June 8, 2015

Colombia: Latin America’s Hot Spot for Global Investment In today’s global economy, companies from around the world are looking to diversify, expand and invest in new, growing markets, and with strong sustained economic performance, Colombia has fast become an investment darling in the region. Colombia’s significant economic growth in recent years across various sectors of its economy has caused investors from around the globe to take notice. On Tuesday, May 26, President Juan Manuel Santos celebrated the opening of a new Daimler Mercedes-Benz plant that will specialize in the assembly of buses in the Funza municipality of Cundinamarca. The more than $5 million investment in the plant will generate more than 220 direct and indirect jobs. During the opening event, President Santos delivered an address highlighting the importance of foreign investment and soldified Colombia’s commitment to investors: “First, it is a sign of confidence in Colombia that a company like Mercedes-Benz believes in our future and acts on that confidence with specific investments. “Secondly, because Daimler’s investment is creating jobs, decent jobs, skilled jobs that we want to generate employment in this country. “And thirdly, because every investor becomes a partner of the government and the Colombian people. And we want to keep growing, to do well, because if investors do well, the country does well.”

Left: President Santos speaks at the opening of the new Daimler Mercedes-Benz bus assembly plant in Colombia. Right: Mathias Held, President of Daimler

Colombia, Photo Credit: César Carrión  

The new plant is the second Daimler plant to open in Colombia in the past three years, and will have a capacity of 4,000 units in its first phase.

A Look at Companies Investing in Colombia:

• Tenaris TuboCaribe, an Italian pipe productsmanufacturer for the oil and gas industry,invested $240 million to expand andmodernize their facility located in Cartagena,Colombia.

• Carl’s Jr., a U.S.-based premium bugerchain, opened its first restaurant in Bogotá,Colombia in May.

• Other major international brands arechoosing Colombia as a strategic location fortheir international expansion, includingcompanies like GM, Unilever, Coca-Cola,Femsa, CEMEX, Hilton, Starbucks, Marriott,UPS, Delta Air Lines, Newell Rubbermaid Inc.,and many more.

Just How Significant Is Foreign Direct Investment in Colombia? Here are the Facts.

In 2014, Colombia’s GDP reached $410 billion, and GDP per capita reached nearly $9,000, reflecting an increase of more than 40 percent since 2010.

Additionally, since 2000, Colombia’s rate of investment as a percentage of GDP doubled, reaching almost 30 percent in 2014. Between 2000 and 2014, foreign direct investment in the country increased eightfold, reaching more than $16 billion last year.

• On average, Colombia has received over $2.5 billion in foreign direct investment from theUnited States in the three years since the U.S.-Colombia Free Trade Agreement (FTA) enteredinto force (May 15, 2012) in sectors as varied as industry, services and hospitality, among others.

• More than 50 private equity funds invested in Colombia between 2010 and 2015, worth $6 billion.

• Several studies and reports, including the most recent World Economic Forum GlobalCompetitiveness Report, show Colombia as a country with one of the most dynamic economiesand most improved climate for investment.

President Santos celebrates the Tenaris facility expansion and highlights the company’s commitment to social responsibility.

Photo Credit: Juan David Tena

• The three leading rating agencies – Moody’s, Fitch and S&P – have granted Colombia “Investment Grade” status because of the country’s ability to deal with internal and external shocks, a long history of timely debt payments, increased macroeconomic policy credibility, and diminishing security concerns

Colombia’s Montoya Takes First Place in Indy 500

On Sunday, May 24, Juan Pablo Montoya, a native of Bogotá, Colombia, won his second Indianapolis 500-Mile Race, defeating Will Power by less than a second. Despite setbacks early on, including several caution flags and one three-car crash, Montoya emerged unscathed for a strong finish. Each year, crowds from across the United States gather in Speedway, Indiana to watch the Indy 500, a race widely recognized as one of the most prestigious motorsport events in the world. Montoya began racing at an early age, capturing four consecutive Colombian National Carting Championships from 1981-1984. He spent several successful seasons racing in the Colombia Formula Renault series before moving to compete at the Formula One level. In addition to his 2000 Indianapolis 500 win, he is the only driver to win a CART Series title and the 24 Hours of Daytona, all in his first attempt.

In C ase You M issed It…

Foreign Direct Investment is a Two-Way Street

While investors from the United States and across the world continue to discover the reasons to invest in Colombia, foreign direct investment by Colombian companies in the United States is also growing:

• Alpina Foods, the U.S. arm of Alpina, one of Colombia’s largest dairy products companies, is producing a wide range of artisan dairy products including Greek yogurt, granola yogurts and smoothies, from its manufacturing plant located in the Genesee Valley in Batavia, N.Y.

• Argos S.A, the U.S. subsidiary of Cementos Argos, has become the sixth largest concrete producer in the United States.

Colombian companies like these have launched or expanded operations in the United States, and provide a valuable contribution to state and local economic growth, and support jobs.

Photo Credit: Juan Pablo Montoya Website  

Ambassador Hosts Classical Guitarist Nilko Andreas Guarin On May 21, the Ambassador hosted a concert at the Residence featuring Colombian classical guitarist, Nilko Andreas Guarin. Since his Carnegie Hall debut in 2009, Guarin has performed in three continents as a soloist and chamber musician. He is the co-founder and the Artistic Director at AZLO productions and the Latin-American Chamber Music Society of New York. During the concert, Guarin performed pieces by a number famous Spanish and Latin American composers, including Colombia’s Gentil Montaña and Adolfo Mejia.

Get to know Colombia.

Learn more at www.colombiaemb.org.

Ambassador Villegas greets Nilko Andreas Guarin during the concert at the Residence.  

The Ambassador’s guests enjoy the concert by Nilko Andreas Guarin.