Investment booklet 2015

88
PROCOLOMBIA.CO GROWTH, CONFIDENCE AND OPPORTUNITIES TO INVEST PROCOLOMBIA.CO GROWTH, CONFIDENCE AND OPPORTUNITIES TO INVEST

Transcript of Investment booklet 2015

Page 1: Investment booklet 2015

PROCOLOMBIA.CO

GROWTH, CONFIDENCE AND OPPORTUNITIES TO INVEST

PROCOLOMBIA.CO

GROWTH, CONFIDENCE AND OPPORTUNITIES TO INVEST

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Bogota, Colombia.

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We are in the decade of Latin America, and Colombia in particular is doing exceptionally well at the moment, positioning itself as one of the region’s most dynamic destinations.

The last years were exceptional. We have managed to achieve positive results in all our indicators, recording the highest level of direct foreign investment in history, one of the lowest inflation rates in Latin America, a positive fiscal situation that has come very close to equilibrium and an unemployment rate that has exhibited a continuous decline every month during the last 4 years.

Colombia is currently the third most business-friendly country in Latin America, the greatest reformer in the region and the number one country for investor protection, according to the World Bank’s Doing Business Report. The country has also been recognised by the Heritage Foundation as one of the markets where economic freedom provides opportunities to generate positive and visible results in terms of prosperity.

We have taken important steps towards integration in the global community: free trade agreements with almost all the countries of the Americas, including USA and Canada, with Switzerland and Liechtenstein from the EFTA and with the European Union. Besides, 22 international investment agreements are in force, 11 undersigned or in negotiation with over 40 countries and 16 double taxation agreements.

These are factors that make our nation a safe and strategic destination for foreign companies with plans for expansion. We must also highlight the capacity and creativity of Colombia’s human resources, its geographical location, which makes it an attractive platform for exports and connections with the rest of the world, as well as the introduction of fiscal measures to ensure long-term sustainability and a stable and efficient legal system that protects investment.

In this brochure, you will find specific information about Colombia —based on figures and statistics sourced from both national and international organisations— which demonstrates the benefits and opportunities the country has to offer for profitable and lasting investments.

International leaders, major companies and specialist media all know that Colombia is one of the rising stars with greatest prospects for economic expansion not only at a regional level, but also at a global level. We are at an exciting moment in our development, so for those who want to plant their seeds in profitable, safe and stable ground, the answer is Colombia!

GREETINGS FROM THE PRESIDENT, JUAN MANUEL SANTOS

Juan Manuel Santos CalderónPresident of the Republic

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13Macroeconomic stability and dynamic long-term economic performance

21Colombia, an investment-grade country with a positive outlook

23World-class technological infrastructure

26Easy access to global markets

29Maritime connections, transit times

31Extensive trade relations - main export destinations

CONTENT

Business-friendly

Dynamic internal market

Strong international integration

Established trade platform

COLOMBIA

ATRACTIVE BUSINESS ENVIRONMENT

INTERCONECTED WITH THE WORLD

AN ACTIVE ECONOMY IN THE GLOBAL MARKET

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40

48

53

60

55

58

8486

47

49

51

45

54

81

Opportunities

An array of free trade zones

Colombia was one of the 20 main destinations for FDI in the world in 2012

The world talks about Colombia

The presence of Procolombia in the country

Procolombia in the world

Incentives for R+D

CONFIDENCE OF INVESTORS IN THE COUNTRY

SECTOR OPPORTUNITIES

WHO ARE WE?

In 2013, Colombia attained FDI flows that were almost 9 times greater than those attained 10 years ago

SKILLED LABOUR

COMPETITIVE LEGAL FRAMEWORK

THE GOERNMMET’S COMMITMENT TO DEVELOPMENT

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COLOMBIA

Las Luces Park, Medellin.

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US $58,822 billion

(2013-DANE)

US $56,622 billion

(2013-DANE)

47.6 million inhabitants

(2014-DANE)

US $378,125billion

US $8,021 US $11,188 4.7% 9.6 % 1.9 %

41 inhabitants/km2 (2013-DANE)

Spanish Colombian peso(COP)

94.3% (2013-DANE)

75 years

(2013-DANE)

(2013-Banco de La

República)

Per Capita (PPA, 2013-EIU)

Growth (2013-Banco

de La República)

Per Capita (Nominal,

2013-Banco de la República)

RATE(2013-DANE)

UNEMPLOYMENT

RATE(2013-Banco

de la República)

INFLATION

EXPORTS IMPORTS

X MGDP GDP GDP GDP

LITERACYRATEPOPULATION

POPULATIONDENSITY

OFFICIALLANGUAGE CURRENCY

LIFEEXPECTANCY

SOCIAL INDICATORS

ECONOMIC INDICATORS

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The Insular Region

The Orinoquia Region

The Amazon Region

The Andean Region

The Caribbean Region

The Pacific Region

Panama

Ecuador

Peru

Venezuela

Brazil

The area of Colombia 1,141,000 KM2, is three times the size of Germany and twice that of Texas (US).

AREA 1,141,748 km2

Terrestrial

2,070,408 km2

928,660 km2Maritime

. . . . . . . . . . . . . . . . . . . . . ...........................

........ .. .. .. . .

. .

COLOMBIA

. . .. . .. . .. . .. . .. . .

Canada

United Statesof America

Brazil

Mexico

Colombia

Venezuela

Greenland(Denmark)

Iceland

Russia

China

India

IranPakistan

Afghanistan

Saudi Arabia

Iraq

MongoliaKazakhstan

Japan

Indonesia

Thailand

Australia

Turkey

EgyptLibya

Niger

Sudan

Ethiopia

KenyaRepublic of the Congo

Tanzania

Madagascar

Angola

South Africa

Namibia

Botswana

Zimbabwe

Zambia

MaliMauritania

Algeria

Spain

France

Germany Poland

Belarus

Ukraine

RomaniaItaly

UnitedKingdom

Norway

Sweden

Finland

Ecuador

Peru

Bolivia

Argentina

CubaJamaica

GuatemalaEl Salvador

Nicaragua

CostaRica

Panama

Honduras

BeliceHaiti Dominican

Republic

PACIFIC OCEAN

ATLANTIC OCEAN

Colombia is located in the northwest of South America and is the only country on this part of the continent with both a Pacific and a Caribbean Coast.

TOTAL

GOVERNMENTColombia is a social state under the rule of law, organized in the form of a unitary decentralized republic with policy centralization and administrative decentralization. The State has three branches of public power, which operate independently: Legislative, Executive and Judicial. These are made up of various supervisory bodies including the Attorney General´s Office, the Public Prosecutor´s Office, or Public Ministry, the Office of the Comptroller and community Veedurías (citizen oversigth entities). Juan Manuel Santos Calderón has been president of the Republic since August 2012.

32 DEPARTMENT STATES 6 MAIN REGIONS

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Medellin, Colombia.

. . . . . . . . . . . . . . . . . . . . . ...........................

........ .. .. .. . .

. .

COLOMBIA

. . .. . .. . .. . .. . .. . .

Canada

United Statesof America

Brazil

Mexico

Colombia

Venezuela

Greenland(Denmark)

Iceland

Russia

China

India

IranPakistan

Afghanistan

Saudi Arabia

Iraq

MongoliaKazakhstan

Japan

Indonesia

Thailand

Australia

Turkey

EgyptLibya

Niger

Sudan

Ethiopia

KenyaRepublic of the Congo

Tanzania

Madagascar

Angola

South Africa

Namibia

Botswana

Zimbabwe

Zambia

MaliMauritania

Algeria

Spain

France

Germany Poland

Belarus

Ukraine

RomaniaItaly

UnitedKingdom

Norway

Sweden

Finland

Ecuador

Peru

Bolivia

Argentina

CubaJamaica

GuatemalaEl Salvador

Nicaragua

CostaRica

Panama

Honduras

BeliceHaiti Dominican

Republic

ATTRACTIVE BUSINESS

ENVIRONMENT

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GDP (PPP)-2015 BILLIONS-LATIN

AMERICA

GDP PER CAPITA (PPP)

US$ 2000-2018

FAVOURABLE MACROECONOMIC ENVIRONMENT

COLOMBIA’S GDP PER CAPITA IS ALMOST TWICE

SINCE YEAR 2000.

NewZealand 167

Denmark

Singapore

257

Israel 301

299

Norway 373

Chile 380

Peru 400

Vietnam 420

Hong Kong 422

Sweden 455

Belgium 481

Switzerland 481

Philippines 535

599

Malaysia 606

Colombia

SouthKorea 1,790

1,176

Mexico 2,324

France 2,560

Brazil 2,644

Germany 3,688

Australia

2000

2011

2012

2013e

2014p

2015p

2016p

2017p

2018p

2010

2004

2008

2009

2007

2006

2005

2001

2002

2003

5,826

8,940

10,800

US $14,110

COLOMBIA IS THE WORLD’S

28TH LARGESTECONOMY AND ONE

OF THE LARGEST NON-OECD

COUNTRIES.

Note: GDP in accordance with Purchasing Power Parity - PPP - prices - estimated.

Source: EIU - Economist Intelligence Unit, 2014.

Note: GNP adjusted to prices under Purchasing Power Parity - PPP.

Source: EIU – Economist Intelligence Unit – Income adjusted to Purchasing Power

Parity - PPP. p: projected - e: estimated.*Economies are ranked in accordance with

the World Bank’s methodology. Low income USD 1,035 or less; Middle-low income

between USD 1,036 and USD 4,085; Middle-high income between USD 4,086 and USD 12,615; high income USD 12,616 or more.

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MACROECONOMICSTABILITY ANDDYNAMIC LONG-TERMECONOMICPERFORMANCE

UNEMPLOYMENT RATE

GDP

INFLATION

p: Projectable. e: Estimate.

12.0 11.810.8 10.4

8.5 8.88.1

7.4 7.1 6.87.7

20102004 2008 20092007200620052002 2003 2011 2012 2013 2014p 2015p 2016p 2017p 2018p

11.311.212.011.8

13.714.115.6

4.53.8

4.04.0

1.7

3.5

6.96.7

4.75.3

3.92.5

6.6

4.64.4

3.6 3.5 3.33.43.01.9

3.72.0

5.74.54.9

5.56.57.0

2.4

Source: DANE, Banco de la República. EIU - Economist Intelligence Unit, 2014.

4.3 4.5

GDP, inflation, and rate of unemployment 2002-2018, annual average % projectable.

In 2013, the country presented its highest level of international reserves US $43.6 billion and a low level of inflation 1.94%. The unemployment rate has been declining steadily over the last few years, reaching a historic minimum of 8.5% at the end of 2013.

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Vietnam

Peru

Malaysia

EcuadorChile

ColombiaCosta Rica

Singapore

Israel

Turkey

Mexico

Argentina

Australia

Brazil

Switzerland

United States

Hong Kong

Sweden

Canada

Finland

Ireland

BelgiumPortugal

Venezuela

6.4%

5.9%5.5%

4.9%

4.8%

4.6%

4.3%4.3%

4.1%

4.0%

3.7%

3.0%3.0%

2.9%

2.7%

2.6%2.5%

2.4%

2.3%

1.9%

1.6%

1.5%

1.2%

0.2% Source: EIU - Economist Intelligence Unit.

GDP GROWTHPROJECTION-2015

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COLOMBIA HAS THE 24TH LARGEST POPULATION IN THE

WORLD AND THE SECOND LARGEST

SPANISH SPEAKING POPULATION AFTER

MEXICO

*Forecast.

Bra

zil

Col

ombi

a

47.6

202.8

Mexi

co

116.20

Germ

any

81.67

Vie

tnam

78.09

Egy

pt

83.70

Fran

ce

64.60

South

Kore

a

50.50

Can

ada

35.60

Peru

31.60

Mal

aysia

30.20Aust

ralia

23.5

Chile

17.70

Cze

ch R

epublic

10.50

Sw

eden

9.70

Aust

ria

8.50

Sw

itze

rlan

d

8.10

Hong K

ong

7.20

Isra

el

8.20

Norw

ay

5.10

Sin

gapore

5.50

New

Zeal

and

4.60

Population: 2014* millions of inhabitantsSource: DANE; EIU - Economist Intelligence Unit, 2014.

DYNAMICINTERNAL MARKET

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.CO Colombia is a young and dynamic country in which 55%

of the population is under 30 years of age.

17.6 MILLIONTotal population in the country’s 9 development areas.

City populations include surrounding metropolitan areas.Source: DANE.*Forecast.

Barranquilla 1.2

Cartagena 0.9

Bucaramanga 0.5Medellin

2.4

Bogota7.7

Ibague 0.5

Cali 2.3

Coffee Cultural Landscape:

Pereira, Manizales,

Armenia.

1.1

Cucuta 0.6

ADMINISTRATIVE DIVISION

The country is divided into 32 departments [states] and six main regions (Caribbean, Pacific, Andean, Orinoquia, Amazonia and Island Territories). Colombia has many development areas and 9 metropolitan areas, each of which has 500,000 or more inhabitants: Bogota, Medellin, Cali, Barranquilla, Cartagena, Cucuta, Bucaramanga, Ibague and the Coffee Cultural Landscape Region (Manizales, Pereira and Armenia).

IT POSSESSES MULTIPLE FACETS OF DEVELOPMENT,WITH MORE THAN 9 CITIES / METROPOLITAN AREASHOME OF OVER 500,000 INHABITANTS.

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Colombia is the third most business-friendly and the most reformative country in Latin America. Similarly, it holds the sixth place in the world and first in the region in terms of protecting its investors according to the World Bank’s Doing Business Report, 2014.

RANKING DOING BUSINESS 2008-2014CHANGE IN POSITIONS*

Chile

Peru

Colombia Mexico

Panama

Costa Rica

Argentina

Brazil

Ecuador

VenezuelaSource: The Doing Business Report, 2014 - The World Bank.Positive statistics indicate an improvement in business environment.

Colombia 23

16

1310

6

-1-7

-9-9

-17

Peru

Venezuela

Brazil

Argentina

Chile

Panama

Costa Rica

Mexico

Ecuador

CountryWorld

Ranking 2013

WorldRanking

2014

37

43

45 48

61

110

124

130

139

180

34

42

4353

55

102

116

126

135

181

BUSINESS-FRIENDLY

THE DOING BUSINESS REPORT RECOGNIZESCOLOMBIA AS BEING THE MOSTREFORMATIVE COUNTRY IN THE REGION

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Peru

Chile

Mexi

co

Bra

zil

Pan

ama

Venezu

ela

Col

ombi

a

8.3

7.06.3

5.7

5.3 5.3

5.0

2.3

ColombiaPeru

Chile Mexico

Brazil

Panama

Argentina

Venezuela

616

34 68

80

80

98

182

CountryWorldRanking

Source: The Doing Business Report, 2014-The World Bank.

Arg

entina

INVESTOR PROTECTION INDEX DOING BUSINESS - 2014.

COLOMBIA IS THE LEADER IN THE REGIONIN TERMS OF INVESTOR PROTECTION

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Peru

Chile

Mexico

Panama

Colombia

Brazil

Costa Rica

Venezuela

Argentina

Ecuador

63

79

102

123

157

164

176

48

25

22

Source: The Doing Business Report, 2014-The World Bank.

OPENNESSOFCOMPANYDOINGBUSINESS2014

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The Economic Freedom Index, analyzing the policy development of 186 countries, has recognised Colombia as being one of the markets in the region in which economic freedom is allowing it to generate both positive and visible results in terms of prosperity.

ECONOMIC FREEDOM INDEX-2014POSITION AMONGST 186 COUNTRIES

Hong K

ong

Sin

gapore

Aust

ralia

Chile

United

Stat

es

Col

ombi

a

Peru

Mexi

co

Fran

ce

Bra

zil

Chin

a

Ecu

ador

Arg

entina

Venezu

ela

47

1 2

37

12 1434

5570

114

137

159166

175

Source: Heritage Foundation. Drafted by Procolombia.

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COLOMBIA, AN INVESTMENT-GRADE COUNTRY WITH A POSITIVE OUTLOOK

S&P (APRIL 2013) IMPROVED COLOMBIA’S RATING AND

FITCH (DECEMBER 2013) IMPROVED ITS LONG-TERM

FOREIGN CURRENCY SOVEREIGN DEBT OUTLOOK:

EFFECTIVE IMPLEMENTATION OF FISCAL REFORMS COULD

ENHANCE THE FINANCIAL PROFILE, REDUCE DEBT AND

THE GOVERNMENT’S INTEREST BURDEN - S&P.

In December of 2013, Fitch increased Colombia’s Long-Term Issuance Rating from BBB to BBB based on the improvement in handling public debt, the consistency and predictability of Colombian macroeconomics policies and the economy’s ability to cope with external upheavals.

All three agencies have given a positive rating to Colombia’ssovereign debt since 2011, which coincides with a reductionin vulnerability to external upheavals, meeting its obligations,

Term Rating Date PerspectiveRating Agency

Stable

BBB

A – 2

BBB +

A - 2

24/Apr/2013

24/Apr/2013

5/Mar/2007

13/Dec/2007

Stable

Positive

22/Jun/2013

22/Jun/2011

22/Jun/2011

7/Feb/2012

F - 2

BBB+

Baa2

confidence in the country’s macroeconomics policies and animprovement in security policies.

Source: Standard & poor’s Rating, Dinero magazine.

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Global connections.

INTERCONECTEDWITH THE WORLD

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According to Colombia Digital, Colombia is connected by means of 7 undersea cables. The Government is currently working on an optic fibre cable that will connect Colombia’s Pacific Coast with the rest of the world, with a capacity greater than 8 megabytes to lower data and internet transmission costs.

According to MinTIC, the country increased its internet connections from 2.2 million in 2010 to 8.8 million in 2013. In 2013 Internet connections grew by 210% for strata one and 138% in stratum two.

At the end of 2013 there are 50,295,114 subscribers representing a growth of 2.5% vs. the fourth-quarter of 2012.

MOBILE SUBSCRIBERS-MILLIONS

2010 2011 2012 2013

44.4

46.2

49.0

50.2

97.70%

100.3%

105.3%

106.7%

RAPID GROWTH IN THE CONSUMER MARKET: OVER 49 MILLION ACTIVE MOBILE USERSWORLD-CLASS

TECHNOLOGICALINFRASTRUCTURE

Source: CRC–The Commission of Telecommunication Regulation (CRT). MinTIC, 2013.

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INTERNET SUBSCRIBERSBROAD BAND AND PENETRATION INDEX

ACCESS TO THE INTERNET HAS TRIPLED OVER THE LAST FIVE YEARS

2010 2011 2012 2013

8,215,780

6,137,708

4,836,833

3,073,948

17.40%

13.20%

10.50%

6.80%

PenetrationSource: CRC - The Commission of Telecomunication Regulation

(CRT), MinTIC.

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IN THE YEAR 2012, VIVE DIGITAL RECEIVED THE GOVERNMENT LEADERSHIP AWARD AT THE MOBILE WORLD CONGRESS,

BECOMING CERTIFIED AS THE BEST ITC POLICY IN THE WORLD FOR ITS INNOVATIVE POLICIES ON POVERTY REDUCTION AND

EMPLOYMENT GENERATION THROUGH TELECOMMUNICATIONS.

Source: Vive Digital.

Liberta y Orden

IN LATIN AMERICA, COLOMBIA IS THE LEADER IN ELECTRONIC GOVERNMENT AND RANKS SIXTH AMONG THE COUNTRIES WITH THE

HIGHEST LEVEL OF ELECTRONIC PARTICIPATION.

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.CO EASY ACCESS TO

GLOBAL MARKETS

Colombia is situated on a focal point of maritime activity. It

is close in proximity to the Panama Canal, a crossroad for

the main lines of global trade communication, a strategic

connection point between North and South America —as

well as the East Coast of the United States of America and

Asia. These features present an opportunity by means of

acting as a commercial exchange platform.

over 2,000 export routes via direct, connecting and regular

services provided by 32 airlines with cargo allowances and

access to 470 cities in the world.

thousand tons cargo were transported in 2013.600

More than

KEY STRATEGIC LOCATION

OVER 850 DIRECT INTERNATIONAL FLIGHTS PER WEEK

MORE AND MORE AIRLINES ARE ADDING ROUTES AND FLIGHT FREqUENCIES, WHICH IMPROVE COLOMBIA’S AIR CONNECTIVITY

DIRECT INTERNATIONAL FLIGHTS HAVE INCREASED BY 130% BETWEEN 2000 AND 2010

OVER 4,900 DOMESTIC FLIGHTS PER WEEK

OVER 20 AIRLINES OPERATE IN COLOMBIA

DEVELOPEDLOGISTICSINFRASTRUCTURE

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The data includes routes flying out of Barranquilla, Bogota, Cali, and Medellin International Airports.

AIR CONNECTIONS TO THE WORLD TRANSIT TIMES

CARGO AIR CONNECTIVITY

Bogota

24 h 40 m 23 h 35 mPekin Seoul

25 h 05 m

24 h 15 mTokyo

Hong Kong

14 h 10 m

13 h 45 m

17 h 35 m

19 h 40 m

17 h 00 m

Berlin

Rome

Cairo

Dubai

Moscow

11 h 15 m

9 h 40 m

9 h 40 m

Frankfurt

Madrid

13 h 20 mParis

10 h 40 m

24 h 30 mMumbai

4 h 20 m

4 h 45 mCity of Mexico

9 h 25 m

8 h 20 mLos Angeles

5 h 35 m

5 h 35 mNew York

8 h 54 m

6 h 05 mToronto

Miami4 h 30 m

3 h 00 m

8 h 25 m

6 h 15 mBuenos Aires

5 h 10 mBrasilia

1 h 20 m

1 h 20 mCaracas

3 h 00 mLima3 h 10 m

6 h 55 m

5 h 00 mSantiago de Chile

1 h 30 m1 h 30 m

Quito

5 h 50m

5 h 45 mSão Paulo

23 h 05 mCity of Cabo

Source: Routes and Tariffs – Tools for the Colombian exporter. Processed by Procolombia.

COLOMBIA: COMPETITIVE

LOCATION WITH EASY ACCESS

TO GLOBAL MARKETS

11 h 25 mLondon

Lisbon9h 55m

DIRECT AIR CONNECTIVITY*

*Direct air connectivity - passengers

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There are more than 3,300 maritime export routes

sailing from Colombian ports offering regular, direct or

connecting service on 30 steamship companies with

destinations in 480 ports around the world.

More than 165 million tons of export and import products

were moved by ocean in 2013.

The data includes routes departing from the ports of Barranquilla, Buenaventura,

Cartagena, and Santa Marta.

Source: Routes and Tariffs – Tools for the Colombian exporter. Processed by ProColombia.

Buenaventura

Pacific Ocean

AtlanticOcean

San Andres

Tumaco

MARITIMECONNECTIVITY

PRIVATE PORT COMPANIESTHAT OFFER PUBLIC USE

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MBIAMARITIME CONNECTIONS

TRANSIT TIMES

MARITIME CONNECTIONS

Vancouver(14 days)

Veracruz(6 days)

Los Angeles(11 days)

New York(6 days)

Valparaiso(8 days)

Tilbury(16 days)

Rotterdam(11 days)

Colombo(38 days)

St. Petersburg(20 days)

Santos(11 days)

Buenos Aires(19 days)

Hong Kong(30 days)

Tokyo(27 days)

Sidney(22 days)

Arab Emirates(40 days)

City of Cabo(25 days)

Valencia(12 days)

Bogota

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AN ACTIVEECONOMY IN THEGLOBAL MARKET

Port infrastructure.

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ChinaUS $5,102

millionParticipation

of 8.67%

IndiaUS $2,993

million Participation

of 5.09%

ArubaUS $1,716

million Participation of

2.92%

United States US $18,459

millionParticipation of 31.38%

Panama US $3,329

million Participation of

5.66%

BrazilUS $1,591

million Participation

of 2.70%

Ecuador US $1,975

million Participation of

3.36%

SpainUS $2,879

million Participation

of 4.89%

NetherlandsUS $2,266

million Participation of

3.85%

VenezuelaUS $2,256

million Participation

of 3.84%

EXTENSIVE TRADE RELATIONS - MAIN EXPORT DESTINATIONS

MAJOR EXPORT DESTINATIONS - 2013

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EXPORTS, 2000-2013 US $MILLIONS

MORE THAN 8,000 EXPORT COMPANIES

EXPONENTIAL GROWTH IN EXPORTS: MORE THAN4 TIMES THE VALUE IN 2013 THAN 13 YEARS AGO.

16,788 37,626 58,82213,158 56,915

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: DANE.

2013

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MBIACOLOMBIA’S IMPORTS

QUADRUPLED OVER THE LAST DECADE

The main products purchased abroad in the nonmining segment and excluding coffee are: industrial machinery, vehicles, other means of transport, telecommunications/sound, and iron/steel manufacturing.

MAJOR IMPORT DESTINATIONS - 2012

Source: DANE. CIF values.

11,53813,880

39,668

59,395

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

54,674

2013

IMPORTS 2000-2013 US $MILLIONS

United StatesUS $15,681.29

millionParticipation of 27.69%

ChinaUS $9,841.59

millionParticipation of 17.38%

MexicoUS $5,299.81

millions Participation of

9.36%

BrazilUS $2,457.30

millions Participation of

4.34%

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PACIFIC ALLIANCE

Currently, Colombia has 13 free trade agreements in force, and 8 that are signed or being negotiated, which will give preferential access to a market of more than 1.5 billion consumers. The country’s agreements network also includes 23 international investment agreements (IIA)* between those that are in force, signed, and being negotiated with more than 40 countries and 16 agreements to prevent double taxation (DTAs) which are in force or being negotiated.

*Includes Investment Chapters within the FTA.

STRONGINTERNATIONALINTEGRATION

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CURRENTCANCanadaChileG2-MexicoEFTA (Switzerland and Liechtenstein)MercosurNorthern TriangleUnited StatesEuropean UnionVenezuela*CARICOM*Cuba*Nicaragua*

SUBSCRIBEDSouth KoreaCosta RicaEFTA (Iceland, Norway)IsraelPanamaPacific Alliance

UNDER NEGOTIATIONTurkeyJapan

Source: Ministry of Commerce, Industry and Tourism, 2014.*Partial Scope Agreements (PSA)

FREE TRADE AGREEMENTS

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AGREEMENTS FOR THE PROMOTION AND RECIPROCAL PROTECTION OF INVESTMENTS - APPRI

CURRENTPeru (agreement)Spain (agreement)China (agreement)India (agreement)EFTA (chapter V)Lichtenstein (chapter V)Chile (chapter IX)Northern Triangle (chapter XII)Canada (chapter VIII))Mexico (chapter XVII)United States (chapter X)European Union (chapter II)Switzerland (agreement)

SUBSCRIBEDEFTA (Iceland andNorway) (chapter V)Japan (agreement)United Kingdom (agreement)SingaporeFrance

UNDER NEGOTIATIONKuwait QatarRussiaAzerbaiyanTurkeyArab Emirates

Note: The International Investment Agreement (IIA) includes promotion and

reciprocal protection of investments agreements (IppAs) (agreement) and

free trade Agreements (FTAs) Investment section (chapter).

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CURRENTCAN (Peru, Ecuador and Bolivia)CanadaChileSpainMexicoSwitzerland

SUBSCRIBEDSouth KoreaIndiaPortugalCzech Republic

UNDER NEGOTIATIONGermanyUnited StatesFranceHollandBelgiumJapan

AGREEMENTS FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION - DTTS

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ESTABLISHEDTRADEPLATFORMGlobalisation policies provide the country with tariff advantages

allowing preferential access to millions of consumers as a result

of free-trade agreements. To this effect, Colombia provides

expanded opportunities in European, Asian and Latin American

countries. In addition, the country’s geographical location has

turned it into a connecting point for the world, consolidating its

position as a starting point for exports to third-party markets.

Its access to both the Atlantic and Pacific oceans provides ports

leading to and from America, Europe and Pacific Rim countries,

furnishing shipping times, transportation and logistics that

enhance foreign trade.

25 markets have been identified for which Colombia could

become a platform for exporting products to the United

States and the Andean Community of Nations (CAN)

countries, as well as 12 markets in Europe, 6 in Asia, and 7

in Latin America and Canada.

PREFERENTIAL AGREEMENTS AND OTHER

PROMOTION TOOLS MAKE COLOMBIA

ATTRACTIVE TO BUSINESSES AROUND

THE WORLD WANTING TO REACH

INTERNATIONAL MARKETS.

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Colombia’s 13 current trade agreements with over 20 markets allow the country to have tariff advantages for exporting to these markets with highly competitive rates, as well as logistical advantages.

Note: Tariffs refer to 2013 data.

Tariff Advantages to United States, Canada and Mexico.

COLOMBIA AS AN EXPORT PLATFORM TO THE WORLD AND FOR THE WORLD

City of Origin

Destination City

São Paulo

Journey time Freight US $/kg

New York 9 h 35 min 6.17

Mexico City 9 h 15 min 4.70

Bogota 5 h 55 min 1.30

Country of Origin Sector

Tariffs charged for

USA Mexico

BrazilAutomotive and auto parts 10.9% 28.2%

Chemicals 4.4% 8.7%

Colombia 0% 0%

Some examples of export platforms based on logistical advantages of air freight.

Country of Origin

Destination Country

United States

Transit time (days) Freight US $/kg

Brazil 40 155

Argentina 41 133

Colombia 11 54

Examples of the logistical (maritime) and tariff advantages of using Colombia as an export platform.

Source: PROCOLOMBIA.

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Manufacturing/Auto parts.

SKILLEDLABOUR

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According to Euromonitor International, Colombia had the third highest number of graduates of the following subjects, in the region during 2012: Social Sciences, Business, Law, Engineering, Manufacturing, and Construction.

The availability of human resources is growing at a higher rate than many other countries. According to the Growth of the Workforce Index (IMD, 2013).

Colombia is ranked as eighth in the world and third in the region in terms of both growth and labour force.

MORE THAN

44.6% (MASTERS AND SPECIALIZATIONS)

22.6%TECHNICAL

33.2%QUALITY AND AVAILABILITY OF HUMAN RESOURCES IN THE COUNTRY

2012 COLLEGE GRADUATESSource: Colombia’s Ministry of National Education.

COLOMBIA POSSESSES A SKILLED AND DEVELOPED WORKFORCE

300 THOUSANDSTUDENTS GRADUATE EVERY YEAR FROM HIGHER EDUCATION

UNDERGRADUATES POSTGRADUATES

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SOCIAL SCIENCES, BUSINESS AND LAW GRADUATES 2012*

ENGINEERING, MANUFACTURING AND CONSTRUCTION GRADUATES 2012*

.COLOMBIA, A LEADER IN THE REGION OF ENGINEERING AND BUSINESS GRADUATES

TOTAL NUMBER OF HIGHER EDUCATION GRADUATES 2011: 201,173

*2009 data for Argentina and the Dominican Republic; 2010 data

for jamaica

Source: Euromonitor international; Labour Market Data System

(Sistema informático del Mercadeo laboral) - Jamaica; Ministry of

Higher Education, Science and Technology (Ministerio de Educación

Superior, Tecnología y Ciencia) - Dominican Republic; UNESCO.

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MBIA“SENA” IS THE CHIEF

EDUCATIONAL INSTITUTION FOR TECHNICAL AND TECHNOLOGICAL TRAINING IN COLOMBIA.

IN ADDITION, IT IS THE COUNTRY’S ONLY EDUCATIONAL INSTITUTION WITH PRESENCE IN MORE THAN A THOUSAND CITIES.

SENA HAS MORE THAN 1 MILLION SPACES AT THE DEGREE LEVEL AND MORE THAN 800,000 TRAINEES WORKING AT COLOMBIAN COMPANIES.

Technical Specialists

Technicians 677,766

317,058

36,084

13,640

7,571

1,823

Technologists

Assistants, Employment and

Unskilled Workers

Professional Technicians

Technology Specialists

The National Government also supports bilingual education through initiatives such as iSpeak, a programme that provides local and foreign companies with information regarding Colombians holding certification in English fluency for professional purposes. There are currently more than 26,000 professionals throughout Colombia holding such certificates.

Source: SENA. Figures applicable to 2013.

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LABOUR FORCE GROWTH, 2013

Argentina

Mexico

Colombia

Brazil

Peru

Chile

5

6

8

18

20

21

3.64%

3.62%

2.89%

1.58%

1.36%

1.30%

Source: IMD-World Competitiveness Yearbook, 2013.

Variation (%)World ranking amongst 60countries

% Increase in labour

force

COLOMBIA HAS ONE OFTHE HIGHEST GROWTH

RATES OF ANNUALLABOUR FORCE

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COMPETITIVE LEGALFRAMEWORK

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1. For free zones applied for or approved before 31 December, 2012. For free zones applied for after 31 December, 2012, income tax of 15% must be paid + income tax for equity – CREE, for which the rate is 9% for the years 2013 to 2015 and 8% for the following years.

EMPLOYMENT INCENTIVESINCOME TAX DISCOUNT AND PARA-FISCALCONTRIBUTION BENEFITS, AS WELL AS OTHERNOMINAL CONTRIBUTIONS.(DOES NOT INCLUDE JOBS GENERATED BY REPLACEMENTS OR MERGERS)

A STRONG GOVERNMENTCOMMITMENT EXISTS TOPROMOTE INVESTMENT ANDSTABILITY FOR INVESTORS

NUMEROUS NEGOTIATED PROMOTION AND RECIPROCAL INVESTMENT PROTECTION AGREEMENTS.

FREE ZONES WITH INCOME TAX OF 15%1, POSSIBILITY OF SELLING

TO THE LOCAL MARKET, EXEMPTION FROM CUSTOMS DUTIES (VAT,

TARIFFS) ANND ACCESS TO THE BENEFITS OF INTERNATIONAL

TRADE AGREEMENTS.

INCOME TAX DEDUCTIONS OF 175% FOR INVESTMENTS IN

RESEARCH AND TECHNOLOGICAL DEVELOPMENT PROJECTS

INCENTIVES FOR EMPLOYMENT GENERATION.

INCOME TAX EXEMPTION FOR VARIOUS SECTORS.

NEW employees under 28 yearsof age. Duration ofemployer benefit:

NEW displacedreintegratedor disabledemployees.Duration ofemployer benefit:

NEW femaleemployees over40 years of age,unemployed for1 year. Dration ofemployer benefit:

NEW employeeswho receive lessthan 1.5 SMMLV.Duration of employerbenefit:

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*For Free Zones applied for/or approved before 31 December, 2012.

Income tax of 15%*

La Guajira

Cesar

Norte de Santander

Santander

Magdalena

Atlantico

Cundinamarca

Bogota

Meta

Boyaca

Bolivar

Valle del Cauca

Quindio

Risaralda

Antioquia

Cordoba

Cauca

Nariño

Huila

Departments with declared Free Trade Zones (FTZ):

Permanent FTZ declared by the DIAN (National Directorate of Taxes and Customs): (27)–Multi-company.

Special permanent FTZ declared by the DIAN (67)-Single-company extended FTZ: (3).

Source: MinTIC (Ministry of Commerce, Industry and Tourism) – Report on Free Trade Zones – June 16, 2014.

AN ARRAY OF FREE TRADE ZONESColombia currently has over100 Free Trade Zones, bothpermanent and specialpermanent.

The permanent Free Trade Zones are comperirivethanks to the following characteristics:

Benefiting from FreeTrade Agreements

No local market salerestrictions

Customs tax does not apply (VAT, tariffs)

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Telecommunications infrastructure.

THE GOVERNMENT’SCOMMITMENT TO DEVELOPMENT

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INNOVATION ¯ The allocation of 10% of royalty payments to strengthen science, technology, and innovation.

¯ Increase R&D investment by 0.16% of GDP to 0.5% of GDP by 2014.

¯ Increase value added exports (nonmining energy) by 31%, from US $14,318 million in 2010 to US $21,000 million in 2014.

¯ To finance the education of 2,550 new PhDs by 2014.

¯ Promote an innovation ecosystem with 12 Business Angels networks by 2014.

Infrastructure investment of 3% to 4% of GDP, which means, in Colombia’s case, doubling current investment levels. This alongside other mechanisms such as royalties and adjustment funds will allow the country adequate levels of sector investment.

¯ Government objective: 1 million low-income (social) houses (VIS-Spanish abbreviation).

¯ A plan is being worked on to donate 100,000 homes to single mothers, displaced people, victims of natural disasters, and those not earning a minimum salary.

¯ Mining and energy GDP will grow by 16.8% by the year 2014 and will reflect a share of more than 25% of GDP in Colombia.

¯ The mining and energy sector will generate 100,000 new jobs between 2010-2014.

¯ Total sector exports for 2014 will surpass US $35,000 million.

¯ 2014 objectives include electrical power reaching 16,234 MW, hydrocarbon production 1,150,000 bpd and coal mining production 124 million tons; as well as extending geological coverage of the country to 80%.

¯ Colombia, third highest rate of precipitation in Latin America and 11th in the world.

¯ Special Commercial Reforestation Programme: Taking advantage of the country’s forestry potential (17 million hectares) pushing for commercial

¯ reforestation as a strategic element of the agricultural sector.

¯ Unique forestry “one-stop window”: An instrument created with the aim of centralizing procedures and formalities required for commercial forestry activities.

¯ Regulated forestry law.

¯ Agricultural technology innovation.

OPPORTUNITIES

INFRASTRUCTURE

HOUSING

MINING - ENERGY

AGRIBUSINESS

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The Productive Transformation Programme, PTP, is a public and private collaboration created by the Ministry of Commerce, Industry, and Tourism in 2008. It fosters productivity and competitiveness within (high exporting potential) sectors by means of more efficient coordination between the private and public sectors.

PRODUCTIVE TRANSFORMATION PROGRAMME-(PTP)

Outsourcing of business processes BPO&OSoftware information technologyHealth tourismNature tourismElectrical power good and service providersA PUBLIC AND PRIVATE

COLLABORATIONCREATED FOR THE DEVELOPMENT OF WORD-CLASS SECTORS

SERVICE SECTORS

MANUFACTURING SECTORS

AGRO-SECTORS

Editorial industry and graphic communicationFashion systemAuto parts and vehicle industryCosmetics and cleaning productsMetal mechanics and steel

Chocolate, confectionery and primary materials BeetPalm, oils, vegetable fats and biofuelsShrimp farmingDairyFruits and vegetables

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In order to achieve these goals and foster new investment into R+D, and as a means of obtaining innovative processes, the following mechanisms have been created:

Colombia is relying on innovation as a key component in transforming products and services, providing added value and skilled workers. To achieve this, the National Government has allotted 10% of royalties generated by hydrocarbon and mining activities to bolster the Science, Technology and Innovation System, with the goal of moving the country forward to a knowledge-based economy.

INCENTIVES FOR R+D

With the aim of strengthening business innovation and high-impact, innovative entrepreneurship, Bancoldex (Programme to invest in Private Capital Funds) has created Innpulsa. This innovation and development unit cultivates financial and nonfinancial tools to promote and strengthen business innovation and dynamic ventures. Its work is based on three strategic levels:

INCOME TAX DEDUCTIONS EQUIVALENT TO 175% OF THE VALUE INVESTED INTO

RESEARCH AND DEVELOPMENT

AN EXEMPTION OF SALES TAX (VAT) ON THE IMPORTATION OF EQUIPMENT

USED BY R+D CENTRES RECOGNISED BY COLCIENCIAS

RESOURCES RECEIVEDTO FINANCE SCIENTIFIC AND TECHNOLOGICAL

PROJECTS OR INCOMES FROM INNOVATION ARE INCOME TAX EXEMPT

PROTECTION OF INDUSTRIAL PROPERTY IN ACCORDANCE WITH INTERNATIONAL

STANDARDS

EQUIPMENT AND DEVICES IMPORTED BY R&D CENTRES RECOGNIZED BY COLCIENCIAS WILL BE EXEMPT FROM VALUE ADDED TAX (VAT)

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INNPULSA COLOMBIA ISPRESENT IN ALL 32

DEPARTMENTS

231 BILLION AND

BENEFITED

TOTAL RAISED FORENTREPRENEURIAL

INNOVATION

26,793 BUSINESSES AND ORGANIZATIONS

(MOSTLY BUSINESSES)

1. We are promoting a mindset change: To overcome barriers in our way of thinking that prevent more cases of extraordinary growth in businesses.

2. We fix mistakes in the market: We infuse resources where lacking and connect to and activate supply and demand.

3. We bolster regional forces: So they may foster extraordinary growth by the businesses located in their territories.

Source: Innpulsa.

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CONFIDENCE OF INVESTORS IN THE COUNTRY

Private equity funds.

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United States

Virgin Islands

Australia

Hong Kong

Russia

Chile

Luxemburg

India

Indonesia

Kazakhstan

Colombia

5

7

3

1

9

11

13

15

17

19

18

COLOMBIA WAS ONE OF THE 20 MAINDESTINATIONS FOR FDI IN THE WORLD IN 2013

According to UNCTAD’s World Investment Report, Colombia was ranked among the top 20 countries receiving FDI worldwide with US $16 billion in 2012.

Source: World Investment Report, Overview 2013; FDI Markets, Global Greenfield Investment Trends, 2013; CEPAL 2013.

168

75

65

57

51

30

28

26

20

16

14

IN 2013, COLOMBIA’S CONTRIBUTION TO DIRECT FOREIGN INVESTMENTS IN LATIN AMERICA AND THE CARIBBEAN WAS 7.57%, OUTPERFORMING COUNTRIES SUCH AS CHILE AND PERU.

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IN 2013, COLOMBIAATTAINED FDI FLOWSTHAT WERE ALMOST 9 TIMES GREATER THAN THOSE ATTAINED 10 YEARS AGO

United States United Kingdom Spain Chile

US $25,980 million

Participation of 24.0%

US $15,672 million

Participation of 14.5%

US $7,902million

Participation of 7.3%

US $4,383 million

Participation of 4.1%

MAIN INVESTOR COUNTRIES / CUMULATIVE 2000–2013*

In 2013, Colombia reached its highest FDI flows in itshistory: It went from US $1,720 billion in 2003 to US $16,772billion. FDI growth also reached 8% in the period 2012-2013.

Colombia also became the country with the third highest FDI

flow as a percentage of GDP in the region.

Between 2000 and 2013, almost 50% of worldwide flows toColombia were generated by the United States, the United Kingdom, Spain and Chile.

Source: Central Bank of Colombia – Balance of Payments2012-2013, variation: + 8.0%.

*Share of the total number of countries with positive cumulative investment includes profit reinvestment and investments in the petroleum sector.

Note: The list of the main countries that invest in Colombia excludes Panama, Anguilla and Bermuda.

Average1994-2002

2011 2012Average 2003-2010

2,504

15,119

6,967

FDI, 1994-2013 US $MILLIONS

14,648

2013

8% Variation

16,354

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1.1% / 4.14

Colombia4.5% / 16.70

Brazil2.7% / 58.75

Peru6.3% / 13.19

Chile7.6% / 21.40

Ecuador0.6% / 0.59

Argentina1.9% / 9.17

Flow received from FDI/PIB (%)

Direct investment received US $billions

Source: Banco de la República - Balance of Payments.

56 IN 2013, COLOMBIA HAD THE THIRD GREATEST FLOW OF FDI IN THE REGION AS A PERCENTAGE OF GDP

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FDI FLOW - PRIMARY NONMINING SECTORS SHARE % - 2013

Source: Balance of payments, Central Bank of Colombia. ProColombia calculations.*Does not include FDI flows in the oil and mining sector.

Total FDI 2013:US $16,355 billion

Total IED 2013: US $8,469 billion*.

THE OIL SECTOR ACCOUNTED FOR 29.3% OF FDI IN COLOMBIA WITH 4,909 BILLION, FOLLOWED BY MINES AND qUARRIES WITH 17.4% (US $2,916 BILLION) AND MANUFACTURING INDUSTRIES WITH 15.9% (US $2,658 BILLION), AMONG OTHERS.

AMONG NONMINING SECTORS, MANUFACTURING, TRANSPORT, STORAGE AND COMMUNICATIONS, AND FINANCIAL AND BUSINESS SERVICES, REPRESENT MORE THAN 50% OF THE FDI FLOWS IN COLOMBIA IN 2013.

In 2013, sectors other than petroleum and mining represented51.8% of FDI in Colombia with US $8,469 billion.

Furthermore, the petroleum and mining sectors accounted for 48.2% of FDI in Colombia.

FDI FLOW - PRIMARY SECTORSSHARE % - 2013

Electricity,Gas,and Water 4.7%

Transport,Storage, and

Communications17.4%

Other 11.9%

Commerce,Restaurants, andHotels 16.6%

Finance andBusiness

Services 19.0%

Manufactures 30.5%

Electricity, Gas,and Water 2.4%

Manufactures 15,8%

Commerce,Restaurants,and Hotels 8.6%

Finance andBusiness

Services 9.8%

Other 6.1%

Oil Sector 30.0%Transport,

Storage, andCommunications

9.0%

Mines andQuarries

(Includes Coal) 18.2%

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INVESTORS HAVEFALLEN IN LOVE WITH COLOMBIAA recent article from an American publication highlighted foreigners’ optimism caused by the country’s economic stability and legal certainty.

Nicole Hong, author of the article ‘Investors Can’t Get Enough of Colombia,’ stated that “the country shows a positive growth and very low inflation compared to other emerging markets that failed to achieve such well-balanced growths. Colombia’s outlook is promising, which obviously makes it attractive to foreign capital.”

Wall Street Journal, March 12, 2014.

THE WORLDTALKS ABOUTCOLOMBIA

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One of the news media with the most history and tradition in Japan pointed out that due to its resistance to external upheaval,Colombia’s economy stands out in the region because of its stability, legal certainty, growth potential, abundant resources

and investment opportunities.

El País Internacional, February 19, 2014.

The Financial Times, the United Kingdom’s most influential news media, in its special report on “The New Colombia 2013”, emphasized that whereas other emerging-market economies have downturns, Colombia continues giving signs of growth.The special section includes articles such as “Colombia: A Country Rediscovered” and “The Peacemaker,” which emphasizes the factors that have allowed the country to improve its image internationally.

The New Colombia – Financial Times, June 4, 2013.

FINANCIAL TIMES

INTERNACIONAL

JAPAN’S WEEKLY ECONOMIST PLACED COLOMBIAAT “THE HEAD OF ITS CLASS IN SOUTH AMERICA”

That’s how Ruchir Sharma, head of the investment bank at Morgan Stanley’s Emerging Markets Department describes Colombia when asked which Latin American country had the best outlook, in an interview with the Spanish newspaper “El Pais.” Sharma stated that “Colombia is the country with the brightest future. It’s the most promising in Latin America,” and he includes it in his list of nations comprising the “region’s new gold coast.”

El País Internacional, February 19, 2014.

“THE MOST PROMISING NATION IN LATIN AMERICA”THE NEW COLOMBIA

THE NEW COLOMBIA

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Services

Manufactures

Agribusiness

SECTOR OPPORTUNITIES

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- In 2012, Colombia became one of the 15 countries with the greatest increase in its oil production (+35%), surpassing the growth of powers such as China and the United Arab Emirates (BP 2013).

- In 2013, the Colombian oil sector received a total foreign investment of USD 4,909 billion (29.3% of the total DFI of the country), (Banco de la República, 2014).

- Upstream services (exploration and production).

- The country’s oil production has increased by 86.1% in the last 10 years (1,006 kbpd in 2013), (ACP 2014).

- Midstream-Downstream Services (Transport, storage and refining).

- The country’s oil network is 5,325 km long, with a transport capacity of 1,268 kbpd,

Reasons to invest

OIL GOODS

POTENTIAL DEPARTMENTS

Huila

Putumayo

Meta

BolivarCundinamarca

Santander

Casanare

Arauca

- Colombia became the fourth largest oil producer in Latin America, surpassing Argentina, Ecuador, and Peru (BP 2013).

- Colombia hosts 5 of the principal players of the global Oil G&S sector (Schlumberger Limited, Halliburton Latin America, Baker Hughes, Wheatherford and Smith International S.A.), who represent more than 30% of the global market in the sector.

Opportunities have been identified in:the poliducts extend to 3,106 km with a transport capacity of refined products of 336,000 kbpd (Cenit 2014).

- The initiatives are aimed at increasing the capacity of national oil pipelines by between 30% and 35%, with 380,000 additional daily barrels. With the construction of Bicentenario and the extensions of Ocensa, ODC, and other pipelines, the system expects to reach an average of 1.15 million barrels transported per day for 2014 or 2015.

AND SERVICES

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•Voice BPO: telemarketing, collections, sales, customer service.

•Back office: financial and accounting services outsourcing, human resources, centres for shared services, logistics services, 2nd level help desk.

•KPO: engineering services outsourcing, telemedicine, R+D+i, graphic design, business analytics.

- The BPO industry makes up 62.4% of total revenues for the entire outsourcing sector in Colombia, reaching operating revenues of US $3,272 billion and exports in the amount of US $738 million. (Description of the BPO, KPO, ITO, PTP - IDC sector, 2013)

- The chief destinations for BPO services exports are the United States, Spain and Chile, which as a group account for 80% of the total exports by this sector. (Description of the BPO, KPO, ITO, PTP - IDC sector, 2013)

- Colombia was included in the “Top 30 Destination Countries for Offshore Services” report for the third consecutive year. This report highlights the country’s strengths as a location for call center operations and transactional BPO work, the Government’s

proactive support of the IT sector and competitive costs. (Gartner, 2013)

- This Colombian sector is moving forward to encompass activities that go beyond customer care in Spanish, such as: billing, human talent management, logistics and information analysis. (Description of the BPO, KPO, ITO, PTP - IDC sector, 2013)

- As a result of the business sector’s potential need for human talent certified in English as a second language, the Ispeak program was created by the Government. This program certifies English proficiency levels of Colombian citizens by using internationally endorsed tests with an existing base of more than 54,000 certified individuals up to January 2013. (Ispeak.gov)

Antioquia

Caldas

Risaralda

Valle del Cauca

Cundinamarca

Santander

Atlantico

BPO PRODUCTIVE

TRANSFORMATION PROGRAM

Reasons to invest

POTENTIAL DEPARTMENTS

Opportunities have been identified in:

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- A strong presence of small and medium enterprises in expansion and consolidation stages offering opportunities for investment strategies for equity funds management companies.

- Sectors such as infrastructure, real estate, oil and gas, micro-financing, energy, IT, tourism, health, forestry, and agro-industry offer investment opportunities. (Bancoldex)

- There is an excellent opportunity to obtain local capital resources from institutional investors such as pension fund administrators and insurance companies, which have had positive results in recent years.

- The presence of important international managers supports the consolidation of the equity funds industry in Colombia, with 40 million closed ended funds with a committed capital which exceeds USD 4,300 billion. (Bancoldex)

- Macroeconomic stability and favourable long term economic performance. In 2012, Colombia’s GNP grew by 4%, in 2013 it grew by 4.3%. Growth in the previous year was greater than that experienced by the entire Latin American region and the Caribbean (2.7%). (DANE, Departamento Administrativo Nacional de Estadistica [National Administrative Statistics Department] and IMF)

- In 2013, Colombia ranked 4th among 12 Latin American and Caribbean countries because of its favourable conditions for the development of the private equity funds industry. (LAVCA)

- Colombia has a growing middle class population and the percentage of the adult population with access to financial products is 71.5%. (Fedesarrollo and Superbancaria)

- The equity funds sector has government support through the Bancoldex Capital programme created to promote the industry in Colombia and through the Colombian Equity

PRIVATE

Funds Association COLCAPITAL that seeks to strengthen and promote the development of the sector in the country.

- One of Colombia’s strengths is its attractive regulatory framework for the creation and administration of private equity funds. (LAVCA)

- The integration of the stock markets of Colombia, Chile, and Peru has made them an excellent exit strategy for private equity funds, with greater diversification options for investors and access to capital markets.

- Colombia has made progress in the implementation of reforms to improve the business environment and currently, it is ranked 43rd out of 189 economies. (Doing Business 2014)

- The country is also internationally recognised for protecting investors, being ranked 6th in the world and 1st in Latin America. (Doing Business 2014)

EQUITY FUNDSReasons to invest

Opportunities have been identified in:

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RAILWAYS• Central Railway System: 1,045 km. Project currently being structured to initiate a public

tender process.

• El Carare Train Concession: 460 km, construction of second line on the Atlantic Railway Network (45 km La Loma - Cienaga).

• The National Government plans to increase investment to US $10 billion in 2014 and US $30 billion in 2021.

• Colombia is the country with the third largest infrastructure needs in Latin America. It has 250 km of

paved road network per million inhabitants while countries like Chile have 1,000 km.

• According to BP, Colombia was the sixth biggest world coal producer in 2012, with an international export

handling requirement of 110 million tons per year.

• Project to improve navigability and cargo transport along Magdalena River.

• Orinoco Corridor: Meta – Orinoco – Atlantico.

• Amazon Corridor: Putumayo – Amazon – Atlantico.

• Construction of 1 new port in Dibulla (Guajira) and 2 new ports between Cienaga and Santa Marta.

• Expansion of new container ports in Cartagena and increased oil export capacity via the Ecopetrol port in Coveñas.

• Deepening of the Buenaventura access channel is currently underway and will shortly be followed by

a deepening of the Cartagena access channel.

• The Ministry of Transport has been implementing a program called Roads for Prosperity, to improve 50,000 km of the tertiary road network over a four-year period.

• The Colombian Government plans to have 5,200 km of dual carriageway in place by 2021.

RIVER AND PORT PROJECTS

AIRPORT INFRASTRUCTURE

• In 2014, passenger numbers will increase from 23.4 to 30 million.

• In 2014, works will be completed at the El Dorado terminal and a new control tower will be built.

• By mid-2013, new airports will be built in Cartago, Armenia, Neiva, and Popayan and the license to operate the Ernesto Cortissoz Airport in Barranquilla will be re-awarded.

• Civil works at Cali Airport and structuring of the new airport in Ipiales.

OPPORTUNITIES

ROAD INFRASTRUCTURE

Source: National Infrastructure Agency, ANI.

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AIRPORTS

Ruta del Sol (sector 1, 2 and 3)

Coffee Triangle airports

Americas-sector 1

Autopista de la Prosperidad

Buenaventura-Bogota-Cucuta corridor

PORTS

RAILWAYS

Ports

Central Railway System

Atlantic Railway Network

Highland Railways

El Carare Rail Project

Pacific Railway Network Fuente Mapa: ANI.Source: ANI.

MOTORWAYS FOR COMPETITIVENESS

Airports under license

Northeast airports

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HOTEL AND TOURISM INFRASTRUCTURE - The growth in the arrival of foreign visitors to Colombia is above the global average. International traveller arrivals to Colombia grew from 600 thousand in the year 2000 to more than 1.8 million in 2013. (Colombian Migration, 2014)

- There are tax incentives such as income tax exemptions for a period of 30 years in hotel infrastructure, income tax exemptions for a period of 20 years: Exempted income provided by ecotourism services for a term of 20 years starting in the 2003 tax year and tax and customs incentives for capital goods for tourisms exports. (Plan Vallejo)

- In 2013, the employed personnel increased by 0.6% from the previous year, while the percentage of hotel occupancy reached 52.5%. (DANE, Departamento Administrativo Nacional de Estadistica [National Administrative Statistics Department], 2014)

- Real hotel revenues have grown on average by 4.7% in the last four years. (DANE, 2014)

- Colombia has around 800 international airline connections that link 20 destinations around the world.

- Colombia jumped 21 places (from 50th place to 29th place) in the ranking of international events produced by the ICCA (International Congress and Convention Association) between 2006 and 2012.

- Tourism is the third ranked sector in producing foreign currency for Colombia, after oil and coal, and is ahead of traditional sectors such as coffee, flowers, and bananas.

- Important international hotel chains are present in the country such as Accor, Hilton, IHG, Wyndham, Meliá, Marriott, City Express, Pestana and Starwood, among others.

Wellness Tourism:Development of centres for thalassotherapy, infrastructure for hot springs and spas - wellness centres.Nature:Investment in “eco-luxury” hotels, ecogambling, ecolodges and ancillary sustainable infrastructure complementing nature tourism (nature trails, observation towers, bridges, environmental management infrastructure, etc.).

Opportunities have been identified in:Sun and Beaches:Development of luxury hotels, “luxury included” resorts, and golf resorts.Urban Hotels:Construction of hotels with full, limited and select services and for long-term stays in the secondary cities of the country, where the market does not yet cater for the demand for hotels.Entertainment:Construction of theme parks, show and event venues (concerts).

Reasons to invest

San Andres

Bolivar

Antioquia

Choco

Cordoba

Santander

Boyaca

Guajira

Magdalena

Vichada

Valle del Cauca

Bogota

Amazonas

Atlantico

Coffee Cultural Landscape

Altillanura

POTENTIAL DEPARTMENTS

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Sources: • National Planning Department.

• Conpes-National, Logistic Politic (2008).

• Port Supervision Authority.

• Ministry of Transport.

• Regional Port Authorities.

• Invias.

• International cargo market of 120 million tons (seaports only).

• Local cargo market of 160 million tons, and an air cargo market of 680,000 tons.

• 75% of the world’s largest distribution companies have access to the service ports handling Colombian imports and exports.

• Over 80% of foreign trade, in volume and value, is concentrated in 5 cities and their service areas, but the country has one of the longest average distances

• The privileged position of Colombia, with coastlines facing the Pacific Ocean and the Atlantic Ocean and as a gateway to South America, enables it to have connections with the world’s main ports and production and distribution centers.

• Creation of logistics platforms (transshipment platforms).

• Creation of dry ports.

• Creation of an infrastructure that will allow for multimodal transport.

• Improvement of cold chain (division of cold, dry, and frozen foods increase in capacity of sorticontainers).

• Introduction of information systems to enable real time monitoring of loading and unloading of goods (at certain ports).

• Thanks to its trade treaties, Colombia has preferential access to 1,500 million consumers.

• Low freight charges compared with other countries in the region for general transport of goods to markets in North America, South America, and Central America.

• Approximately 1,000 cargo flight frequencies.

• Third most important market in Latin America.

between centers of production and consumption.

• Coal and fuel account for 75% of the country’s volume of foreign trade. Excluding these, 81% of the value of trade is handled in containers, the rest in dry bulk.

• 47% of cargo handled in the 4 main port cities (Buenaventura, Santa Marta, Cartagena, and Barranquilla) consists of containers, the main port being Cartagena. 22% is coal, mostly handled by Santa Marta, and 20% is solid bulk.

GENERAL INFORMATIONOPPORTUNITIES

BENEFITS

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TYPES OF LOGISTICS PLATFORMS

Urban distribution and cargo consolidation logistics areas

Support at border logistics areas

Regional cargo consolidation logistics areas

Port Logistic Actitivity Zones (LAZ)

Riohacha

MaicaoValledupar

Sta. Marta

Barranquilla

Cartagena

Monteria

Turbo

BarrancabermejaMedellin

ManizalesPereiraArmenia

IbagueBuga

Neiva

Cali

TumacoPasto

Ipiales

Popayan

Buenaventura

Sincelejo

Cucuta

Bucaramanga

Pto. Berrio

Tunja

Bogota, D.C.

Dry ports

Multimodal platforms Source: CONPES.

Air cargo centers

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Opportunities have been identified in:

SOFTWARE AND IT SERVICES

¯ In 2013, IT sales reached US $6,959 billion, showing a growth of more than 22% during the last three years (IDC, 2013).

¯ IT services account for 32% of the total

sales in the sector, reaching US $2,232 billion and concentrating on outsourcing and development and support services (IDC, 2013).

¯ It is expected that IT service sales in Colombia will double in the next 5 years (IDC, 2013).

¯ Companies are demanding basic solutions

Reasons to invest such as the management of corporate risk and management systems for the supply chain (BMI, 2013).

¯ Fedesoft expects to train 1,000 software developers and provide 4,300 grants to Colombian students in this sector (BMI, 2013).

¯ The industries that most require Software and IT services are the telecommunications sector, the financial sector, the Government, the consumer goods sector, the manufacturing sector and SMEs (BMI, 2013).

¯ IT services: Development of phone and web applications, and the development of 3D, big data, and cloud computing platforms.

¯ Software: Development of software for management of documents, developments in Java and Oracle, and testing software.

Antioquia

Valle del Cauca

Cauca

Cundinamarca

Risaralda

Atlantico

Santander

PRODUCTIVE TRANSFORMATION

PROGRAM

POTENTIAL DEPARTMENTS

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Reasons to invest Colombia is the fourth largest producer of vehicles in Latin America, employing 2.6% (24,783 direct employees) of the personnel involved in the manufacturing industry. In addition, the sector represents 4% of the industrial GDP.

The Colombian automotive sector comprises four assembling companies: Renault Sofasa, GM Colmotores, Mazda-CCA and Toyota-Hino.

During 2012, the number of vehicles assembled in Colombia was approximately 150 thousand units, a number slightly less than that obtained in 2011, which was

AUTOMOTIVE

154 thousand units. However, the production of the assembly plants during these two years is the largest in the history of the Colombian automotive sector. The apparent domestic consumption of vehicles has stayed above 300 thousand annual units. Vehicle sales reached a historic high in 2011.

During 2012 and 2013, sales were close to 300 thousand units. It is expected that sales in 2014 will be of 302 thousand units and 314 thousand units in 2015.

Opportunities have been identified in: The assembly of low cost passenger vehicles.

The assembly of buses.

The manufacture of car parts for interior trim, electric components, and other engine parts.

Risaralda

Cundinamarca

Valle del Cauca

Atlantico

Antioquia

PRODUCTIVE TRANSFORMATION

PROGRAMME

POTENTIAL DEPARTMENTS

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Reasons to invest

Opportunities have been identified in:

PRODUCTIVE TRANSFORMATION

PROGRAME

- The construction of production centres to supply the growing internal market with the facilities to obtain raw materials, qualified labour and suppliers of packaging.

- Establishment of centres for research, development, and innovation that make use of

- Sales in the sector grew at a rate of 6.9% between 2000 and 2013, and it is expected by 2018 the sector will reach a growth of 7.4% in comparison to 2013 (Euromonitor International, 2014).

- Availability of qualified labour for research and production with more than 130,000 professionals and technicians available for the cosmetics and toiletries sector (Observatorio Laboral, 2013).

- Existence of more than 300 packaging companies for cosmetics (BPR Benchmark, 2013).

- Between 2010 and 2013, exports of cosmetics and toiletries increased by 10% CAGR and seven times since 2000. There is a high probability of maintaining this trend thanks to existing trade agreements and those to be entered into in the future (DANE, 2014).

- A greater participation in foreign sales is generated by the cosmetics segment since several companies located in Colombia supply regional markets, as well as important distribution centres for Latin America. (Andi, Asociación de Empresarios de Colombia [Colombian Businessmen’s Association]), (Cosmetics and Toiletries Industry Chamber).

- Colombia has a female market which is growing in importance due to the growing participation of women in the workplace. 42% of the labour market is composed of women. The number of female managers is greater than that of Latin American countries and some industrialized countries such as Canada, the United Kingdom, Germany, Japan, and France.

- The consumption of cosmetic articles and toiletries in Colombia by men and adolescents is growing. It is expected that by 2015, the male market will account for 25% of the total, and in 2016, the adolescent market will reach 10% (Dinero magazine, 2012).

- Incentives associated with Research and Development such as the income tax deduction equivalent to 175% of the value invested in R+D and the exemption from VAT for the importation of equipment and elements intended for R+D centres. In addition, the revenues received by companies to finance scientific, technological, or innovation projects are not considered income.

COSMETICS

the tax incentives provided for R+D+i projects. - Establishment of centres for logistical distribution to the rest of the Americas that make use of the country’s strategic location and its 13 free trade agreements.

Antioquia

Magdalena

Valle del Cauca

Cundinamarca and Bogota

POTENTIAL DEPARTMENTS

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- The production of paints and varnishes. Paint production in Colombia has grown since 2009 by an average rate of 17.1%, reaching an annual production of more than US $300 million. Sales have demonstrated this same tendency, keeping inventories at minimum levels.

- The production of cement and lime and plaster products. In the last three years, the operational revenues of cement producers have grown on average by 25%, while production has grown

- The demand for materials has grown by an average of 5.8% in the last five years, propelled principally by building construction which accounts for approximately 42% of the production, and civil construction works which account for 32%. In 2011, internal demand reached US $10 billion.

- The Colombia construction industry is the third largest in Latin America after Brazil and Mexico (US $109 billion between 2008 and 2012). The industry is expected to double its size by 2020 going from US $28 billion to US $52 billion (a growth of 8.5% CAGR).

- The sector with the most growth during 2013. With an increase of 9.8% the construction industry occupied the top place among the sectors that grew the most domestically.

- Investment in infrastructure will reach 3% of GDP in 2014 (US $10 billion). Of which US $3 billion will be invested in public works and US $7 billion through concessions. This investment is allocated to the construction of new roads, the improvement of the existing road network, the improvement of airports, ports, and development of railways (National Infrastructure Agency, 2013).

- The construction of buildings grew by 11.1% on average during the last five years, housing being the sector with the most dynamism. The latter has been targeted by government policies that aim to build 1 million dwellings up to 2014, increase household income and reduce interest rates for mortgage loans.

Opportunities have been identified in:

Reasons to invest

CONSTRUCTION MATERIALS

close to 7%. A determining factor for the increase in revenue is the increase in the price of cement in the country (US $250 per ton). In addition, the construction fabric of buildings has evolved towards the use of prefabricated elements, which has generated significant growth in the demand for plaster and concrete panels.

- The production of nonfired clay and ceramic products, for structural use, such as earthenware or porcelain toilets, kitchen utensils, sinks and insulators.

Tolima

Cundinamarca

Valle del Cauca

Atlantico

Boyaca

POTENTIAL DEPARTMENTS

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- Steel and flat steel products and structural metal products.

- Industrial machinery. In particular, machinery for agriculture, mining, construction and machinery for the transmission of energy.

- Electronic components such as electrical equipment and communication and energy cables.

Opportunities have been identified in

- Metalworking industry production represents 12% of the country’s industrial production.

- Close to 59% of the steel consumed in Colombia is produced within the country. The production of long steel accounts for 74.8% of total steel production, equal to 1.3 million annual tons. The production of flat steels accounts for the remaining 25.2%, in other words, 435,000 tons.

Reasons to invest

- The metalworking industrial chain occupies the second place among the principal sectors which import raw materials. Approximately 15% of imports of raw materials in Colombia during 2013, related to imports for the metalworking industry.

- Colombia has 9,752 companies in the industry, of which 1,702 (17.4% of the total) are part of the metalworking chain.

METALWORKING

DEPARTMENTS WITH POTENTIAL

Tolima

Cundinamarca

Valle del Cauca

Bolivar

CaldasRisaralda

Tolima

Boyaca

Magdalena

Atlantico

POTENTIAL DEPARTMENTS

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Opportunities have been identified in:

Reasons to invest

FASHION SYSTEM

- Establishment of production units for textiles to supply the growing dressmaking industry.

- Establishment of logistical distribution centres to Latin America and the Caribbean benefit from the strategic location of the country and Colombia’s 13 free trade agreements.

- A priority sector for the country driven by the Productive Transformation Programme, a public private partnership which promotes the consolidation of the Colombian Clothing industry into a World Class sector.

- Throughout the last decade, the market of the Colombian clothing industry has reached a compound annual rate of 4.2% with a market value of US $8,690 up to 2014, consolidating itself as the third leading country in the region after Argentina and Brazil. (Euromonitor International, 2014)

- A growing industry with an increasing demand for textiles, imports in this category increased at rate of more than 30%, in the last decade to supply the requirements of the local market and generate an exportable supply of finished goods towards main trading partners such as the United States, Mexico, and Ecuador. (DIAN,

Dirección de Impuestos y Aduanas Nacionales de Colombia [Colombian Tax and Customs Authority], 2013)

- A dynamic internal market with a growth between 2004 and 2014 of 4.2% in the consumption of clothing articles, reaching a total of more than US $82,487 million in purchases for households in this category. (Euromonitor International, 2014)

- Incentives associated with research and development such as the deduction of income tax equal to 175% of the invested value in R+D and exemption from VAT for the importation of equipment and elements intended for R+D centres. Additionally, the revenue received by the companies to finance scientific, technological, or innovation projects is revenue which does.

Antioquia

Cundinamarca-Bogota

Risaralda

POTENTIAL DEPARTMENTS

PRODUCTIVE TRANSFORMATION

PROGRAMME

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Opportunities have been identified in:

AQUATIC - The country is located along the equator, a region which is defined by a low incidence of hurricanes and other natural phenomena which could interfere with development along Colombian coasts. (IGAC, insituto Geografico Agustin Codazzi [Agustin Codazzi Geographical Institute]).

- With 2,612 mm/year, Colombia has the highest rate of rainfall in South America and the 10th highest in the world, which allows it to maintain stable fresh water supplies in reservoirs and lakes, for its use in fish farming (FAO).

- It has continental areas which comply with the physical requirements needed to develop fish farming developments for fish such as: tilapia, cobia, trout, grouper, bocachico, and palmaro, among others.

- Productive partnerships for the reactivation of disused farms and infrastructure for shrimp cultivation on the Caribbean and Pacific coasts, which had previously been productive and profitable.

- Strategic partnerships with local fish farmers which seek to increase their production and

BolivarSucre

Tolima

Huila

Nariño

Boyaca

Atlantico

Guajira - The presence of research centres with wide international recognition such as CENIACUA (Centro de Investigación de la Acuicultura en Colombia [Research Centre for Aquaculture in Colombia]), that generate scientific and technological knowledge for the development of the industry through the establishment of better practices in cultivation and production. In addition, this centre has a genetic improvement program that is nationally and internationally recognized.

- Free trade treaties which are in force, agreed, or in negotiation, with the principal centres of international consumption.

- Global trends indicate that for 2015, aquaculture will overtake traditional fishing, becoming the principal source of fish for human consumption (Agricultural Outlook, 2013-2022, FAO-OECD).

Reasons to invest

Cauca

Valle del Cauca

Choco

Cordoba

Magdalena

PRODUCTIVE TRANSFORMATION

PROGRAMME

POTENTIAL DEPARTMENTS

realization of investments to improve the returns of the fish farms.

- Greenfield investment or Joint Ventures for extensions and/or establishment of processing plants aimed at covering domestic demand and generating export surpluses for fresh, as well as processed production.

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- Colombia has a mandatory policy of mixing biofuels, which depends directly on the production of the domestic market. As a result, when the amount of available biofuels increases, the National Government has the power to increase the levels of the mix, and therefore, its domestic consumption will tend to increase.

- The existence of a pricing policy, where the Government, through the Ministry of Mines and Energy, establishes on a monthly basis, a price to be paid to ethanol and biodiesel producers.

- Sugarcane ethanol and palm oil biodiesel produced in Colombia have been proven to comply with and surpass the standards required by the markets of the United States and the European Union (EMPA-Life cycle

- The construction of bio-refineries, biomass transformation plants and the development of transesterification centres which transform palm oil into biodiesel. Colombia is in the position to achieve an annual production of close to one million tons (MinAgricultura, Ministry of Agriculture and Rural Development).

- Strategic partnerships with current biodiesel producers, aiming to improve the current production of 386,953 litres per day (the highest in the country). (Fedebiocombustibles, Federación Nacional de Biocombustibles de Colombia [Colombian National Biofuels Federation], 2013).

- There are projects which are currently in development that need a strategic partner to enter into the production stage. In addition, there are new projects to develop which need capital investors to commence their production stage.

- Greenfield investment in research projects for the development of second generation biofuels led by local partners with experience in the sector. These types of biofuels will be the future of the industry thanks to the potential and benefits linked to their production and consumption.

BIOFUELS

Meta

Bolivar

Valle del Cauca

Cesar

Santander

Casanare

Magdalena

Analysis of Biofuels).

- Once local demand is satisfied, surplus production can be earmarked for international markets by making use of the benefits of access to those markets provided by existing free trade agreements.

- Ethanol produced in Colombia reduces the emission of greenhouse gases by 74% and biodiesel achieves reductions of 83%.

- Easy access to a network of R+D+i centres to provide support to the industry, The Centre for Research and Technological Innovation for Palm Oil (CENIPALMA, Centro de Investigación e Innovación Tecnológica en Palma de Aceite and CENICAÑA, Centro de Investigación de Caña de Azúcar de Colombia [Research Centre for Colombian Sugarcane]).

Reasons to invest

Opportunities have been identified in:

POTENTIAL DEPARTMENTS

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Reasons to invest

- Reasons to invest in the cocoa, chocolate, and confectionery sectors:

- The Colombian cocoa bean is well-known in international markets for its unique taste and outstanding aroma, and has received awards from the International Cocoa Organization (ICCO), because of these characteristics that only 5% of global beans possess.

- The country has edaphic, topographic, and climactic conditions which are suitable for the production of cocoa (MinAgricultura, Ministry of Agriculture and Rural Development).

- The cocoa, chocolate and confectionery sector are part of the Programme for Productive Transformation (PTP) of the Commerce, Industry and Tourism Ministry, which seeks to improve

the competitiveness of the sector through public-private partnerships and business plans.

- Colombia offers income tax exemptions for investments in new slow-maturing plantations, cocoa among them. This benefit covers plantations established up to December 31st of 2014 and extends for 10 years counted from the commencement of production.

- The country has policies for agricultural and livestock technological innovation by means of research and innovation agendas by productive chain, headed by CORPOICA (a joint venture which provides knowledge and solutions to the agricultural and livestock sector, with 7 research centres, 8 testing centres and 270 researchers). (2010-2014, National Development Plan).

- Strategic partnerships with local partners for the construction of plants which allow the transformation of cocoa into products such as cocoa butter and cacao liquor. Colombia can supply an annual production of close to 100,000 tons of cocoa (MinAgricultura, Ministry of Agriculture and Rural Development).

- Investment in development aimed at increasing the average productivity of 400

kg/ha/year to 1,200 kg/ha/year and reaching productivities of 1,800 kg/ha/year in modern plantations (Ten Year Cocoa Plan, 2012-2021).

- Productive partnerships with local cocoa producers to connect to small producers that own lands in the joint development of medium and long-term projects where there is a commitment to supply raw materials.

COCOA, CHOCOLATE AND CONFECTIONERY

Huila

Tolima

Meta

Bolivar

Antioquia

Nariño

Norte de Santander

Santander

Casanare

Arauca

- Act 939 of 2004, Article 1. In any case, companies are subject to CREE (2013-2015 9% and 8% from 2016).

- Act 939 of 2004, 2nd Article.

Opportunities have been identified in:

PRODUCTIVE TRANSFORMATION

PROGRAMME

POTENTIAL DEPARTMENTS

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- With the fourth largest production of beef in Latin America, a per capita beef consumption which is on the increase (2% CAGR in the last 6 years) and a significant contribution to international markets in beef products, Colombia has positioned itself as an attractive direct foreign investment destination for the beef sector.

- Since 2009, the World Organization for Animal Health, OIE, provided the certification which completes the Colombian map as a country free from foot and mouth disease with vaccination.

- 99% of cattle in Colombia is 100% pasture fed. Important advances have been made in the last

- Joint ventures with local partners or Greenfield projects in the improvement of the refrigeration chain from the freezers up to the distribution chains and final destinations.

- Greenfield investment or joint ventures with local partners for the manufacture of products deriving from the cattle industry, such as,

BEEFthree decades in cattle and pig genetics, which is an important factor in the quality of the meat.

- Colombia offers incentives to promote investment in meat sector projects, significant among which are the duty-free zones (multi-user and individual) and the Vallejo Plan.

- Aiming to make the best use of international trade and existing trade agreements, Colombian companies are currently authorized to access countries such as Venezuela, Peru, Russia, Egypt, Curacao, among others.

- Sanitary protocols are being produced to be able to allow beef products to have access to markets such as the Chinese and South Korean.

fertilizer, leather, among others. - Installation of freezers near production centres to obtain access and high-quality standards in international markets.

- Processed foods: Joint ventures with local partners or Greenfield projects in the processed meats industry.

Santander

Meta

Cordoba

Antioquia

Caldas

Sucre

AtlanticoReasons to invest

Opportunities have been identified in:

POTENTIAL DEPARTMENTS

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HORTICULTURE - With more than 600,000 hectares and 8.5 million tons of fruit production, Colombia is the third country of Latin America with the largest farmed area with fruit trees and has the fourth highest production in the region (FAO).

- Colombia is one of the countries with the greatest availability of soils and variety of climates in the world for the cultivation of fruits and vegetables. Due to its nature as a tropical country located along the equator, the entire country benefits from increased daylight, allowing harvesting throughout the entire year.

- Colombia has a variety of ecosystems where more than 95 types of fruit trees are grown, among which are native species, as well as others brought from areas along the equator in other continents.

- The construction of plants for processed food such as pulps, jams, sauces and other products derived from fruits and vegetables in order to commercialize the production in the internal market and explore export markets.

- Assembly of plants with Individually Quick Frozen (IQF) product lines with the aim of exploiting the access of this kind of products into countries with whom there are trade agreements and into other countries.

- Installation of hydro-thermal treatment plants to facilitate sanitary access to fruits such as papaya, pitahaya and mango, among others.

Opportunities have been identified in:

Reasons to invest - Colombia has two of the most prestigious research centres, the International Centre for Tropical Agriculture (CIAT), and the Colombian Corporation for Farming and Livestock Investigation, CORPOICA.

- Colombian fruits and vegetables, as compared to those of other subtropical countries, in both northern and southern hemispheres, are of higher quality from an organoleptic point of view, in particular regarding their colour, taste, aroma, and greater content of soluble solids and Brix values.

- Five fruits and two vegetables are part of the Productive Transformation Programme (PTP, Programa de Transformación Productiva) of the Commerce, Industry and Tourism Ministry (MinCIT), which seeks to improve the competitiveness of the sector through public-private partnerships and business plans.

- Installation of Colombian industrial and fruit collection centres for their correct selection, preparation, and exportation. The existence of ports on the Caribbean and Pacific coasts provides easy access to international markets in order to benefit from the 13 free trade agreements (MinCIT, 2014).

- Strategic partnerships with local horticultural owners and producers in order to exploit more than seven million hectares with fruit growing potential found within the country (Asohofrucol, Asociación Hortifruticola de Colombia [Colombian Horticultural and Fruit Association]).

Bolivar

Antioquia

Caldas

Santander

Norte de Santander

Casanare

Boyaca

Valle del Cauca

Huila

Atlantico

Cundinamarca

Quindio

Tolima

Meta

PRODUCTIVE TRANSFORMATION

PROGRAMME

POTENTIAL DEPARTMENTS

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DAIRY

- Colombia is the fourth largest milk producer in Latin America with an approximate value of 6,398 billion litres per year, surpassed only by Brazil, Mexico, and Argentina (Fedegán, 2012).

- The quality of the milk produced in Colombia contains percentages of protein and fat that are greater than those of important global producers such as New Zealand, Germany, Switzerland, Canada and the United States (Fedegán, 2012).

- For the production of dairy products such

- Greenfield investment or joint ventures with dairy cooperatives in Colombia, for the construction of cooling, pasteurizing and milk powder producing plants, which allow local producers to suitably conserve the raw material and in this way replace the large dairy industries.

- Partnerships with local partners for the production of dairy derived products such as powdered milk, cheese and yogurt. Colombia possesses departments that are able to supply 3.1 million annual litres of milk for the dairy

Antioquia

Cesar

Caqueta

Nariño

Boyaca

Cundinamarca

as yogurt, flavoured milk and other types of dairy products, Colombia offers a large variety of frozen processed fruits (IQF). Fruits such as pineapples, mangos, papayas, strawberries, melons, gooseberries and bananas stand out among the processed fruits produced by Colombia.

- Colombia offers various incentives which can benefit the transformation of dairy products in Colombia: (i) duty-free zone regime, which includes a special regime for dairy products, (ii) incentives for formalization of businesses, (iii) incentives for job creation.

industry located in this region (National Dairy Council - National and Departmental Collection of Raw Milk, 2013).

- Greenfield investment in the development of certified enterprises such as organic and environmentally friendly products, since these have a growing importance in the Colombian market, as well as globally.

- Productive partnerships with local producers to improve the quality of products and guarantee access to international markets.

PRODUCTIVE TRANSFORMATION

PROGRAMMEReasons to invest

Opportunities have been identified in:

POTENTIAL DEPARTMENTS

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Procolombia.

WHO ARE WE?

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Colombia as an international tourist destination, attracting direct foreign investment and fostering nontraditional exports.

Through our national and international office network, we provide support and comprehensive assistance to national entrepreneurs, through offering services with the aim of facilitating the design and execution of its internationalization strategy, seeking the generation and tracking of business opportunities.

We foster international business through the identification of market opportunities, the design of penetration strategies, the internationalization of companies, assistance in the design of action plans, contact between entrepreneurs in sales promotion, investment and international tourism activities; the specialized services offered to foreign entrepreneurs who are interested in acquiring Colombian goods and services or investing in Colombia, and the creation of alliances with private and public, national and international entities, enabling us to broaden the availability of resources in order to support the various corporate initiatives promoted by the organization for the development and improvement of its service portfolio.

Our network of sales promotion offices helps us to provide a wide array of services, both for Colombian exporters, international buyers and foreign investors.

PROCOLOMBIA SERVICES

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Specialized websites.

International seminars

and events.

Information Accompaniment

Legal guide to do business,free trade zones directory,legal services directory,news and announcements,newsletters.

Promotional events

APRI’S

Coordination and development of

investment agendas.

SIFAIEncouraging

and facilitating investment

system.

Support and follow-up of the

stablished investors.

Media outreach.

Preparation of tailor-made information.

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THE PRESENCE OF PROCOLOMBIA COLOMBIA IN THE COUNTRY

Cartagena de Indias.

VALLE • CaliCarrera 2ª Oeste N.º 6-08,oficina 403Tels.: 57 (2) 892 0291 / 94 / 96 / [email protected]

CUNDINAMARCA • BogotáCalle 28 N.º 13A-15, pisos 35 y 36Tel.: 57 (1) 560 01 [email protected]

ANTIOQUIA • MedellínCalle 4 Sur N.º 43A-30,Suite 401, Formacol BuildingTel.: 57 (4) 352 [email protected]

COFFEE CULTURAL LANDSCAPE REGION • PereiraCra. 13 13-40, Suites 402 y 403 -Uniplex Mall, AvenidaCircunvalarTel.: 57 (6) 335 [email protected][email protected]@procolombia.co

ATLANTICO • BarranquillaCalle 77B N.º 59-61,Centro 2, Suite 306

Tel.: 57 (5) 360 [email protected]

BOLIVAR • CartagenaCartagena Convention Center

Tel.: 57 (5) 654 [email protected]

SAN [email protected]

NORTE DE SANTANDER • Cucuta

Calle 10 N.º 4-26, piso 4, Torre A, EdificioCúcuta Chamber of Commerce

Tels.: 57 (7) 571 7979 / 5835998 / 5724088

[email protected]

SANTANDER • BucaramangaCalle 31A N.º 26-15, Suite 706,

La Florida - Cañavera MalllTel.: 57 (7) 638 2278

[email protected]

Regional ProColombia Colombia offices

ProColombia Information Centers

VALLE • CaliCarrera 2ª Oeste N.º 6-08,oficina 403Tels.: 57 (2) 892 0291 / 94 / 96 / [email protected]

CUNDINAMARCA • BogotáCalle 28 N.º 13A-15, pisos 35 y 36Tel.: 57 (1) 560 01 [email protected]

ANTIOQUIA • MedellínCalle 4 Sur N.º 43A-30,Suite 401, Formacol BuildingTel.: 57 (4) 352 [email protected]

COFFEE CULTURAL LANDSCAPE REGION • PereiraCra. 13 13-40, Suites 402 y 403 -Uniplex Mall, AvenidaCircunvalarTel.: 57 (6) 335 [email protected][email protected]@procolombia.co

ATLANTICO • BarranquillaCalle 77B N.º 59-61,Centro 2, Suite 306

Tel.: 57 (5) 360 [email protected]

BOLIVAR • CartagenaCartagena Convention Center

Tel.: 57 (5) 654 [email protected]

SAN [email protected]

NORTE DE SANTANDER • Cucuta

Calle 10 N.º 4-26, piso 4, Torre A, EdificioCúcuta Chamber of Commerce

Tels.: 57 (7) 571 7979 / 5835998 / 5724088

[email protected]

SANTANDER • BucaramangaCalle 31A N.º 26-15, Suite 706,

La Florida - Cañavera MalllTel.: 57 (7) 638 2278

[email protected]

Regional ProColombia Colombia offices

ProColombia Information Centers

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PROCOLOMBIADIRECTORY

CanadaTorontoMontrealVancouverUnited StatesMiamiWashington D.C.New YorkAtlantaTexasLos AngelesChicagoMexicoMexico CityGuatemalaCosta RicaEcuadorPeruChileArgentinaBrazilVenezuelaPanamaCaribbeanPuerto RicoTrinidad and TobagoDominican RepublicGermanyUnited KingdomFrancePortugalSpainTurkeyRussiaUnited Arab EmiratesIndiaChinaBeijingShanghaiSouth KoreaJapanIndonesiaColombia

[email protected]@[email protected]

[email protected]@[email protected]@[email protected]@[email protected]

[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]@[email protected]

[email protected]@[email protected]@[email protected]@procolombia.co

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INDONESIA

Montreal,Toronto.Vancouver

CANADA

UNITEDKINGDOM

JAPAN SOUTH KOREA

CHINABeijing ,Shanghai,

FRANCE

SPAIN

GERMANY

RUSSIA

TURKEY

UNITED STATESSan Francisco, Miami, Los Angeles, Washington D.C.New York, Houston, Atlanta, Dallas. Chicago

MEXICOMexico City, Guadalajara.

NORTH TRIANGLE (Guatemala, Honduras, El Salvador)

COSTA RICA (Panama).

ECUADOR

PERU

CHILE

CARIBBEANPto.Rico, Dominican RepublicTrinidad and Tobago

Poland and Sweden

VENEZUELA

ARGENTINA

BRAZILUNITEDARABEMIRATES

INDIA

PORTUGAL

COLOMBIA

PROCOLOMBIAIN THE WORLD

[email protected]

For more information aboutthe investment opportunities in

Colombia please contact:

Page 87: Investment booklet 2015

INDONESIA

Montreal,Toronto.Vancouver

CANADA

UNITEDKINGDOM

JAPAN SOUTH KOREA

CHINABeijing ,Shanghai,

FRANCE

SPAIN

GERMANY

RUSSIA

TURKEY

UNITED STATESSan Francisco, Miami, Los Angeles, Washington D.C.New York, Houston, Atlanta, Dallas. Chicago

MEXICOMexico City, Guadalajara.

NORTH TRIANGLE (Guatemala, Honduras, El Salvador)

COSTA RICA (Panama).

ECUADOR

PERU

CHILE

CARIBBEANPto.Rico, Dominican RepublicTrinidad and Tobago

Poland and Sweden

VENEZUELA

ARGENTINA

BRAZILUNITEDARABEMIRATES

INDIA

PORTUGAL

COLOMBIA

PROCOLOMBIAIN THE WORLD

[email protected]

For more information aboutthe investment opportunities in

Colombia please contact:

Page 88: Investment booklet 2015

@procolombiaco

PROCOLOMBIA.CO

Libertad y Orden