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Colombia Presentation march 2019

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In this document you will find the information abou investment environment and business opportunities in colombia

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Colombia Presentation march 2019

  1. 1. Presentación Colombia - Ingles BUSINESS OPPORTUNITIES IN COLOMBIA 2 0 1 9 INVESTMENT ENVIROMENT AND INVESTMENT ENVIRONMENT BUSINESS OPPORTUNITIES IN COLOMBIA 2 0 1 9
  2. 2. o f f e r s : Colombia A dynamic and stable economy. A growing, strategically located market that facilitates transactions and business deals in the region. A trade platform with over 16 Trade Agreements enabling investors to reach third markets with preferential access. Multiple development centers and regions 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 Various opportunities for investment in a wide range of economic sectors.
  3. 3. GROWTH FORECASTS GDP variation, 2019 COLOMBIA is projected to grow by 3.5%, faster than most countries in Latin America 4,1 4 4 3,8 3,7 3,7 3,6 3,5 3,5 3,5 3,4 3,4 3,3 3,2 3 2,8 2,6 2,4 Source: IMF, WEO, January 2019.
  4. 4. PIB PPP 2018* (USD billlion) Latin American Economies COLOMBIA Is the 32nd largest economy in the world and 4th in in Latin America. 458 463 480 484 543 551 556 661 707 733 749 758 791 919 956 1.000 1.319 2.575 3.371 Peru Austria Chile Hong Kong SAR Sweden Switzerland Singapore Algeria Vietnam United Arab Emirates Colombia Bangladesh South Africa Argentina Philippines Malaysia Australia Mexico Brazil Source: IMF, WEO, January 2019.
  5. 5. 3,2 3,7 2,4 1,9 3,7 6,8 5,8 4,1 3,2 3,4 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Inflation (%) 2019 and 2020, It is expected that in (2% - 4%) It will maintain in the range Since 2015, inflation has registered a downward trend. Source: Banco de la República. Projections: IMF, WEO, Enero 2019.
  6. 6. Source: Source: Colombian National Bank (Banco de la República), January 2019. Since 2013 unemployment rate has remained at a single- digit level. It is expected that, in 2019 and 2020, unemployment rate will continue to be at a one - digit level. 11,3 12 11,8 10,8 10,4 9,7 9,1 8,9 9,2 9,3 9,2 9,1 8 8,5 9 9,5 10 10,5 11 11,5 12 12,5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unemployment rate (Percent of the population)
  7. 7. Source: IMF, WEO 2019, January The Colombian economy is on the path of recovery and will expand by about 3.6% in 2019-2020 6,6% 4,0% 4,9% 4,4% 3,1% 2,0% 1,8% 2,7% 3,6% 3,7% 0% 1% 2% 3% 4% 5% 6% 7% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 GDP Growth (constant prices, % rate) Inflation continues an uninterrupted decelerating trend since 2015.
  8. 8. A GROWING MIDDLE CLASS WITH HIGH PURCHASING POWER Share of the population belonging to the middle class vs GDP per capita evolution 2002 – 2017 1.8% G D P G r o w t h i n 2 0 1 7 2.7% 3.6% G D P G r o w t h i n 2 0 1 8 G D P g r o w t h f o r e c a s t f o r 2 0 1 9 GDP (USD PPP, constant prices) Middle class(%) 5,00% 10,00% 15,00% 20,00% 25,00% 30,00% 35,00% 5000 6000 7000 8000 9000 10000 11000 12000 13000 14000 15000 2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 30,4% 14.436 Source:Poverty indicators (DANE) and GDP (World Bank) Middle class: Estimated by ProColombia
  9. 9. Doing Business 2019 ranking According to Doing Business,, Colombia is: No. 15 In Protecting minority investors No. 40 In resolving insolvency Source: World Bank. Doing Business 2019. No. 3 In getting credit Doing Business 2019 World ranking 2019 56 12395 1096854 65
  10. 10. COMPANIES ARE THE MOST WILLING TO INVEST IN FIXED CAPITAL. Gross fixed capital formation Investment sources 2017 (Investment as GDP %) Source: DANE, Most recent data available. *Procolombia´s estimates (%)* Gross fixed capital formation 2017 USD $71 billion 19,7% 21,8% 23,3% 24,7% 24,0% 24,2% 27,0% 27,2% 27,7% 29,1% 29,0% 27,… 27,0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 58,2% 26,2% 14,5% 1,0% 0,1% Companies Households Government Banks Non-profit organizations
  11. 11. Source: IMF, WEO 2018, April. *Includes gross fixed capital formation and inventory variation Investment as a percentage of GDP has a share of about a quarter of the Colombian economy. In 2019 and 2010, It is expected to be higher than 2018 20,2 22,4 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.
  12. 12. GROSS DOMESTIC PRODUCT Estimated growth 2019 Colombia, one of the top growing economies in 2019 among the largest Latin American countries Source: IMF. January 2019. 4,1% 3,5% 3,4% 2,5% 2,3% 2,2% Chile -5,0% Colombia Venezuela Brazil LATAM Peru Mexico -1,6% Argentina
  13. 13. COLOMBIA IS THE 28th most populated country in the world and the 3rd in Latin America Latin America *Estimated,. Source: IMF, 2019 210,7 125,9 65,4 60,7 51,9 50,4 46,2 45,1 32,8 32,5 28,1 25,6 18,8 17,3 11,5 11,4 10,7 10,8 10,4 10,2 9,0 9,1 5,8 5,4 3,5 Population in 2019* (Billion)
  14. 14. Source: S&P Ratings; Dinero magazine, Colombian Treasury. * Portafolio 2018 COLOMBIA RankingTerm Long Term – Foreign currency BBB- BBB Long Term – Foreign currency FitchRatings MOODY S ,STANDARD & POOR S , Baa2 Long Term – Foreign currency In March 2017, Fitch Ratings* improved Colombia´s rating outlook: from Negative to Stable In July 2014, Moody´s was the last rating agency in improving Colombia´s rating due to two key drivers: Positive growth forecast thanks to 4G infrastructure. 1. A sound fiscal management that will continue in the future. 2. an investment grade country
  15. 15. Source: OECD, May 2017. More barriers Less barriers Latin American Economies Closed = 1 - Open = 0 FDI’s Regulatory Restrictiveness Index 2017 COLOMBIA LOW BARRIERS TO FDI 0,00 0,05 0,10 0,15 0,20 0,25 0,30 0,35 0,40 0,45
  16. 16. AUSTRALIA NEW ZEALAND JAPAN SOUTH KOREA Being part of the OECD countries means that public institutions in Colombia will meet standards of the developed world more confidence for investors COLOMBIA IS THE 37TH MEMBER OF THE OECD “The OECD investment policy review examines Colombia's achievements in developing an open and transparent investment regime and its efforts to reduce restrictions on international investment” OECD CANADA UNITED STATES MEXICO CHILE COLOMBIA AUSTRIA BELGIUM CZECH REPUBLIC DENMARK ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY ICELAND IRELAND ISRAËL ITALY LATVIA LUXEMBOURG NETHERLANDS NORWAY POLAND PORTUGAL SLOVAK REPUBLIC SLOVENIA SPAIN SWEDEN SWITZERLAND TURKEY UNITED KINGDOM
  17. 17. Being part of an organization such as the OECD is a sign of economic stability, transparency and government discipline OECD gives guidelines to improve trade and investment barriers, allowing Colombia to be in a process of continuous improvement, peer evaluation and institutional strengthening Thanks to the recommendations made by the OECD, the national government has promoted concrete reforms for the facilitation of trade. The OECD provides a seal of quality for direct foreign investment: by having to meet public policy standards to become a member, these improve. This results in increased confidence of foreign investors Colombia and the
  18. 18. COLOMBIA IS PART OF THE TOP 30 DESTINATIONS FOR FDI Source: UNCTAD, 2017. Developed economies (USD billion) Top 30 host economies in 2017 Developing and transition economies 275 136 104 63 62 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
  19. 19. FDI has been largely driven by non-mining sectors over the last 3 years FDI Inflows (USD millon) 2010 – 2018 Mining and oil Other sectors Source: Balance of Payments - Banco de la Republica. Share of all countries with positive cumulative investment, 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. Top Investing countries in Colombia *2000-2017 United States USD 34,745 million 16,3% Panama USD 20,531 million 15,0% Spain USD 15,821 million 9,6% Switzerland USD 9,841 million 8,7% 1.512 7.468 7.095 8.121 9.854 8.584 11.589 9.951 8.6504.918 7.180 7.945 8.089 6.314 3.139 2.261 4.062 2.360 2010 2011 2012 2013 2014 2015 2016 2017 2018
  20. 20. INVESTMENT PROJECTS Investment Projects from the world to Colombia by Industry Sector 2007 - 2017 Proyectos Totales: 1.010 Source: DDi Markets. *Incluye construcción y servicios profesionales. Grupo casino y Parque Arauco registran el mayor número de empleos. from the world to Colombia by Industry Sector 262 137 10882 54 49 43 35 32 31 177 Software and IT Services Business Services Financial Services Machinery and equipment Logistics and Transportation Mining Industry Sector Jobs generated Real estate* 23.812 Software and IT Services 22.999 Mining industry 12.115 Logistics and transportation 11.231 Tourism 9.024 Agroindustry 8.714 Financial services 8.108 Construction materials 7.740 Automotive industry 5.242 Energy 470 Others 53.027 Total 162.482
  21. 21. FDI Outward Flow Main countries 2000 – 2017 Source: Balance of Payments - Banco de la República. UNCTAD, 2017. Stock of outward FDI (USD millions) 2002 – 2018 Top Latin American investors to the world, 2017 (USD billions) Colombia USD 3.6 Mexico USD 5.1 Chile USD 5.1 Argentina USD 1.1 Source: Banco de la República United States USD 7.745 millones 13% Panama USD 46,408 millones 17% Spain USD 5,886 millones 10% Chile USD 4,752 millones 9% At the end of 2017, the participation of Colombia's non-mining-energy investment abroad represented 92% of the total 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 5.121,0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
  22. 22. Source: Directorio de Zonas Francas 2019 DANE No import duties. VAT exemption for goods sold from Colombia to FTZ. Benefit from international trade agreements. Allows sales to the local market.Free trade zones for different investor styles. Total number Free Trade: 114 Number of permanent Free Trade Zones: 43 Number of Special Standing Single enterprise: 71 Reduced income tax and VAT Exemptions allowing access to local market
  23. 23. COLOMBIA The new world trade dynamic allows Colombia to take advantage of different opportunities, such as: Access to demanding and sophisticated markets, Increase the quantity and diversity of exports, Transfer of technology, Improve the quality of production. Number of FTZ in 2018 Source: DANE y AZFA. is the Latin American country with the most Free Trade Zones 1 2 3 5 11 12 11 13 17 19 20 39 50 65 105 Brazil Paraguay Puerto Rico Peru Costa Rica Argentina Haiti Uruguay El Salvador Guatemala Panama Honduras Nicaragua Dominican… Colombia
  24. 24. FREEDOM LANDSCAPE 40 45 50 55 60 65 70 75 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Colombia Americas World The perception of Colombia has improved in the recent years, having now a better freedom landscape score above the America’s and world’s average Source: Heritage, 2018 Index of Economic Freedom
  25. 25. Free Trade Zones represent an important opportunity for third countries to take advantage of the country's Trade Agreements • Plastic packaging for the beverage and the cosmetics industry • Automotive assembly • Home appliances • Clothing • Processed foods • Aeronautics • Medical devices Input supply Investment opportunities in Colombia in value-added production chains Supply with value- added intermediate products Free Trade Zones have a high potential for generating productive chains Japan Aromatic products - Glasses - Flats laminated with steel or iron - Vehicle parts & accessories Peru Cotton yarns- Source: High impact Free Trade Zone–2016, CLG 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 - COLOMBIA
  26. 26. Canada United States Mexico Guatemala Honduras El Salvador Ecuador BrazilPeru Argentina Paraguay Uruguay AELC European Union Israel Panamá Chile Bolivia Costa Rica Venezuela South Korea Cuba* Nicaragua* Caricom* has access to 60 countries and more than 1.5 billion consumers through its network of trade agreements * Partial scope agreements (PSA) - - - Blue line shows Pacific Alliance´s member countries others than Colombia –(Chile, Peru and Mexico). Source: Chamber of Commerce, Industry and Tourism, Colombia,2017 COLOMBIA Pacific Alliance In force Signed
  27. 27. COLOMBIA Member state of the Pacific Alliance Canada Mexico Colombia Chile Peru Singapore Australia New Zealand At the XII Summit of the Pacific Alliance (October 2017) the creation of the Associate members category was announced and negotiations were started to grant this status to Australia, Canada, New Zealand and Singapore This figure seeks to strengthen trade, regional and free trade integration, as well as benefit from regional platforms and promote trade agreement negotiations.
  28. 28. 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 New York (5hr 35min)Los Angeles (7hr 40min) Mexico City(4hr 55min) Paris (10hr 55min) Madrid (9hr 40min) London (10hr 26min) Tokyo (25hr 05min) Beijing (22hr 45min) Dubai (20hr 45min) Moscow (15hr 58min) Miami (4hr 00 min) Santiago de Chile (5hr 55 min) Berlin (13hr 45min) Hong Kong (22hr 45min) Toronto (6hr 10min) Mumbai (20hr 50min) Seoul (23hr 35min) Sao Paulo (6hr 10min) Istambul (15hr 16min) Lima (3hr 05min) *Esta información tiene en cuenta las rutas que salen de aeropuertos internacionales en Barranquilla, Bogotá, Cali y Medellín. OAG. Para una semana típica del mes de Diciembre de 2017. Fuente: Rutas y Tarifas - Herramientas para las exportaciones colombianas, procesados por ProColombia.
  29. 29. COLOMBIA counts with more than 4,500 maritime export routes and has access to 680 ports around the world. Source: Routes and Tariffs - Tools for the Colombian Exporter, processed by ProColombia. ACCESS TO CHINA IN JUST 29 DAYS (SHANGHAI) ACCESS TO USA IN JUST 3 DAYS (PORT EVERGLADES) ACCESS TO PERU IN JUST 2 DAYS (CALLAO) ACCESS TO THE NETHERLANDS IN JUST 13 DAYS (ROTTERDAM) SANTOS (11 DAYS) BUENOS AIRES (17 DAYS) CAPETOWN (34 DAYS) NEW YORK (6 DAYS) BARCELONA (15 DÍAS) LONDON (17 DAYS) KOLKATA (43 DAYS) MONTREAL (9 DAYS) SHANGHAI (29 DAYS) SIDNEY (21 DAYS) BUSAN (25 DAYS) TOKYO (22 DAYS) AUCKLAND (17 DAYS) VANCOUVER (17 DÍAY) LOS ANGELES (10 DAYS) CALLAO (2 DÍAS) VALPARAÍSO (5 DAYS) SAINT PETERSBURG (21 DAYS) MIAMI (4 DAYS) VERACRUZ (5 DAYS) KARACHI (37 DAYS) HONG KONG (33 DAYS)
  30. 30. According to Airhelp scores 2017, El Dorado International Airport is: #1 IN LATIN AMERICA #11 WORLDWIDE Source: Airhelp Scores , Airport Worldwide Rankings 2018
  31. 31. Evolution of Colombian Exports, 2007 – 2018 2007 – 2018 Source: DANE.DIAN, 2018. Agroindustry and Metalworking sectors performed the most dynamism in their exports during 2017. Mining Non - Mining Colombian exports increased 10% in 2018 compared to the previous year 13.756 19.708 18.461 25.922 40.863 44.024 42.468 38.494 20.954 17.576 22.93826.467 16.235 17.918 14.385 13.791 16.052 16.101 16.359 16.363 15.063 14.193 14.942 15.364 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 54.857 58.82660.125 36.018 39.713 32.846 37.626 29.991 31.768 37.880 56.915
  32. 32. Arrival of tourists 2013 – 2018 Source: Migration Colombia. Elaborated by ProColombia In 2018, receptive tourism grew 7,6% compared to 2017 Cruisers Colombians who are foreing residents Non- resident foreigners 313.153 254.403 306.694 314.207 272.206 305.820 344.624 378.081 546.024 583.609 561.791 583.967 689.280 724.302 793.775 793.459 1.496.401 1.591.120 1.726.300 1.967.814 2.288.342 2.528.877 2.837.171 3.104.606 2011 2012 2013 2014 2015 2016 2017 2018 2.429.132 2.594.785 2.866.988 3.249.828 3.975.570 2.355.690 3.558.999 4.276.146
  33. 33. The upward trend in tourism figures has had an important effect on the national generation of foreign income Foreign income generated by sector 2010-2017 (USD Millions) According to figures from the Colombian National Bank, tourism was the second foreign income generator in 2017, surpassing traditional products such as coffee, flowers and bananas. In 2017, foreign income generated by tourism was USD 5,788, which represented an increase of 5.4% compared to the same period of the previous year. Source: BanRep-DANE. * Includes passengers transport and travel accounts. Preliminary data 3.440 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 1591 1.229 1.240 1.256 1.324 1.362 1.285 1.301 1020 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 Coffe Flowers Bananas
  34. 34. 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. • Colombia ranked 8th worldwide and 1st in Latin America in the food sustainability index. • “Plan Colombia Siembra” seeks to increase the agricultural production with 1,000,000 new hectares. • The availability of water resources in Colombia is one of the highest in the world (FAO*). The country ranked fourth worldwide in sustainable agriculture. Source: FAO, Food Sustainability Index, 2017
  35. 35. COLOMBIA compared To other markets
  36. 36. Committed to invest in human capital COLOMBIA World Talent Ranking 2017 (0-100 Best) Fuente: IMD, 2017 39,09 39,4 40,09 42 43,49 50,37 Peru Mexico Colombia Brazil Argentina Chile Colombia was ranked fourth in Latin America by the Human Talent Report #9 TOP EXPAT DESTINATIONS 2018 Source: Internations Top Expat Destinations 2018
  37. 37. ranks 3rd in Latin America in the Services location indicator by A.T. Kearney COLOMBIA Global Services Location Index- 2017 Source: A.T. Kearney, 2017 "Colombia registered a significant improvement in this year’s position, rising 10 places to the 10th position. Between 2011 and 2015, Colombia contributed with the 12% of the new BPO centers and Shared Service Centers in Latin America and the Caribbean.” 2,27 2,55 2,37 2,73 2,97 2,72 2,85 2,54 2,65 0,97 0,8 1,53 0,91 1,19 1,61 1,45 1,33 2,02 1,65 1,67 1,25 1,63 1,25 1,35 1,43 1,88 1,27 46 - Uruguay 41 - Panama 36 - Argentina 31 - Costa Rica 20 - Peru 13 - Mexico 10 - Colombia 9 - Chile 5 - Brazil Financial atractiveness Talent and availability of human capital Business environment
  38. 38. 79 INVESTMENT PROJECTS in creative industries Jobs created (2006 – 2018) 7,656 Capital invested (2003 – 2018) USD 869million Source: fDi Intelligence from The Financial Times Ltd 16 15 6 4 9 3 6 2012 2013 2014 2015 2016 2017 2018 Number of investment projects in creative industries 2012 – 2018 (June)
  39. 39. CREATIVE INDUSTRIES in Colombia SOME SUCCESS STORIES OF INVESTMENT Capital invested: USD 250 million Jobs created: 3.000 Venezuela Capital invested: USD 146,5 million Jobs created: 129 United States Capital invested: USD 130 million Jobs created: 505 Mexico OVERVIEW OF THE INVESTMENT PROJECTS IN CREATIVE INDUSTRIES, COLOMBIA 2003 – 2018 (JUNE) Number of projects 87 Jobs created 8,079 Average of Jobs created per project 92 Capital invested(USD million) USD 895.1 Average capital invested per project(USD million) USD 10.3 INVESTMENT PROJECTS IN CREATIVE INDUSTRIES, SECTORS 2003 – 2018 (JUNE) Source: fDi Intelligence from The Financial Times Ltd 46,0% 31,0% 19,5% 2,3% 1,2% Business services Software and TI services Comumunications Leisure and entertainment Paper, printing and packaging
  40. 40. COLOMBIA Working age population rate (15-64) years) Enrollment secondary education Enrollment tertiary education 68.8% 66.3% 98.1% 97.3% 58.7% 36.9% 69.6% 99.7%* 50.6%* 65.4% 98.0% 34.3%** Highest enrolments rates in education Source: World Bank, latest update available: 2016. * Last update 2015. Last update 2006.
  41. 41. ENTREPRENEURSHIP Our start-ups lead innovation in Latin America - 10.000.000 20.000.000 30.000.000 40.000.000 50.000.000 60.000.000 50.827.643 6.302.628 4.371.177 3.659.590 2.338.072 1.524.829 1.524.829 1.375.523 1.219.863 1.219.863 4.371.177 US$ MILLION TOTAL: US$78,735,196 INVESTMENT VALUE 631 1.053 31 408 62 354 64 467 1 82 455 6 4 7 11 11 24 3 Source: Cálculos MINCIT, Start up ranking 2018, Statusta Number of start-ups per country
  42. 42. WHAT IS THE WORLD SAYING ABOUT COLOMBIA? COLOMBIA IS THE SECOND PLACE IN THE WORLD TO VISIT IN 2018 (THE NEW YORK TIMES 2018) COLOMBIA IS IN THE PROCESS OF A FANTASTIC REBIRTH (VANITI FAIR 2018) #1 #2 #3 #4 #5 #6 #7 BOGOTÁ, AN IRRESISTIBLE GASTRONOMIC DESTINATION (VOGUE 2018) CALI, ONE OF THE MOST INTERESTING PLACES TO LIVE IN 2018 (FORBES 2018) COLOMBIA, ITS NATURAL LANDSCAPES ATTRACT THE NEW GENERATION OF LUXURY TRAVELERS (SKIFT 2018) COLOMBIA, THE BEST KEPT SECRET IN SOUTH AMERICA (TRAVEL + LEISURE 2017) COLOMBIA, AN EMERGING TOURIST DESTINATION FOR THE UNITED STATES AND EUROPE (BBC 2017)
  43. 43. IN COLOMBIA WE CELEBRATE ALL YEAR LONG - Feria de Manizales - Carnaval del Diablo, Caldas - Festival int. de Música, Cartagena - Hay Festival, Cartagena - Colombiatex, Medellín - Festival Internacional de Cine de Cartagena de Indias - Festival Iberoamericano de Teatro, Bogotá - Esteréo Picnic, Bogotá - Festival de la leyenda Vallenata, Valledupar - Feria Internacional del Libro de Bogotá - BAUM Festival, Bogotá. - Festival de Música Andina Colombiana Mario Nuñez, Valle del Cauca - El Festival de la cultura Wayú - Rock al Parque, Bogotá - Festival Folclórico y reinado del bambuco, Neiva - San Juan y San Pedro, Neiva e Ibague - Colombiamoda, Medellín - Festival Folclórico del Pacífico Peregoyo de Oro, Buenaventura - Festival de Cumbia, Banco - Festival Migración, Nuquí - Feria de Flores, Medellín - Barranquijazz - Jazz al Parque, Bogotá - Festival de Jazz, Mompóx - Green Moon Festival, San Andrés - Festival de cine de Bichara - Mundial de la salsa, Cali - ArtBo, Bogotá - Bogocine, Bogotá - Festival de cine de Villa de Leyva - Festival internacional de teatro de Manizales - Salsa al parque, Bogotá - Festival internacional del arte de Cali - Festival de luces de Villa de Leyva - Feria de Cali - Expoartesanías, Bogotá JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
  44. 44. During the last 15 years, the civilian homicides have decreased 53.3% 52,3 45,6 38,8 38,1 37,0 33,0 30,2 29,0 28,5 32,5 29,2 25,7 24,6 25,6 24,4 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Civilian homicides in Colombia, rate per 100,000 population 2003 – 2017 Source: Ministry of Defense
  45. 45. Major multinational corporations have chosen Colombia as an investment project destination
  46. 46. INFRASTRUCTURE A major driver for growth USD $5.6 billion in rehabilitation, expansion and modernization of 31 airports (2015 – 2018). The Fluvial National Plan consists of 13 river projects with an investment of USD $2.9 billion. Until 2035, USD $17 billion will be invested to increase road infrastructure: 7,000 kms of new 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. Source: Intermodal Transport Master Plan 2015-2035 (PMTI , Ministry of Transport - Exchange rate: USD = COP$3,000 Some niches with opportunities: AIRPORTS PORTS ROADS FLUVIAL NATIONAL PLAN STEP RAILWAYS 1. 2. 3. 4.
  47. 47. In 2014, Iridium awarded two road concession projects in the government’s “highway concession program (4G)”. Those projects accounts 78Km. SUCCESS STORIES - INFRASTRUCTURE: A major driver for growth Spain Strabag will be in charge of 75 Km new highways, and the modernization of a 65 km section. AUSTRIA Shikun & Binui awarded the project “Corredor Perimetral de Oriente de Cundinamarca = 153 km length” ISRAEL HEC will build “The Mar 2 highway” that will improve northeast logistics development. Total project length: 246 km. CHINA Source: ProColombia con base en prensa nacional
  48. 48. SECTORS OF OPPORTUNITY - ENERGY: A diversified resource base and a strategic location in the Americas 546 power generation projects registered in different stages: Installed capacity up to 15,940* 22 Open public bids for power transmission projects in Colombia** High potential in Biofuels and alternative energies. Aquellos proyectos enfocados en energías renovables tendrán exenciones del IVA, aduanas e impuesto a la renta – Ley 1715. Source: World Economic Forum 2016 and UPME / * UPME (Colombian Planning Unit of Mines and Energy). MW approx.. **Bids open by UPME Colombia ranked first in Latin America and eighth in the world, according to the “Energy Architecture Performance Index 2017”. WEF, 2017. The Global Energy Architecture Performance Index 2017 Some niche opportunities THERMAL PCH SOLAR WIND BIOMASS TRANSMISSION NETWORK 0,74 0,75 0,75 0,75 0,76 0,77 0,77 0,78 0,79 0,8 Uruguay New Zealand Colombia Spain Austria Denmark France Sweden Norway Switzerland
  49. 49. SUCCESS STORIES - ENERGY: A diversified resource base and a strategic location in the Americas Between 2017 - 2019, the Italian multinational Enel will invest close to 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. UNITED STATES The low-grade thermal coal plant, Termopaipa located in Paipa, was the first power plant planned overseas, financed and built by Steag. GERMANYITALY
  50. 50. SECTORS OF OPPORTUNITY – AGRIBUSINESS Fuente: FAO, Ministerio de Agricultura. Some niche opportunities: Investment opportunities ACUICULTURE CACAO CEREALS FRUITS AND VEGETABLES MEAT PROCESSED FOODRUBBER BIOFUELS FORESTAL Expansion of cultivated areas with a high global demand of agricultural products, construction of collection centers and assembly of processing plants (IQF, pulps, jams). Construction of cocoa processing plants for cocoa butter, cocoa liquor and chocolate products. Colombia has the fourth dairy herd and largest dairy production in the region, which guarantees easy access to raw materials for the subsequent transformation of dairy products. Build specialized industrial facilities to transform natural rubber into value- added elements. 1. 2. 3. 4.
  51. 51. The American investment fund specialized in the agribusiness sector, invested in the company, “Cacao de Colombia”, by setting up a second production plant in Popayán. Brazilian company dedicated to the production and commercialization of beef, leather, live animals and its byproducts. The company acquired freezers from Red Carnica S.A.S located in Cordoba. CHILE Alliance between CCU and Postobon: Construction of a production plant with the aim of boosting the beer market sector through production, commercialization and distribution of beer and non-alcoholic beverages based on malt. BRAZIL UNITED STATES Source: Procolombia based on national press SUCCESS STORIES AGRIBUSINESS
  52. 52. 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. Setting up assembly lines to produce commercial vehicles (buses), cargo vehicles and motorcycles to serve both local and international markets using Colombia as an export platform. Establishment of cement, ceramic and prefabricated production plants to supply local and international markets. Some niches of opportunity: AUTOMOTIVE AND AUTO PARTS METALWORKING CONSTRUCTION MATE INVESTMENT OPPORTUNITIES 1. 2. 3.
  53. 53. The company invested in a float glass production plant to supply the national market and export to countries in the Andean region. SUCCESS STORIES – METALWORKING AND OTHER INDUSTRIES FRANCE The Japanese company of continuous casting and production of high precision parts, decided to open a plant to serve the American market. JAPAN Foton invested more than US $ 12 million in a new assembly plant for SUV and 4x4 models. CHINA Whirlpool and the Colombian company Haceb, signed an alliance to produce washing machines in a plant of US $ 70 million. UNITED STATES Source: Procolombia based on national press
  54. 54. SECTORS OF OPPORTUNITY - CHEMICALS AND LIFE SCIENCES Setting up agrochemicals formulation and production plants to serve the growing local market. Setting up research centers on development of cosmetics based on natural ingredients. Taking advantage of the Colombian biological and floristic diversity; and the tax incentives provided by the National Government for R&D projects. Assembly of plastic packaging production plants to meet the needs of the LAC region. Oportunidades de inversión Some niche opportunities FERTILIZERS NATURAL INGREDIENTS FOR COSMETICS PLASTIC PACKAGING 1. 2. 3.
  55. 55. The new factory set up in Colombia is one of its three most modern factories in the world, thanks to its cutting-edge technology and ecofriendly facilities. PAÍSES BAJOS Started its production operations in 2013, after the acquisition of Abocol, the most important agrochemical company in Colombia. NORUEGA The Indian group inaugurated a new production plant in Villa Rica (Cauca), from which it manufactures 180 million laminated plastic tubes for consumer products. INDIA Inaugurated its new operations center in Antioquia to supply the markets of Central America and the Andean region. ESTADOS UNIDOS Source: Procolombia based on national press SUCCESS STORIES - CHEMICALS AND LIFE SCIENCES
  56. 56. 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 Source: MinTic and IDC 1.3 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. Some sectors with opportunities: BPO BACK OFFICE- FINANCE BPO. TELEMEDICINE BIG DATA ANALYTICS DATA CENTERS FINTECH SMART CITIES SHARED SERVICE CENTERS 1. 2. 3. 4. 5.
  57. 57. 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. SUCCESS STORIES – SERVICES: It has two operations centers in Bogota where it manages a diversified portfolio of blue ribbon clients, with the capacity for up to a thousand positions. SPAIN AT&T acquired DirecTV Colombia and it´ll increase the telecoms offer Colombia through new services and packages. Its BPO operation currently has more than 1,400 credit processes, customer service, and document management active positions. JAPANUNITED STATES UNITED STATES Source: Procolombia based on national press
  58. 58. SECTORS OF OPPORTUNITY – FASHION INDUSTRY: TEXTILES GARMENTS Some niche opportunities: Industry with a diversified basket of products Local industry currently supplying with imported inputs. Textile imports have increased in the last 10 years, it is necessary to supply the increasing demand of inputs by the local production of garments. Colombia as an export platform, the country counts with a strategic location, high industrial capacity and more than 16 free trade agreements. Strategic alliances. There are qualified Colombian companies able to associate with foreign investors in order to reach regional and international markets. 1. 2. 3.
  59. 59. This company has operated in Colombia for more than fifty years as a Coats chain in the city of Pereira, Risaralda. SUCCESS STORIES – FASHION INDUSTRY: Operates with the company Colombiana de Hilados, with a manufacturing plant in the Free Trade Zone of Rionegro, Antioquia. The plant has the capacity to produce carded open-end and combed ring-spun. Polymer Group: It has a manufacturing plant in the Pacific Free Trade Zone in Cali, Valle del Cauca. Acquired shareholding in the Colombian company Coltejer. UNITED KINGDOM UNITED STATES Source: Procolombia based on national press UNITED STATES Industry with a diversified basket of products MEXICO
  60. 60. SECTORS OF OPPORTUNITY – TOURISM Infrastructure, real estate and retail NATURE & ADVENTURE WELLNESS ENTERTAINMENT CITY HOTELS Investment Opportunities in: Inbound tourists* 2013 – 2017 (million of people) *Inbound tourist includes: resident Colombians abroad, foreign non resident in Colombia, 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. Luxury and wellness hotels can take advantage of the Colombian biodiversity to offer high quality services. VAT exemption for health tourism services 6,5 Some niche opportunities 1. 2. 3. 4. 2013 2014 2015 2016 2017 3,7 4,2 4,4 5,1 6,5
  61. 61. This American chain has 15 hotels in Colombia with more than 1,850 rooms SUCCESS STORIES TOURISM INFRASTRUCTURE, Holiday Inn hotels opened in Bogota and Cartagena, totaling 331 rooms. Holiday Inn hotels opened in Bogota and Cartagena, totaling 331 rooms. Holiday Inn hotels opened in Bogota and Cartagena, totaling 331 rooms. CANADAUNITED KINGDOMUNITED STATES Source: Procolombia based on national press real estate and retail SPAIN
  62. 62. SECTORS OF OPPORTUNITY -SERVICES, CAPITAL FUNDS 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 REAL ESTATE HEALTH BANKING TIC BIOTECH ENERGY AGRIBUSINESS INFRASTRUCTURE 1. 2. 3.
  63. 63. Investments mainly in the sectors of infrastructure, energy and real estate. Investments in the Colombian power company SA as part of its expansion plan in the region. SECTORS OF OPPORTUNITY- SERVICES, CAPITAL FUNDS Latin American fund that invested more than US $ 20 million for the development of three cancer treatment centers of the medical society Oncologists of the West, in the Coffee Cultural Landscape and Valle del Cauca. Mainly infrastructure investments. In Colombia its investments have been focused in companies such as Intertug and Ocensa CANADA UNITED STATES Source: Procolombia based on national press UNITED STATES
  64. 64. PROCOLOMBIA READY TO ASSIST YOU IN ASSESSING INVESTMENT OPPORTUNITIES
  65. 65. PROCOLOMBIA WE PROMOTE EXPORTS WE PROMOTE TOURISM WE PROMOTE INVESTMENT AND INDUSTRIAL EXPANSION FOR INTERNATIONALIZATION WE PROMOTE COUNTRY BRAND PROMOTES
  66. 66. 33COUNTRIES PRESENCE OF PROCOLOMBIA IN THE WORLD *En conjunto con el MinCIT **En alianza con países de la Alianza del Pacífico
  67. 67. Financing Law
  68. 68. B E C O M I N G O N E O F T H E M O S T C O M P E T I T I V E M A R K E T S I N T H E R E G I O N Reaching Latam’s and the Caribbean standards 33% 32% 31% 30% For the taxable year 2019. For the taxable year 2020. For the taxable year 2021. For the taxable year 2022. REDUCTION OF THE CORPORATE INCOME TAX RATE
  69. 69. Some of our income tax exemptions Income from the development of technological value-added industries and creative activites- Tax incentives to orange economy companies (7 years) Income from investments to increase the productivity of the agricultural sector. (10 years) Income from sales of energy from non- conventional sources. (15 years) Income from the use of new forestry plantations. Fuvial transport services by shallow draft boats. (15 years)
  70. 70. MEGA INVESTMENTS New investment within the national territory of 30.000 UVT (COP$ 1.028.100.000 approx. USD$ 342.700 million). That generate at least 250 direct Jobs. Exclusions: Investments in hydrocarbons and mines are excluded of this regime To national companies whose main company purpose is the holding of securities, investment in shares or participations abroad, some tax benefits are stablished. Benefits: The dividends distributed by non residents to the holding are exempted of the income tax. The dividends distributed by the holding to residents are subject to the dividend tax. Dividends distributed to non residents are income tax exempted. Requirements: Investments in hydrocarbons and mines are excluded of this regime HOLDING COMPANIES
  71. 71. Municipalities < 200.000. Income Tax Rate 9% - 20 years. Until 2029 Hotels, theme parks, ecotourism, agrotourism and new boat docks. Incentives Municipalities > 200.000. Income Tax Rate 9% - 10 years. Until 2023 incentive was extended to municipalities with more tan 200.000. An incentive was created to theme parks, ecotourism, agrotourism and new boat docks.
  72. 72. The income obtained from the transfer of foreign goods owned by foreign companies or non resident people, introduced from the outside to the international logistics distribution centers located in international airports, seaports or the inland ports located in the departments of Guanía, Vaupés, Putumayo and Amazonas, enabled by the Direction of National Taxes and Customs (DIAN) don´t generate income of national source within the country. INCENTIVE ON PRODUCTIVE REAL FIXED ASSETS The total sales tax paid in the acquisition, making, construction or import of real productive fixed assets, included the necessary services to start them up, may be considered as a discount on the corporate income tax. DISTRIBUTION CENTERS Exclusions: Investments in hydrocarbons and mines are excluded of this regime

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