Presentación Colombia - Inglés150 226 302 300 397 425 373 432 448 387 401 415 595 600 1.089 1,176...
Transcript of Presentación Colombia - Inglés150 226 302 300 397 425 373 432 448 387 401 415 595 600 1.089 1,176...
Presentación Colombia –
Inglés
April – 2015
Investment Environment and
Business Opportunities in Colombia
PROCOLOMBIA
About us PROCOLOMBIAWe promote exports, tourism, investment and industrial expansion forinternationalization. We integrate the work of the Country Brand within thestrategic planning of Colombia’s promotion worldwide.
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26 commercial offices
Presence in 30 countries
Presence in Colombia
25
Regional Offices8
Information centers
Barranquilla, Bogotá. Bucaramanga. Cali.
Cartagena. Cúcuta. Medellín. Pereira
Valledupar, Pasto, Palmira, Armenia =
Villavicencio, Tunja, Duitama, Sogamoso,
Ibagué, Santa Marta, San Andrés, Aburrá, Neiva,
Barranquilla, Cartagena, Medellín, Bucaramanga,
Cali, Pereira, Bogotá, Manizales y Cúcuta.
Information that addresses specific needs
Contacts in the public and private sector
Organization of agendas and accompaniment during the visit to Colombia
Services for investors residing in the country
All services are free of charge and the information provided during the process will be made available under complete confidentiality
Services for investors
COLOMBIA
Table of Contents
Current Macroeconomic Indicators
Colombian Investment Standards
Sectors for Potential Investments
Current Macroeconomic Indicators
Colombian Investment Standards
Sectors for Potential Investments
Macroeconomic stability and strong economic performance in the long term
P: Projected
Source: DANE; Banco de la República; Fedesarrrollo July 2014, EIU - Economist
Intelligence Unit . 2014
* 2014 inflation given by DANE
Inflation
GDP
Unemployment rate
15.6
14.113.7
11.8 12.011.2 11.3
12.0 11.8
10.810.4
9.6
7.06.5
5.54.9
4.5
5.7
7.7
2.03.7
2.41.9
9.1 9.0 8.9 8.9 8.6
3.6 3.4 3.6 3.5 3.32.5
3.9
5.34.7
6.7 6.9
3.5
1.7
4.0
6.6
4.04.7
5.0 5.0 4.7 4.6 4.6
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014p 2015p 2016p 2017p 2018p
GDP Growth, Inflation and unemployment Rate
2002 – 2018p (%)
150
226
302
300
397
425
373
432
448
387
401
415
595
600
1.089
1,176
1,790
2,324
New Zealand
Denmark
Israel
Norway
Peru
Hong Kong
Chile
Sweden
Belgium
Singapore
Switzerland
Vietnam
Colombia
Malaysia
Australia
Mexico
Brazil
Germany
Colombia is within the 30th largest economies in the world.
The country has a population of 47,7 million inhabitants.
Note: GDP adapted to Purchasing Power ParityPPP. Projected data.
Source: FMI . 2014
PIB (PPA) – 2015 (Billions USD)
PIB per capita (PPA ) 2000-2018 (USD)
Colombia´s per capita income has nearly doubled since 2000
High Income
Middle HighIncome
Middle LowIncome
Low Income
Income
Source: EIU – Economist Intelligence Unit. PPP = purchasing power parity.
Economies are divided according to 2012 income per capita, calculated using the World Bank Atlas method. The groups are: low
income, US$1,035 or less; lower middle income, US$1,036 - US$4,085; upper middle income, US$4,086 - US$12,615; and high
income, US$12,616 or more.
5,805
8.850
10.800
14,110
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014p 2015p 2016p 2017p 2018p
A rapidly expanding middle class
2,9%
4,1%
4,2%
4,7%
5,5%
Average real growth of consumer
expenditure, 2014 – 2018
Middle class* in Colombia as a
percentage of total population
16%
25%
37%
46%
2002 2012 2020 2025
24.7
6.7
11.6
19.0
Million
inhabitants
* Calculus based on a 4.6% GDP growth
Middle class: Monthly household income between 3.2MW and
13MW
(MW) Minimum wage in Colombia 2014: USD 320.
Source: Fedesarrollo (2013) and Euromonitor
Multiple development regions
Medellín 2.441,123 hab.
Cali2.344,734 hab.
Barranquilla 1.212,943 hab.
Bogota7.776,845 hab.
Cartagena 990,179 hab.
Cucuta643,666 hab.
Ibague512,631 hab.
Bucaramanga527,451hab.
55% of the population has less than 30 years old.
9 cities have a population of over 500,000 inhabitants
Private sector: Main driver of economic growth
Contribution of demand components to the growth of GDP
Private consumption and investment contributed strongly to the growth between 2010 and 2012
• Decrease in unemployment Rate Increase in trust
• Historically low interest rates Increase of loans
• Important increase of the middle class.
Source Ballance of Payments- Banco de la República. Share of all countries with positive cumulative investment, The information includes reinvested profits or investments in the oil sectorNote: the list of the top countries investing in Colombia does not include Panama.
Top Investors in Colombia 2000 – 2014 I Trim
FDI inflows 1994 –2014 I TrimUS$ Mio.
USA
• US$ 25,912 millions
• 23.1 %
England
• US$ 15,894 millions
• 14.1%
Spain
• US$ 8,579 millions
• 7.6%
Chile
• US$ 4,408 millions
• 4%
2,504
7,821
15,119
16,354
Prom.1994 - 2002
Prom.2003 - 2011
2012 2013
Var. 8%
Foreign Direct Investment
Current Macroeconomic Indicators
Colombian Investment Standards
Sectors for Potential Investments
Economic growth, Investor Confidence and Security
• Figures do not include FDI registered for SabMiller acquisition of Bavaria in
2005 (USD 4,800 MM).
** Perception of insecurity as a key issue affecting industrial growth in the
country. Monthly Industrial Survey -ANDI.
Source: National Business Association of Colombia - ANDI. Balance of
Payments – Banco de la República.
0,0
5,0
10,0
15,0
20,0
25,0
30,0
0
1000
2000
3000
4000
5000
6000
IED - US$ million* Insecurity perception**
An investment-grade country with positive outlook
Source: S&P Ratings; Revista Dinero, Colombian Treasury.
Rating DateRating
Agency
Long Term–
Foreign Currency
Long Term– Local
Currency
Outlook
Stable
BBB
BBB +
24– Apr- 2013
5 – Mar - 2007
Long Term–
Foreign Currency
Long Term –
Local Currency
BBB
BBB+
13 – Dic- 2013
22 – Jun -
2011
Long Term–
Foreign CurrencyPositiveBaa2 28– Jul - 2014
Term
Stable
The key drivers for Moody´s upgrade on July 2014 were:
1.Expectations of continued strong growth dynamics despite external headwinds and robust long-term growth
prospects supported by the fourth generation (4G) infrastructure investment program;
2.Sound fiscal management that has led to moderate fiscal deficits coupled with continued compliance with
the fiscal rule and expectations that this will continue.
The World Bank’s Doing Business Report 2015
19
Colombia, 34*
Peru, 35 *
-1Mexico, 39 *
+4
-2
Chile, 41 *
+3
Panama, 52 *
Position out of 189 economies
Change in rank 2014 – 2015**
0
Ecuador, 115 *
+3
Brazil, 120 *
Source: Doing Business Report 2015. World Bank* Position between 189 economies. ** Positive numbers indicate an improvement in the business environment
Colombia tops the region
Invited to become OECD member
Leader in terms of Investor Protection in L.A. and 10th worldwide
Source: Doing Business 2015 – World Bank
* Índex: 0-10 and 10 = the best score
7,2
6,3 6,25,8 5,8 5,8
5,6
4,8 4,7
4,2
Colo
mb
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Bra
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Peru
Ch
ile
Me
xic
o
Arg
en
tin
a
Pan
am
a
Uru
gua
y
Ecua
dor
El S
alv
ad
or
Ranking Country
10 Colombia
35 Brazil
40 Peru
56 Chile
62 Mexico
62 Argentina
76 Panama
110 Uruguay
117 Ecuador
154 El Salvador
Investment Protection IndexDoing Business - 2015
Free Trade Zones
Free Trade Zone
Permanent Free Trade Zone
Special Standing"Uniempresarial"
(FTZ)
Guajira
MagdalenaAtlántico
Bolívar
Valle del
Cauca
Cauca
Norte de
Santander
Santander
Boyacá
Cundinamarca
Huila
Antioquia
Caldas
Risaralda
Quindío
FTZ requested or approved prior to December 31, 2012.
• 15% Income tax.
FTZ filed afterDecember 31, 2012.
• Income tax of 15% + 9% tax CREE.
Caribbean
Andean Region
Pacific Region
->Reduced income tax-> Sales allowed in the local market
Competitive advantages of Free Trade Zones
No import duties. VAT exemption for goods sold from Colombia to FTZ.
Benefit from international trade agreements.
Allows sales to the local market.
Free trade zones for different investor styles.
Access to more than 45 countries and 1,5 billion consumers through its network of FTAs
Source: Colombian Ministry of Commerce, Industry and Tourism.
2014.
Canada
United States
Mexico
Guatemala
Honduras
El Salvador
Ecuador
BrazilPeru
Argentina
Paraguay
Uruguay
Liechtenstein
Switzerland
Island
Norway
EuropeanUnion
Turkey
Israel
Japan
Panama
Chile
Bolivia
Costa Rica
Venezuela*
PacificAlliance
South Korea
Cuba*
Nicaragua*
*These are Partial Scope Agreements (PSA)
- - - The dotted line refers to member countries of The Pacific
Alliance other than Colombia. – Chile, Peru and México.
In force
Signed
In negotiation
International Investment Agreements - IIA
Source: Colombian Ministry of Commerce, Industry and Tourism. 2014.
Canada
United States
Mexico
Guatemala
Honduras
El Salvador
Peru
Switzerland
Turkey Japan
Chile
Note: The International investment agreements (IIA) include Agreement Investment Treaties – BIT (agreement) and Free Trade Agreements – FTA- with investment section (chapter).
Spain
China
India
UnitedKingdom
Kuwait
Singapore
Azerbaijan
Qatar
Russia
France
UAE
In force
Signed
In negotiation
Costa Rica
South Korea
Israel
Panama
PacificAlliance
Double Taxation Agreements - DTA
Canada
Mexico
Peru
Switzerland
Japan
Chile
South Korea
Spain
India
Belgium
FranceCzech
RepublicPortugal
United States
Bolivia
Ecuador
Netherlands
In force
Signed
In negotiation
United Kingdom
A competitive location with easy access to markets around the globe
Mexico City4H45M
Los Angeles8H20M
Quito1H30M
Lima3H00M
Peru
Ecuador
México
United States
Canada
Brazil
ArgentinaChile
Spain
France
Germany
Over 935 weekly direct international flights.
More than 6,197 weekly domestic flights.
Less than 6 hours to the main capital cities
in Latin America.
More than 20 different airlinesoperating in Colombia.
New York 5H35M
Toronto6H05M
Caracas 1H20M
Santiago Chile 5H00M
Buenos Aires 6H15M
Sao Paulo 5H45M
Madrid9H40M
Paris 10H40M
Frankfurt11H15M
Labor incentives
New employees with incomes lowerthan 1.5 Minimum Wages (US$476). Length of benefit by employee :2 years.
New women employees above 40 yearsold with more than 1 yearunemployed. Length of benefit byemployee: 2 years.
New employees under twenty eight(28) years old. Length of benefit byemployee: 2 years.
New employees certified in displacementsituation, reintegration or disability.Length of benefit by employee: 3 years.
Discount in the income tax and supplementary contributions
POTENTIAL SECTORS
INFRASTRUCTURE
Current state of infrastructure
3,66
0 1 2 3 4 5 6
Uruguay
Venezuela
Argentina
Perú
Brasil
Colombia
Ecuador
Mexico
Chile
2,9
0 1 2 3 4 5 6
Brasil
Colombia
Uruguay
Venezuela
Argentina
Perú
Ecuador
Mexico
Chile
1,7
0 1 2 3
Uruguay
Venezuela
Colombia
Brasil
Perú
Ecuador
Argentina
Chile
Mexico
State of the Roads
3,4
0 1 2 3 4 5 6
Uruguay
Venezuela
Brasil
Colombia
Perú
Argentina
Ecuador
Mexico
Chile
State of the Total
Infrastructure
State of the Railways State of the Port Infrastructure
Quelle: World Economic Forum. Global Competitiveness Report 2011 - 2012
1 = Extremely Undeveloped; 7 = Completely efficient by the International Standards
Source: MCIT, 2013
8,170 Km of roads to be constructed or improved. (ANI, 2013)
The Government aims to increase port capacity
by 70%
A budget of 25 billion USD (2014-2018)
Source: Ministry of Transport
Fourth Generation of PPP’S (4g) –
Roads: US$ 24 Bill.-Intervention of 8.000 Km of Roads
- 1.300 Km of new Roads
- 40 new concessions
Ports: US$ 2,1 Bill.
(2015-2018)
Improvement of the
Magdalena river
navigability:
US$ 1.3 Bill.
Airports: interventions US$ 1.8
Bill (10 projects) and
constructions US$ 2.3 Bill (2
projects). (2015-2018)
Step Rail Ways Concession
Program (feasibility study – step
2) US$ 4.2 Bill.
Opportunities to
develop air, road, river
and airport
infrastructure
Infrastructure: A major drive for growth
ENERGY
Market structure
12
31
53
94
Transmission
Distribution
Generation
Commercialization
Agents of the power sector registered in Colombia
USERSNon regulated users (large users):
o Power demand > 2 MW or power consumption of55 MWh/month.
o These users can celebrate bilateral contracts withmarketers
o Set the price and quantity freely between the twoparties.
Regulated users:o Subject to a contract of uniform conditions.o Rates are regulated by the CREG through a
general tariff formula.Total Agents: 190Source: XM
Competition Monopoly Monopoly
Installed capacity in Colombia
Thermal31,4%
Hydraulic63,5%
Minors4,6%
Cogenerators0,5%
Total NIS 2013: 14,559 MW
Source: XM- 2014
National Interconnected System (NIS)Installed capacity December 31, 2013
Coal22,1%
Fuel Oil6,8%
ACPM20,3%
Jet11,0%
Gas-Jet A1
6,1%
Gas43,7%
Thermal:
4,515 MW
Hydro:
9,135 MW
Thermal Resources
Antioquia
Amazonas
Arauca
Atlántico
Bolívar
Boyacá
Cesar
Cauca
Casanare
Caquetá
CaldasChocó
Córdoba
Bogotá
La Guajira
Guaviare
GuainíaHuila
Magdalena
Meta
Nariño
Norte de Santander
Quindío
Risaralda
San Andrés y
Providencia
Tolima
Sucre
Santander
Vaupés
V. del Cauca
Vichada
Putumayo
Connected Zones (NIS) of Colombia
Source: Mining and Energy Planning Unit for Energy Solutions of Unconnected Zones (IPSE), 2013.
National Interconnected System (NIS)
− It includes 48% of the national territory andprovides coverage to 96% of thepopulation.
− Estimates on future demand are based onthe interconnected zones.
− 32 large hydroelectric plants and 30thermoelectric plants provide electricity tothe SIN.
Non-connected areas (UA)
− ZNI account for 52% of the country: 17departments and 1.441 municipalities (625thousand people).
− It is mainly supplied by diesel generators.NIS
Non-connected
areas
Investment opportunities in power Generation
• Since 1994, 2 reforms (Laws 142 and 143) were implemented aiming primarily to foster the private investment in the sector. This has translated into business opportunities for companies that have specific projects.
Solid and well established regulatory framework:
• Colombia has natural resources for power generation: water, coal and the possibility of gas in amounts that allow greater supply than that of the country's demand.
Resources to enhance the expansions:
• For the period 2019 - 2028, an increase of installed capacity is required, with the aim of meeting the criteria for energy reliability.
An energy deficit starting in year 2022
• The World Bank forecasts that demand will reach 2,500 TWh by the end of that 2030. This growth implies a need of an additional 239 GW in the region approaching 330GW of installed capacity.
Power demand in Latin America will double between
2008 and 2030
• Will increase energy exports to Latin American countries. Interconnection project between Colombia – Panama (2018), Andean Electrical Interconnection System between Ecuador-Peru-Chile.
International interconnection projects
• Different stages which sum 4,974 MW. 90 Hydraulic projects which sum 3,631 MW, 8 thermal projects equivalent to 858 MW, 4 Eolic projects which estimate to produce 654 MW, and 1 solar with an installed capacity of 19.9 MW
103 Power Generationprojects under development
Investment opportunities in Non-Conventional power Generation
• Geospatial position of Colombia . (Generation of energy from Non-Conventional resources such as: solar, wind, biomass, geothermal and solid waste).
Development of Non-Conventional power generation
projects
• This Law promotes the development and use of non-conventional energy sources (especially those from renewable sources), in the national energy system, establishes the legal framework and instruments for the use of non-conventional energy sources (FNCE for its acronym in Spanish), especially those from renewable sources, and creates tax incentives for the investment in this kind of projects.
Law 1715 of 2014 integrates non-conventional renewable energy to the national energy
system.
• The National Interconnected System (NIS) connects 48% of the national territory and covers 97% of the population. The Non-connected zones (ZNI) account for 52% of the country´s area (17 departments and 1,441 municipalities) and 625 thousand people. Currently, these zones produce energy with Diesel.
Non – Inteconnected Zones account to 52% of the National
Territory
OTHER SECTORS
Export Platform attracting European FDI
Identification of strategic sectors to attract foreign direct investments include:Manufacturing Industry, Agroindustry and Services. The principal subsectorsinclude:
- Chemical Industry- Construction Industry- Automobile Industry- Pharmaceutical Industry- Aerospatiale Industry- BPO et IT - Cosmetic Industry
- Financial Services - Logistics- Creative Industries- Petrol extraction and Services - Real Estate- Hotels and Touristic Industries. - Foods and Services Industries- Radio and TV Industry