Bogotá ⎼ A Bright Future Replaces a Darkened Past
Bogotá offers investors one of the best business environments in Latin America. According to a recent World Bank analysis, Bogotá is the best city in Latin America for doing business. Over the last eight years, it has implemented the greatest number of reforms for improving the business climate and making it more efficient. The city itself has a market of more than 8 million inhabitants backed by a solid and diversified economy. Incredibly, the city's GDP represents nearly 26 percent of Colombia's total and is higher than in several Latin American countries. Bogotá’s economic potential is evident in its dynamism. In fact, during the last decade, the city’s economic growth was the most robust in the region. Bogotá, cradled by the surrounding Andes mountain range, is once again a vibrant city with a culture steeped in history, the arts, music, religion, where numerous open-air festivals are the norm.
However, we cannot forget that for decades, Bogotá, and its infamous narco-trafficker Pablo Escobar, were the primary targets for the failed War on Drugs. Violence reigned. Thousands died or went missing. But the carnage was not limited to the city itself. The Revolutionary Armed Forces of Colombia, known as FARC, controlled vast areas of prime agricultural land often forcing farmers to grow cannabis and coca plants for the illegal drug trade. Other paramilitary groups opposed FARC, often financed and supported by U.S. governmental agencies. It was a civil war, yet to the surprise of many, cannabis helped lead the way to peace.
In November 2016, the Colombian government finalized negotiations with FARC, and with peace at hand, both the FARC and the government agreed to replace coca farms with legal crops. This included bananas, coffee, hearts of palm, tomatoes, vanilla, and cocoa for chocolate. Cannabis is also part of this effort under the new medicinal cultivation framework. Small farms are limited to a half-hectare plot to grow legitimate medical marijuana. Farmers must also have a relationship with a licensed medical cannabis company or they must purchase expensive laboratory equipment to verify they are growing authorized cannabis crops. It is important to note that currently, cannabis can only be cultivated for products to be sold in the form of oils and creams, and not consumer sales of the raw flower. However, individuals may grow (and consume) their own personal cannabis plants as long as the raw flower does not exceed 7 grams in total.
Colombia is perfectly positioned for commercial agriculture. It is temperate and receives ample annual rainfall. The country’s southwestern province of Cauca reportedly grows 50 percent of Colombia’s medical marijuana crops. But there’s a catch. Farmers who want to participate in the new medical cannabis program must destroy their illegal, legacy cannabis crops. “The coming year will be a period of consolidation for Colombian cannabis companies,” said Rodrigo Gomez." Growers and refiners will begin testing products and honing in on a marketable portfolio. Investment is coming to Colombia because of the quality of the terrain."
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