THE Davao City Investment Promotion Center (DCIPC) reported a total capitalization of approximately P253 billion for all business establishments in the city in 2022, marking a decrease from the P275.53 billion recorded in 2021.
According to data from the City Business Bureau, DCIPC registered P253,388,388,474.76 in capitalization for 2022. Of this, 59.96 percent originated from micro-enterprises, 21.32 percent from medium enterprises, 12.61 percent from small enterprises, and 6.08 percent from large enterprises.
Business capitalization represents the initial investment required for a business to launch. It encompasses enterprises that have obtained Business Bureau and City Mayor’s permits and are currently in operation.
Mindanao Development Authority (MinDA) public relations head and economist Adrian Tamayo, however, said: “[The decreasing capitalization does] Not really [affect], because that is just already an ordinary incentive, and take note that an incentive is a tool dili na sya an end by itself, it is a way to attract our business or enterprises, there are many factors to be considered, such as safety, the social services, governance, and the like.”
Despite slipping to the sixth position among highly urbanized cities (HUC) in the Department of Trade and Industry's (DTI) 2023 Cities and Municipalities Competitiveness Index, DCIPC head April Marie Dayap continues to uphold the city's competitive edge.
Within the DTI's index, the economic dynamism pillar, which assesses factors such as local economy size, growth, active establishments, safety compliance, employment generation, cost of living, cost of doing business, financial depth, productivity, and presence of business organizations, has consistently maintained a third-place ranking from 2021 to 2023.
Dayap expressed the center's goal to secure more commitments and determine allocation strategies for capitalization, particularly with foreign investors. However, she acknowledged the challenges in making projections, especially about foreign investments, citing the need for due diligence and thorough studies.
She also noted a noticeable growth in foreign investment within the city, emphasizing the complexities of projecting future investments.
“When we say lisod ang projection… [the foreign potential investors] kasi, they will do their study, due diligence, so medyo lisod siya not unless we will do certain pledges, that is what we want to do for next year (When we say projecting is difficult, we cannot know of how foreign potential investors will be doing, giving that they have to study and do due diligence, that’s our target for next year),” Dayap said.
She added, "[M]agcome up mig pledges, meaning to say, it will just be kung gina-eye nila si Davao City as an investment destination, at how much they will put in terms of capitalization (We aim to create pledges, taking into account whether they see Davao City as an investment destination and how much they are willing to invest in terms of capitalization).”
Christian Cambaya, the DCIPC unit head for investor assistance, highlighted the center's increased focus on agri-processing and agribusiness.
He emphasized their support for value-adding agricultural products like abaca and bananas, further emphasizing their commitment to the agribusiness sector.
In addition to agribusiness, John Carlo Tria, President of the Davao City Chamber of Commerce and Industry Inc. (DCCCI), noted the growth of the business process outsourcing sector in the city and encouraged more businesses to invest in this expanding industry. ICE
