Presentación Colombia - Inglés · Presentación Colombia- inglés BUSINESS OPPORTUNITIES IN COLOMBIA 2018 1. Peace is bringing new opportunities to Colombia. Huila ... ZIDRES Areas

Presentación Colombia- inglésINVESTMENT ENVIRONMENT AND BUSINESS OPPORTUNITIES

IN COLOMBIA

2018

1

Peace is bringing new

opportunities to Colombia

Huila

Cund.

V. Cauca

Antioquia

Risaralda

Atlántico

Boyacá

N.SantanderBolívar

Magdalena

Cesar

Guajira• Renewable energy

• Tourism

Arauca• Agribusiness

• Cosmetics

• Tourism

Santander• Agribusiness

• Energy• Construction Materials

• Metalworking

• Industries 4.0

• Tourism

San Andrés

• Renewable

energy

• Tourism

Sucre

• Renewable energy

• Construction materials

• Agribusiness

• Tourism

Córdoba

• Renewable

Energy

• Agribusiness

• Fruits and

vegetables

• Tourism

• Industries 4.0Casanare• Agribusiness

• Infrastructure: transportation and social

• Tourism

Vichada• Agribusiness

• Infrastructure: transportation and social

Meta• Agribusiness• Infrastructure• Cosmetics• Industries 4.0• Tourism

Guaviare• Agribusiness

• Infrastructure

• Tourism

Vaupés• Agribusiness

• Infrastructure

• Tourism

Caquetá• Agribusiness• Infrastructure• Tourism

Putumayo• Agribusiness

• Exotic fruits

• Infrastructure• Tourism

Nariño• Agribusiness

• Infrastructure

• Tourism

Cauca

• Agribusiness

• Infrastructure

• Tourism

• Industries 4.0

Amazonas• Exotic fruits

• Cosmetics

• Infrastructure

• Tourism

Tolima

Chocó Caldas

Quindío

More regions, more

opportunities, greater development

Management Strategy(One stop shop, soft-landing, SIFAI,

management incentives)

Existing

agencies(15)

Regions in

process (3)

New regions

(11)

A Greater Colombia- PostconflictFDI promotion impact in regions- coverage

PROCOLOMBIA.CO

Source: DNP Study. Analysis on 36 case studies on countries with a history of end of conflict and peace agreements.. *Exports plus imports ** Taking the year 2014 as a base

4

Exports are expected to grow 12% by 2024, reaching USD 61.4 billion

In 10 years, it is expected that tourism will double, reaching 8.8 million

tourists, prioritizing former conflict zones:

• Sierra de la Macarena (Meta)

• Trek to Teyuna (The Lost City)

• Putumayo

• Urabá– El Darien (Antioquia – Chocó)

Exports and Tourism will benefit from peace

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Peace will have a positive impact in the country’s economy

It’s expected that…

On average, the

economy will grow

between an extra 1.1

and 1.9 points

In 2026, GDP per

capita will grow

54%

In 2024, FDI will reach

USD 36 billion

By 2024, the trade

opening rate* will

increase by 21%

reaching USD 140.2

billion

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Peace will also bring a growing competitive Colombian

industry

It’s expected that…

Over the next 10 years,

the agriculture sector will

grow by an additional

22%

The construction sector

will grow by an additional

40% over the next 10 years

By 2024,Colombian

industry will grow by

an additional 20%

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Peace will promote development and competitiveness for

the Colombian industry

ZOMAC

Territories with special tax

incentives for companies

located in the most affected

areas by the armed conflict.

Companies that set up in

these areas will receive a

reduction in the income tax

until 2027.

ZIDRES

Areas of interest for rural,

economic and social

development.

This law established a new model

of agricultural development:

• Allows the availability of land.

• Companies and agricultural

workers (with or without land)

are able to create productive

processes on a big scale.

This model maximizes labour

productivity and reduces

agricultural production costs.

WORKS BY TAXES

Allows companies, with gross

income equal to or greater

than 33,610 TVU, to choose to

pay up to 50% of their taxes

through direct investment in

projects of social impact or

infrastructure, in areas

classified as ZOMAC

PDET

Development Programs with a

Territorial Approach (PDET, in

Spanish).

It is a planning and

management instrument that

aims to implement sectoral

plans and programs within the

framework of the Integral Rural

Reform (RRI, in Spanish) and the

relevant measures established

by the Final Peace Agreement,

in 170 prioritized municipalities.

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Incentives for companies established in the most affected

areas by the armed conflict - ZOMAC

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Regulated by decree 1650 of 2017.

These are territories where special fiscal

incentives were established for companies

that are located in the most affected areas

by the armed conflict.

Companies that settle in these areas will

receive a reduction in the income tax until

2027.

Tax rate progressivity for new micro and small companies

created in the ZOMAC

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2018 2020 2022 2024 2026

2019 20232021 2025 2027

FROM 2022 TO 2024, 25% OF THE GENERAL TAX RATE (8.25%)

FROM 2018 TO 2021, 0% OF THE GENERAL TAX RATE


Source: Decree 1650 of 2017

Tax rate progressivity for new medium and large companies

created in the ZOMAC

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2018 2020 2022 2024 2026

2019 20232021 2025 2027



Source: Decree 1650 of 2017

A dynamic and stable

economy

Multiple development centers

and regions coupled

with a growing middle class

securing a greater demand in

products and services.

A growing pool of qualified

Colombian companies able to

partner with international

investors to reach out to regional

markets.

Diverse investment

opportunities in a wide

variety of sectors

A trade platform with over 16

Trade Agreements enabling

investors to reach third markets

with preferential access

A growing market located

strategically to facilitate

business transactions with the

region.

Colombia Offers:

450

461

477

482

541

547

555

667

706

716

750

752

795

955

960

1.002

1.313

2.572

3.389

Peru

Austria

Chile

Hong Kong SAR

Switzerland

Sweden

Singapore

Algeria

Vietnam

United Arab Emirates

Colombia

Bangladesh

South Africa

Philippines

Argentina

Malaysia

Australia

Mexico

Brazil

GDP PPP 2018* (USD billion)

Latin American Economies

Colombia is the 32th largest economy in the world

and the 4th in Latin America

PROCOLOMBIA.CO

*Projections. Source: IMF, WEO, April 2018

3.4%

4.4% 4.5%

2.6%

0.6%

2.0%1.6%

-0.8%

-7.0%

2.0%

-1.0%

3.8%

-0.7%

1.2%

-0.1%

3.4%

4.9%

1.1%

-3.6%

1.8%

Manufacturing

industries

Financial services Construction Commerce,

restaurants and

hotels

Transport,

warehousing and

telecommunications

Social services Agriculture Electricity, gas and

water supply

Mining and

Quarrying

Total GDP

2016 2017

Dynamic growth driven by its agriculture and financial services

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Source: DANE – Ministry of Finance.

Inflation continues an uninterrupted decelerating trend since

2015

3.23.7

2.41.9

3.7

6.8

5.8

4.1

3.1 3.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Inflation Rate (%)

2010 – 2019 est.

In 2018 and 2019, Inflation is

expected to reach the target rate set

by the national bank (2-4%).

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Source: Colombian National Bank (Banco de la República). Projections: IMF, WEO, April 2018.

Since 2013, unemployment rate has remained at a single-

digit level

It is expected that, in 2018 and 2019,

unemployment rate will continue to be

at a one - digit level; with a slight

decrease from 2017.

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Unemployment rate (%)

2010 – 2019 est.

11.8%10.8% 10.4%

9.6%9.1% 8.9% 9.2% 9.4% 9.2% 9.1%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Source: Colombian National Bank (Banco de la República). Projections: IMF, WEO, April 2018

Doing Business 2018 ranking

Source: World Bank. Doing Business 2018. Source: Global competitiveness Index , 2017.

According to Doing Business, within the Latin American and Caribbean region, Colombia is:

Macroeconomic stability index

World ranking 2017-2018

#1 in getting credit

#1 in protecting minority investors

#3 in registering property

#3 in resolving insolvency

#4 in ease of doing business

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43

9195

124

37

62

With a constant gross fixed capital formation,

companies are the most willing to invest in fixed capital

Gross fixed capital formation(Investment as GDP %)

Investment sources 2016 (%)*

Gross fixed capital formation 2017

USD $71 billion

58,20%26,20%

14,50%

1,00% 0,10%Companies

Households

Government

Banks

Non-profit

organizations

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19,7%

21,8%

23,3%

24,7%

24,0%24,2%

27…27,2%

27,7%

29,1% 29,0%

27,5%

27,0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: DANE, Most recent data available.*Procolombia´s estimates

In 2018 and 2019, It is expected to be higher than

2017

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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.

Source: IMF, WEO 2018, April. Estimates from 2017 to 2019.* 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

Colombia, one of the top growing economies

in 2018 among the largest Latin American countries

Gross Domestic Product

Estimated growth 2018

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3.7% 3.4% 2.7% 2.3% 2.3% 2.0% 1.8%

Ch

ile

-15.0%

Co

lom

bia

Ve

ne

zue

la

Bra

zil

LATA

M

Arg

en

tin

a

Pe

ru

Me

xic

o

Source: IMF, 2018. In April 2018.

The Colombian economy is on the path of recovery and will

expand by about 3-3.3% in 2018-2019

PROCOLOMBIA.CO

4.0%

6.6%

4.0%

4.9%4.4%

3.1%

2.0%1.8%

2.7%3.3%

0%

1%

2%

3%

4%

5%

6%

7%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

GDP constant prices

(percent change, %)

Source: IMF, WEO 2018, April.

209.2

124.7

65.2 60.851.7 49.8 46.3 44.6

32.5 32.2 31.8 25.1 18.6 17.0 11.4 11.2 10.8 10.4 10.3 10.3 8.9 8.9 5.8 5.4 3.5

Population 2018* (million)Latin American Economies

Colombia is the 28th most populated country in the world and the 3rd in Latin America

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*Estimated,.Source: IMF, 2018

49.7%

30.6%

28%16.3%

29.9%

31.1%*

2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016

Remarkable reduction in poverty rates and a rapidly growing middle class

Colombia has

continuously

decreased its

poverty levels

PovertyMiddle Class

Percentage of people in poverty 2002 – 2016

Source: Poverty: National Administrative Department of Statistics – DANEMiddle class: The gained decade: the evolution of the middle class in Colombia between 2002 and 2011. Document CEDE # 50. Universidad de los Andes. And RADDAR for 2013 data.*Middle class 2016: Estimates calculated by ProColombia PROCOLOMBIA.CO

Ra

tin

gTe

rm

Long Term –Foreign

currency

BBB- BBB Baa2


currency


currency

In July 2014, Moody´s was the last rating agency in improving Colombia´s rating due to two key drivers:

1. Positive growth forecast thanks to 4G infrastructure.

2. A sound fiscal management that will continue in the future.

In March 2017, Fitch Ratings* improved Colombia´s rating outlook: from Negative into Stable.

FitchRatings MOODY S,STANDARD

& POOR S,

COLOMBIA,an investment grade country

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Source: S&P Ratings; Dinero magazine, Colombian Treasury.* Portafolio News Paper (Marh 10th 2017)

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

Ph

ilip

pin

es

Sa

ud

i…

Ch

ina

Ind

on

esi

a

Ind

ia

Ma

laysi

a

Me

xic

o

Ru

ssia

Ca

na

da

Au

stra

lia

Ko

rea

Isra

el

Au

stria

Bra

zil

Un

ite

d…

No

rwa

y

Sw

itze

rla

nd

Pe

ru

Po

lan

d

Eg

yp

t

Sw

ed

en

Turk

ey

Ch

ile

So

uth

…

Ita

ly

Ja

pa

n

Co

sta

Ric

a

Fra

nc

e

Ire

lan

d

Un

ite

d…

De

nm

ark

Gre

ec

e

Arg

en

tin

a

Hu

ng

ary

Co

lom

bia

Ge

rma

ny

Sp

ain

Fin

lan

d

Ne

the

rla

…

Po

rtu

ga

l

Luxe

mb

o…

Colombia – destination with low barriers for FDI

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High barriers

Low barriers

FDI Regulatory Restrictiveness Index 2017

Latin American economies

Closed = 1 Open = 0

Colombia has the lowest FDI barriers in LAC

Source: OECD, 2017.

Colombia was officially invited on may 2013 to initiate the process to become full 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

OECD already approved 21 out of 23 Colombian

committees

• Agriculture

• Bribery in International

Business Transactions

• Chemicals

• Competition

• Consumer policy

• Corporate Governance

• Digital Economy Policy

• Education Policy

• Employment, Labour and

Social Affairs

• Environment Policy

• Financial Markets

• Fiscal Affairs

• Fisheries

• Health

• Insurance and Private

Pensions

• Investment

• Public Governance

• Regional Development Policy

• Regulatory Policy

• Scientific and Technological

Policy

• Statistics and Statistical Policy

Colombia is implementing the roadmap to become full member of the OECD

PROCOLOMBIA.CO

391

254

134108

9262 59 48 44 38 34 33 29 28 27 27 22 20 19 14 14 13 12 12 11 11 11 11 10 10

Developed economies

Developing and transition economies

Colombia is part of the top 30

destinations for FDI

Fuente: UNCTAD – Reporte de inversión mundial 2016

Top 30 host economies in 2016 (USD billion)

21

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Source: UNCTAD – World Investment Report 2016

GDP growth vs. Consumption2012-2017 - (%)

GDP growth vs. Investment2012-2017 - (%)

Colombia is leading a sustainable growth in the region

PROCOLOMBIA.CO

-3%

-2%

-1%

1%

2%

3%

4%

5%

-3% -2% -1% 1% 2% 3% 4%

Co

nsu

mp

tio

nG

row

th(6

ye

ars,

%)

GDP growth (6 years, %)

Brasil

Argentina

México

Chile Colombia

Perú

-9%

-7%

-5%

-3%

-1%

1%

3%

5%

-3% -2% -1% 1% 2% 3% 4%

Tota

l In

vest

men

t G

row

th (

6 y

ears

, %)

GDP growth (6 years, %)

Brazil

Argentina

Chile

Mexico

Peru

Colombia

Source: ProColombia based on World Bank data and Canadean Travel and Tourism. Bubble sizing corresponds to the size of the economy.

FDI has been largely driven by non-mining sectors over the

last 2 years

FDI Inflows. 2010 - 2017USD Million

Top Investing countries in Colombia

2000 – 2017

Source: Balance of Payments - Banco de la Republica. Share of all countries with positive cumulative investment, The information includes reinvested profits or investments in the oil sectorNote: the list of the top countries investing in Colombia does not include Panama.

1,512

7,468 7,095 8,1219,854 8,584

11,589 10,1074,918

7,180 7,9458,089 6,314

3,152

2,260 4,411

6,430

14,648 15,03916,210 16,168

11,73613,849 14,518

2010 2011 2012 2013 2014 2015 2016 2017

Oil & Mining

Other sectorsUnited States

• USD 33,856 million

• 20.5%

United Kingdom


• 12.2%

Spain


• 9.6%

Switzerland


• 6.2%

Main global investment projects in Colombia

PROCOLOMBIA.CO

Investment Projects from the world to Colombia by Industry Sector

2007 - 2017

262

137

10882

54

49

43

35

32

31

177Software and IT

ServicesBusiness Services

Financial Services

Machinery and

equipmentLogistics and

TransportationMining Industry

Chemicals

Automotive Industry

Total Projects: 1010

Sector de la IndustriaEmpleos

Generados

Real Estate* 23,812

Software and IT Services 22,999

Mining Industry 12,115

Logistics and

Transportation11,231

Tourism 9,024

Agroindustry 8,714

Financial Services 8,108

Construction Materials 7,740

Automotive Industry 5,242

Energy 470

Others53.027

Total162.482

Source: fDi Markets. * Includes construction and professional services. Grupo Casino and Parque Arauco generated most of the employments in this sector.

The stock of investment flows from Colombia to the world has

grown since 2002

Stock of outward FDI (USD millions)2002-2017

FDI Outward Flow

Main countries, 2000 – 2017

Top Latin American investorsto the world, 2016

(USD billions)Colombia

USD 4.5

VenezuelaUSD 1.3

ChileUSD 6.2

Argentina USD 0.9

856.8

937.7

192.4

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

-606.2 7,6

52.1

3,8

99

4,2

17.7

4,5

17.4

3,6

89.6

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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United StatesUSD 7,218 million13.5%

United KingdomUSD 6,314 million11.8%

SpainUSD 4,737 million8.8%

ChileUSD 4,224 million7.9%

Source: Balance of Payments - Banco de la República. UNCTAD, 2017.

Reduced income tax and VAT Exemptions allowing

access to local market

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 number Free Trade

Number of Special Standing Single enterprise:

66

Number of permanent Free Trade Zones

39105

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Colombia is the Latin American country with the most Free Trade Zones

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

Country # of Free Trade

Zones

Employment (direct

and indirect)

Installed

companies

Exports

generated

(USD FOB

millions)

Main Sector

Colombia 105 239,280 845 280.9 Industrial

Brazil 1 114,226 479 200.8 Electronic

Costa Rica 11 119,701 331 6,948 Services

Panama 19 11,349 154 82 Industrial

PROCOLOMBIA.CO

Source: AZFA, DANE. AZDA realeased colombian data dated in 2016, rest of the countries: 2015.

Colombian Free Trade Zones represent an important opportunity for

third countries to take advantage of the country's Trade Agreements

Free Trade Zones have a high potential for generating productive chains

Input Supply Investment opportunities in Colombia in

value-added production chainsSupply with value-added

intermediate products

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 -

JapanAromatic products -

Glasses -Flats laminated with steel or iron -

Vehicle parts & accessories -

Peru:Cotton yarns-

Plastic packaging for the beverage and

the cosmetics industry

Automotive assembly

Home appliances

Clothing

Processed foods

Aeronautics

Medical devices

Source: High impact Free Trade Zone–2016, CLG

PROCOLOMBIA.CO

Canada

United States

Mexico

GuatemalaHonduras

El Salvador

Ecuador

BrazilPeru

Argentina

Paraguay

Uruguay

European Union

Israel

Japan

Panama

Chile

Bolivia

Costa Rica

Venezuela

South Korea

Cuba*

Nicaragua*

Caricom*

Colombia has access to 60 countries and more than 1.5 billion consumers through its network of trade agreements

• PacificAlliance

• In force

• Signed

• In negotiation

* 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

AustraliaNew

Zealand

Singapore

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Turkey

Colombia, estado miembro de la Alianza del Pacífico

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En la XII Cumbre de la Alianza del Pacífico (octubre 2017) se anunció la creación de la categoría de Estado

Asociado y se iniciaron negociaciones encaminadas a otorgar esta condición a Australia, Canadá, Nueva

Zelanda y Singapur

Esta figura busca fortalecer la integración comercial, regional y el libre comercio, así como aprovechar las plataformas regionales y promover negociaciones de acuerdos comerciales.

NUEVA ZELANDA

CANAD

Á

MÉXICO

COLOMBIA

CHILE

PERÚ SINGAPUR

AUSTRALI

A

Colombia, less 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

* This information takes into account the routes departing from internationalairports in Barranquilla, Bogotá, Cali, and Medellín. Source: Routes and Tariffs -Tools for the Colombian Exporter, processed by ProColombia.

PROCOLOMBIA.CO

Colombia counts with more than 4,500 maritime export

routes and has access to 680 ports around the world.

PROCOLOMBIA.CO

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 DAYS)

LONDON

(17 DAYS)

KOLKATA

(43 DAYS)

MONTREAL

(9 DAYS)

SHANGHAI

(29 DAYS)

HONG KONG

(33 DAYS)

SIDNEY

(21 DAYS)

BUSAN

(25 DAYS) TOKYO

(22 DAYS)

AUCKLAND

(17 DAYS)

VANCOUVER

(17 DAYS)

LOS ANGELES

(10 DAYS)

CALLAO

(2 DAYS)

VALPARAÍSO

(5 DAYS)

SAINT

PETERSBURG(21 DAYS)

MIAMI

(4 DAYS)VERACRUZ

(5 DAYS)KARACHI

(37 DAYS)

Source: Routes and Tariffs - Tools for the Colombian Exporter, processed byProColombia.

The Airport located in Bogota is among the top airports in the

world

According to Airhelp scores 2017, El Dorado International Airport is:

#1 in Latin America

#11 Worldwide

PROCOLOMBIA.CO

Source: Airhelp Scores , Airport Worldwide Rankings 2017

Agroindustry and Metalworking sectors performed the most dynamism in their exports during 2017.

13,75619,708 18,461

25,92240,863 44,024 42,468 38,494

20,954 17,56422,858

16,235

17,91814,385

13,791

16,05216,101 16,359

16,363

15,06314,193

14,942

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mining Non-Mining

54,85758,826

60,125

36,018

39,713

32,84637,626

29,991 31,75737,815

56,915

Evolution of Colombian Exports, 2007 – 2017(USD millions)

Colombian exports increased 19% in 2017 compared to the

previous year

5.260 5.864

3.537 3.797

Jan-Mar 2017 Jan-Mar 2018

8,7979,661

Source: DANE.DIAN, 2018.

In January-March 2018 receptive tourism in Colombia grew

42.7% over the same period of 2017

306,694 314,207 272,206 305,820 344,624

561,791 583,967 689,280 724,302 724,302

1,153,248 1,313,200 1,196,6181,471,111

2,159,665

1,726,3001,967,814 2,288,342

2,593,057

3,233,162

2013 2014 2015 2016 2017

Cruisers Colombians who are foreign residents Cross-border Non-resident foreigners

4,179,1884,446,446

5,092,052

6,531,226

3,748,033

International tourists arrival to Colombia 2012 – 2017

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140.485 160.537

152.902 169.880

474.542

712.360

713.172

1.070.985

2017 Jan - Mar 2018 Jan - Mar

1.481.101

2.113.762

Source: Migration Colombia. Elaborated by ProColombia

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)

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3,4403,801

4,3644,758 4,887

5,2365,712

4,084

1,884

2,608

1,910 1,884

2,473 2,527 2,418

1,591

1,229 1,240 1,256 1,324 1,362 1,285 1,3011,020

748 815 822 764 836 803 915696

0

1.000

2.000

3.000

4.000

5.000

6.000

2010 2011 2012 2013 2014 2015 2016 2017

Tourism Coffee Flowers Bananas

• 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

Colombia is one of the countries with the greatest potential for expansion in agricultural land

• Colombia, with multiple thermal floors, is able tooffer different agricultural products throughout theyear.

• “Plan Colombia Siembra” seeks to increase theagricultural production with 1,000,000 newhectares.

• Colombia ranked 13th worldwide and 1st inLatin America in the food sustainabilityindex.

• The availability of water resources inColombia is one of the highest in theworld (FAO*). The country ranked fourthworldwide in sustainable agriculture.

PROCOLOMBIA.CO

Source: FAO, Food Sustainability Index, 2017

PROCOLOMBIA.CO

Colombia compared to…

Argentina

Brasil

Chile

Colombia

Costa Rica

Ecuador

El SalvadorGuatemala

HondurasJamaica

México

Nicaragua

Paraguay

PerúPanamá

República Dominicana

Trinidad y Tobago

Uruguay

Venezuela0

2

4

6

8

10

12

0 2 4 6 8 10

STR

ENG

TH O

F LE

GA

L R

IGH

TS IN

DEX

(0

-12

BES

T)

STRENGTH OF INVESTOR PROTECTION (0-10 BEST)

Legal rights index(0-12 best)

PROCOLOMBIA.CO

Colombia – first destination for safe investment

Colombia ranks:

First in the Legal

rights index

(Worldwide)

First in the strength

of investor

protection Index

(LAC region)

Source: Global competitiveness Index , 2017.

PROCOLOMBIA.CO

#1

#3

Colombia – A destination with outstanding local suppliers in the LAC region

PanamáColombia

GuatemalaBrasil

República Dominicana

El SalvadorPerúChile

Argentina

UruguayJamaicaHonduras

Trinidad y Tobago

Nicaragua

Ecuador

México

Costa Rica

Paraguay

Venezuela

1

2

3

4

5

6

7

1 2 3 4 5 6 7

LOC

AL

SUP

PLI

ER Q

UA

LITY

(1

-7 B

EST)

LOCAL SUPPLIER QUANTITY (1-7 BEST)

Local Supplier Quantity

Local supplier quality

Source: Global competitiveness Index , 2017.

World Talent Ranking 2017 (0-100 best)

Colombia was ranked fourth in Latin America by the Human Talent Report

50,37

43,49

42

40,09

39,4

39,09

Chile

Argentina

Brazil

Colombia

Mexico

Peru

PROCOLOMBIA.CO

Colombia – Committed to invest in human capital

Source: IMD

Working age population rate (15-64) years)

Enrolment 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%**

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Colombia – Highest enrolments rates in education

Source: World Bank, latest update available: 2016. * Last update 2015. Last update 2006.

Major multinational corporations have chosen

Colombia as an investment project destination

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USD $5.6 billion in rehabilitation, expansion and modernization of 31 airports (2015 – 2018).

The Fluvial National Plan consists of 13 riverproyects 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 than1,769 kms of railways network.

Some niches with opportunities:

Sectors of opportunity - Infrastructure: A major driver for growth

Source: Intermodal Transport Master Plan 2015-2035 (PMTI , Ministry of Transport - Exchange rate: USD = COP$3,000

Airports Ports Roads

Fluvial National plan

Step railways

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In 2014, Iridium awarded

two road concession

projects in the

government’s “highway

concession program (4G)”.

Those projects accounts

78Km.

Strabag will be in

charge of 75 Km

new highways,

and the

modernization of a

65 km section.

Shikun & Binui awarded

the project “Corredor

Perimetral de Oriente de

Cundinamarca = 153 km

length ”

HEC will build “The Mar 2

highway” that will

improve northeast

logistics development.

Total project length: 246

km.

Spain Austria Israel China

Success Stories - Infrastructure:

A major driver for growth

PROCOLOMBIA.CO

Source: Procolombia based on national press

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 andeighth in the world according to the“Energy Architecture Performance Index2017”. WEF, 2017.

The Global Energy Architecture Performance

Index 2017

• 546 power generation projects registered in differentstages: Installed capacity up to 15,940*

• 22 Open public bids for power transmission projectsin Colombia**

• High potential in Biofuels and alternative energies.• Projects focused on renewable energy will have

special VAT exemptions, deduction fromtaxable income and customs exemptions – Law1715

Some niche

opportunities

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

Micro hydro WindSolar

PROCOLOMBIA.CO

Thermal Biomass Transmission network

Sectors of opportunity - Energy:A diversified resource base and a strategic location in the Americas

Endesa, the subsidiary of the Italian group Enel,

acquired participation in Emgesa and Betania power generation companies with

2,895 MW of installed capacity.

Between 2017 and 2019, the Italian multinational Enel will invest about USD 561 million

in energy projects in Colombia.

Colombian subsidiary of

AES Corporation (Applied

Energy

Services). Chivor is one of

the country's largest

power generator with a

total effective installed

capacity of 1,000 MW.

The low-grade thermal

coal plant, Termopaipa

located in Paipa, was the

first power plant planned

overseas, financed and

built by Steag.

Spain Italy United States Germany

PROCOLOMBIA.CO

Success Stories - Energy:A diversified resource base and a strategic location in the Americas


Expansion of cultivated areas with a high globaldemand of agricultural products, construction ofcollection centers and assembly of processing plants(IQF, pulps, jams).

Construction of cocoa processing plants for cocoabutter, cocoa liquor and chocolate products.

Colombia has the fourth dairy herd and largest dairyproduction in the region, which guarantees easyaccess to raw materials for the subsequenttransformation of dairy products.

Build specialized industrial facilities to transform naturalrubber into value-added elements.

Investment Opportunities

Rubber Biofuels Forestry

Some niche opportunities

Aquaculture Cocoa Cereals

Fruits and vegetables

Meat Processed food

Sectors of opportunity - Agribusiness

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.

United StatesBrazil

Success Stories - Agribusiness

PROCOLOMBIA.CO

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.

Chile


Sectors of opportunity - Metalworking and other industries

Colombia, a sustainable destination

Setting up factories that transform iron and steel products with the aim ofmeeting other industries demand.

The development of sectors such as construction, automotive, shipyards and metallurgyopens a huge investment potential in the manufacture of metal structures, tools andmachinery.

Some niches of opportunity:

Automotiveand auto parts

Constructionmaterials

Metalworking

Setting up assembly lines to produce commercial vehicles (buses), cargovehicles and motorcycles to serve both local and international marketsusing Colombia as an export platform.

Colombia has specialized in the production of vehicles and motorcycles to meet localand international demand as well in the auto parts market that allow it to respond to theneeds of assemblers and the aftermarket.

Establishment of cement, ceramic and prefabricated production plantsto supply local and international markets.

Colombia has a portfolio of projects for the construction of housing, road infrastructureand air transport, which makes it an attractive destination for companies in the sector.

PROCOLOMBIA.CO

Success Stories - Metalworking and other industries


The Japanese company

of continuous casting

and production of high

precision parts, decided

to open a plant to serve

the American market.

Japan

The company invested

in a float glass

production plant to

supply the national

market and export to

countries in the Andean

region.

France

Foton invested more

than US $ 12 million in

a new assembly plant

for SUV and 4x4

models.

China United States

Whirlpool and the

Colombian company

Haceb, signed an

alliance to produce

washing machines in a

plant of US $ 70 million.

PROCOLOMBIA.CO


Sectors of opportunity - Chemicals and Life Sciences



Fertilizers

Setting up agrochemicals formulation and production plants to serve thegrowing local market.

Colombia is the second country in the region with the highest fertilizer consumption perhectare. In Latin America, Colombia is 5.5 times above the average.

Setting up research centers on development of cosmetics based onnatural ingredients. Taking advantage of the Colombian biological andfloristic diversity; and the tax incentives provided by the NationalGovernment for R&D projects.

The country has positioned itself as a hub for the production of cosmetics and toiletries ata regional level. It is the fourth manufacturing industry with the highest exports in thecountry.

Assembly of plastic packaging production plants to meet the needs ofthe LAC region.

Colombia counts with high quality raw materials for packaging with highly technicalcontrol equipment.

Natural ingredientsfor cosmetics

Plastic Packaging

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Started its production

operations in 2013, after

the acquisition of

Abocol, the most

important

agrochemical

company in Colombia.

Norway

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.

The Netherlands and

United Kingdom

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 United States

Inaugurated its new

operations center in

Antioquia to supply

markets in Central

America and the

Andean region

PROCOLOMBIA.CO

Success Stories - Chemicals and Life Sciences


Sectors of opportunity – 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,

Some sectors with opportunities:

BPO Back Office - Finance1.3 million bilingual people in Colombia in 2016.

1st place in Suramericana in labor qualifies, according

to 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.

BPO -Telemedicine

Big Data Analytics

Smart Cities

Shared servicecenters

Data centers

FinTechPROCOLOMBIA.COSource: MinTic and IDC

IBM opened its third Data Center in Colombia offering a

processing power of 5

petabytes.It´s one of the most

advanced centers for Cloud Computing and Big Data

Analytics companies in the country.

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.

AT&T acquired DirecTV

Colombia and it´ll

increase the telecoms

offer Colombia through

new services and

packages.

United States Spain United States Japan

Its BPO operation currently

has more than 1,400 credit

processes, customer

service, and document

management active

positions.

Success Stories - Services IT, BPO, ITO, Shared Services, Apps

PROCOLOMBIA.CO


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.

Sectors of opportunity – Fashion industry: Industry with a diversified basket of products

Textiles Garments

Some niche opportunities:

This company has

operated in Colombia

for more than fifty years

as a Coats chain in the

city of Pereira,

Risaralda.

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 KingdomUnited States United States Itally

Success Stories – Fashion industry: Industry with a diversified basket of products


Sectors of opportunity – Tourism, Infrastructure, real estate and retail

Investment Opportunities in:Inbound tourists* 2012 – 2015

(million of people)

*Inbound tourist includes: resident Colombians abroad, foreign non resident in Colombia,

special cross 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.

Corporate Tax Exemption for hotels with more than 61% of their building by December 2017

VAT exemption for health tourism services

Nature & Adventure

Wellness

City HotelsEntertainment


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

Holiday Inn hotels

opened in Bogota and

Cartagena, totaling 331

rooms.

NH Hotels has 15 hotels in

Colombia, with more than

1,600 rooms

This luxury chain has 2

hotels in Bogota with 126

rooms in the more

exclusive locations in the

city

United States United Kingdom Spain Canada

Success StoriesTourism infrastructure, real estate and retail

PROCOLOMBIA.CO


Sectors of opportunity – Services, Capital Funds


Colombia offers several benefits to invest in capital funds.

Colombia was ranked fourth in LatinAmerican and the Caribbean due to itsfavorable conditions for development ofthe PEF industry.

19 International General Partners inColombia.

Capital funds such as Advent Internationaland Victoria Capital have chosen the

country as a hub to service other countriesin the region

Some niches with opportunity

Health

TIC Biotechnology

Agribusiness

Real Estate

Infrastructure

Banking

Energy

Source: MinTic and IDC PROCOLOMBIA.CO

Canada

Mainly infrastructure

investments.

In Colombia its

investments have been

focused in companies such

as Intertug and Ocensa.

United States

Firm focused on investing

in the category of hotel

assets in Colombia.

Its largest investment in

Colombia has been the

Hyatt Regency Hotel in

Cartagena.

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.

United States

Success Stories – Services, Capital FundsColombia, a sustainable destination

PROCOLOMBIA.COSource: Procolombia based on national press

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