Colombia: An Upcoming Emerging Market for International Investors April 2012
Proexport is the organization within the Colombian Government responsible for the promotion of International Tourism, Foreign Direct Investment, and Colombian exports TOURISM INVESTMENT EXPORTS
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Why Colombia for investment
Why doing business with Colombia Colombia is closer to Canada than you thought Direct Flight via Air Canada Toronto Bogotá 6 hours / 6 flights a week Shipping via MSC Cartagena Halifax 14 days / 4 ships a month FTA in force with Duty Free treatment for all manufactured products and raw materiales imports from Colombia
Capital: Bogota, Population 8.4 Million
Medellin, Population 3.5 million
Cali, Population 2.7 million
Barranquilla, Population 1.8 million
A competitive location with easy access to cover the Americas 1,100 direct international frecuencies per week 5,000 domestic frecuencies/week Easy-quick access to major cities in the Americas same time zone as Toronto and only 6 hours away on direct flights to Bogota
Key Economic Figures
Colombian second Spanish Speaking population The twenty-fourth largest population in the world; The second most numerous Spanish-speaking population 112.469 Population Millions of People - 2010* 46.927 45.92 40.52 38.206 34.033 29.96 28.631 22.2 17.09 11.27 10.637 10.63 9.4119 8.417 7.8665 7.6247 5.077 4.9181 4.388 Source: EIU (Economist Intelligence Unit) *Forecast (October 10, 2011)
GDP Per Capita adjusted to PPP is nearly US$10,000 +126% GDP Per Capita adjusted to prices at purchasing power parity (PPP) Source: EIU (Economist Intelligence Unit) (October 12, 2011)
Colombia reach the highest FDI flow in history Main Investors in Colombia 2000 2010** United States Accumulated US $9.333 Billion 28.8% share England Accumulated US $4.631 Billion 12.8% share Spain Accumulated US $2.637 Billion 7.3% share Mexico Accumulated US $1.517 Billion 4.2% share Variation 2009 2010: -3.1% Variation 3 rd Quarter 2010 3 rd Quarter 2011: 88.7% *Figures obtained through the foreign currency balance of the Bank of the Republic. **Share of all countries with positive cumulative investment, without reinvested profits or investments in the oil sector. Accumulated value 2000 2010: US $45,946 million Note: the list of the top countries investing in Colombia does not include Anguilla or Panama, in third and fourth place. Source: Bank of the Republic - Balance of Payments
Although natural resource extraction is the top area receiving FDI, financial services, trade and manufacturing are getting stronger. FDI in Colombia by Sector, 2009 3 rd Quarter 2011 FDI in Colombia by Non-Traditional Sectors, 2009 3 rd Quarter 2011 Share of all countries with positive cumulative investment, without reinvested profits or investments in the oil sector. Accumulated value 2009 3 rd Quarter 2011: US $17,999 million Source: Bank of the Republic
In 10 years, exports tripled Top destinations of exports, 2010 United States US $16.879 B 42.5% share China US $1.967 B 4.9% share Ecuador US $1.825 B 4.5% share Holland US $1.617 B 4.1% share Variation 2008-2009: -12.7% Variation 2009-2010: 21.2% Variation Jan Nov 2010 - Jan Nov 2011: 42.3% Source: DANE (National Department of Statistics)
Colombia is increasingly attractive to tourists Foreign visitors to Colombia 2006 - January November 2011 (thousands) Main nationalities of visitors arriving to Colombia** United States 345,158 Visitors 23.4% share Venezuela 197,173 Visitors 13.4% share Ecuador 122,076 Visitors 8.3% share Argentina 83,674 Visitors 5.7% share * DAS and Cruise information to November 2011; Land Border Crossings to June 2011 Sources: DAS, MCIT, Bank of the Republic. Proexport Calculations.
Colombia is living its best moment: High international reserves and low inflation 40,000 30,000 International Reserves Colombia, US$ Millions 2000-2010 28,445 29,987 20,000 10,000 9,006 10,245 10,844 10,921 13,540 14,957 15,440 20,955 24,041 25,365 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Colombia's Inflation Rate (%) 2000 2011 Source: Bank of the Republic - DANE
Positioning Colombia as an export platform: 11 free trade agreements (FTA) with 48 countries allowing preferential access to over 1,500 million consumers In Force Signed In Negotiation Future IN FORCE SIGNED IN NEGOTIATION FUTURE CAN (Peru, Ecuador y Bolivia) MERCOSUR (Argentina, Paraguay, Uruguay and Brazil) Chile G2-Mexico North Triangle (Honduras, Guatemala y El Salvador) Switzerland Liechtenstein Canada United States EFTA (Iceland and Norway) South Korea Panama Turkey European Union (Signature) Japan Australia New Zealand Costa Rica Dominican Republic Gulf Community
Colombia has negotiated 18 international investment agreements (IIA) in 2011 In Force Signed In Negotiation IN FORCE SIGNED IN NEGOTIATION Peru (Agreement) Mexico (Agreement) Spain (Agreement) Switzerland (Agreement) Liechtenstein (Chapter) CAN (Ecuador and Bolivia) (Chapter) Chile (Chapter) North Triangle (Honduras, Guatemala and El Salvador) (Chapter) Canada (Chapter) China (Agreement) India (Agreement) United Kingdom (Agreement) South Korea (Agreement) EFTA (Iceland and Norway) (Chapter) United States (Chapter) Japan Kuwait Turkey European Union Panamá Note: The International investment agreements (IIA) include Agreement Investment Treaties (BIT) (agreement) and Free Trade Agreements (FTA) with investment section (chapter).
and 16 double taxation agreements (DTA) In Force Signed In Negotiation IN FORCE CAN Peru, Ecuador and Bolivia Spain Chile Switzerland Canada Mexico South Korea India SIGNED IN NEGOTIATION United States, Germany, Czech Republic, Netherlands, Belgium, Portugal, Japan, France
Three of the most important rating agencies have granted the Investment Grade to Colombia The three rating agencies agree on the good economic and financial performance of the country, highlighting: Its ability to deal with internal and external shocks The country's long history of timely debt payments Increased macroeconomic policy credibility A visible improvement in Security 31st May 2011
Colombia, is playing a positive role in the region's performance showing higher growth than Latin America and the world
Colombia s GDP Vs. Latin América and The World Growth of Colombia's GDP vs. Latin America 2001-2010 (%) Performance higher than Latin America and the World is expected over the next few years. Source: ANDI (National Business Association of Colombia), EIU
Doing Business Ranking 2012 Colombia: 3 rd "friendliest" country to do business in Latin America and the BIGGEST reformer of the region Change in Doing Business Ranking, 2007-2012* (Variation in the number of positions) Country World Ranking 2012 World Ranking 2011 Chile 39 41 Peru 41 39 Colombia 42 47 Mexico 53 54 Panama 61 63 Argentina 113 114 Costa Rica 121 121 Brazil 126 120 Ecuador 130 131 Venezuela 177 175 Source: Doing Business 2011 - World Bank Ranking of 183 countries. *Positive figures show improvement in business environment. All changes are included in the methodology of the World Bank 2010-2012.
Further information : Oscar Becerra obecerra@proexport.com.co Representative for Quebec Tel. +1 514 619 4290 www.proexport.com.co