INVESTMENT ENVIRONMENT - BUSINESS OPPORTUNITIES IN COLOMBIA - Invest in Colombia
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INVESTMENT ENVIRONMENT
BUSINESS OPPORTUNITIES IN COLOMBIA
2021
1
PROCOLOMBIA
PROMOTES
Country Brand
Exports
Tourism
Investment and
industrial expansion
for internationalization
2
PRESENCE OF PROCOLOMBIA
IN THE WORLD
32
COUNTRIES
* I n conjunct ion wit h t he MinCI T
3
C OLOMB I A
OFFERS:
A responsible Gov ernment committed with public health and
economic reactiv ation, which allows the country to capitalize
50 years of economic growth to withstand the COVID-19 crisis
The greatest political stability in Latin America thanks to its
gov ernment's commitment to the dev elopment of priv ate
activ ity
A strategic point for regional supply, because of its location
and its network of free trade agreements
A dev eloped technology ecosystem, which meets the
necessary standards for the "new normality" in the post -
COVID-19 recov ery
A leading country in receiv ing FDI in the region
4
The government has made a quick and effective plan to
immunize the population.
Init iat ive
Number of doses Amount of shots
Agreement
10 million people (MILLIONS) (DOSES)
Cov ax 20 MI X
BILATERAL
Agreement s Pfizer 10 2
25.2 million people AstraZeneca 10 2
Moderna 10 2
VACCINES NEGOTIATED FOR
35.2 MILLION PEOPLE Janssen 9 1
ACHIEVING HERD IMMUNITY Sinov ac 2,5 2
(70%)
Total 61,5 -
FIRST QUARTER: 1 MILLION PEOPLE
6
Vaccination Plan
COLOMBIA
PHASE 1-2021 PHASE 2-2021
STAGE1 STAGE 2 STAGE 3 STAGE 4 STAGE 5
• First line health • Second and third • Population • Institutional • Population
workers line health workers between 16 and 59 caregiv ers between 16 and
years of age with 59 years of age
• Population over 80 • Population comorbidities • Population at risk free of
years old between 60 and comorbidities
79 years old • Teachers from • Population at risk of
preschool to outbreaks
middle school
1.691.366 7.192.701 2.950.431 4.910.000 17.490.151
VACCINATED VACCINATED VACCINATED VACCINATED VACCINATED
Sour ce: Minist erio de Salud y Pr ot ección Social ( Minist ry of Healt h).
7
Before the pandemic, Colombia was already excelling due
to its sustained economic growth over the past 50 years
Real GDP growth
in Latin America
(1968=100)
Ov er the past 50 years, the
Colombian economy has been the
fastest growing in the region.
Sour ce: Anif based on Dane and Wor ld Bank.
8
Colombia is projected as the most stable economy in the
region.
Real GDP growth projections of the largest economies in
7,0 Latin America (%)
6,0
5,0
4,6
3,7 3,8 3,8 3,7
4,0
3,0
2,0 T Í T U L O
T Í T U L O T Í T U L O
1,0
0,0
2021f 2022f 2023f 2024f 2025f
Chile Argentina Brazil Mexico Colombia
In 2020, the country’s economy contracted 6.8%, performing
better than the av erage expected for the region (-7.4%).
-25,0%
9 Sour ce: I MF (Wor ld Econom ic Out look, Oct ober 2020 and Januar y 2021).
The dynamism of its economy allows the country to have
outstanding indicators, despite the global economic impact of
COVID-19
4.6% and 4.9%
will be the estimated growth of the
Colombian economy in 2021,
according to international
organizations such as the IMF and the
World Bank, respectiv ely US $5,894 millions
receiv ed in non-mining FDI, between
January and December 2020
2.4% 76.6%
Will be the Inflation rate
in 2021 according to IMF Of participation in total inv estment
The inflation rate will remain low
Sour ce: Banco de la República, I MF and Wor ld Bank.
10
Colombia stands out in the
region for its political
stability and s ol i d
i n s ti tu tion s
11The country has excelled in maintaining political stability
regardless the presidential administration, which has led
Colombia to become a resilient economy
Real GDP
COP Trillion1 USD 264,9
billion2
990
890
790 USD 97,5
billion2
690 COVID-19
590
490
390
290
190
90
200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 201 5 201 6 201 7 201 8 201 9 202 0
Presidential
term Álv aro U ribe Vélez Álv aro U ribe Vélez Juan Manuel Sant os Juan Manuel Sant os I v án Duque Márquez
(1st t erm) (2nd t erm) (1st t erm) (2nd t erm)
Gov ernments, regardless of presidential administration,
1 One m illion m illion. hav e been committed to the country's economic
2 One t housand m illion. dev elopment.
12 Sour ce: I MF, GDP cost ant pr ices.Furthermore, Colombia has strong institutions which
have allowed to position itself in the international context
According to the Global
Competitiveness Report:
Corporate government Business dynamism Financial system stability
1st in Latin America 2nd in Latin America 2nd in Latin America
Global Competitiveness
Report 2019 33 48 54 57 65 71 83
Sour ce: Global Com pet it iveness Repor t 2019, Wor ld Econom ic For um .
13Thanks to the above, Colombia was officially accepted by the
, giving it access to the best economic and social practices
CANADA
UNITED STATES
MEXICO
CHILE
COLOMBIA
AUSTRIA LITHUANIA
BELGIUM LATVIA
CZECH REPUBLIC LUXEMBOURG
DENMARK NETHERLANDS
ESTONIA NORWAY
FINLAND POLAND
FRANCE PORTUGAL
GERMANY SLOVAK REPUBLIC
GREECE SLOVENIA
HUNGARY SPAIN
ICELAND SWEDEN
IRELAND SWITZERLAND
ISRAEL TURKEY
ITALY UNITED KINGDOM
JAPAN AUSTRALIA
SOUTH KOREA NEW ZEALAND
E c o n o mi c s t abi l i t y , Guideline t o improv e
transparency and t rade and
g o v e rnme nt di s c i pl i ne inv est ment barriers
14Additionally, Colombia is a member of the Pacific Alliance,
a regional integration initiative, which seeks to overcome international
economic challenges
Canada
Colombia
Mexico
Singapore
Peru
Australia
Chile
New Zealand
State member
In negotiation to become
associate member
15The country stands out among the economies of the region, for
having a government committed to the private sector
According to Doing Business:
I n getting credit I n protecting minority
inv estors
1st in Latin America
1st in Latin America
Doing Business 2020
World ranking 2020 101 125
59 60 67 76 124
Sour ce: Doing Business 2020, Wor ld Bank.
16This is recognized by the most important competitiveness
rankings worldwide, thanks to the great progress made by
Colombia in terms of reforms and fiscal policies
In 2019, Colombia stands out among the
countries of the region, being the economy that
made the greatest progress in terms of
competitiveness, thanks to the new fiscal policies
developed in that year.
Measuring Business Regulations
Source: Doing Business 2020 (W orld Bank), Global Compet it iv eness Report 2019 (W orld Economic Forum), W orld
Compet it iv eness Ranking 2019 (I nt ernat ional I nst it ut e for Management Dev elopment ).
17With that in mind, Colombia has the lowest FDI barriers of
Latin America
FDI’s Regulatory
Restrictiveness Index 2019
Closed = 1 - Open = 0
0,2 High barriers
0,18
0,16
Colombia has a lower FDI
0,14 restriction rate than countries
0,12 such as Canada (0.16) and
0,1 the United States (0.09).
0,08
0,06
Low barriers
0,04
0,02
0
Mexico Brazil Peru Chile Costa Rica Argentina Colombia
18 Source: OECD.In addition, it outstands due to its great capacity for conflict
resolution, thanks to the well-known
Making Colombia an ideal
environment for international investors
#1 Arbitration institute In 2 0 2 0 a nd f o r t he t hi r d ye a r
in Latin America i n a r o w, i t w a s i nc l ud e d i nt o
(Global Arbitration the most-influential group
R , “W 2018”) of arbitration centers in the
region
19STANDARD
Rating agencies , FitchRatings ,
& POOR S MOODY S
recognize Colombia
with an investment Long Term – Long Term – Long Term –
Term
Foreign Foreign Foreign
grade currency currency currency
Rating
BBB- BBB- Baa2
In December 2020, Moody's maintained the
Baa2 rating for Colombia, a step up of
investment grade.
Large, Prudent and Strong tradition
dynamic
1. and resilient
2. predictable
macroeconomic
3. of payment of
debt obligations.
economy. policies.
Sour ce: S&P, Fit ch Rat ings, and Moody´s.
20T he new dynam i c of gl obal
trade opens the opportuni ty
to Col om bia for regional
supply
21The current situation brings different changes in the world, such as
the reorganization of global supply chains, which are tending
to regionalization
More than 80% out of 3,000 companies
surveyed in 12 global sectors, in North
America, Europe, and Asia Pacific (ex-China),
have implemented or announced plans to
relocate at least part of their supply chains
from current locations.
-Bank of America
Companies will be increasingly inclined to
spread their risks rather than “putting all their
eggs in the lowest-cost basket”. The threat of
a future crisis will force companies to structure
their global supply chains, looking for greater
resilience, as well as lower risks and costs.
-Re-shoring index, Kearney
Sour ce: McKinsey & Com pany, “Econom ic
22
Condit ions Snapshot , Mar ch 2020”.Colombia is ready to address this relocation challenge,
offering preferential access to 97%* of the countries of the region
Canada
U nit ed St at es
Regional agreements
• Andean Community • Costa Rica
• Pacific Alliance • Mercosur Mex ico Cuba*
• Chile • Cuba CARI COM*
• Mexico • Caricom Nort hern Triangle Nicaragua*
• Canada • Nicaragua Cost a Rica Venezuela Colombia has 17 free trade
Panama
• United States • Venezuela agreements in force, which allow
Ecuador ALADI
• Northern Triangle preferential access to 60 countries
Peru
Brazil
and 1.5 billion consumers
Other agreements Signed agreements CAN
Boliv ia
• EFTA • Panama MERCOSU R
• European Union • United Kingdom Paraguay
In force
• South Korea U ruguay
Israel Chile
• Signed
Argent ina
Pacific Alliance
Sour ce: MinCI T
23
*Non-self-gover ning t er rirories ar e not included.Thanks to the above, the country has privileged access to the
continent's largest markets
Imports 2020
US$ Million
United States Pacific Alliance Canada Mercosur Central America
US$ 2,407,544 US$ 513,526 US$ 405,001 US$ 246,967* US$ 106,285*
Population: Population: Population: Population: Population:
329.3 million 227.9 million 37.5 million 293.5 million 50.2 million
Sour ce: T r adeMap, I MF, T DM.
24
**Last dat a available 2019Furthermore, among the countries of the region, Colombia has the
FTA with the best access conditions to the United States, the
world’s largest importing market
13.5%
U.S. market share in the
world's imports
United States
• Av erage tariff of 0% from Colombia to
the U.S.
• 2,157 (96%) of the subheadings that
Colombia exports to the United States,
entered the market with a 0% tariff.
• Conv enient regional content v alue
rules.
Sour ce: Ar aújo I bar r a, MinCI T .
25The preferential access is
complemented by air ACCESS TO THE U.S. JUST
IN 3 DAYS
and sea logistics (PORT EVERGLADES)
advantages Toronto
Vancouver
(18 days) Air: 6hr 10min
Montreal
(15 days)
Los Angeles
(10 days) New York
Air: 7h 40min (6 days)
Mexico City Air: 5h 35min
Air: 4hr 55min
Miami
(6 days)
Veracruz Air: 4h
(5 days)
Colombia has more than 4,500 sea
export routes and access to 680
ports around the world. In addition, Lima
Air: 3hr 05min Callao Sao Paulo
by l ess than six hours by plane the (2 days) Air: 6hr 10min
ACCESS TO PERU JUST IN 2
country manages to deliver goods to
DAYS (CALLAO) Rio de Janeiro
the main cities in the Americas. (19 days)
Santiago de Chile
Air: 5hr 55 min
Buenos Aires
(17 days)
Valparaíso Marit ime rout es
(13 days)
Air rout es
Source: Rout es and rat es - Tools for t he Colombian Ex port er, processed by ProColombia.
26 Legal guide for doing business in Colombia 2019The country has one of the most competitive air freights in the
region and the busiest cargo terminal
Top air cargo movement
in Latin America
(metric tones)
Average air freights to the
Bogota Country
U.S. / Kg
741,500
Colombia USD 1.12
Sao Paulo Mexico USD 1.55
Mexico City
552,280
581,670 Brazil USD 2.17
Peru USD 2.62
Lima Chile USD 1.99
294,700
* Sour ce: I AT A T ACT – Refer ent ial r out e MIA, Scale +500Kg
Santiago
420,950 There are more than 30 direct
and in connection routes,
offered by more than 8 airlines.
Sour ce: Cent r al and Sout h Am er ica; ACI ; 2018.
27
St at ist a 2020Its location in the middle of the continent allows businesses
to access America's main ports in a short time
Port logistics in Latin America
Distance in days by port of origin
Destiny
port Colombia Mexico Peru Chile Argentina Brazil
Cartagena Buenav entura (Veracruz) (Callao) (Valparaiso) (Buenos Aires) (Santos)
New York 6 12 22 16 24 23 16
Los Angeles 10 10 24 12 22 34 27
Montreal 15 23 38 26 31 33 26
Vancouv er 18 21 32 22 32 44 35
Callao 9 2 22 - 7 34 16
Valparaiso 18 13 36 5 - 43 32
Sour ce: Mar it ime lines – Rout es and r at es syst em. Pr oColom bia (June 2020)
28In addition, it has a free trade zone regime with one of the
region's most attractive incentive packages
Benefits within the Free Trade Zones
The sale of raw materials,
parts, inputs and finished
Exemption of customs goods to industrial users The sale and shipment
duties (i.e. VAT and of goods and serv ices is The merchandise within of goods abroad which
20% income tax rate tariffs) for goods a Free Trade Zone may
exempted from VAT, are located within the
in free trade zone imported from remain inside such zone
prov ided that these Free Trade Zone is
abroad to the Free goods are necessary for indefinitely exempted from VAT
Trade Zone. the execution of the
user’s corporate purpose
29 Sour ce: Fr ee t r ade zone dir ect ory 2019. DANEFree trade zones are located throughout the country, especially
close to the country's main seaports and airports
Free trade zones* map
Ernest o Cort issoz At lant ic
Cart agena,
Bar r anquilla-At lánt ico ocean
Free trade zones* by Bolivar
department
Pacific
ocean
• Bogota
• Cundinamarca
José M. Córdov a,
• Santander
Rionegr o-Ant ioquia
• Norte de Santander
• Atlántico
• Boliv ar Buenav ent ura, El Dorado,
• Magdalena Valle del Cauca
Bogot a
• Risaralda Alfonso Bonilla Aragón,
• Quindío Cali-Valle del Cauca
• Antioquia
• Valle del Cauca
• Huila Thanks to its location,
Colombia offers direct access
Marit ime port s
to the two main oceans that
Airport s surround the continent.
30 Sour ce: Fr ee t r ade zone dir ect ory 2019, Pr oColom bia.
*Per m anent fr ee t rade zonesColombia is the Number of FTZ in Latin America, July 2020
second Latin Dominican Rep. 74 151
American country
Colombia 36 75
with the highest
Nicaragua 49
number of free Costa Rica 41 FTZ
trade zones Honduras 39 Special FTZ
Panama 18 2
Brazil 1 19
El Salvador 17
Total number of free
Special permanent free trade trade zones: Number of permanent
zone or Single-Company free free trade zones:
trade zone : 117
77 40
31 Sour ce: AZFA.The Free Trade Zones regime is complemented by other investment
incentives
MEGA-
INVESTMENTS
PROGRESSIVE
HOLDING
REDUCTION
OF THE CORPORA TE
COMPANIES
I N COM E T A X RA T E REGIME
SPECIAL
BENEFITS
DEDUCTION FOR DIS TRIBUTION INCOME TAX
CEN TERS
OF THE V AT PAID ON EXEMPTIONS
REAL FIXED AS S ETS
FOR DIFFERENT
S ECTORS OF THE
ECON OM Y
A M ON G OTHERS CEN TERS
32The combined incentives position Colombia as the country with
the best tax regime for investors in Latin America
Tax burden COLOMBIA CHILE PERU MEXICO ARGENTINA BRAZIL
31% - 2021
Income tax 25% a 27% 29,5% 30% 25% 34%
30% - 2022
Mega investment - Exempts in FTZ of
Exempt in 4 20% in the Northern - 75% in FTZ of
Special benefits 27% Iquique and No
operative FTZ Border Free Zone Manaos
FTZ - 20% Punta Arenas
8% in the Northern Exempt from 55% to 100%
VAT Exempt from FTZ Exempt from FTZ
Exempt From FTZ Border Free Zone FTZ reduction
Custom Duties Exempt in FTZ Exempt in FTZ No (Only IMMEX) Exempt in FTZ - 75% on supplies
Exempt in FTZ
Accelerated In 2 years for mega 50% snapshot
No No No No
Depreciation investment until 2021
10% (DTA)
Dividend Tax Mega investment 5% to 10 % 5% 10% 13% No
0%
Legal Stability In mega investment
Yes Yes No Yes No
Contract projects
33 Sour ce: Ar aujo I bar r aT he country has a
technological ecosystem
developed and prepared for
the "new" norm al ity
34Colombia provides the necessary technological
infrastructure for operations in the new economic reality
98% 4° 11
of Colombia's submarine cables in
largest IT
municipalities are operation, being the
market in
connected to the Latin America.
second country in the
world through region with better
optical fiber. connectivity,
transmission and stability.
3° 66%
Colombia offers one of the most entrepreneurial of internet penetration in
lowest operating costs in the country in Latin America. the country, with 32.7
world for the provision of IT million users.
services.
35 Sour ce: MinT I C. Fit ch Connect ion. Global Ent r epr eneur ship I ndex.In 2019, Colombia opened Latin America’s
first Center for the Fourth Industrial Revolution
Center for the Fourth
Industrial Revolution
R R
BLOCKCHAIN ARTIFICIAL INTELLIGENCE INTERNET OF THINGS
36This is complemented by a high number of enterprise incubators,
accelerators and innovation centers that motivate high-value
innovation and entrepreneurship
37Colombia thinks about the future and has adopted special
measures for the country's digital transformation
National Development
New policies Plan 2018-2022 Cooperation
Directives
‘Pact for Colombia, pact agreements
and Decrees
for equity’
CONPES Digital II. Pact for Presidential directive Ratification of the
transformation entrepreneurship and Gov.Co Budapest Convention
with AI focus productivity Digital Citizens Services Convention B80 on
CONPES of digital V. Pact for science, Act Cybersecurity
security technology and innovation
VII. Pact for the digital
transformation of
Colombia
38 Sour ce: President ial Counseling for innov at ion and digit al t ransformat ion. T r ansfor mación digit al de la m ano del sect or pr ivado..Furthermore, it has implemented laws and mechanisms that seek the
modernization of the ICT sector and to reduce the digital gap
PUBLIC – PRIVATE
ICT MODERNIZATION LAW PARTNERSHIPS (PPP)
The TIC Modernization Law creates the Through Decree 1974 of 2019, Colombia
conditions to encourage private investment, offers the opportunity to build ICT projects,
generate legal certainty and facilitate the through public-private partnerships (PPP).
deployment of high-cost infrastructure. It also PPPs involves the concession of mega-
simplifies and brings to international projects, so that they can be carried out
standards the institutional and regulatory with private resources and, in some cases,
framework for the sector, and strengthens reimbursed them with future terms or other
public television and radio resources.
39 Sour ce: MinTI C, Port afolio.Colombia has the third most qualified workforce in
Latin America and leads in terms of employee training
and apprenticeships schemes
Graduates by level of higher
IMD World Talent Ranking
2020
education
2010 – 2019
0,1%
Chile 53,9
21,8% ISCED 5 (Short-cycle
Argentina 49,2
31,6% tertiary education)
ISCED 6 (Bachelor’s or
Peru 46,9
equivalent level)
ISCED 7 (Master’s or
Mexico 43,2
equivalent level)
Colombia
ISCED 8 (Doctoral or
42,5
equivalent level)
46,5%
Brazil 40,6
Total: 3,833,218
Source: Minist ry of Educat ion, 2018
I nt ernat ional St andard Classificat ion of Educat ion I SCED 2011 -DANE
I MD W orld Talent Ranking 2020
40The arrival of Amazon is not just a vote of confidence, but
has also made an anchor effect of attraction to other
companies, dynamizing the offer of digital services in Colombia
In 2017, the company expanded to In 2018, the company announced
Colombia with Amazon Web the launch of its first customer
Services, so the company could service center in Colombia. The site
offer cloud computing serv ices to supports Amazon’s customers
'startups’ and large companies in around the world in Spanish, English
different sectors of the economy and Portuguese; and prov ide 24/7
and public entities. world class customer serv ice.
41Al l th e s e
c on di ti ons place
the country as a
regional leader in
receiving FDI
42Colombia ranks 9th among developing countries in
receiving FDI
Top 10 developing economies
in receiving FDI in 2019
(USD billion)
141,2
I n addit ion, it ranks
2 3 rd i n r e c e i v i n g F D I
92,1 globally.
72,0 68,4
50,6
32,9
23,4
16,1 14,5 13,8
China Singapur Brazil Hong Kong India Mexico Indonesia Vietnam Colombia United Arab
Emirates
Source: U NCTAD, 2020.
*Cay man I slands and Brit ish Virgin I slands are not included.
43Since 2014 non-mining sectors have registered a major
participation in Colombia’s FDI
16,210 16,169
14,647 15,040 13,848 14,314
13,837
FDI inflows in Colombia 6.897 2.199 11,535
8.220 11,724 4.513
(USD million) 7.092 7.955 4.261
3.174
2011 – 2020 3.941
7,690
1.797
Oil and mining 11.649
9.272 8.550 9.576 9.801
7.555 7.085 7.991 7.594
Other sectors 5.894
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
In 2020, notable growth was recorded in the activities of Electricity,
Gas and Water (135.5%) and Community Services (85.2%).
Top investors in
Colombia, by country**
United States Spain United Kingdom Canada
2016-2020 USD 11.6 billion USD 10.1 billion USD 5.6 billion USD 4.1 billion
18.9% 16.5% 9.2% 6.7%
Source: Balance of Pay ment s – Banco de la República.
**Panama and Sw it zerland are not included
44Investment in Colombia reaches various sectors of
the economy
FDI by economic activity*
2016 – 2020
3% Financial and Business Services
6%
6% Manufacturing
27%
Transportation, Distribution
and Communications
12%
Commerce, Restaurants and
Hotels
Electricity, Gas and Water
Construction
13% Bet w een 2016 and
17% 2020, a t ot al of
Community Services
US$44,513 billion in
Agriculture, Hunting, Forestry
non-mining FDI
16% and Fishing arriv ed in t he
count ry
Source: Banrep.
*Mining-energy inv est ment s are ex cluded.
45T here are m any
reas ons why
Colombia is
the best
investment
destination
46Some niche opportunities:
AGRIBUSINESS AQUACULTURE COCOA MEAT FRUITS AND
VEGETABLES
PROCESSED DAIRY FORESTAL
FOOD
1. 2. 3. 4. 5.
Colombia is set to The agri-food sector is Colombia is a significant The national government The Colombian
become a global one of the pillars of the food consumer in the is committed to boosting business network
food pantry and has national economy and region and an important the sector and taking offers possibilities of
the potential for is recognized export platform to satisfy measures to consolidate strategic alliances or
agricultural and internationally. the Americas, with an production and supplying companies
agro-industrial This is strengthened by expanded market opportunities at the to develop value-
growth to serve the the growth of foreign equivalent to 30% of the international level, such added products in
local and direct investment in this world's processed food as: diplomacy strategy , Colombia.
international markets. sector. and beverage market. investment promotion
and mega-projects.
Colombia has legal incentives that impact the agro-industrial sector and
47 facilitate the establishment of crops and companies in the country.SUCCESS STORIES
AGRIBUSINESS
UNITED UNITED CHILE
STATES STATES
Cargill is expanding its global PepsiCo has managed to Alliance between CCU and
poultry business with the acquire local companies such Postobon: Construction of a
acquisition of Campollo S.A., a as Cronch and Papas Margarita, production plant with the
Colombia-based producer of generating daily contact with aim of boosting the beer
chicken and protein products. more than 8 million consumers of market sector through
The acquisition of Campollo all generations. In Colombia production,
marks Cargill’s second recent they have 3 production plants, commercialization and
investment in Colombia. The 17 distribution centers and distribution of beer and non-
company acquired before presence in more than 400,000 alcoholic beverages based
Pollos Bucanero, reaching more points of sale. on malt.
than 7,500 employees
generated in Colombia.
48 Source: Procolombia based on nat ional pressSome sectors with investment opportunities:
MANUFACTURING
INDUSTRIES AUTOMOTIVE METAL MECHANIC
BUILDING COSMETICS AND
PACKAGING
Colombia serves as an export MATERIALES PERSONAL CARE
platform to an extensive market
in the region The Colombian manufacturing sector has facilitators to invest in the
country and take advantage of the opportunities it offers.
1. 2. 3.
Wages within the industrial sector in The country has income tax Colombia offers easy access to raw
Colombia are among the most exemptions to promote local materials at competitive costs, both
competitive in the region, lower than manufacturing, such as the free trade imported and produced locally.
countries like Argentina, Peru, Brazil zone regime and large-investment Decree 272 of 2018 allows imports with
and Chile. Additionally, the country incentives. Colombia is the second 0% tariff for more than 3,600 products
has a growing, efficient, and qualified country in Latin America with the that are not locally produced.
workforce. W e were positioned in the highest number of free zones.
2019 Global Competitiveness Ranking
as the country with the most efficient
labor market in Latin America.
4. 5.
Diversified and growing manufacturing industry. Colombia’s 16 FTA's provide excellent trade conditions,
Colombia has more than 121.000 active and access to 1,5 billion consumers for example, the
manufacturing, and each year around 8.000 FTA with the United States has very flexible rules of
thousand new ones are created, which represents origin, 0% tax on many products, and no minimum
an annual growth of 2%. wage requirements in the manufacturing process.
49SUCESS STORIES
MANUFACTURING
INDUSTRIES
UNITED
IRELAND JAPAN STATES ARGENTINA
They currently have 2,500 The Japanese continuous Minnesota Mining and Ternium has had an industrial
direct jobs in the cities casting and high precision Manufacturing Company, presence in Colombia since
where they have parts production company opened a distribution 2010 when it acquired more
operations: Medellin, Cali, decided to open a plant center in Funza, to sell than 50% of the Ferrasa
Barranquilla, and Bogotá. to serve the American 2,800 references, focusing Group. In the first semester of
In early 2020, the market. on personal safety items 2020, they have advanced in
company announced a for the Colombian market. the construction of their new
USD 36 million operations plant in Palmar de
reinvestment in Palmira, Varela, with an investment of
Valle del Cauca, to USD 270 billion and a
expand its paper bag generation of 800 direct jobs.
operation.
50 Source: Nat ional and int ernat ional pressSUCESS STORIES
MANUFACTURING
INDUSTRIES
UNITED JAPAN
NETHERLANDS FRANCE
STATES
The new factory set up in In 2015, the company The company has been Isuzu Motors Limited's alliance
Colombia is one of its reinvested close to USD 18 investing in technological with actors installed in
three most modern million for the upgrade of its reconversion projects to Colombia has allowed them to
factories in the world, plant. Their goal is to export increase its production become automotive
thanks to its cutting-edge about 50% of its production capacity, reduce its technology leaders for ten
technology and to Central America and the energy consumption, and years. Recently, they made a
ecofriendly facilities. Andean region. They raise its quality standards, new investment of USD 2.5
opened a new plant on the with investments of million to expand their
outskirts of Bogotá approximately USD 7.2 operations.
(USD 30 million investment), million.
which will be in charge of
producing mainly Vogue
products.
51 Source: Nat ional and int ernat ional pressSome niche opportunities:
TECHNOLOGY BASED
4G 5G ICT DATA CENTERS SHARED SERVICES
SERVICES INFRASTRUCTURE
MODERNIZATION
CENTER
Software, BPO, CSC, Data Center and
telecommunications.
BPO BLOCKCHAIN, INTERNET FINTECH
OF THINGS, ARTIFIAL
INTELLIGENCE
1. 2. 3. 4. 5.
Colombia promotes Colombia is the Colombian IT services Global connectivity with Highly qualified
the digital fourth largest IT exports grew 3% world class human capital and
transformation. market in the between 2015 and Infrastructure, Colombia low operating costs,
region after Brazil, 2019, positioning as an is the second country in the country has the
The National Mexico and export platform to the region in number of largest workforce in
Government has Argentina. different markets, such cables (11). In addition, the region, and the
established digital as the United States it went from registering first in terms of growth
transformation as and Mexico. 2.8 million broadband and training,
the driving force for internet connections surpassing countries
the coming years. in 2010 to a total of 32.7 such as Peru, Mexico
million in 2018 and Brazil. IMD W orld
Talent 2019.
52 Source: MinTI C, Fit ch, St at ist a.SUCCESS STORIES –
ITC SERVICES
UNITED UNITED UNITED JAPAN
STATES STATES KINGDOM
IBM opened its third Data The renewal in the Thanks to the success of its Its BPO operation
Center in Colombia company continues. After operations in Colombia, currently has more than
offering a processing announcing the Endava, a British IT 1,400 credit processes,
power of 5 petabytes. modifications on its logo, company, announced its customer service, and
It´s one of the most the company announced expansion with a projected document management
advanced centers for that they will start investment of at least 10 active positions.
Cloud Computing and managing the operation million dollars and offering
Big Data Analytics of Bolivia, Ecuador, 500 jobs in the next five
companies in Guyana, Suriname, Peru years. The company
the country. and Venezuela from decided to expand its
Colombia. operation in the country,
opening a new office in the
53 Source: Procolombia based on nat ional press city of Medellín.Some niche opportunities:
TOURISM
Colombia, a high-quality
sustainable destination ECOLODGE AND SUN AND BEACH THEMED
WELLNESS URBAN
GLAMPING HOTELS - RESORTS PARKS
Colombia is considered a unique destination thanks to its mega diversity, international air
connectivity, different climates and touristic attractions
1. 2. 3.
Colombia is an international tourist Colombia´s growth is almost twice compared to the Colombia is connected to 27
destination. USTOA* chose Colombia as global average rate. The average annual growth of countries and 26 airlines
the first destination of interest in 2020 and non-resident visitors into the country was 9% through more than 1,000
Financial Times** highlighted Colombia as between 2012 and 2019, while world’s growth was direct weekly frequencies,
one of the global markets with the best 5.3% and the Americas’ growth was 4.4%. Tourism is offering 194 thousand seats
investment attraction strategy in the the second exporting sector with USD 6,7 million, weekly.
world. after energy and mining activities.
4. 5.
Colombia offers attractive incentives for investing in hotel and tourism Colombia has 14 cities with more than 500 thousand
infrastructure. The 2019 tax reform offers a preferential income tax rate inhabitants and 31 with more than 200 thousand
for new hotels, themed parks, agritourism, ecotourism and docks. In inhabitants. These are attractive regions for the
municipalities with less than 200 thousand inhabitants, rate will be 9% for development of: urban hotels, mixed uses, sun and
20 years; for cities with more than 200 thousand inhabitants, the same beach resorts, ecotourism, wellness, entertainment
rate applies for 10 years. (themed parks), tourism infrastructure and investment
in heritage towns.
Source: MinCI T, DANE, OAG Av iat ion, U nit ed St at es Operat ors Associat ion.
54 **Research Cent er fDi I nt elligence reportSUCCESS STORIES
TOURISM
Real estate and retail
UNITED UNITED
PANAMA FRANCE
STATES STATES
Hyatt is present in Bogotá The Selina hotel chain was The Accor hotel chain The chain, in alliance with
(the Grand Hyatt Bogotá established in 2017 in Colombia invested in 6 projects, a local developer,
and the Hyatt Place Bogotá and in the last two years it has generating more than 550 invested in the
/ Convention Center) and expanded with a restaurant in jobs. The projects are construction of a new
in Cartagena with the Hyatt Bogotá and subsequently 2 concentrated in Bogotá, hotel under the Ramada
Regency, which is also lodging locations. In its growth Montería, Apartadó and brand, which will be
among the 25 best in the plan, it already has a hotel in Chía. Coming soon will be located in the Bogotá Free
country. The expansion of Medellín, one in Cartagena and the development of a Zone, it will have 87 rooms
the Hyatt Regency the most recent one in Quindío. new hotel located in and its opening is planned
Cartagena hotel in 2020 will The firm plans to add 15 hotels in Ituango (IBIS BUDGET). for May 2020.
add 285 rooms and 90 2021 in places like Santa Marta,
rooms. Palomino and Cali, among other
cities.
55 Source: ProColombia con base en prensa nacionalSome niche opportunities:
INFRASTRUCTURE
A major driver for growth
AIRPORTS PORTS ROADS STEP RAILWAYS FLUVIAL
R
NATIONAL PLAN
1. 2. 3.
Infrastructure is the main Due to the Health emergency, the Colombia is the third country in the world
development sector stated by the government prioritized according to the Procuring Infrastructure
Government to enhance the investments of USD 5,288 million in PPP 20181, given the efficiency of the PPP
economy. Public investment grew PPP's as a reactivation strategy of model for the development of
from 0.6% in 2003 to 3% of GDP in the economy, generating more infrastructure projects.
2018 and represented 8.6% of than 90,000 jobs between 2020 –
total FDI in 2019. 2022. 5.
Colombia has a diverse portfolio of
4.
infrastructure projects by 2035
Colombia has a dynamic infrastructure •Road: USD 60,000 million
secondary market2, which allows the entry •Airports: USD $ 5.700 Million
of Foreign Investment Capital Funds into •Rail: USD 3.400 Million
ongoing projects, with stable and safe •Fluvial: USD 1,600 Million
profitability. •Ports: USD 433 Million
•Social: More than USD 1,500 Million
1 Word Bank Ranking
2 Marketing of PPP projects already awarded Source: I nt ermodal Transport Mast er Plan 2015-2035 (PMTI ) Ex change
56
rat e: U S$ = COP$3.282SUCCESS STORIES -
INFRASTRUCTURE
A major driver for growth
UNITED AUSTRIA ISRAEL SINGAPORE
KINDOM
InfraRED is a global Strabag will be in charge of 75 Shikun & Binui awarded The investment of around
investment fund focused on Km new highways, and the the project “Corredor USD600M of PSA in
the infrastructure and modernization of a 65 km Perimetral de Oriente de Aquadulce Port turns this
energy sectors. The section. Cundinamarca = 153 km Pacific Sea port into the
company acquired a local length”. most modern in the
concession, a roadway country.
project of the 4G
infrastructure program.
57 Source: ProColombia con base en prensa nacionalSome niche opportunities:
ENERGY
By 2050, 25% of the energy matrix will be THERMAL PCH SOLAR
from NCRE1
1.
After a successful energy auction, Colombia TRANSMISSION
WIND BIOMASS
will increase its installed capacity in the NETWORK
generation of NCRE 1 50 times, going from less
than 50 MW in 2018 to 2,500 MW in 2022. This
important fact will allow to achieve the goal of 4.
diversifying the Colombian energy matrix.
Colombia has one of the highest availability of energy
2. resources worldwide:
Colombia is the second largest economy in the •Solar: average daily radiation 25% higher than the world
Americas and ranks 25th out of 115 globally in average.
the Energy Transition Index 20202 ranking, in •W ind: wind speed is twice the world average.
capacity to supply energy in a self-sustaining •Biomass: sufficient potential to supply 46% of national
and quality manner. energy demand.
3. 5.
In 2019, 19 transmission projects for more than USD 291
The development of renewable energy in million came into operation. In 2020, 11 calls for investment
Colombia has incentives, such as the deduction projects will be opened, which will increase reliability and
of 50% of the income tax for 15 years for allow flexibility in the operation of the system. Additionally,
investments in alternative sources. Government launched the first project of energy storage.
1 Energies with unconventional sources
2 Ranking of the World Economic Forum
58 3
UPME public callsSUCCESS STORIES -
ENERGY
A diversified resource base and a
strategic location in the Americas
ITALY CHINA UNITED
STATES
Between 2017 - 2019, the Trina solar energy supports the Colombian subsidiary of
Italian multinational Enel will transformation of the Colombian AES Corporation (Applied
invest close to energy matrix with the Energy Services). Chivor is
USD 561 million in energy investment in a solar energy park one of the country's
projects in Colombia. (Llanos 1) supported by the FDN. largest power generator
with a total effective
installed capacity of 1,000
MW .
59 Source: ProColombia con base en prensa nacionalSome niche opportunities:
CAPITAL
FUNDS REAL ESTATE HEALTH BANKING ITC
BIOTECH ENERGY AGRIBUSINESS INFRASTRUCTURE
Colombia offers several benefits
to invest in capital funds.
1. 2. 3.
Colombia was ranked fourth in Latin 19 International General Capital funds such as Advent
American and Partners in Colombia. International and Victoria Capital
the Caribbean due to its favorable have chosen the country as a hub
conditions for development of the to service other countries in the
PEF industry. region.
60SUCCESS STORIES –
CAPITAL FUNDS
CANADA JAPAN CANADA
Investments mainly in the sectors Colombia's Rappi unicorn, a Caisse de Depot et Placement
of infrastructure, energy and real home and e-commerce du Quebec created an
company, received a $1 billion infrastructure co-investment
estate.
investment from Japan's fund with the Colombian
Investments in the Colombian government and four pension
SoftBank Group and SoftBank
power company SA as part of its funds in the South American
Vision Fund. This was the largest
expansion plan in the region. investment of its kind for a Latin country that's expected to
American technology company. reach $1 billion. Infrastructure
investments will target
renewable and other forms of
energy, transportation, social
infrastructure,
telecommunications, water and
basic sanitation.
61 Sour ce: Pr ocolom bia based on nat ional pr essPROCOLOMBIA
is ready to
assist you in
assessing
inv estment
opportunities
62THANK YOU 63
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