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Presentación Colombia - Ingles BUSINESS OPPORTUNITIES IN COLOMBIA 2019 INVESTMENT ENVIROMENT AND INVESTMENT ENVIRONMENT BUSINESS OPPORTUNITIES IN COLOMBIA 2019
Presentación Colombia - Ingles
BUSINESS OPPORTUNITIES IN COLOMBIA
2 0 1 9
INVESTMENT ENVIROMENT AND
INVESTMENT ENVIRONMENT BUSINESS OPPORTUNITIES IN COLOMBIA
2 0 1 9
o f f e r s :Colombia
A dynamic and stable economy.
A growing, strategically located market that facilitates transactions and business deals in the region.
A trade platform with over 16 Trade Agreements enabling investors to reach third markets with preferential access.
Multiple development centers and regions coupledwith a growing middle class securing a greater demand in products and services.
A growing pool of qualified Colombian companies able to partner with internationalinvestors to reach out to regional markets
Various opportunities for investment in a wide range of economic sectors.
GROWTH FORECASTSGDP variation, 2019
COLOMBIAis projected to grow by 3.5%, faster than most countries
in Latin America
4,1 4 43,8 3,7 3,7 3,6 3,5 3,5 3,5 3,4 3,4 3,3 3,2
32,8
2,62,4
Source: IMF, WEO, January 2019.
PIB PPP 2018*(USD billlion)
Latin American Economies
COLOMBIAIs the 32nd largest
economy in the
world and 4th in in
Latin America.
458
463
480
484
543
551
556
661
707
733
749
758
791
919
956
1.000
1.319
2.575
3.371
Peru
Austria
Chile
Hong Kong SAR
Sweden
Switzerland
Singapore
Algeria
Vietnam
United Arab Emirates
Colombia
Bangladesh
South Africa
Argentina
Philippines
Malaysia
Australia
Mexico
Brazil
Source: IMF, WEO, January 2019.
3,2
3,7
2,4
1,9
3,7
6,8
5,8
4,1
3,23,4
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Inflation (%)
2019 and 2020,
It is expected that in
(2% - 4%)
It will maintain in the range
Since 2015, inflation has registered a downward trend.
Source: Banco de la República. Projections: IMF, WEO, Enero 2019.
Source: Source: Colombian National Bank (Banco de la República), January 2019.
Since 2013 unemployment rate has remained at a single-
digit level.
It is expected that, in 2019 and 2020, unemployment rate will continue to be at a one - digit level.
11,3
1211,8
10,8
10,4
9,7
9,18,9
9,29,3
9,29,1
8
8,5
9
9,5
10
10,5
11
11,5
12
12,5
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Unemployment rate
(Percent of the population)
Source: IMF, WEO 2019, January
The Colombian economy is on the path of recovery and will expand by about 3.6% in
2019-2020
6,6%
4,0%
4,9%
4,4%
3,1%
2,0%1,8%
2,7%
3,6% 3,7%
0%
1%
2%
3%
4%
5%
6%
7%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
GDP Growth
(constant prices, % rate)
Inflation continues an uninterrupted decelerating trend since 2015.
A GROWING MIDDLE CLASS WITH HIGH PURCHASING POWER
Share of the population belonging to the middle class vs GDP per capita evolution2002 – 2017
1.8%G D P G r o w t h
i n 2 0 1 7
2.7% 3.6%G D P G r o w t h
i n 2 0 1 8
G D P g r o w t h f o r e c a s t
f o r 2 0 1 9
GDP (USD PPP, constant prices)
Middle class(%)
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
5000
6000
7000
8000
9000
10000
11000
12000
13000
14000
15000
2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
30,4%
14.436
Source:Poverty indicators (DANE) and GDP (World Bank) Middle class:
Estimated by ProColombia
Doing Business 2019 ranking
According to Doing Business,,
Colombia is:
No. 15 In Protecting minority
investors
No. 40In resolving insolvency
Source: World Bank. Doing Business 2019.
No. 3In getting credit
Doing Business 2019World ranking 2019 56 12395 1096854 65
COMPANIES ARE THE MOST WILLING TO INVEST IN FIXED CAPITAL.
Gross fixed capital formation Investment sources 2017
(Investment as GDP %)
Source: DANE, Most recent data available.*Procolombia´s estimates
(%)*
Gross fixed capital formation 2017
USD $71 billion
19,7%
21,8%
23,3%
24,7%
24,0%24,2%
27,0%27,2%
27,7%
29,1% 29,0%
27,…
27,0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
58,2%26,2%
14,5%
1,0%0,1%
Companies
Households
Government
Banks
Non-profit organizations
Source: IMF, WEO 2018, April.*Includes gross fixed capital formation and inventory variation
Investment as a percentage of GDP has a share of about a quarter of the Colombian
economy.
In 2019 and 2010, It is expected to be higher than 2018
20,2
22,423,0
23,5
22,4 22,1
23,9 23,924,3
26,326,7
24,7
23,4 23,6 23,7
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Investment* (% of GDP)
2010 – 2019 est.
GROSS DOMESTIC PRODUCTEstimatedgrowth 2019
Colombia, one of the top growing economies in 2019 among the largest Latin American countries
Source: IMF. January 2019.
4,1% 3,5% 3,4% 2,5% 2,3% 2,2%
Ch
ile
-5,0%
Co
lom
bia
Ve
ne
zue
la
Bra
zil
LATA
M
Pe
ru
Me
xic
o
-1,6%
Arg
en
tin
a
COLOMBIA IS THE 28th
most populated country in the world
and the 3rd in Latin America
Latin America
*Estimated,.Source: IMF, 2019
210,7
125,9
65,4 60,751,9 50,4 46,2 45,1
32,8 32,5 28,1 25,618,8 17,3 11,5 11,4 10,7 10,8 10,4 10,2 9,0 9,1 5,8 5,4 3,5
Population in 2019* (Billion)
Source: S&P Ratings; Dinero magazine, ColombianTreasury.* Portafolio 2018
COLOMBIA
Ra
nk
ing
Term
Long Term –Foreign
currency
BBB- BBB
Long Term –Foreign
currency
FitchRatings MOODY S,STANDARD
& POOR S,
Baa2
Long Term –Foreign
currency
In March 2017, Fitch Ratings* improved Colombia´s
rating outlook: from Negative to Stable
In July 2014, Moody´s was the last rating agency in
improving Colombia´s rating due to two key drivers:
Positive growth forecast
thanks to 4G
infrastructure.
1.A sound fiscal
management that will
continue in the future.
2.
an investment grade country
Source: OECD, May 2017.
More barriers
Less barriers
Latin American Economies
Closed = 1 - Open = 0
FDI’s Regulatory Restrictiveness Index 2017
COLOMBIALOW BARRIERS TO FDI
0,00
0,05
0,10
0,15
0,20
0,25
0,30
0,35
0,40
0,45
AUSTRALIA
NEW ZEALANDJAPAN
SOUTH KOREA
Being part of the OECD countries means that public institutions in Colombia will meet
standards of the developed world more confidence for investors
COLOMBIA IS THE 37TH MEMBER OF THE OECD
“The OECD investment policy review examines Colombia's achievements in developing an open and transparent
investment regime and its efforts to reduce restrictions on international
investment” OECD
CANADA
UNITED STATES
MEXICO
CHILE
COLOMBIA
AUSTRIA
BELGIUM
CZECH REPUBLIC
DENMARK
ESTONIA
FINLAND
FRANCE
GERMANY
GREECE
HUNGARY
ICELAND
IRELAND
ISRAËL
ITALY
LATVIA
LUXEMBOURG
NETHERLANDS
NORWAY
POLAND
PORTUGAL
SLOVAK REPUBLIC
SLOVENIA
SPAIN
SWEDEN
SWITZERLAND
TURKEY
UNITED KINGDOM
Being part of an organization
such as the OECD is a sign of
economic stability, transparency
and government discipline
OECD gives guidelines to improve
trade and investment barriers,
allowing Colombia to be in a
process of continuous
improvement, peer evaluation and
institutional strengthening
Thanks to the recommendations
made by the OECD, the
national government has
promoted concrete reforms for
the facilitation of trade.
The OECD provides a seal of quality for
direct foreign investment: by having to
meet public policy standards to become
a member, these improve. This results in
increased confidence of foreign investors
Colombia and the
COLOMBIA IS PART OF THE TOP 30 DESTINATIONS FOR FDI
Source: UNCTAD, 2017.
Developed economies
(USD billion)
Top 30 host economies in 2017
Developing and transition economies
275
136
104
63 62 5850 46 40 35 30 30 29 25 24 19 19 17 17 15 15 15 14 11 10 10 7 7 6
-2
FDI has been largely driven by non-mining sectors over the last 3 years
FDI Inflows
(USD millon)2010 – 2018
Mining and oil
Other sectors
Source: Balance of Payments - Banco de la Republica. Share of all countries with positive cumulative investment, Theinformation includes reinvested profits or investments in the oil sectorNote: the list of the top countries investing in Colombia does not includePanama.
Top Investing
countries in Colombia
* 2000-2017
United States
USD 34,745 million
16,3%
Panama
USD 20,531 million
15,0%
Spain
USD 15,821 million
9,6%
Switzerland
USD 9,841 million
8,7%
1.512
7.468 7.095 8.1219.854
8.584
11.5899.951 8.6504.918
7.180 7.9458.089
6.314
3.139
2.2614.062
2.360
2010 2011 2012 2013 2014 2015 2016 2017 2018
INVESTMENT PROJECTS Investment Projects from the world
to Colombia by Industry Sector
2007 - 2017
Proyectos Totales: 1.010
Source: DDi Markets. *Incluye construcción y servicios profesionales. Grupo casino y Parque Arauco registran el mayor número de empleos.
from the world to Colombia by Industry Sector
262
137
10882
54
49
43
35
32
31
177
Software and IT ServicesBusiness ServicesFinancial ServicesMachinery and equipmentLogistics and TransportationMining Industry
SectorJobs
generated
Real estate* 23.812
Software and IT Services 22.999
Mining industry 12.115
Logistics and transportation 11.231
Tourism 9.024
Agroindustry 8.714
Financial services 8.108
Construction materials 7.740
Automotive industry 5.242
Energy 470
Others 53.027
Total 162.482
FDI Outward FlowMain countries
2000 – 2017
Source: Balance of Payments - Banco de la República. UNCTAD, 2017.
Stock of outward FDI (USD millions)2002 – 2018
Top Latin American investors
to the world, 2017(USD billions) Colombia
USD 3.6
Mexico
USD 5.1
Chile
USD 5.1
Argentina
USD 1.1
Source: Banco de la República
United States
USD 7.745 millones
13%
Panama
USD 46,408 millones
17%
Spain
USD 5,886 millones
10%
Chile
USD 4,752 millones
9%
At the end of 2017, the participation of Colombia's
non-mining-energy investment abroad represented
92% of the total
85
6,8
93
7,7
19
2,4
4.7
95
,5
1.2
67
,8
1.2
78
,8
3.0
85
,1
3.5
04
,7
5.4
82
,7
8.4
19
,8
-60
6,2
7.6
52
,1
3.8
99
,0
4.2
17
,7
4.5
17
,4
3.6
89
,6 5.1
21
,0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Directorio de Zonas Francas 2019 DANE
No import duties. VAT exemption for
goods sold from Colombia to FTZ.
Benefit from international
trade agreements.
Allows sales to the local market.Free trade zones for different
investor styles.
Total numberFree Trade:
114Number of permanent
Free Trade Zones:
43
Number of Special StandingSingle enterprise:
71
Reduced income tax and VAT Exemptions allowing access to local market
COLOMBIA
The new world trade dynamic
allows Colombia to take
advantage of different
opportunities, such as:
Access to demanding and
sophisticated markets, Increase
the quantity and diversity of
exports, Transfer of technology,
Improve the quality of production.
Number of FTZ in 2018
Source: DANE y AZFA.
is the Latin American country with the most Free Trade Zones
1
2
3
5
11
12
11
13
17
19
20
39
50
65
105
Brazil
Paraguay
Puerto Rico
Peru
Costa Rica
Argentina
Haiti
Uruguay
El Salvador
Guatemala
Panama
Honduras
Nicaragua
Dominican…
Colombia
FREEDOM LANDSCAPE
40
45
50
55
60
65
70
75
80
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Colombia Americas World
The perception of Colombia has improved in the recent years, having now a
better freedom landscape score above the America’s and world’s average
Source: Heritage, 2018 Index of Economic Freedom
Free Trade Zones represent an important opportunity for third countries to take advantage of the country's Trade Agreements
• Plastic packaging for the beverage and the cosmetics industry
• Automotive assembly
• Home appliances
• Clothing
• Processed foods
• Aeronautics
• Medical devices
Input supplyInvestment opportunities in Colombia in value-added production chains
Supply with value-added intermediate products
Free Trade Zones have a high potential for
generating productive chains
JapanAromatic products -
Glasses -
Flats laminated with steel or iron -
Vehicle parts & accessories
PeruCotton yarns-
Source: High impact Free Trade Zone–2016, CLG
MexicoCables and wires -
Batteries and accumulators -
Electrical Parts -
Flats laminated with steel or iron-
United StatesAccessories and Auto Parts -
Electrical equipment -
Cotton Yarn -
Plastic Resins -
COLOMBIA
Canada
United States
Mexico
GuatemalaHonduras
El Salvador
Ecuador
BrazilPeru
Argentina
Paraguay
Uruguay
AELC
European Union
Israel
Panamá
Chile
Bolivia
Costa RicaVenezuela
South Korea
Cuba*
Nicaragua*
Caricom*
has access to 60 countries and more than 1.5 billion
consumers through its network of trade agreements
* Partial scope agreements (PSA)- - - Blue line shows Pacific Alliance´s member countries others than Colombia –(Chile, Peru and Mexico).Source: Chamber of Commerce, Industry and Tourism, Colombia,2017
COLOMBIA
Pacific Alliance
In force
Signed
COLOMBIAMember state of the Pacific Alliance
Canada
MexicoColombia
Chile
Peru
Singapore
Australia
New Zealand
At the XII Summit of the Pacific Alliance (October 2017)
the creation of the Associate members category was
announced and negotiations were started to grant this
status to Australia, Canada, New Zealand and
Singapore
This figure seeks to strengthen trade, regional and free trade integration, as well as benefit from regional platforms and
promote trade agreement negotiations.
COLOMBIALess than 6 hours away by airplane from the main cities in the Americas
international
direct
frequencies
per week.
domestic
frequencies per
week.
1,109
5,600More than
New York(5hr 35min)Los Angeles
(7hr 40min)
Mexico City(4hr 55min)
Paris(10hr 55min)
Madrid(9hr 40min)
London(10hr 26min)
Tokyo(25hr 05min)
Beijing(22hr 45min)
Dubai(20hr 45min)
Moscow (15hr 58min)
Miami (4hr 00 min)
Santiago de Chile
(5hr 55 min)
Berlin(13hr 45min)
Hong Kong(22hr 45min)
Toronto(6hr 10min)
Mumbai (20hr 50min)
Seoul(23hr 35min)
Sao Paulo(6hr 10min)
Istambul(15hr 16min)
Lima (3hr 05min)
*Esta información tiene en cuenta las rutas que salen de aeropuertos internacionales en Barranquilla, Bogotá, Cali y Medellín. OAG. Para una semana típica del mes de Diciembre de 2017. Fuente: Rutas y Tarifas - Herramientas para
las exportaciones colombianas, procesados por ProColombia.
COLOMBIAcounts with more than 4,500 maritime export routes and has access to 680 ports around the world.
Source: Routes and Tariffs - Tools for the Colombian Exporter, processed by ProColombia.
ACCESS TO CHINA IN JUST
29 DAYS (SHANGHAI)
ACCESS TO USA IN JUST 3 DAYS
(PORT EVERGLADES)
ACCESS TO PERU
IN JUST 2 DAYS
(CALLAO)
ACCESS TO THE NETHERLANDS
IN JUST 13 DAYS
(ROTTERDAM)
SANTOS
(11 DAYS)
BUENOS AIRES
(17 DAYS)
CAPETOWN
(34 DAYS)
NEW YORK (6
DAYS)
BARCELONA
(15 DÍAS)
LONDON
(17 DAYS)
KOLKATA
(43 DAYS)
MONTREAL
(9 DAYS)
SHANGHAI
(29 DAYS)
SIDNEY
(21 DAYS)
BUSAN
(25 DAYS) TOKYO
(22 DAYS)
AUCKLAND
(17 DAYS)
VANCOUVER
(17 DÍAY)
LOS ANGELES
(10 DAYS)
CALLAO
(2 DÍAS)
VALPARAÍSO
(5 DAYS)
SAINT
PETERSBURG
(21 DAYS)
MIAMI
(4 DAYS)
VERACRUZ
(5 DAYS)
KARACHI
(37 DAYS)
HONG KONG
(33 DAYS)
According to Airhelp scores 2017, El Dorado International Airport is:
#1
IN LATINAMERICA
#11
WORLDWIDE
Source: Airhelp Scores , Airport Worldwide Rankings 2018
Evolution of Colombian Exports, 2007 – 20182007 – 2018
Source: DANE.DIAN, 2018.
Agroindustry and Metalworking sectors performed the most
dynamism in their exports during 2017.
MiningNon - Mining
Colombian exports increased 10% in 2018 compared to the previous year
13.756 19.708 18.461
25.922
40.863 44.024 42.468 38.494
20.954 17.576 22.938 26.467
16.235
17.918 14.385
13.791
16.052 16.101 16.359
16.363
15.063 14.193
14.942 15.364
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
54.85758.82660.125
36.01839.713
32.846
37.626
29.991
31.76837.880
56.915
Arrival of tourists2013 – 2018
Source: Migration Colombia. Elaborated by ProColombia
In 2018, receptive tourism grew 7,6%compared to 2017
Cruisers Colombians who are foreing residents Non- resident foreigners
313.153 254.403 306.694 314.207 272.206 305.820 344.624 378.081
546.024 583.609 561.791 583.967 689.280 724.302 793.775 793.459
1.496.401 1.591.120 1.726.3001.967.814
2.288.3422.528.877
2.837.1713.104.606
2011 2012 2013 2014 2015 2016 2017 2018
2.429.1322.594.785
2.866.988
3.249.828
3.975.570
2.355.690
3.558.999
4.276.146
The upward trend in tourism figures has had an important effect on the national generation of
foreign income
Foreign income generated by sector 2010-2017 (USD Millions)
According to figures from the Colombian National Bank, tourism was the second foreign income
generator in 2017, surpassing traditional products such as coffee,
flowers and bananas.
In 2017, foreign income generated by tourism was USD 5,788, which
represented an increase of 5.4% compared to the same period of the
previous year.
Source: BanRep-DANE. * Includes passengers
transport and travel accounts. Preliminary data
3.4403.801
4.364
4.758 4.8875.236
5.712
4.084
1.884
2.608
1.910 1.884
2.473 2.527 2.418
15911.229 1.240 1.256 1.324 1.362 1.285 1.301
1020748 815 822 764 836 803 915
696
0
1.000
2.000
3.000
4.000
5.000
6.000
2010 2011 2012 2013 2014 2015 2016 2017
Tourism Coffe Flowers Bananas
COLOMBIAis one of the countries with the greatest potential for expansion in agricultural land
• Colombia, with multiple thermal floors, is able to offer different agricultural products throughout the year.
• Colombia ranked 8th worldwide and 1st in Latin America in the food sustainability index.
• “Plan Colombia Siembra” seeks to increase the agricultural production with 1,000,000 new hectares.
• The availability of water resources in Colombia is one of the highest in the world (FAO*). The country ranked fourth worldwide in sustainable agriculture.
Source: FAO, Food Sustainability Index, 2017
COLOMBIAcomparedTo other markets
Committed to invest in human capital
COLOMBIA
World Talent Ranking 2017 (0-100 Best)
Fuente: IMD, 2017
39,09
39,4
40,09
42
43,49
50,37
Peru
Mexico
Colombia
Brazil
Argentina
Chile
Colombia was ranked fourth
in Latin America by
the Human Talent Report
#9 TOP EXPAT DESTINATIONS 2018
Source: Internations Top Expat Destinations 2018
ranks 3rd in Latin America in the Services location indicator by A.T. Kearney
COLOMBIA
Global Services Location Index- 2017
Source: A.T. Kearney, 2017
"Colombia registered a significant improvement in this year’s position, rising 10 places
to the 10th position.
Between 2011 and 2015, Colombia contributed with the
12% of the new BPO centers and Shared Service Centers in
Latin America and the Caribbean.”
2,27
2,55
2,37
2,73
2,97
2,72
2,85
2,54
2,65
0,97
0,8
1,53
0,91
1,19
1,61
1,45
1,33
2,02
1,65
1,67
1,25
1,63
1,25
1,35
1,43
1,88
1,27
46 - Uruguay
41 - Panama
36 -
Argentina
31 - Costa
Rica
20 - Peru
13 - Mexico
10 -
Colombia
9 - Chile
5 - Brazil
Financial
atractiveness
Talent and
availability of human
capital
Business environment
79 INVESTMENTPROJECTS
in creative industries
Jobs created(2006 – 2018)
7,656
Capital invested(2003 – 2018)
USD 869 million
Source: fDi Intelligence from The Financial Times Ltd
1615
6
4
9
3
6
2012 2013 2014 2015 2016 2017 2018
Number of investment projects in creative industries
2012 – 2018 (June)
CREATIVE INDUSTRIESin Colombia
SOME SUCCESS STORIES OF
INVESTMENT
Capital invested:USD 250 millionJobs created:
3.000Venezuela
Capital invested:USD 146,5 million
Jobs created:129
United States
Capital invested:USD 130 millionJobs created:
505Mexico
OVERVIEW OF THE INVESTMENT PROJECTS IN CREATIVE INDUSTRIES, COLOMBIA
2003 – 2018 (JUNE)
Number of projects 87
Jobs created 8,079
Average of Jobs created per project 92
Capital invested(USD million) USD 895.1
Average capital invested per
project(USD million)USD 10.3
INVESTMENT PROJECTS IN CREATIVE INDUSTRIES, SECTORS
2003 – 2018 (JUNE)
Source: fDi Intelligence from The Financial Times Ltd
46,0%
31,0%
19,5%
2,3% 1,2%
Business services Software and TI services
Comumunications Leisure and entertainment
Paper, printing and packaging
COLOMBIA
Working age
population rate
(15-64) years)
Enrollment
secondary
education
Enrollment
tertiary
education
68.8% 66.3%
98.1% 97.3%
58.7% 36.9%
69.6%
99.7%*
50.6%*
65.4%
98.0%
34.3%**
Highest enrolments rates in education
Source: World Bank, latest update available: 2016. * Last update 2015. Last update 2006.
ENTREPRENEURSHIPOur start-ups lead innovation in Latin
America
- 10.000.000 20.000.000 30.000.000 40.000.000 50.000.000 60.000.000
50.827.643
6.302.628
4.371.177
3.659.590
2.338.072
1.524.829
1.524.829
1.375.523
1.219.863
1.219.863
4.371.177
US$ MILLION
TOTAL: US$78,735,196INVESTMENT VALUE
6311.053
31
40862
354
64
467 1
82
4556
4 7 11
11
24
3
Source: Cálculos MINCIT, Start up ranking 2018, Statusta
Number of start-ups
per country
WHAT IS THE WORLD SAYING ABOUT COLOMBIA?
COLOMBIA IS THE SECOND PLACE IN THE WORLD TO VISIT IN 2018 (THE NEW YORK TIMES 2018)
COLOMBIA IS IN THE PROCESS OF A FANTASTIC REBIRTH (VANITI FAIR 2018)
#1
#2
#3#4
#5
#6
#7
BOGOTÁ, AN IRRESISTIBLE GASTRONOMIC DESTINATION (VOGUE 2018)
CALI, ONE OF THE MOST INTERESTING PLACES TO LIVE IN 2018 (FORBES 2018)
COLOMBIA, ITS NATURAL LANDSCAPES ATTRACT THE NEW GENERATION OF LUXURY TRAVELERS (SKIFT 2018)
COLOMBIA, THE BEST KEPT SECRET IN SOUTH AMERICA (TRAVEL + LEISURE 2017)
COLOMBIA, AN EMERGING TOURIST DESTINATION FOR THE UNITED STATES AND EUROPE (BBC 2017)
IN COLOMBIA WE CELEBRATE ALL YEAR LONG
- Feria de Manizales
- Carnaval del Diablo,
Caldas
- Festival int. de Música,
Cartagena
- Hay Festival, Cartagena
- Colombiatex, Medellín
- Festival Internacional de Cine de Cartagena de Indias
- Festival
Iberoamericano de
Teatro, Bogotá
- Esteréo Picnic,
Bogotá
- Festival de la leyenda
Vallenata, Valledupar
- Feria Internacional del
Libro de Bogotá
- BAUM Festival,
Bogotá.
- Festival de Música
Andina Colombiana
Mario Nuñez, Valle del
Cauca
- El Festival de la
cultura Wayú
- Rock al Parque,
Bogotá
- Festival Folclórico y
reinado del bambuco,
Neiva
- San Juan y San
Pedro, Neiva e Ibague
- Colombiamoda,
Medellín
- Festival Folclórico
del Pacífico
Peregoyo de Oro,
Buenaventura
- Festival de
Cumbia, Banco
- Festival
Migración, Nuquí
- Feria de Flores,
Medellín
- Barranquijazz
- Jazz al Parque,
Bogotá
- Festival de Jazz,
Mompóx
- Green Moon Festival,
San Andrés
- Festival de cine de
Bichara
- Mundial de la salsa,
Cali
- ArtBo, Bogotá
- Bogocine, Bogotá
- Festival de cine de
Villa de Leyva
- Festival internacional
de teatro de
Manizales
- Salsa al parque,
Bogotá
- Festival
internacional del
arte de Cali
- Festival de luces
de Villa de Leyva
- Feria de Cali
- Expoartesanías,
Bogotá
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
During the last 15 years, the civilian homicides have
decreased 53.3%
52,3
45,6
38,8 38,1 37,0
33,030,2
29,028,5 32,5
29,225,7
24,6
25,624,4
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Civilian homicides in Colombia, rate per 100,000 population
2003 – 2017
Source: Ministry of Defense
Major
multinational
corporations have
chosen Colombia
as an investment
project
destination
INFRASTRUCTUREA major driver for growth
USD $5.6 billion in rehabilitation, expansion and modernization of 31 airports (2015 – 2018).
The Fluvial National Plan consists of 13 river projects with an investment of USD $2.9 billion.
Until 2035, USD $17 billion will be invested to increase road infrastructure:
7,000 kms of new highways1,370 kms of double lane highways141 tunnels1,300 viaducts
USD $3.3 million investment to recover more than 1,769 kms of railways network.
Source: Intermodal Transport Master Plan 2015-2035 (PMTI , Ministry of Transport - Exchange rate: USD = COP$3,000
Some niches with opportunities:
AIRPORTS PORTS ROADS FLUVIALNATIONAL PLAN
STEP RAILWAYS
1.
2.
3.
4.
In 2014, Iridium awarded two road concession projects in the government’s “highway
concession program (4G)”.Those projects accounts 78Km.
SUCCESS STORIES -INFRASTRUCTURE:A major driver for growth
Spain
Strabag will be in charge of 75 Km new highways, and the
modernization of a 65 km section.
AUSTRIA
Shikun & Binui awarded the project “Corredor Perimetral de
Oriente de Cundinamarca = 153 km length”
ISRAEL
HEC will build “The Mar 2 highway”that will improve northeast logistics development. Total project length:
246 km.
CHINA
Source: ProColombia con base en prensa nacional
SECTORS OFOPPORTUNITY - ENERGY:A diversified resource base and a strategic location in the Americas
546 power generation projects registered in different stages: Installed capacity up to 15,940*
22 Open public bids for power transmission projects in Colombia**
High potential in Biofuels and alternative energies.
Aquellos proyectos enfocados en energías renovables tendrán exenciones del IVA, aduanas e impuesto a la renta – Ley 1715.
Source: World Economic Forum 2016 and UPME / * UPME (Colombian Planning Unit of Mines and Energy). MW approx.. **Bids
open by UPME
Colombia ranked first in Latin America and eighth in the world,according to the “Energy Architecture Performance Index 2017”. WEF, 2017. The Global Energy Architecture Performance
Index 2017
Some niche opportunities
THERMAL PCH SOLAR
WIND BIOMASS TRANSMISSION NETWORK
0,74
0,75
0,75
0,75
0,76
0,77
0,77
0,78
0,79
0,8
Uruguay
New Zealand
Colombia
Spain
Austria
Denmark
France
Sweden
Norway
Switzerland
SUCCESS STORIES -ENERGY:A diversified resource base and a strategic location in the Americas
Between 2017 - 2019, the Italian multinational Enel will invest close toUSD 561 million in energy projects in
Colombia.
Colombian subsidiary of AES Corporation (Applied EnergyServices). Chivor is one of the
country's largest power generator with a total effective installed
capacity of 1,000 MW.
UNITED STATES
The low-grade thermal coal plant, Termopaipa located in Paipa,
was the first power plant planned overseas, financed and built by
Steag.
GERMANYITALY
SECTORS OFOPPORTUNITY –AGRIBUSINESS
Fuente: FAO, Ministerio de Agricultura.
Some niche opportunities:
Investment opportunities
ACUICULTURE CACAO CEREALSFRUITS AND VEGETABLES
MEAT
PROCESSEDFOODRUBBER BIOFUELS FORESTAL
Expansion of cultivated areas with a high global demand of agricultural
products, construction of collection centers and assembly of processing
plants (IQF, pulps, jams).
Construction of cocoa processing plants for cocoa butter, cocoa
liquor and chocolate products.
Colombia has the fourth dairy herd and largest dairy production in the
region, which guarantees easy access to raw
materials for the subsequent
transformation of dairy products.
Build specialized industrial facilities to transform
natural rubber into value-added elements.
1. 2. 3. 4.
The American investment fund specialized in the agribusiness sector,
invested in the company, “Cacao de Colombia”, by setting up a
second production plant in Popayán.
Brazilian company dedicated to the production and commercialization of
beef, leather, live animals and its byproducts.
The company acquired freezers from Red Carnica S.A.S located in
Cordoba.
CHILE
Alliance between CCU and Postobon: Construction of a
production plant with the aim of boosting the beer market sector
through production, commercialization and distribution of beer and non-alcoholic beverages
based on malt.
BRAZILUNITED STATES
Source: Procolombia based on national press
SUCCESS STORIES AGRIBUSINESS
SECTORS OF OPPORTUNITYMETALWORKING ANDOTHER INDUSTRIESColombia, a sustainable
destination.
Setting up factories that transform iron and steel products with the aim of meeting other industries
demand.
Setting up assembly lines to produce commercial
vehicles (buses), cargo vehicles and motorcycles
to serve both local and international markets using
Colombia as an export platform.
Establishment of cement, ceramic and prefabricated production plants to supply
local and international markets.
Some niches of opportunity:
AUTOMOTIVE AND AUTO PARTS
METALWORKING CONSTRUCTION MATE
INVESTMENT OPPORTUNITIES
1. 2. 3.
The company invested in a float glass production plant to
supply the national market and export to countries in the
Andean region.
SUCCESS STORIES –METALWORKINGAND OTHERINDUSTRIES
FRANCE
The Japanese company of continuous casting and
production of high precision parts, decided to open a plant to serve the American market.
JAPAN
Foton invested more than US $ 12 million in a new assembly
plant for SUV and 4x4 models.
CHINA
Whirlpool and the Colombian company Haceb, signed an alliance to produce washing machines in a plant of US $ 70
million.
UNITED STATES
Source: Procolombia based on national press
SECTORS OF OPPORTUNITY -CHEMICALS ANDLIFE SCIENCES
Setting up agrochemicals formulation and
production plants to serve the growing local market.
Setting up research centers on development of cosmetics based
on natural ingredients. Taking advantage of the Colombian
biological and floristic diversity; and the tax incentives provided by the
National Government for R&D projects.
Assembly of plastic packaging production plants to meet the
needs of the LAC region.
Oportunidades de inversión
Some niche opportunities
FERTILIZERS
NATURAL INGREDIENTS
FOR COSMETICS
PLASTIC PACKAGING
1. 2. 3.
The new factory set up in Colombia is one of its three most modern
factories in the world, thanks to its cutting-edge technology and
ecofriendly facilities.
PAÍSES BAJOS
Started its production operations in 2013, after the acquisition of Abocol,
the most important agrochemical company in Colombia.
NORUEGA
The Indian group inaugurated a new production plant in Villa
Rica (Cauca), from which it manufactures 180 million
laminated plastic tubes for consumer products.
INDIA
Inaugurated its new operations center in Antioquia to supply the
markets of Central America and the Andean region.
ESTADOS UNIDOS
Source: Procolombia based on national press
SUCCESS STORIES -CHEMICALS ANDLIFE SCIENCES
SECTORS OFOPPORTUNITY – SERVICES:IT, BPO, ITO, Shared
Services, Apps
Colombia is one the three major
providers of IT services in the region.
Between 2001 and 2015, 3,405,211 graduates in
different levels of education
Source: MinTic and IDC
1.3 million bilingual people in Colombia in 2016.
1st place in Suramericanain labor qualifies,
accordingto IMD (2015)
6th place in the region in level of companies bilingualism
in 2016.
Colombia has 10 submarine
cables, with eight exits through the Caribbean Sea and one through the Pacific Ocean.
Some sectors with opportunities:
BPO BACK OFFICE-FINANCE
BPO. TELEMEDICINE
BIG DATA ANALYTICS
DATA CENTERS FINTECH SMART CITIES
SHAREDSERVICECENTERS
1. 2. 3.
4. 5.
IBM opened its third Data Centerin Colombia offering a processing
power of 5 petabytes.It´s one of the most advanced
centers for Cloud Computing andBig Data Analytics companies in
the country.
SUCCESS STORIES –SERVICES:
It has two operations centers in Bogota where it manages a
diversified portfolio of blue ribbon clients, with the capacity for up to
a thousand positions.
SPAIN
AT&T acquired DirecTV Colombia
and it´ll increase the telecoms offer Colombia through new
services and packages.
Its BPO operation currently has more than 1,400 credit
processes, customer service, and document
management active positions.
JAPANUNITED STATES UNITED STATES
Source: Procolombia based on national press
SECTORS OFOPPORTUNITY –FASHION INDUSTRY: TEXTILES GARMENTS
Some niche opportunities:
Industry with a diversified basket of products
Local industry currently
supplying with imported
inputs. Textile imports have increased in the last 10 years,
it is necessary to supply the
increasing demand of inputs
by the local production of
garments.
Colombia as an export
platform, the country counts with a strategic location, high
industrial capacity and more
than 16 free trade
agreements.
Strategic alliances. There are qualified Colombian
companies able to associate
with foreign investors in order
to reach regional and
international markets.
1. 2. 3.
This company has operated in Colombia for more than fifty
yearsas a Coats chain in the city of
Pereira, Risaralda.
SUCCESS STORIES –FASHION INDUSTRY:
Operates with the company Colombiana de Hilados, with a manufacturing plant in the Free
Trade Zone of Rionegro, Antioquia. The plant has the capacity to
produce carded open-end and combed ring-spun.
Polymer Group: It has a manufacturing plant in the Pacific Free Trade Zone in Cali, Valle del
Cauca.
Acquired shareholding in the Colombian company
Coltejer.
UNITED KINGDOM UNITED STATES
Source: Procolombia based on national press
UNITED STATES
Industry with a diversified basketof products
MEXICO
SECTORS OFOPPORTUNITY– TOURISMInfrastructure,real estateand retail
NATURE & ADVENTURE
WELLNESS ENTERTAINMENT CITY HOTELS
Investment Opportunities in:Inbound tourists*
2013 – 2017 (million of people)
*Inbound tourist includes: resident Colombians abroad, foreign non resident in Colombia, specialcross borders, and cruise visitors.Source: Migration Colombia and MinCIT. ProColombia calculations.
Colombia ranks 25th in the ICCA ranking (International Congress and Convention Association)
Luxury and wellness hotels can take advantage of the Colombian biodiversity to offer high quality services.
Luxury and wellness hotels can take advantage of the Colombian biodiversity to offer high quality services.
VAT exemption for health tourism services
6,5
Some niche opportunities
1.
2.
3.
4.
2013 2014 2015 2016 2017
3,74,2
4,4
5,1
6,5
This American chain has 15 hotels in Colombia with more than 1,850
rooms
SUCCESS STORIES TOURISM INFRASTRUCTURE,
Holiday Inn hotels opened in Bogota and Cartagena, totaling 331 rooms.
Holiday Inn hotels opened in Bogota and Cartagena, totaling 331 rooms.
Holiday Inn hotels opened in Bogota and Cartagena, totaling 331 rooms.
CANADAUNITED KINGDOMUNITED STATES
Source: Procolombia based on national press
real estate and retail
SPAIN
SECTORS OFOPPORTUNITY-SERVICES,CAPITAL FUNDS
Colombia offers several benefitsto invest in capital funds.
Colombia was ranked fourth in Latin American and
the Caribbean due to its favorable conditions for
development of the PEF industry.
19 International General Partners in Colombia.
Capital funds such as Advent International and Victoria Capital
have chosen the country as a hub to service other countries in the
region
Some niches with opportunity
REAL ESTATE HEALTH BANKING TIC
BIOTECH ENERGY AGRIBUSINESS INFRASTRUCTURE
1. 2. 3.
Investments mainly in the sectors of infrastructure, energy and real
estate.Investments in the Colombian power company SA as part of its expansion
plan in the region.
SECTORS OFOPPORTUNITY-SERVICES,CAPITAL FUNDS
Latin American fund that invested more than US $ 20 million for the development of three cancer
treatment centers of the medical society Oncologists of the West, in
the Coffee Cultural Landscape and Valle del Cauca.
Mainly infrastructure investments.In Colombia its
investments have been focused in companies such as Intertug and
Ocensa
CANADA UNITED STATES
Source: Procolombia based on national press
UNITED STATES
PROCOLOMBIAREADY TO ASSIST YOU INASSESSING INVESTMENTOPPORTUNITIES
PROCOLOMBIA
WE PROMOTE EXPORTS
WE PROMOTETOURISM
WE PROMOTE INVESTMENT AND
INDUSTRIAL EXPANSION FOR
INTERNATIONALIZATION
WE PROMOTECOUNTRY BRAND
PROMOTES
33COUNTRIES
PRESENCE OF PROCOLOMBIAIN THE WORLD
*En conjunto con el MinCIT**En alianza con países de la Alianza del Pacífico
Financing Law
B E C O M I N G O N E O F T H E M O S T C O M P E T I T I V E M A R K E T S I N T H E R E G I O N
Reaching Latam’s
and the Caribbean
standards
33% 32% 31% 30%
For the taxable year 2019.
For the taxable year 2020.
For the taxable year 2021.
For the taxable year 2022.
REDUCTION OF THE CORPORATE INCOME TAX RATE
Some of our incometax exemptions
Income from the development
of technological value-added industries
and creative activites- Tax incentives to
orange economy companies
(7 years)
Income from investments to
increase the productivity of
the agricultural sector.
(10 years)
Income from sales of
energy from non-
conventional sources.
(15 years)
Income from the use of
new forestry plantations.
Fuvial transport services
by shallow draft boats.
(15 years)
MEGA INVESTMENTSNew investment within the
national territory of 30.000 UVT
(COP$ 1.028.100.000 approx. USD$ 342.700 million). That
generate at least 250 direct
Jobs.
Exclusions: Investments in hydrocarbonsand mines are excluded of this regime
To national companies whose main
company purpose is the holding of securities,
investment in shares or participations
abroad, some tax benefits are stablished.
Benefits: The dividends distributed by non residents to the holding are exempted of the
income tax.
The dividends distributed by the holding to
residents are subject to the dividend tax.
Dividends distributed to non residents are
income tax exempted.
Requirements: Investments in hydrocarbons and mines are excluded of this regime
HOLDING COMPANIES
Municipalities < 200.000.
Income Tax Rate 9% - 20
years. Until 2029
Hotels, theme parks, ecotourism, agrotourismand new boat docks.
Incent i ves
Municipalities > 200.000.
Income Tax Rate 9% - 10
years. Until 2023
incentive was extended to municipalities with more tan 200.000. An incentive
was created to theme parks, ecotourism, agrotourism and new boat docks.
The income obtained from the transfer of
foreign goods owned by foreign companies
or non resident people, introduced from theoutside to the international logistics
distribution centers located in international
airports, seaports or the inland ports located
in the departments of Guanía, Vaupés,
Putumayo and Amazonas, enabled by the
Direction of National Taxes and Customs
(DIAN) don´t generate income of national
source within the country.
INCENTIVE ON PRODUCTIVE REAL FIXED ASSETS
The total sales tax paid in the
acquisition, making, construction
or import of real productive fixed
assets, included the necessary
services to start them up, may
be considered as a discount on
the corporate income tax.
DISTRIBUTION CENTERS
Exclusions: Investments in hydrocarbons and mines are excluded of this regime
