Know about the investment environment and business opportunities in colombia for 2018

1. Presentación Colombia – Español
2018
INVESTMENT ENVIRONMENT AND
BUSINESS OPPORTUNITIES
IN COLOMBIA

2. Peace is bringing new
opportunities to Colombia

3. 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 4.0
Casanare
• 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- Postconflict
FDI promotion impact in regions- coverage
PROCOLOMBIA.CO

4. 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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5. 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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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

6. 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%
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

7. 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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8. 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.

9. 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
FROM 2025 TO 2027, 50% OF THE
GENERAL TAX RATE (16.5%)
Source: Decree 1650 of 2017

10. 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
FROM 2018 TO 2021, 50% OF THE GENERAL TAX RATE
(16.5%)
FROM 2022 TO 2027, 75% OF THE GENERAL TAX RATE
(24.75%)
Source: Decree 1650 of 2017

11. 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:

12. 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
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*Projections. Source: IMF, WEO, April 2018

13. 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.

14. Inflation continues an uninterrupted decelerating trend since
2015
3.2
3.7
2.4
1.9
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%).
PROCOLOMBIA.CO
Source: Colombian National Bank (Banco de la República). Projections: IMF,
WEO, April 2018.

15. 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

16. 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
91
95
124
37
62

17. 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
PROCOLOMBIA.CO
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

18. In 2018 and 2019,
It is expected to
be higher than
2017
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20,2
22,4
23,0
23,5
22,4 22,1
23,9 23,9
24,3
26,3
26,7
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

19. 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% 2.0% 1.8% 1.6%
Chile
-15.0%
Colombia
Venezuela
Argentina
LATAM
Brazil
Peru
Mexico
Source: IMF, 2018. In April 2018.

20. The Colombian economy is on the path of recovery and will
expand by about 3-3.3% in 2018-2019
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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.

21. 209.2
124.7
65.2 60.8
51.7 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
PROCOLOMBIA.CO
*Estimated,.
Source: IMF, 2018

22. Remarkable reduction in poverty rates and a rapidly
growing middle class
Colombia has
continuously
decreased its
poverty levels
Poverty
Middle Class
Percentage of people in poverty
2002 – 2017
Source: Poverty: National Administrative Department of Statistics – DANE
Middle 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
49,7%
30,6%
26,9%
16,3%
29,9%
32,0%
2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

23. RatingTerm
Long Term –
Foreign
currency
BBB- BBB Baa2
Long Term –
Foreign
currency
Long Term –
Foreign
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
PROCOLOMBIA.CO
Source: S&P Ratings; Dinero magazine, Colombian Treasury.
* Portafolio 2018

24. 0,00
0,05
0,10
0,15
0,20
0,25
0,30
0,35
0,40
0,45
Philippines
Saudi…
China
Indonesia
India
Malaysia
Mexico
Russia
Canada
Australia
Korea
Israel
Austria
Brazil
United…
Norway
Switzerland
Peru
Poland
Egypt
Sweden
Turkey
Chile
South…
Italy
Japan
CostaRica
France
Ireland
United…
Denmark
Greece
Argentina
Hungary
Colombia
Germany
Spain
Finland
Netherla…
Portugal
Luxembo…
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.

25. 275
136
104
63 62 58 50 46 40 35 30 30 29 25 24 19 19 17 17 15 15 15 14 11 10 10 7 7 6
-2
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 2017
(USD billion)
22
PROCOLOMBIA.CO
Source: UNCTAD – World Investment Report 2016

26. PROCOLOMBIA.CO
BEING PART OF THE OECD COUNTRIES MEANS THAT PUBLIC INSTITUTIONS IN COLOMBIA
WILL MEET STANDARDS OF THE DEVELOPED WORLD
MORE CONFIDENCE FOR INVESTORS
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
AUSTRALIA
NEW ZEALAND
JAPAN
KOREA
CANADA
UNITED STATES
MEXICO
CHILE
COLOMBIA
COLOMBIAIS 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

27. GDP growth vs. Consumption
2012-2017 - (%)
GDP growth vs. Investment
2012-2017 - (%)
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%
ConsumptionGrowth(6years,%)
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%
TotalInvestmentGrowth(6years,%)
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.

28. FDI has been largely driven by non-mining sectors over the
last 2 years
FDI Inflows. 2010 - 2017
USD 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 sector
Note: the list of the top countries investing in Colombia does not include Panama.
Oil & Mining
Other sectors
1.512
7.468 7.095 8.121
9.854
8.584
11.589
9.951
1.164 2.083
4.918
7.180 7.945
8.089
6.314
3.139
2.261
4.062
1.362
1.578
2010 2011 2012 2013 2014 2015 2016 2017 2017
(Q2)
2018
(Q2)
United States
•USD 17.743 millones
•16,3%
Panama
•USD 16.233 millones
•15,0%
Spain
•USD 10.408 millones
•9,6%
Switzerland
•USD 9.216 millones
•8,7%

29. 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
177
Software and IT
Services
Business Services
Financial Services
Machinery and
equipment
Logistics and
Transportation
Mining Industry
Chemicals
Automotive Industry
Total Projects: 1010
Sector de la Industria
Empleos
Generados
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
Source: fDi Markets. * Includes construction and professional services. Grupo
Casino and Parque Arauco generated most of the employments in this sector.

30. In the first quarter 2018, Colombian outward investment flows
grew 55% over the same period of 2017
Stock of outward FDI (USD millions)
2002-2017
FDI Outward Flow
Main countries, 2000 – 2017
Top Latin American investors
to the world, 2017
(USD billions)
United States
USD 7.2 billion
13.5%
United Kingdom
USD 6.3 billion
11.8%
Spain
USD 4.7 billion
8.8%
Chile
USD 4.2 billion
7.9%
Source: Balance of Payments - Banco de la República. UNCTAD, 2017.
856,8
937,7
192,4
4.795,5
1.267,8
1.278,8
3.085,1
3.504,7
5.482,7
8.419,8
-606,2
7.652,1
3.899,0
4.217,7
4.517,4
3.689,6
1.274,8
448,0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017
(Q2)
2018
(Q2)
Colombia
USD 3,6
México
USD 5,1
Chile
USD 5,1
Argentina
USD 1,1

31. 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
PROCOLOMBIA.COSource: Directorio de Zonas Francas 2017-2018 DANE

32. Fuente: DANE y AZFA.
Number of FTZ in 2018
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 Republic
Colombia
PROCOLOMBIA.CO
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
Colombia is the Latin American country
with the most Free Trade Zones

33. 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 chains
Supply with value-added
intermediate products
Mexico
Cables and wires -
Batteries and accumulators -
Electrical Parts -
Flats laminated with steel or iron-
United States
Accessories and Auto Parts -
Electrical equipment -
Cotton Yarn -
Plastic Resins -
Japan
Aromatic 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

34. Canada
United States
Mexico
Guatemala
Honduras
El Salvador
Ecuador
Brazil
Peru
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
• Pacific
Alliance
• 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
Australia
New
Zealand
Singapore
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Turkey

35. Colombia, member state of the Pacific Alliance
PROCOLOMBIA.CO
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.
NEW ZEALAND
CANADA
MEXICO
COLOMBIA
CHILE
PERU SINGAPORE
AUSTRALIA

36. 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
5,600
More than
* This information takes into account the routes departing from international
airports in Barranquilla, Bogotá, Cali, and Medellín. Source: Routes and Tariffs -
Tools for the Colombian Exporter, processed by ProColombia.
PROCOLOMBIA.CO

37. 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 by
ProColombia.

38. 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

39. Agroindustry and Metalworking sectors performed the most dynamism in their exports during 2017.
13.756
19.708 18.461
25.922
40.863 44.024 42.468 38.494
20.954 17.576
22.938
16.235
17.918
14.385
13.791
16.052
16.101 16.359
16.363
15.063
14.193
14.942
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Mining Non-Mining
54,857
58,826
60,125
36,018
39,713
32,846
37,626
29,991 31,768
37,880
56,915
Evolution of Colombian Exports, 2007 – 2017
January-June 2018 (USD millones)
(USD millions)
Colombian exports increased 19% in 2017 compared to the
previous year
Source: DANE.DIAN, 2018.
10.634 12.621
7.227
7.867
Jan-Jun 2017 Jan-Jun 2018
14,7%

40. 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
1,196,618
1,471,111
2,159,665
1,726,300
1,967,814
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
4,179,188
4,446,446
5,357,418
6,531,226
3,748,033
International tourists arrival to Colombia
2012 – 2017
PROCOLOMBIA.CO
203.849 224.157
405.722 420.368
1.149.007
1.595.702
1.719.846
2.383.232
2017 Jan-Jul 2018 Jan-Jul
2,449,076
3,383,691
Source: Migration Colombia. Elaborated by ProColombia
Between January and July of 2018, receptive tourism grew
32,9% over the same period of 2017

41. 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)
PROCOLOMBIA.CO
3,440
3,801
4,364
4,758 4,887
5,236
5,712
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 1,301
1,020
748 815 822 764 836 803 915
696
0
1.000
2.000
3.000
4.000
5.000
6.000
2010 2011 2012 2013 2014 2015 2016 2017
Tourism 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

42. Colombia is 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.
• “Plan Colombia Siembra” seeks to increase the
agricultural production with 1,000,000 new
hectares.
• Colombia ranked 13th worldwide and 1st in
Latin America in the food sustainability
index.
• The availability of water resources in
Colombia is one of the highest in the
world (FAO*). The country ranked fourth
worldwide in sustainable agriculture.
PROCOLOMBIA.CO
Source: FAO, Food Sustainability Index, 2017

43. PROCOLOMBIA.CO
Colombia compared to…

44. Argentina
Brasil
Chile
Colombia
Costa Rica
Ecuador
El Salvador
Guatemala
Honduras
Jamaica
México
Nicaragua
Paraguay
Perú
Panamá
República
Dominicana
Trinidad y
Tobago
Uruguay
Venezuela
0
2
4
6
8
10
12
0 2 4 6 8 10
STRENGTHOFLEGALRIGHTSINDEX(0-12BEST)
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.

45. PROCOLOMBIA.CO
#1
#3
Colombia – A destination with outstanding local suppliers in
the LAC region
Panamá
Colombia
Guatemala
Brasil
República
Dominicana
El SalvadorPerú
Chile
Argentina
Uruguay
JamaicaHonduras
Trinidad y Tobago
Nicaragua
Ecuador
México
Costa Rica
Paraguay
Venezuela
1
2
3
4
5
6
7
1 2 3 4 5 6 7
LOCALSUPPLIERQUALITY
(1-7BEST)
LOCAL SUPPLIER QUANTITY (1-7 BEST)
Local Supplier Quantity
Local supplier
quality
Source: Global competitiveness Index , 2017.

46. 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

47. 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%**
PROCOLOMBIA.CO
Colombia – Highest enrolments rates in education
Source: World Bank, latest update available: 2016. * Last update 2015. Last
update 2006.

48. Major multinational corporations have chosen
Colombia as an investment project destination
PROCOLOMBIA.CO

49. USD $5.6 billion in rehabilitation, expansion and
modernization of 31 airports (2015 – 2018).
The Fluvial National Plan consists of 13 river
proyects 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 highways
1,370 kms of double lane highways
141 tunnels
1,300 viaducts
USD $3.3 million investment to recover more than
1,769 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
PROCOLOMBIA.CO

50. 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

51. 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
• 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.
• Projects focused on renewable energy will have
special VAT exemptions, deduction from
taxable income and customs exemptions – Law
1715
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

52. 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
Source: Procolombia based on national press

53. 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.
Investment Opportunities
Rubber Biofuels Forestry
Some niche opportunities
Aquaculture Cocoa Cereals
Fruits and
vegetables
Meat Processed food
Sectors of opportunity - Agribusiness

54. 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 States
Brazil
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
Source: Procolombia based on national press

55. Sectors of opportunity - Metalworking and other industries
Colombia, a sustainable destination
Setting up factories that transform iron and steel products with the aim of
meeting other industries demand.
The development of sectors such as construction, automotive, shipyards and metallurgy
opens a huge investment potential in the manufacture of metal structures, tools and
machinery.
Some niches of opportunity:
Automotive
and auto parts
Construction
materials
Metalworking
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.
Colombia has specialized in the production of vehicles and motorcycles to meet local
and international demand as well in the auto parts market that allow it to respond to the
needs of assemblers and the aftermarket.
Establishment of cement, ceramic and prefabricated production plants
to supply local and international markets.
Colombia has a portfolio of projects for the construction of housing, road infrastructure
and air transport, which makes it an attractive destination for companies in the sector.
PROCOLOMBIA.CO

56. Success Stories - Metalworking and other industries
Colombia, a sustainable destination
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
Source: Procolombia based on national press

57. Sectors of opportunity - Chemicals and Life Sciences
Colombia, a sustainable destination
Some niche opportunities
Fertilizers
Setting up agrochemicals formulation and production plants to serve the
growing local market.
Colombia is the second country in the region with the highest fertilizer consumption per
hectare. In Latin America, Colombia is 5.5 times above the average.
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.
The country has positioned itself as a hub for the production of cosmetics and toiletries at
a regional level. It is the fourth manufacturing industry with the highest exports in the
country.
Assembly of plastic packaging production plants to meet the needs of
the LAC region.
Colombia counts with high quality raw materials for packaging with highly technical
control equipment.
Natural ingredients
for cosmetics
Plastic Packaging
PROCOLOMBIA.CO

58. 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
Source: Procolombia based on national press

59. 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 service
centers
Data centers
FinTechPROCOLOMBIA.COSource: MinTic and IDC

60. 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
Source: Procolombia based on national press

61. 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:

62. 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 Kingdom
United States United States Itally
Success Stories – Fashion industry:
Industry with a diversified basket of products
Source: Procolombia based on national press

63. 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
Some niche
opportunities
2013 2014 2015 2016 2017
3.7
4.2 4.4
5.1
6.5

64. 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 Stories
Tourism infrastructure, real estate and retail
PROCOLOMBIA.CO
Source: Procolombia based on national press

65. Sectors of opportunity – Services, Capital Funds
Colombia, a sustainable destination
Colombia offers several benefits to
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
Health
TIC Biotechnology
Agribusiness
Real Estate
Infrastructure
Banking
Energy
Source: MinTic and IDC PROCOLOMBIA.CO

66. Canada
Mainly infrastructure
investments.
In Colombia its
investments have been
focused in companies such
as Intertug and Ocensa.
United States
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.
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 Funds
Colombia, a sustainable destination
PROCOLOMBIA.COSource: Procolombia based on national press

67. PROCOLOMBIA is ready to assist you in assessing
investment opportunities

68. We promote
exports
We promote
tourism
We promote
investment and
industrial
expansion for
internationalization
We promote
country brand

69. 31countries
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