0.33%, respectively.

Table 1. Monthly and annual inflation in Colombia and Bogotá during August 2023-2024.

Source: DANE - Consumer Price Index (CPI)

For its part, the annual price variation in Colombia fell from 10.99% in September 2023 to 5.81% in September 2024, while the annual price variation in September 2024 in the capital shows a reduction of 5.17 percentage points compared to the same month in 2023, going from 11.29% to 6.12%.

As for the Consumer Price Index for economic sectors (CPI), it shows an annual increase of 5.55% for the poor, 5.58% for the vulnerable, 5.81% for the middle class and 5.98% for the high-income segment. In parallel, in terms of the year to date, the trend is progressive. In September 2024, the high-income segment showed the greatest price variation, with an increase of 4.85%, while vulnerable persons registered increases of 4.33% and persons in poverty of 4.31%.

On the other hand, the monetary policy intervention rate, which is the minimum interest rate that Banco de la República charges financial institutions for loans, through the board of directors, has decided to set the interest rate at 10.25%. Additionally, the monetary authority in its July/2024 monetary policy report projected for 2024 a total and core inflation of 5.7% and 5.0%, respectively.

4.3 BUSINESS DYNAMICS

During the period from January to September 2024, the data shows a slight drop in the number of companies created in the jurisdiction of the Bogotá Chamber of Commerce compared to the previous year. There is an overall decrease of 4.1% in the total number of companies created compared to the same period in 2023, going from 70,260 to 67,394; this represents a drop of 2,866 companies. Considering the same period, from January to September, the companies created in Bogotá came down by 3.9%, from 57,188 in 2023 to 54,960 companies in 2024 and in the 59 municipalities they came down by 4.9%, from 13,072 in 2023 to 12,434 companies in 2024.

When analyzing the participation of companies by legal type during the January-September 2024 period, it can be seen that more than 50% of the registered companies belong to Natural Persons, with a total of 45,108 companies, which represents 67% of the total companies created in the jurisdiction of the Bogotá Chamber of Commerce. On the other hand, companies registered under Legal Person reached a total of 22,286, which represents 33% of the total companies created in the same jurisdiction.

Table 2. Evolution of companies created between 2023 and 2024 for the January - August period by size

Source: Commercial Registry, BCC, 2023 - 2024

4.4 LABOR MARKET

Employment has shown a decrease in occupancy compared to the previous year; at the national level, the unemployment rate in August 2024 was 9.7%, 0.4 p.p. higher than August 2023, similarly, the employment rate has decreased 0.2 p.p. in the last year, standing at 58.3% in August 2024. The overall participation rate showed a positive variation of 0.1 p.p. and stood at 64.5% in August 2024, a figure lower than that presented in the same period of the previous year, 64.4%.

Source: Large Integrated Household Survey - GEIH (DANE), August 2024.

In the case of Bogotá and its metropolitan area, the unemployment rate was 9.8% for the June - August 2024 mobile quarter, a figure slightly higher than the 9.2% of the national total for the same period.

The number of employed persons in the country grew by 257,000 from August 2023 to August 2024, and the number of unemployed persons grew by 5.8%, which means 136,000 more people, in a nonoccupied condition.

Table 3. GPR, OR and UR, Colombia

5.1 EXPORTS

In August 2024, Colombia experienced a decrease in its exports of 2.5% compared to the same month of the previous year, while Bogotá showed a drop of 2.7%, and Cundinamarca registered an increase of 36.9%.

Chart 2: Annual variation of Colombian exports in Bogotá and Cundinamarca 2021-2024

Colombia Bogotá Cundinamarca

Source: DANE, International Trade.

In August 2024, Colombia reported exports for $3.8 billion FOB dollars. Bogotá, for its part, maintained growth, reaching $320.7 million FOB dollars for that month. Finally, Cundinamarca experienced a significant increase in its exports, reaching $244.2 million FOB dollars.

In August 2024, total exports from the Bogotá-Cundinamarca region reached a value of $565 million FOB dollars (excluding oil and its derivatives). The United States stood out as the main export destination, with a total of $194.2 million FOB dollars, equivalent to 31.3% of the total. Ecuador ranked second with $55 million FOB dollars, representing 8.8% of the total, while Mexico came in third with $39.3 million FOB dollars, and a share of 6.3%. Brazil and Peru also stood out as relevant destinations with $36.5 million (5.9%) and $24.3 million (4.7%) respectively. Venezuela contributed $22.1 million (3.6%) and Spain contributed $21.5 million (3.5%); Chile, China and Canada contributed $19 million (3.1%), $17.7 million (2.9%) and $15.4 million (2.5%), respectively, to the region's exports.

Chart 3. Exports from the Bogotá – Cundinamarca region, August 2022, 2023 and 2024

Source: DANE, International trade.

Exports to other countries, grouped under "Other countries", accounted for $170 million FOB dollars, constituting 27.5% of the overall total, a significant contribution in terms of share in the month of August 2024.

Agosto, 2022

Agosto, 2023

Agosto, 2024

Bogotá Cundinamarca

Chart 4. Exports by destination country. Bogotá – Cundinamarca, August 2024

Source: DANE, International trade.

5.2 IMPORTS

In August 2024, Colombia’s total imports reached $5,532.9 million CIF, marking an increase of 4.6% compared to August 2023. Likewise, Bogotá experienced a 2.6% rise in imports compared to the same month the previous year, reaching $2,671.4 million CIF in August 2024. By hte other hand, Bogotá's share of national imports decreased, from 49.2% in August 2023 to 48.3% in August 2024.

Cundinamarca also saw an increase in its imports, reaching $467 million CIF in August 2024, a rise of 4.9% compared to August 2023. Cundinamarca's share of national imports remained steady at 8.4% in both August 2023 and August 2024.

5: Imports from Colombia, Bogotá and Cundinamarca (August 2023 and 2024)

Source: DANE, International trade

The Bogotá-Cundinamarca region, recorded imports valued at USD $3.138 million CIF in August 2024, representing a 2.9% increase compared to the same month the previous year. The region’s share of national imports decreased from 57.7% in August 2023 to 56.7% in August 2024.

Chart

Source: DANE, Imports.

The region’s main trading partners were China and the United States. China led with USD $819 million CIF, representing 26.1% of the total, followed by the United States, which contributed $784 million CIF, accounting for 25.0% of the total. Together, these two countries represent half of all imports to the region (51.1%).

Mexico, with USD $164 million CIF, ranked third in importance, contributing 5.2% of the total. Germany and Brazil also played significant roles, supplying $150 million (4.8%) and $135 million (4.3%) CIF, respectively. Japan and India reached $95 million and $70 million CIF, while Spain and Italy contributed $68 million and $63 million CIF, respectively.

Finally, "Other countries" contributed USD $789 million CIF, representing 25.1% of the region's total imports, highlighting the diversity of import origins beyond the primary partners mentioned.

Chart 6. Imports by country of origin. Bogotá – Cundinamarca, August 2024

6. FOREIGN DIRECT INVESTMENT

During the second quarter of 2024, FDI flows totaled US$ 2.84 billion.

Chart 5: Quarterly FDI flows

These were mainly used to finance productive projects in mining and oil (US$ 950 m, 34%), manufacturing (US$ 764 m, 27%), financial and business services (US$ 502 m, 18%), electricity, gas and water (US$ 442 m, 16%), and trade, restaurants and hotels (US$ 275 m, 10%). Compared to the second quarter of 2023, FDI flows decreased by US$ 2.47 billion (46%), mainly explained by lower investments in mining and oil, transportation, storage and communications, trade, restaurants and hotels, and construction sectors; partially offset by higher investments in the electricity, gas and water, manufacturing, and financial and business services sectors.

Regarding FDI flows by country of origin, during the second quarter of 2024, resources came mainly from: the United States (US$ 1.14 b), Panama (US$ 645 m), Spain (US$ 545 m), Anguilla (US$ 379 m), England (US$ 98 m), China (US$ 67 m), and the Bahamas (US$ 61 m), partially offset by divestments from the Netherlands (US$ 460 m). The decrease with respect to the second quarter of 2023 in FDI (US$ 2.47 b) is mainly explained by lower investments from Anguilla, the United States, the Netherlands, England, Switzerland, the British Virgin Islands, Canada and Peru, partially offset by higher investments received from Panama and Bermuda.

Chart 6. Distribution of FDI flows by sector

7. SOURCES

 For more information, refer to the Observatory of the Bogotá Chamber of Commerce. https://www.ccb.org.co/observatorio

 DANE. National Accounts. Recovered from: https://www.dane.gov.co/index.php/estadisticas-portema/cuentas-nacionales/cuentas-nacionales-trimestrales

 DANE. Labor Market. Recovered from: https://www.dane.gov.co/index.php/estadisticas-por-tema/mercado-laboral/empleo-y-desempleo

 Commercial Registry, CCB, 2019 - 2020 – 2021 – 2022 – 2023 - 2024. Recovered from: https://www.ccb.org.co/Inscripciones-y-renovaciones/Matricula-Mercantil/Boletines-del-RegistroMercantil

 DANE. Social Pulse Survey. Recovered from: https://www.dane.gov.co/index.php/estadisticas-portema/encuesta-pulso-social

 DANE, International Trade. Recovered from: https://www.dane.gov.co/index.php/estadisticas-portema/comercio-internacional

 Banco de la República. https://www.banrep.gov.co/sites/default/files/nota_de_prensa_inversion_directa.pdf

 Ministerio de Hacienda https://www.minhacienda.gov.co/webcenter/ShowProperty?nodeId=/ConexionContent/ WCC_CLUSTER-249264

 Diario La República https://larepublica.co