Presentación de PowerPoint · 2020. 12. 18. · 9 Source: Banco de la República, IMF and World...
Transcript of Presentación de PowerPoint · 2020. 12. 18. · 9 Source: Banco de la República, IMF and World...
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INVESTMENT ENVIRONMENTBUSINESS OPPORTUNITIES IN COLOMBIA
2 0 2 0
2
PROCOLOMBIA
PROMOTES
Tourism
Investment and industrial expansion
for internationalization
Exports
Country Brand
3
32COUNTRIES
* In conjunction with the MinCIT
PRESENCE OF PROCOLOMBIA
IN THE WORLD
4
O F F E R S :COLOMBIA
A responsible Government committed with public health and
economic reactivation, 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
government's commitment to the development of private
activity
A strategic point for regional supply, because of its location
and its network of free trade agreements
A developed technology ecosystem, which meets the
necessary standards for the "new normality" in the post-
COVID-19 recovery
A leading country in receiving FDI in the region
5
The Colombian Government has given the pandemic a
quick and responsible handling, reducing its impact on the
country's public health
T Í T U L O T Í T U L O
Source: Presidency of the Republic and Global Data. Based on December 14th 2020 figures.
*United Nations Development Programme
The quick actions taken by the
government have made
Colombia one of the countries in
the region, with the lowest rate of
deaths, per million inhabitants.
The Colombian Government has
promoted responsible, supportive
and appropriate policies to serve
the most vulnerable groups,
protecting life and health. In
addition, the support packages
for the business sector that the
country has made are very
important, especially talking
about guarantees and credits.Jessica Faieta
Resident Representative of UNDP*
31.773
34.049
9.921
31.77333.024
13.37711.889
29.0971.183,1
926,5 904,4 882,6 868,0819,8 816,2 797,0
0
200
400
600
800
1.000
1.200
1.400
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
Peru Argentina Mexico Chile Brazil Bolivia Ecuador Colombia
# of p
eop
le
Sanitary outlook
in Latin America
infections per million deaths per million
6
Furthermore, Colombia has been the Latin American country
which has invested the most as a percentage of its GDP, as a
measure to mitigate the effects of the pandemic
9,6
8,6
7
5 4,74
3,5 3,42,5
1,4 1,10,6
0
2
4
6
8
10
12
Fiscal support measures announced
% GDP
Source: International Monetary Fund; national sources; World Bank.
Note: Measures are the total amount announced, including discretionary spending, loan guarantees, and other credit
measures. Data are as of May 29, 2020 and are subject to change.
7
On the other hand, before the pandemic Colombia was
already excelling due to its sustained economic growth over the past 50 years
Source: Anif based on Dane and World Bank.
Real GDP growth
in Latin America(1968=100)
Over the past 50 years, the
Colombian economy has been the
fastest growing in the region.
8
As a result, Colombia has become a resilient country and one of the economies with the greatest capacity to
withstand the crisis in 2020
T Í T U L O T Í T U L O
Source: IMF (World Economic Outlook, October, 2020).
• In 2019, Colombia's GDP had the highest growth
compared to other large economies in Latin
America and the Caribbean, with a rate of 3.3%.
• According to the IMF, in 2020, Colombia would
be the third least affected economy, among the
large economies in the region.T Í T U L O T Í T U L O
Chile
Colombia
-5,8%
-8,2%
Estimated GDP growth
2020
-9,0% Mexico
-11,0%
Brazil
-6,0%
Ecuador
-11,8% Argentina
Peru-13,9%
Venezuela-25,0%
9Source: Banco de la República, IMF and World Bank.
1.9%Inflation rate, 2020
The inflation rate will remain low
US $4,093 millionsreceived in non-mining FDI, between
January and September 2020
75.1%Of participation in total investment
4.0% and 4.5%will be the estimated growth of the
Colombian economy in 2021, according to international
organizations such as the IMF and the World Bank, respectively
The dynamism of its economy has enabled the country to
continue having outstanding indicators, despite the global
economic impact due to COVID-19
11
C o l o m b i a s t a n d s o u t i n t h e
r e g i o n f o r i t s p o l i t i c a l
s t a b i l i t y a n d s o l i d
i n s t i t u t i o n s
12
The country has excelled in maintaining political stability
regardless the presidential administration, which has led
Colombia to become a resilient economy
Source: IMF, GDP costant prices.
300
400
500
600
700
800
900
1000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Real GDPCOP Trillion
Álvaro Uribe Vélez
(1st term)
Álvaro Uribe Vélez
(2nd term)
Juan Manuel Santos
(1st term)
Juan Manuel Santos
(2nd term)Iván Duque Márquez
Governments, regardless of presidential administration,
have been committed to the country's economic
development.
Presidential term
13
Furthermore, Colombia has strong institutions which
have allowed to position itself in the international context
According to the Global
Competitiveness Report:
Business dynamism
1st in Latin America
Corporate government
2nd in Latin America
Global Competitiveness
Report 2019
Source: Global Competitiveness Report 2019, World Economic Forum.
48 8354 716533 57
2nd in Latin America
Financial system stability
14
Thanks to the above, Colombia was officially accepted by the, giving it access to the best economic and social practices
G u i d e l i n e t o i m p r o v e
t r a d e a n d
i n v e s t m e n t b a r r i e r s
AUSTRALIA
NEW ZEALAND
JAPAN
SOUTH KOREA
CANADA
UNITED STATES
MEXICO
CHILE
COLOMBIA
AUSTRIA
BELGIUM
CZECH REPUBLIC
DENMARK
ESTONIA
FINLAND
FRANCE
GERMANY
GREECE
HUNGARY
ICELAND
IRELAND
ISRAEL
ITALY
LITHUANIA
LATVIA
LUXEMBOURG
NETHERLANDS
NORWAY
POLAND
PORTUGAL
SLOVAK REPUBLIC
SLOVENIA
SPAIN
SWEDEN
SWITZERLAND
TURKEY
UNITED KINGDOM
E c o n o m i c s t a b i l i t y , t r a n s p a r e n c y a n d
g o v e r n m e n t d i s c i p l i n e
15
Additionally, Colombia is a member of the Pacific Alliance, a regional integration initiative, which seeks to overcome international
economic challenges
Canada
Mexico
Colombia
Chile
Peru
Singapore
Australia
New Zealand
In negotiation to become
associate member
State member
16
The country stands out among the economies of the region, for
having a government committed to the private sector
According to Doing Business:
In protecting minority investors
1st in Latin America
In getting credit
Doing Business 2020World ranking 2020
60 125101 1247659 67
Source: Doing Business 2020, World Bank.
1st in Latin America
17
This 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 the last year.
Source: Doing Business 2020 (World Bank), Global Competitiveness Report 2019 (World Economic Forum), World
Competitiveness Ranking 2019 (International Institute for Management Development).
Measuring Business Regulations
18
With that in mind, Colombia has the lowest FDI barriers of
Latin America
0
0,02
0,04
0,06
0,08
0,1
0,12
0,14
0,16
0,18
0,2
Mexico Brazil Peru Chile Costa Rica Argentina Colombia
FDI’s Regulatory
Restrictiveness Index 2018Closed = 1 - Open = 0
Colombia has a lower FDI restriction rate than countries such as Canada (0.16) and the United States (0.09).
Low barriers
High barriers
Source: OECD, December 2019.
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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 A r b i t r a t i o n i n s t i t u t e
i n L a t i n A m e r i c a
( G l o b a l A r b i t r a t i o n
R , “ W 2 0 1 8 ” )
I n 2 0 2 0 a n d f o r t h e t h i r d y e a r
i n a r o w , i t w a s i n c l u d e d i n t o
t h e m o s t - i n f l u e n t i a l g r o u p
o f a r b i t r a t i o n c e n t e r s i n t h e
r e g i o n
20
Rating agencies also
recognize Colombia
with an investment rate
Ra
tin
gTe
rm
Long Term –Foreign
currency
BBB- BBB-
Long Term –Foreign
currency
FitchRatings MOODY S,
STANDARD
& POOR S,
Baa2
Long Term –Foreign
currency
In June 2020, Moody’s* maintained Colombia´s
rating outlook as stable.
In the last review of 2020, Moody's maintained
the Baa2 rating for Colombia, a step up of
investment grade.
Source: S&P Ratings; Dinero magazine,
Colombian Treasury.
* Moody’s, 2020.
Large, dynamic and resilient economy.
1.Prudent and predictable
macroeconomic policies.
2.Strong tradition of payment of debt obligations.
3.
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T h e n e w d y n a m i c o f g l o b a l
t r a d e o p e n s t h e o p p o r t u n i t y
t o C o l o m b i a f o r r e g i o n a l
s u p p l y
22
The 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 companiessurveyed in 12 global sectors, in NorthAmerica, Europe, and Asia Pacific (ex-China),have implemented or announced plans torelocate at least part of their supply chainsfrom current locations.-Bank of America
Companies will be increasingly inclined tospread their risks rather than “putting all theireggs in the lowest-cost basket”. The threat ofa future crisis will force companies to structuretheir global supply chains, looking for greaterresilience, as well as lower risks and costs.-Re-shoring index, Kearney
Source: McKinsey & Company, “Economic
Conditions Snapshot, March 2020”.
23
Colombia is ready to address this relocation challenge, offering preferential access to 97%* of the countries of the region
Source: MinCIT
*Non-self-governing terrirories are not included.
Colombia has 17 free trade
agreements in force, which allow
preferential access to 60 countries
and 1.5 billion consumers
Regional agreements• Andean Community
• Pacific Alliance
• Chile
• Mexico
• Canada
• United States
• Northern Triangle
• Costa Rica
• Mercosur
• Cuba
• Caricom
• Nicaragua
• Venezuela
Other agreements• EFTA
• European Union
• South Korea
• Israel
Signed agreements• Panama
• United Kingdom
Pacific Alliance
In force
Signed
Peru
Canada
United States
Mexico
Ecuador
Brazil
Argentina
Paraguay
Uruguay
Panama
Chile
Bolivia
Costa Rica Venezuela
Cuba*
CAN
Northern Triangle
CARICOM*
Nicaragua*
ALADI
MERCOSUR
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Thanks to the above, the country has privileged access to the
continent's largest markets
Source: TradeMap, IMF.
Imports 2019
US$ Million
United States
US$ 2,568,396
Population:
329.3 million
Pacific Alliance
US$ 624,189
Population:
227.9 million
Canada
US$ 453,157
Population:
37.5 million
Mercosur
US$ 252,563
Population:
293.5 million
Central America
US$ 106,285
Population:
50.2 million
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United States
Furthermore, 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
• Average 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.
• Convenient regional content value
rules.
Source: Araújo Ibarra, MinCIT.
U.S. market share in the world's imports
13.5%
26
Maritime routes
Air routes
Mexico City
Air: 4hr 55min
ACCESS TO PERU JUST IN 2 DAYS (CALLAO)
ACCESS TO THE U.S. JUST IN 3 DAYS
(PORT EVERGLADES)
Vancouver
(18 days)
New York
(6 days)
Air: 5h 35min
Miami
(6 days)
Air: 4h
Montreal
(15 days)Los Angeles
(10 days)
Air: 7h 40min
Veracruz
(5 days)
Rio de Janeiro
(19 days)
Buenos Aires
(17 days)
Callao
(2 days)
Valparaíso
(13 days)
Toronto
Air: 6hr 10min
Lima
Air: 3hr 05min
Santiago de Chile
Air: 5hr 55 min
Sao Paulo
Air: 6hr 10min
Source: Routes and rates - Tools for the Colombian Exporter, processed by ProColombia.
Legal guide for doing business in Colombia 2019
The preferential access is
complemented by air
and sea logistics
advantages
Colombia has more than 4,500 sea
export routes and access to 680
ports around the world. In addition,
by less than six hours by plane the
country manages to deliver goods to
the main cities in the Americas.
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The country has one of the most competitive air freights in the
region and the busiest cargo terminal
Mexico City
581,670
Bogota
741,500
Sao Paulo
552,280
Lima
294,700
Santiago
420,950
Top air cargo movement
in Latin America(metric tones)
Source: Central and South America; ACI; 2018.
Statista 2020
CountryAverage air freights to the
U.S. / Kg
Colombia USD 1.12
Mexico USD 1.55
Brazil USD 2.17
Peru USD 2.62
Chile USD 1.99
* Source: IATA TACT – Referential route MIA, Scale +500Kg
There are more than 30 direct
and in connection routes,offered by more than 8 airlines.
28
Its location in the middle of the continent allows businesses
to access America's main ports in a short time
Destiny
port
Port logistics in Latin AmericaDistance in days by port of origin
Colombia Mexico
(Veracruz)
Peru
(Callao)
Chile
(Valparaiso)
Argentina
(Buenos Aires)
Brazil
(Santos)Cartagena Buenaventura
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
Vancouver 18 21 32 22 32 44 35
Callao 9 2 22 - 7 34 16
Valparaiso 18 13 36 5 - 43 32
Source: Maritime lines – Routes and rates system. ProColombia (June 2020)
29
In addition, it has a free trade zone regime with one of the
region's most attractive incentive packages
Source: Free trade zone directory 2019. DANE
No causation of tariff
or VAT for goods and
infrastructure, in the
free trade zone
Purchases to the rest of
the country related to
the development of the
social object of the users,
exempt from VAT
20% income tax rate
in free trade zone
Possibility of nationalizing
raw materials or the final
product, when the
goods are sold in the
rest of the country via
MFN
Goods produced in the
free trade zone acquire
origin for the purpose of
free trade agreements
Benefits in free zones
30
Free trade zones* map
Free trade zones are located throughout the country, especially close to the country's main seaports and airports
Atlantic
ocean
Pacific
ocean
Thanks to its location,
Colombia offers direct access
to the two main oceans that
surround the continent.
Free trade zones* by
department
• Bogota
• Cundinamarca
• Santander
• Norte de Santander
• Atlántico
• Bolivar
• Magdalena
• Risaralda
• Quindío
• Antioquia
• Valle del Cauca
• Huila
El Dorado,
Bogota
José M. Córdova,
Rionegro-Antioquia
Buenaventura,
Valle del Cauca
Cartagena,
Bolivar
Maritime ports
Airports
Alfonso Bonilla Aragón,
Cali-Valle del Cauca
Ernesto Cortissoz
Barranquilla-Atlántico
Source: Free trade zone directory 2019, ProColombia.
*Permanent free trade zones
31
Colombia is the
second Latin
American country
with the highest number of free trade zones
Source: AZFA.
Number of FTZ in Latin America, 2018
18
39
48
52
43
71
2
69
144
Panama
Honduras
Costa Rica
Nicaragua
Colombia
Dominican Rep.
FTZ
Special FTZ
Total number of free trade zones:
114Number of permanent
free trade zones:
40
Special permanent free trade zone or Single-Company free
trade zone :
74
32
The Free Trade Zones regime is complemented by other investment
incentives
PROGRESSIVE REDUCTION
MEGA-INVESTMENTS
HOLDING COMPANIES
REGIME
DEDUCTION
SPECIAL BENEFITS
O F T H E V A T P A I D O N
R E A L F I X E D A S S E T S
O F T H E C O R P O R A T E
I N C O M E T A X R A T E
F O R D I S T R I B U T I O N
C E N T E R SINCOME TAX EXEMPTIONS
F O R D I F F E R E N T
S E C T O R S O F T H E
E C O N O M Y
33
The combined incentives position Colombia as the country with
the best tax regime for investors in Latin America
Source: Araujo Ibarra
Tax burden COLOMBIA CHILE PERU MEXICO ARGENTINA BRAZIL
Income tax32% - 2019
30% - 202225% a 27% 29,5% 30% 25% 34%
Special benefits
Mega investment -
27%
+
FTZ - 20%
Exempts in FTZ of
Iquique and
Punta Arenas
Exempt in 4
operative FTZ
20% in the Northern
Border Free ZoneNo
- 75% in FTZ of
Manaos
VAT Exempt from FTZ Exempt From FTZ
Exempt from FTZ 8% in the Northern
Border Free Zone
Exempt from
FTZ
55% to 100%
reduction
Custom Duties Exempt in FTZExempt in FTZ
Exempt in FTZ No (Only IMMEX) Exempt in FTZ - 75% on supplies
Accelerated
Depreciation
In 2 years for mega
investment
50% snapshot
until 2021No No No No
Dividend Tax
10% (DTA)
Mega investment
0%
5% to 10 % 5% 10% 13% No
Legal Stability
Contract
In mega investment
projectsYes Yes No Yes No
34
T h e c o u n t r y h a s a
t e c h n o l o g i c a l e c o s y s t e m
d e v e l o p e d a n d p r e p a r e d f o r
t h e " n e w " n o r m a l i t y
35
Colombia provides the necessary technological
infrastructure for operations in the new economic reality
submarine cables inoperation, being the
second country in the
region with better
connectivity,
transmission and stability.
4°
3°most entrepreneurial
country in Latin America.
Source: MinTIC. Fitch Connection. Global Entrepreneurship Index.
of Colombia's
municipalities areconnected to theworld throughoptical fiber.
Colombia offers one of the
lowest operating costs in theworld for the provision of IT
services.
11 98% largest IT market in
Latin America.
of internet penetration inthe country, with 32.7
million users.
66%
36
In 2019, Colombia opened Latin America’s
first Center for the Fourth Industrial Revolution
Center for the Fourth
Industrial Revolution
R R
BLOCKCHAIN INTERNET OF THINGSARTIFICIAL INTELLIGENCE
37
This is complemented by a high number of enterprise incubators,
accelerators and innovation centers that motivate high-value
innovation and entrepreneurship
38
New policies
CONPES Digital
transformation
with AI focus
CONPES of digital
security
National Development
Plan 2018-2022
‘Pact for Colombia, pact
for equity’
II. Pact for
entrepreneurship and
productivity
V. Pact for science,
technology and innovation
VII. Pact for the digital
transformation of
Colombia
Directives
and Decrees
Presidential directive
Gov.Co
Digital Citizens Services
Act
Cooperation
agreements
Ratification of the
Budapest Convention
Convention B80 on
Cybersecurity
Colombia thinks about the future and has adopted special
measures for the country's digital transformation
Source: Presidential Counseling for innovation and digital transformation. Transformación digital de la mano del sector privado..
39
The TIC Modernization Law creates the
conditions to encourage private investment,
generate legal certainty and facilitate the
deployment of high-cost infrastructure. It also
simplifies and brings to international
standards the institutional and regulatory
framework for the sector, and strengthens
public television and radio
Furthermore, it has implemented laws and mechanisms that seek the
modernization of the ICT sector and to reduce the digital gap
Source: MinTIC, Portafolio.
ICT MODERNIZATION LAW
Through Decree 1974 of 2019, Colombia
offers the opportunity to build ICT projects,
through public-private partnerships (PPP).
PPPs involves the concession of mega-
projects, so that they can be carried out
with private resources and, in some cases,
reimbursed them with future terms or other
resources.
PUBLIC – PRIVATE
PARTNERSHIPS (PPP)
40
Colombia has the third most qualified workforce in
Latin America and leads in terms of employee training
and apprenticeships schemes
IMD World Talent Ranking2020
53,9
49,2
46,9
43,2
42,5
40,6
Chile
Argentina
Peru
Mexico
Colombia
Brazil
Source: Ministry of Education, 2018
International Standard Classification of Education ISCED 2011 -DANE
IMD World Talent Ranking 2020
Graduates by level of higher
education2010 – 2018
31,6%
46,5%
21,8%
0,1%
ISCED 5 (Short-cycletertiary education)
ISCED 6 (Bachelor’s or equivalent level)
ISCED 7 (Master’s or equivalent level)
ISCED 8 (Doctoral orequivalent level)
Total: 3,325,880
41
The 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 toColombia with Amazon WebServices, so the company couldoffer cloud computing services to'startups’ and large companies indifferent sectors of the economyand public entities.
In 2018, the company announcedthe launch of its first customerservice center in Colombia. The sitesupports Amazon’s customersaround the world in Spanish, Englishand Portuguese; and provide 24/7world class customer service.
42
A l l t h e s e
c o n d i t i o n s p l a c e
t h e c o u n t r y a s a r e g i o n a l l e a d e r i n
r e c e i v i n g F D I
43
Colombia ranks 9th among developing countries in
receiving FDI
Source: UNCTAD, 2020.
*Cayman Islands and British Virgin Islands are not included.
Top 10 developing economies
in receiving FDI in 2019 (USD billion)
246,2
141,2
92,1
72,0 68,4
50,6
32,923,4
16,1 14,5 13,8
USA China Singapur Brazil Hong Kong India Mexico Indonesia Vietnam Colombia United Arab
Emirates
I n a d d i t i o n , i t r a n k s
2 3 rd i n r e c e i v i n g F D I
g l o b a l l y .
44
Since 2014 non-mining sectors have registered a major participation in Colombia’s FDI
Source: Balance of Payments – Banco de la República.
* January-September.
**Panama and Switzerland are not included
7.555 7.085 7.991 9.272 8.55011.649
9.5767.594
9.8017.077
4.093
7.092 7.9558.220 6.897
3.174
2.1994.261
3.941
4.513
3.765
1.357
2011 2012 2013 2014 2015 2016 2017 2018 2019 2019* 2020*
11,535
13,83713,848
11,724
16,16916,21015,04014,647
5,450
14,314
FDI inflows in Colombia
(USD million)2010 – 2020*
Oil and mining
Other sectors
In 2019, investment flows grew by 24.1% compared to 2018,
meanwhile investment in non-mining sectors grew by 29,1%
Top investors in
Colombia, by country**
2015-2019 United States
USD 11.61 billion17.8%
SpainUSD 9.58 billion
14.7%
CanadaUSD 3.84 billion
5.9%
United KingdomUSD 5.22 billion
8.0%
10,842
45
Investment in Colombia reaches various sectors of
the economy
Source: Banrep.
*Mining-energy investments are excluded.
FDI by economic activity*2015 – 2019
26%
20%
17%
14%
10%
6%
4% 3% Financial and Business Services
Manufacturing
Transportation, Distributionand Communications
Commerce, Restaurants andHotels
Electricity, Gas and Water
Construction
Community Services
Agriculture, Hunting, Forestryand Fishing
B e t w e e n 2 0 1 5 a n d
2 0 1 9 , a t o t a l o f
U S $ 4 7 . 1 7 b i l l i o n i n
n o n - m i n i n g F D I
a r r i v e d i n t h e
c o u n t r y
46
T h e r e a r e m a n y
r e a s o n s w h y
C o l o m b i a i s
t h e b e s t i n v e s t m e n t
d e s t i n a t i o n
47
AGRIBUSINESS
Some niche opportunities:
AQUACULTURE COCOA FRUITS AND
VEGETABLESMEAT
PROCESSED
FOODFORESTAL
DAIRY
Colombia is set tobecome a globalfood pantry and hasthe potential foragricultural andagro-industrialgrowth to serve thelocal andinternational markets.
1.
The agri-food sector isone of the pillars of thenational economy andis recognizedinternationally.This is strengthened bythe growth of foreigndirect investment in thissector.
2.
Colombia is a significantfood consumer in theregion and an importantexport platform to satisfythe Americas, with anexpanded marketequivalent to 30% of theworld's processed foodand beverage market.
3.
The national governmentis committed to boostingthe sector and takingmeasures to consolidateproduction andopportunities at theinternational level, suchas: diplomacy strategy ,investment promotionand mega-projects.
4. 5.
The Colombianbusiness networkoffers possibilities ofstrategic alliances orsupplying companiesto develop value-added products inColombia.
Colombia has legal incentives that impact the agro-industrial sector and facilitate the establishment of crops and companies in the country.
48
SUCCESS STORIES
AGRIBUSINESS
Cargill is expanding its globalpoultry business with theacquisition of Campollo S.A., aColombia-based producer ofchicken and protein products.The acquisition of Campollomarks Cargill’s second recentinvestment in Colombia. Thecompany acquired beforePollos Bucanero, reaching morethan 7,500 employeesgenerated in Colombia.
PepsiCo has managed toacquire local companies suchas Cronch and Papas Margarita,generating daily contact withmore than 8 million consumers ofall generations. In Colombiathey have 3 production plants,17 distribution centers andpresence in more than 400,000points of sale.
CHILE
Alliance between CCU andPostobon: Construction of aproduction plant with theaim of boosting the beermarket sector throughproduction,commercialization anddistribution of beer and non-alcoholic beverages basedon malt.
UNITED STATES
Source: Procolombia based on national press
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Colombia offers easy access to rawmaterials at competitive costs, bothimported and produced locally.Decree 272 of 2018 allows imports with0% tariff for more than 3,600 productsthat are not locally produced.
Wages within the industrial sector inColombia are among the mostcompetitive in the region, lower thancountries like Argentina, Peru, Braziland Chile. Additionally, the countryhas a growing, efficient, and qualifiedworkforce. We were positioned in the2019 Global Competitiveness Rankingas the country with the most efficientlabor market in Latin America.
Diversified and growing manufacturing industry.Colombia has more than 121.000 activemanufacturing, and each year around 8.000thousand new ones are created, which representsan annual growth of 2%.
1. 2. 3.
4. 5.
Some sectors with investment opportunities:
MANUFACTURING
INDUSTRIESColombia serves as an export
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.
AUTOMOTIVE METAL MECHANICBUILDING
MATERIALESCOSMETICS AND PERSONAL CARE
PACKAGING
The country has income taxexemptions to promote localmanufacturing, such as the free tradezone regime and large-investmentincentives. Colombia is the secondcountry in Latin America with thehighest number of free zones.
Colombia’s 16 FTA's provide excellent trade conditions,and access to 1,5 billion consumers for example, theFTA with the United States has very flexible rules oforigin, 0% tax on many products, and no minimumwage requirements in the manufacturing process.
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The Japanese continuouscasting and high precisionparts production companydecided to open a plantto serve the Americanmarket.
Source: National and international press
JAPANUNITED STATES
Minnesota Mining andManufacturing Company,opened a distributioncenter in Funza, to sell2,800 references, focusingon personal safety itemsfor the Colombian market.
They currently have 2,500direct jobs in the citieswhere they haveoperations: Medellin, Cali,Barranquilla, and Bogotá.In early 2020, thecompany announced aUSD 36 millionreinvestment in Palmira,Valle del Cauca, toexpand its paper bagoperation.
IRELAND
SUCESS STORIES
MANUFACTURING
INDUSTRIES
Ternium has had an industrialpresence in Colombia since2010 when it acquired morethan 50% of the FerrasaGroup. In the first semester of2020, they have advanced inthe construction of their newoperations plant in Palmar deVarela, with an investment ofUSD 270 billion and ageneration of 800 direct jobs.
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The new factory set up inColombia is one of itsthree most modernfactories in the world,thanks to its cutting-edgetechnology andecofriendly facilities.
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The company has beeninvesting in technologicalreconversion projects toincrease its productioncapacity, reduce itsenergy consumption, andraise its quality standards,with investments ofapproximately USD 7.2million.
In 2015, the companyreinvested close to USD 18million for the upgrade of itsplant. Their goal is to exportabout 50% of its productionto Central America and theAndean region. Theyopened a new plant on theoutskirts of Bogotá(USD 30 million investment),which will be in charge ofproducing mainly Vogueproducts.
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SUCESS STORIES
MANUFACTURING
INDUSTRIES
Source: National and international press
Isuzu Motors Limited's alliancewith actors installed inColombia has allowed them tobecome automotivetechnology leaders for tenyears. Recently, they made anew investment of USD 2.5million to expand theiroperations.
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TECHNOLOGY BASED
SERVICES
Colombia promotesthe digitaltransformation.
The NationalGovernment hasestablished digitaltransformation asthe driving force forthe coming years.
1.
Colombian IT servicesexports grew 3%between 2015 and2019, positioning as anexport platform todifferent markets, suchas the United Statesand Mexico.
3.
Global connectivity withworld classInfrastructure, Colombiais the second country inthe region in number ofcables (11). In addition,it went from registering2.8 million broadbandinternet connectionsin 2010 to a total of 32.7million in 2018
4.
Colombia is thefourth largest ITmarket in theregion after Brazil,Mexico andArgentina.
2. 5.
Highly qualifiedhuman capital andlow operating costs,the country has thelargest workforce inthe region, and thefirst in terms of growthand training,surpassing countriessuch as Peru, Mexicoand Brazil. IMD WorldTalent 2019.
Software, BPO, CSC, Data Center and
telecommunications.
4G 5G ICT INFRASTRUCTURE MODERNIZATION
BPO
SHARED SERVICES
CENTER
BLOCKCHAIN, INTERNET
OF THINGS, ARTIFIAL
INTELLIGENCE
DATA CENTERS
FINTECH
Some niche opportunities:
Source: MinTIC, Fitch, Statista.
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SUCCESS STORIES –
ITC SERVICES
IBM opened its third DataCenter in Colombiaoffering a processingpower of 5 petabytes.It´s one of the mostadvanced centers forCloud Computing andBig Data Analyticscompanies inthe country.
The renewal in thecompany continues. Afterannouncing themodifications on its logo,the company announcedthat they will startmanaging the operationof Bolivia, Ecuador,Guyana, Suriname, Peruand Venezuela fromColombia.
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Source: Procolombia based on national press
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Thanks to the success of itsoperations in Colombia,Endava, a British ITcompany, announced itsexpansion with a projectedinvestment of at least 10million dollars and offering500 jobs in the next fiveyears. The companydecided to expand itsoperation in the country,opening a new office in thecity of Medellín.
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Its BPO operationcurrently has more than1,400 credit processes,customer service, anddocument managementactive positions.
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TOURISMSome niche opportunities:
ECOLODGE AND GLAMPING
WELLNESS URBANHOTELS
Colombia is an international touristdestination. USTOA* chose Colombia asthe first destination of interest in 2020 andFinancial Times** highlighted Colombia asone of the global markets with the bestinvestment attraction strategy in theworld.
1.
Colombia´s growth is almost twice compared to theglobal average rate. The average annual growth ofnon-resident visitors into the country was 9%between 2012 and 2019, while world’s growth was5.3% and the Americas’ growth was 4.4%. Tourism isthe second exporting sector with USD 6,7 million,after energy and mining activities.
2.
Colombia is connected to 27countries and 26 airlinesthrough more than 1,000direct weekly frequencies,offering 194 thousand seatsweekly.
3.
Colombia offers attractive incentives for investing in hotel and tourisminfrastructure. The 2019 tax reform offers a preferential income tax ratefor new hotels, themed parks, agritourism, ecotourism and docks. Inmunicipalities with less than 200 thousand inhabitants, rate will be 9% for20 years; for cities with more than 200 thousand inhabitants, the samerate applies for 10 years.
4. 5.Colombia has 14 cities with more than 500 thousandinhabitants and 31 with more than 200 thousandinhabitants. These are attractive regions for thedevelopment of: urban hotels, mixed uses, sun andbeach resorts, ecotourism, wellness, entertainment(themed parks), tourism infrastructure and investmentin heritage towns.
Colombia is considered a unique destination thanks to its mega diversity, international air connectivity, different climates and touristic attractions
Colombia, a high-quality
sustainable destination SUN AND BEACH - RESORTS
THEMED PARKS
Source: MinCIT, DANE, OAG Aviation, United States Operators Association.
**Research Center fDi Intelligence report
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SUCCESS STORIES
TOURISM
Hyatt is present in Bogotá(the Grand Hyatt Bogotáand the Hyatt Place Bogotá/ Convention Center) andin Cartagena with the HyattRegency, which is alsoamong the 25 best in thecountry. The expansion ofthe Hyatt RegencyCartagena hotel in 2020 willadd 285 rooms and 90rooms.
The Selina hotel chain wasestablished in 2017 in Colombiaand in the last two years it hasexpanded with a restaurant inBogotá and subsequently 2lodging locations. In its growthplan, it already has a hotel inMedellín, one in Cartagena andthe most recent one in Quindío.The firm plans to add 15 hotels in2021 in places like Santa Marta,Palomino and Cali, among othercities.
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Source: ProColombia con base en prensa nacional
PANAMA
The Accor hotel chaininvested in 6 projects,generating more than 550jobs. The projects areconcentrated in Bogotá,Montería, Apartadó andChía. Coming soon will bethe development of anew hotel located inItuango (IBIS BUDGET).
The chain, in alliance witha local developer,invested in theconstruction of a newhotel under the Ramadabrand, which will belocated in the Bogotá FreeZone, it will have 87 roomsand its opening is plannedfor May 2020.
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Real estate and retail
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INFRASTRUCTURESome niche opportunities:
AIRPORTS PORTS ROADS
Infrastructure is the maindevelopment sector stated by theGovernment to enhance theeconomy. Public investment grewfrom 0.6% in 2003 to 3% of GDP in2018 and represented 8.6% oftotal FDI in 2019.
1.
Due to the Health emergency, thegovernment prioritizedinvestments of USD 5,288 million inPPP's as a reactivation strategy ofthe economy, generating morethan 90,000 jobs between 2020 –2022.
2.
Colombia is the third country in the worldaccording to the Procuring InfrastructurePPP 20181, given the efficiency of the PPPmodel for the development ofinfrastructure projects.
3.
Colombia has a dynamic infrastructuresecondary market2, which allows the entryof Foreign Investment Capital Funds intoongoing projects, with stable and safeprofitability.
4.
5.
Colombia has a diverse portfolio ofinfrastructure projects by 2035•Road: USD 60,000 million•Airports: USD $ 5.700 Million•Rail: USD 3.400 Million•Fluvial: USD 1,600 Million•Ports: USD 433 Million•Social: More than USD 1,500 Million
A major driver for growth
STEP RAILWAYS FLUVIAL
NATIONAL PLAN R
1 Word Bank Ranking2 Marketing of PPP projects already awarded Source: Intermodal Transport Master Plan 2015-2035 (PMTI) Exchange
rate: US$ = COP$3.282
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SUCCESS STORIES -
INFRASTRUCTURE
InfraRED is a globalinvestment fund focused onthe infrastructure andenergy sectors. Thecompany acquired a localconcession, a roadwayproject of the 4Ginfrastructure program.
Strabag will be in charge of 75Km new highways, and themodernization of a 65 kmsection.
ISRAEL
Source: ProColombia con base en prensa nacional
AUSTRIA
Shikun & Binui awardedthe project “CorredorPerimetral de Oriente deCundinamarca = 153 kmlength”.
The investment of aroundUSD600M of PSA inAquadulce Port turns thisPacific Sea port into themost modern in thecountry.
UNITEDKINDOM
A major driver for growth
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ENERGY
Some niche opportunities:
THERMAL PCH SOLAR
WIND TRANSMISSION
NETWORKBIOMASS
After a successful energy auction, Colombiawill increase its installed capacity in thegeneration of NCRE1 50 times, going from lessthan 50 MW in 2018 to 2,500 MW in 2022. Thisimportant fact will allow to achieve the goal ofdiversifying the Colombian energy matrix.
1.
Colombia is the second largest economy in theAmericas and ranks 25th out of 115 globally inthe Energy Transition Index 20202 ranking, incapacity to supply energy in a self-sustainingand quality manner.
2.
The development of renewable energy inColombia has incentives, such as the deductionof 50% of the income tax for 15 years forinvestments in alternative sources.
3.
Colombia has one of the highest availability of energyresources worldwide:•Solar: average daily radiation 25% higher than the worldaverage.•Wind: wind speed is twice the world average.•Biomass: sufficient potential to supply 46% of nationalenergy demand.
4.
5.
In 2019, 19 transmission projects for more than USD 291million came into operation. In 2020, 11 calls for investmentprojects will be opened, which will increase reliability andallow flexibility in the operation of the system. Additionally,Government launched the first project of energy storage.
By 2050, 25% of the energy matrix will be from NCRE1
1 Energies with unconventional sources2 Ranking of the World Economic Forum3 UPME public calls
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SUCCESS STORIES -
ENERGY
Between 2017 - 2019, theItalian multinational Enel willinvest close toUSD 561 million in energyprojects in Colombia.
Trina solar energy supports thetransformation of the Colombianenergy matrix with theinvestment in a solar energy park(Llanos 1) supported by the FDN.
UNITEDSTATES
Source: ProColombia con base en prensa nacional
CHINA
Colombian subsidiary ofAES Corporation (AppliedEnergy Services). Chivor isone of the country'slargest power generatorwith a total effectiveinstalled capacity of 1,000MW.
A diversified resource base and a
strategic location in the Americas
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CAPITAL
FUNDS
Some niche opportunities:
REAL ESTATE HEALTH ITCBANKING
BIOTECH AGRIBUSINESSENERGY
Colombia was ranked fourth in LatinAmerican andthe Caribbean due to its favorableconditions for development of thePEF industry.
1.
19 International GeneralPartners in Colombia.
2.
Capital funds such as AdventInternational and Victoria Capitalhave chosen the country as a hubto service other countries in theregion.
3.
Colombia offers several benefitsto invest in capital funds.
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SUCCESS STORIES –
CAPITAL FUNDS
Investments mainly in the sectorsof infrastructure, energy and realestate.Investments in the Colombianpower company SA as part of itsexpansion plan in the region.
Colombia's Rappi unicorn, ahome and e-commercecompany, received a $1 billioninvestment from Japan'sSoftBank Group and SoftBankVision Fund. This was the largestinvestment of its kind for a LatinAmerican technology company.
Caisse de Depot et Placementdu Quebec created aninfrastructure co-investmentfund with the Colombiangovernment and four pensionfunds in the South Americancountry that's expected toreach $1 billion. Infrastructureinvestments will targetrenewable and other forms ofenergy, transportation, socialinfrastructure,telecommunications, water andbasic sanitation.
CANADA
Source: Procolombia based on national press
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P R O C O L O M B I Ai s r e a d y t o
a s s i s t y o u i n
a s s e s s i n g i n v e s t m e n t
o p p o r t u n i t i e s
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THANK YOU