Presentación de PowerPoint · 2020. 12. 18. · 9 Source: Banco de la República, IMF and World...

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INVESTMENT ENVIRONMENTBUSINESS OPPORTUNITIES IN COLOMBIA

2 0 2 0

2

PROCOLOMBIA

PROMOTES

Tourism

Investment and industrial expansion

for internationalization

Exports

Country Brand

3

32COUNTRIES

* In conjunction with the MinCIT

PRESENCE OF PROCOLOMBIA

IN THE WORLD

4

O F F E R S :COLOMBIA

A responsible Government committed with public health and

economic reactivation, which allows the country to capitalize

50 years of economic growth to withstand the COVID-19 crisis

The greatest political stability in Latin America thanks to its

government's commitment to the development of private

activity

A strategic point for regional supply, because of its location

and its network of free trade agreements

A developed technology ecosystem, which meets the

necessary standards for the "new normality" in the post-

COVID-19 recovery

A leading country in receiving FDI in the region

5

The Colombian Government has given the pandemic a

quick and responsible handling, reducing its impact on the

country's public health

T Í T U L O T Í T U L O

Source: Presidency of the Republic and Global Data. Based on December 14th 2020 figures.

*United Nations Development Programme

The quick actions taken by the

government have made

Colombia one of the countries in

the region, with the lowest rate of

deaths, per million inhabitants.

The Colombian Government has

promoted responsible, supportive

and appropriate policies to serve

the most vulnerable groups,

protecting life and health. In

addition, the support packages

for the business sector that the

country has made are very

important, especially talking

about guarantees and credits.Jessica Faieta

Resident Representative of UNDP*

31.773

34.049

9.921

31.77333.024

13.37711.889

29.0971.183,1

926,5 904,4 882,6 868,0819,8 816,2 797,0

0

200

400

600

800

1.000

1.200

1.400

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

Peru Argentina Mexico Chile Brazil Bolivia Ecuador Colombia

# of p

eop

le

Sanitary outlook

in Latin America

infections per million deaths per million

6

Furthermore, Colombia has been the Latin American country

which has invested the most as a percentage of its GDP, as a

measure to mitigate the effects of the pandemic

9,6

8,6

7

5 4,74

3,5 3,42,5

1,4 1,10,6

0

2

4

6

8

10

12

Fiscal support measures announced

% GDP

Source: International Monetary Fund; national sources; World Bank.

Note: Measures are the total amount announced, including discretionary spending, loan guarantees, and other credit

measures. Data are as of May 29, 2020 and are subject to change.

7

On the other hand, before the pandemic Colombia was

already excelling due to its sustained economic growth over the past 50 years

Source: Anif based on Dane and World Bank.

Real GDP growth

in Latin America(1968=100)

Over the past 50 years, the

Colombian economy has been the

fastest growing in the region.

8

As a result, Colombia has become a resilient country and one of the economies with the greatest capacity to

withstand the crisis in 2020

T Í T U L O T Í T U L O

Source: IMF (World Economic Outlook, October, 2020).

• In 2019, Colombia's GDP had the highest growth

compared to other large economies in Latin

America and the Caribbean, with a rate of 3.3%.

• According to the IMF, in 2020, Colombia would

be the third least affected economy, among the

large economies in the region.T Í T U L O T Í T U L O

Chile

Colombia

-5,8%

-8,2%

Estimated GDP growth

2020

-9,0% Mexico

-11,0%

Brazil

-6,0%

Ecuador

-11,8% Argentina

Peru-13,9%

Venezuela-25,0%

9Source: Banco de la República, IMF and World Bank.

1.9%Inflation rate, 2020

The inflation rate will remain low

US $4,093 millionsreceived in non-mining FDI, between

January and September 2020

75.1%Of participation in total investment

4.0% and 4.5%will be the estimated growth of the

Colombian economy in 2021, according to international

organizations such as the IMF and the World Bank, respectively

The dynamism of its economy has enabled the country to

continue having outstanding indicators, despite the global

economic impact due to COVID-19

11

C o l o m b i a s t a n d s o u t i n t h e

r e g i o n f o r i t s p o l i t i c a l

s t a b i l i t y a n d s o l i d

i n s t i t u t i o n s

12

The country has excelled in maintaining political stability

regardless the presidential administration, which has led

Colombia to become a resilient economy

Source: IMF, GDP costant prices.

300

400

500

600

700

800

900

1000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Real GDPCOP Trillion

Álvaro Uribe Vélez

(1st term)

Álvaro Uribe Vélez

(2nd term)

Juan Manuel Santos

(1st term)

Juan Manuel Santos

(2nd term)Iván Duque Márquez

Governments, regardless of presidential administration,

have been committed to the country's economic

development.

Presidential term

13

Furthermore, Colombia has strong institutions which

have allowed to position itself in the international context

According to the Global

Competitiveness Report:

Business dynamism

1st in Latin America

Corporate government

2nd in Latin America

Global Competitiveness

Report 2019

Source: Global Competitiveness Report 2019, World Economic Forum.

48 8354 716533 57

2nd in Latin America

Financial system stability

14

Thanks to the above, Colombia was officially accepted by the, giving it access to the best economic and social practices

G u i d e l i n e t o i m p r o v e

t r a d e a n d

i n v e s t m e n t b a r r i e r s

AUSTRALIA

NEW ZEALAND

JAPAN

SOUTH KOREA

CANADA

UNITED STATES

MEXICO

CHILE

COLOMBIA

AUSTRIA

BELGIUM

CZECH REPUBLIC

DENMARK

ESTONIA

FINLAND

FRANCE

GERMANY

GREECE

HUNGARY

ICELAND

IRELAND

ISRAEL

ITALY

LITHUANIA

LATVIA

LUXEMBOURG

NETHERLANDS

NORWAY

POLAND

PORTUGAL

SLOVAK REPUBLIC

SLOVENIA

SPAIN

SWEDEN

SWITZERLAND

TURKEY

UNITED KINGDOM

E c o n o m i c s t a b i l i t y , t r a n s p a r e n c y a n d

g o v e r n m e n t d i s c i p l i n e

15

Additionally, Colombia is a member of the Pacific Alliance, a regional integration initiative, which seeks to overcome international

economic challenges

Canada

Mexico

Colombia

Chile

Peru

Singapore

Australia

New Zealand

In negotiation to become

associate member

State member

16

The country stands out among the economies of the region, for

having a government committed to the private sector

According to Doing Business:

In protecting minority investors


In getting credit

Doing Business 2020World ranking 2020

60 125101 1247659 67

Source: Doing Business 2020, World Bank.


17

This is recognized by the most important competitiveness

rankings worldwide, thanks to the great progress made by

Colombia in terms of reforms and fiscal policies

In 2019, Colombia stands out among the

countries of the region, being the economy that

made the greatest progress in terms of

competitiveness, thanks to the new fiscal policies developed in the last year.

Source: Doing Business 2020 (World Bank), Global Competitiveness Report 2019 (World Economic Forum), World

Competitiveness Ranking 2019 (International Institute for Management Development).

Measuring Business Regulations

18

With that in mind, Colombia has the lowest FDI barriers of

Latin America

0

0,02

0,04

0,06

0,08

0,1

0,12

0,14

0,16

0,18

0,2

Mexico Brazil Peru Chile Costa Rica Argentina Colombia

FDI’s Regulatory

Restrictiveness Index 2018Closed = 1 - Open = 0

Colombia has a lower FDI restriction rate than countries such as Canada (0.16) and the United States (0.09).

Low barriers

High barriers

Source: OECD, December 2019.

19

In addition, it outstands due to its great capacity for conflict

resolution, thanks to the well-known

Making Colombia an ideal

environment for international investors

# 1 A r b i t r a t i o n i n s t i t u t e

i n L a t i n A m e r i c a

( G l o b a l A r b i t r a t i o n

R , “ W 2 0 1 8 ” )

I n 2 0 2 0 a n d f o r t h e t h i r d y e a r

i n a r o w , i t w a s i n c l u d e d i n t o

t h e m o s t - i n f l u e n t i a l g r o u p

o f a r b i t r a t i o n c e n t e r s i n t h e

r e g i o n

20

Rating agencies also

recognize Colombia

with an investment rate

Ra

tin

gTe

rm

Long Term –Foreign

currency

BBB- BBB-


currency

FitchRatings MOODY S,

STANDARD

& POOR S,

Baa2


currency

In June 2020, Moody’s* maintained Colombia´s

rating outlook as stable.

In the last review of 2020, Moody's maintained

the Baa2 rating for Colombia, a step up of

investment grade.

Source: S&P Ratings; Dinero magazine,

Colombian Treasury.

* Moody’s, 2020.

Large, dynamic and resilient economy.

1.Prudent and predictable

macroeconomic policies.

2.Strong tradition of payment of debt obligations.

3.

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T h e n e w d y n a m i c o f g l o b a l

t r a d e o p e n s t h e o p p o r t u n i t y

t o C o l o m b i a f o r r e g i o n a l

s u p p l y

22

The current situation brings different changes in the world, such as

the reorganization of global supply chains, which are tending

to regionalization

More than 80% out of 3,000 companiessurveyed in 12 global sectors, in NorthAmerica, Europe, and Asia Pacific (ex-China),have implemented or announced plans torelocate at least part of their supply chainsfrom current locations.-Bank of America

Companies will be increasingly inclined tospread their risks rather than “putting all theireggs in the lowest-cost basket”. The threat ofa future crisis will force companies to structuretheir global supply chains, looking for greaterresilience, as well as lower risks and costs.-Re-shoring index, Kearney

Source: McKinsey & Company, “Economic

Conditions Snapshot, March 2020”.

23

Colombia is ready to address this relocation challenge, offering preferential access to 97%* of the countries of the region

Source: MinCIT

*Non-self-governing terrirories are not included.

Colombia has 17 free trade

agreements in force, which allow

preferential access to 60 countries

and 1.5 billion consumers

Regional agreements• Andean Community

• Pacific Alliance

• Chile

• Mexico

• Canada

• United States

• Northern Triangle

• Costa Rica

• Mercosur

• Cuba

• Caricom

• Nicaragua

• Venezuela

Other agreements• EFTA

• European Union

• South Korea

• Israel

Signed agreements• Panama

• United Kingdom

Pacific Alliance

In force

Signed

Peru

Canada

United States

Mexico

Ecuador

Brazil

Argentina

Paraguay

Uruguay

Panama

Chile

Bolivia

Costa Rica Venezuela

Cuba*

CAN

Northern Triangle

CARICOM*

Nicaragua*

ALADI

MERCOSUR

24

Thanks to the above, the country has privileged access to the

continent's largest markets

Source: TradeMap, IMF.

Imports 2019

US$ Million

United States

US$ 2,568,396

Population:

329.3 million

Pacific Alliance

US$ 624,189

Population:

227.9 million

Canada

US$ 453,157

Population:

37.5 million

Mercosur

US$ 252,563

Population:

293.5 million

Central America

US$ 106,285

Population:

50.2 million

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United States

Furthermore, among the countries of the region, Colombia has the

FTA with the best access conditions to the United States, the

world’s largest importing market

• Average tariff of 0% from Colombia to

the U.S.

• 2,157 (96%) of the subheadings that

Colombia exports to the United States,

entered the market with a 0% tariff.

• Convenient regional content value

rules.

Source: Araújo Ibarra, MinCIT.

U.S. market share in the world's imports

13.5%

26

Maritime routes

Air routes

Mexico City

Air: 4hr 55min

ACCESS TO PERU JUST IN 2 DAYS (CALLAO)

ACCESS TO THE U.S. JUST IN 3 DAYS

(PORT EVERGLADES)

Vancouver

(18 days)

New York

(6 days)

Air: 5h 35min

Miami

(6 days)

Air: 4h

Montreal

(15 days)Los Angeles

(10 days)

Air: 7h 40min

Veracruz

(5 days)

Rio de Janeiro

(19 days)

Buenos Aires

(17 days)

Callao

(2 days)

Valparaíso

(13 days)

Toronto

Air: 6hr 10min

Lima

Air: 3hr 05min

Santiago de Chile

Air: 5hr 55 min

Sao Paulo

Air: 6hr 10min

Source: Routes and rates - Tools for the Colombian Exporter, processed by ProColombia.

Legal guide for doing business in Colombia 2019

The preferential access is

complemented by air

and sea logistics

advantages

Colombia has more than 4,500 sea

export routes and access to 680

ports around the world. In addition,

by less than six hours by plane the

country manages to deliver goods to

the main cities in the Americas.

27

The country has one of the most competitive air freights in the

region and the busiest cargo terminal

Mexico City

581,670

Bogota

741,500

Sao Paulo

552,280

Lima

294,700

Santiago

420,950

Top air cargo movement

in Latin America(metric tones)

Source: Central and South America; ACI; 2018.

Statista 2020

CountryAverage air freights to the

U.S. / Kg

Colombia USD 1.12

Mexico USD 1.55

Brazil USD 2.17

Peru USD 2.62

Chile USD 1.99

* Source: IATA TACT – Referential route MIA, Scale +500Kg

There are more than 30 direct

and in connection routes,offered by more than 8 airlines.

28

Its location in the middle of the continent allows businesses

to access America's main ports in a short time

Destiny

port

Port logistics in Latin AmericaDistance in days by port of origin

Colombia Mexico

(Veracruz)

Peru

(Callao)

Chile

(Valparaiso)

Argentina

(Buenos Aires)

Brazil

(Santos)Cartagena Buenaventura

New York 6 12 22 16 24 23 16

Los Angeles 10 10 24 12 22 34 27

Montreal 15 23 38 26 31 33 26

Vancouver 18 21 32 22 32 44 35

Callao 9 2 22 - 7 34 16

Valparaiso 18 13 36 5 - 43 32

Source: Maritime lines – Routes and rates system. ProColombia (June 2020)

29

In addition, it has a free trade zone regime with one of the

region's most attractive incentive packages

Source: Free trade zone directory 2019. DANE

No causation of tariff

or VAT for goods and

infrastructure, in the

free trade zone

Purchases to the rest of

the country related to

the development of the

social object of the users,

exempt from VAT

20% income tax rate

in free trade zone

Possibility of nationalizing

raw materials or the final

product, when the

goods are sold in the

rest of the country via

MFN

Goods produced in the

free trade zone acquire

origin for the purpose of

free trade agreements

Benefits in free zones

30

Free trade zones* map

Free trade zones are located throughout the country, especially close to the country's main seaports and airports

Atlantic

ocean

Pacific

ocean

Thanks to its location,

Colombia offers direct access

to the two main oceans that

surround the continent.

Free trade zones* by

department

• Bogota

• Cundinamarca

• Santander

• Norte de Santander

• Atlántico

• Bolivar

• Magdalena

• Risaralda

• Quindío

• Antioquia

• Valle del Cauca

• Huila

El Dorado,

Bogota

José M. Córdova,

Rionegro-Antioquia

Buenaventura,

Valle del Cauca

Cartagena,

Bolivar

Maritime ports

Airports

Alfonso Bonilla Aragón,

Cali-Valle del Cauca

Ernesto Cortissoz

Barranquilla-Atlántico

Source: Free trade zone directory 2019, ProColombia.

*Permanent free trade zones

31

Colombia is the

second Latin

American country

with the highest number of free trade zones

Source: AZFA.

Number of FTZ in Latin America, 2018

18

39

48

52

43

71

2

69

144

Panama

Honduras

Costa Rica

Nicaragua

Colombia

Dominican Rep.

FTZ

Special FTZ

Total number of free trade zones:

114Number of permanent

free trade zones:

40

Special permanent free trade zone or Single-Company free

trade zone :

74

32

The Free Trade Zones regime is complemented by other investment

incentives

PROGRESSIVE REDUCTION

MEGA-INVESTMENTS

HOLDING COMPANIES

REGIME

DEDUCTION

SPECIAL BENEFITS

O F T H E V A T P A I D O N

R E A L F I X E D A S S E T S

O F T H E C O R P O R A T E

I N C O M E T A X R A T E

F O R D I S T R I B U T I O N

C E N T E R SINCOME TAX EXEMPTIONS

F O R D I F F E R E N T

S E C T O R S O F T H E

E C O N O M Y

33

The combined incentives position Colombia as the country with

the best tax regime for investors in Latin America

Source: Araujo Ibarra

Tax burden COLOMBIA CHILE PERU MEXICO ARGENTINA BRAZIL

Income tax32% - 2019

30% - 202225% a 27% 29,5% 30% 25% 34%

Special benefits

Mega investment -

27%

+

FTZ - 20%

Exempts in FTZ of

Iquique and

Punta Arenas

Exempt in 4

operative FTZ

20% in the Northern

Border Free ZoneNo

- 75% in FTZ of

Manaos

VAT Exempt from FTZ Exempt From FTZ

Exempt from FTZ 8% in the Northern

Border Free Zone

Exempt from

FTZ

55% to 100%

reduction

Custom Duties Exempt in FTZExempt in FTZ

Exempt in FTZ No (Only IMMEX) Exempt in FTZ - 75% on supplies

Accelerated

Depreciation

In 2 years for mega

investment

50% snapshot

until 2021No No No No

Dividend Tax

10% (DTA)

Mega investment

0%

5% to 10 % 5% 10% 13% No

Legal Stability

Contract

In mega investment

projectsYes Yes No Yes No

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T h e c o u n t r y h a s a

t e c h n o l o g i c a l e c o s y s t e m

d e v e l o p e d a n d p r e p a r e d f o r

t h e " n e w " n o r m a l i t y

35

Colombia provides the necessary technological

infrastructure for operations in the new economic reality

submarine cables inoperation, being the

second country in the

region with better

connectivity,

transmission and stability.

4°

3°most entrepreneurial

country in Latin America.

Source: MinTIC. Fitch Connection. Global Entrepreneurship Index.

of Colombia's

municipalities areconnected to theworld throughoptical fiber.

Colombia offers one of the

lowest operating costs in theworld for the provision of IT

services.

11 98% largest IT market in

Latin America.

of internet penetration inthe country, with 32.7

million users.

66%

36

In 2019, Colombia opened Latin America’s

first Center for the Fourth Industrial Revolution

Center for the Fourth

Industrial Revolution

R R

BLOCKCHAIN INTERNET OF THINGSARTIFICIAL INTELLIGENCE

37

This is complemented by a high number of enterprise incubators,

accelerators and innovation centers that motivate high-value

innovation and entrepreneurship

38

New policies

CONPES Digital

transformation

with AI focus

CONPES of digital

security

National Development

Plan 2018-2022

‘Pact for Colombia, pact

for equity’

II. Pact for

entrepreneurship and

productivity

V. Pact for science,

technology and innovation

VII. Pact for the digital

transformation of

Colombia

Directives

and Decrees

Presidential directive

Gov.Co

Digital Citizens Services

Act

Cooperation

agreements

Ratification of the

Budapest Convention

Convention B80 on

Cybersecurity

Colombia thinks about the future and has adopted special

measures for the country's digital transformation

Source: Presidential Counseling for innovation and digital transformation. Transformación digital de la mano del sector privado..

39

The TIC Modernization Law creates the

conditions to encourage private investment,

generate legal certainty and facilitate the

deployment of high-cost infrastructure. It also

simplifies and brings to international

standards the institutional and regulatory

framework for the sector, and strengthens

public television and radio

Furthermore, it has implemented laws and mechanisms that seek the

modernization of the ICT sector and to reduce the digital gap

Source: MinTIC, Portafolio.

ICT MODERNIZATION LAW

Through Decree 1974 of 2019, Colombia

offers the opportunity to build ICT projects,

through public-private partnerships (PPP).

PPPs involves the concession of mega-

projects, so that they can be carried out

with private resources and, in some cases,

reimbursed them with future terms or other

resources.

PUBLIC – PRIVATE

PARTNERSHIPS (PPP)

40

Colombia has the third most qualified workforce in

Latin America and leads in terms of employee training

and apprenticeships schemes

IMD World Talent Ranking2020

53,9

49,2

46,9

43,2

42,5

40,6

Chile

Argentina

Peru

Mexico

Colombia

Brazil

Source: Ministry of Education, 2018

International Standard Classification of Education ISCED 2011 -DANE

IMD World Talent Ranking 2020

Graduates by level of higher

education2010 – 2018

31,6%

46,5%

21,8%

0,1%

ISCED 5 (Short-cycletertiary education)

ISCED 6 (Bachelor’s or equivalent level)

ISCED 7 (Master’s or equivalent level)

ISCED 8 (Doctoral orequivalent level)

Total: 3,325,880

41

The arrival of Amazon is not just a vote of confidence, but

has also made an anchor effect of attraction to other

companies, dynamizing the offer of digital services in Colombia

In 2017, the company expanded toColombia with Amazon WebServices, so the company couldoffer cloud computing services to'startups’ and large companies indifferent sectors of the economyand public entities.

In 2018, the company announcedthe launch of its first customerservice center in Colombia. The sitesupports Amazon’s customersaround the world in Spanish, Englishand Portuguese; and provide 24/7world class customer service.

42

A l l t h e s e

c o n d i t i o n s p l a c e

t h e c o u n t r y a s a r e g i o n a l l e a d e r i n

r e c e i v i n g F D I

43

Colombia ranks 9th among developing countries in

receiving FDI

Source: UNCTAD, 2020.

*Cayman Islands and British Virgin Islands are not included.

Top 10 developing economies

in receiving FDI in 2019 (USD billion)

246,2

141,2

92,1

72,0 68,4

50,6

32,923,4

16,1 14,5 13,8

USA China Singapur Brazil Hong Kong India Mexico Indonesia Vietnam Colombia United Arab

Emirates

I n a d d i t i o n , i t r a n k s

2 3 rd i n r e c e i v i n g F D I

g l o b a l l y .

44

Since 2014 non-mining sectors have registered a major participation in Colombia’s FDI

Source: Balance of Payments – Banco de la República.

* January-September.

**Panama and Switzerland are not included

7.555 7.085 7.991 9.272 8.55011.649

9.5767.594

9.8017.077

4.093

7.092 7.9558.220 6.897

3.174

2.1994.261

3.941

4.513

3.765

1.357

2011 2012 2013 2014 2015 2016 2017 2018 2019 2019* 2020*

11,535

13,83713,848

11,724

16,16916,21015,04014,647

5,450

14,314

FDI inflows in Colombia

(USD million)2010 – 2020*

Oil and mining

Other sectors

In 2019, investment flows grew by 24.1% compared to 2018,

meanwhile investment in non-mining sectors grew by 29,1%

Top investors in

Colombia, by country**

2015-2019 United States

USD 11.61 billion17.8%

SpainUSD 9.58 billion

14.7%

CanadaUSD 3.84 billion

5.9%

United KingdomUSD 5.22 billion

8.0%

10,842

45

Investment in Colombia reaches various sectors of

the economy

Source: Banrep.

*Mining-energy investments are excluded.

FDI by economic activity*2015 – 2019

26%

20%

17%

14%

10%

6%

4% 3% Financial and Business Services

Manufacturing

Transportation, Distributionand Communications

Commerce, Restaurants andHotels

Electricity, Gas and Water

Construction

Community Services

Agriculture, Hunting, Forestryand Fishing

B e t w e e n 2 0 1 5 a n d

2 0 1 9 , a t o t a l o f

U S $ 4 7 . 1 7 b i l l i o n i n

n o n - m i n i n g F D I

a r r i v e d i n t h e

c o u n t r y

46

T h e r e a r e m a n y

r e a s o n s w h y

C o l o m b i a i s

t h e b e s t i n v e s t m e n t

d e s t i n a t i o n

47

AGRIBUSINESS

Some niche opportunities:

AQUACULTURE COCOA FRUITS AND

VEGETABLESMEAT

PROCESSED

FOODFORESTAL

DAIRY

Colombia is set tobecome a globalfood pantry and hasthe potential foragricultural andagro-industrialgrowth to serve thelocal andinternational markets.

1.

The agri-food sector isone of the pillars of thenational economy andis recognizedinternationally.This is strengthened bythe growth of foreigndirect investment in thissector.

2.

Colombia is a significantfood consumer in theregion and an importantexport platform to satisfythe Americas, with anexpanded marketequivalent to 30% of theworld's processed foodand beverage market.

3.

The national governmentis committed to boostingthe sector and takingmeasures to consolidateproduction andopportunities at theinternational level, suchas: diplomacy strategy ,investment promotionand mega-projects.

4. 5.

The Colombianbusiness networkoffers possibilities ofstrategic alliances orsupplying companiesto develop value-added products inColombia.

Colombia has legal incentives that impact the agro-industrial sector and facilitate the establishment of crops and companies in the country.

48

SUCCESS STORIES

AGRIBUSINESS

Cargill is expanding its globalpoultry business with theacquisition of Campollo S.A., aColombia-based producer ofchicken and protein products.The acquisition of Campollomarks Cargill’s second recentinvestment in Colombia. Thecompany acquired beforePollos Bucanero, reaching morethan 7,500 employeesgenerated in Colombia.

PepsiCo has managed toacquire local companies suchas Cronch and Papas Margarita,generating daily contact withmore than 8 million consumers ofall generations. In Colombiathey have 3 production plants,17 distribution centers andpresence in more than 400,000points of sale.

CHILE

Alliance between CCU andPostobon: Construction of aproduction plant with theaim of boosting the beermarket sector throughproduction,commercialization anddistribution of beer and non-alcoholic beverages basedon malt.

UNITED STATES

Source: Procolombia based on national press

UNITED STATES

49

Colombia offers easy access to rawmaterials at competitive costs, bothimported and produced locally.Decree 272 of 2018 allows imports with0% tariff for more than 3,600 productsthat are not locally produced.

Wages within the industrial sector inColombia are among the mostcompetitive in the region, lower thancountries like Argentina, Peru, Braziland Chile. Additionally, the countryhas a growing, efficient, and qualifiedworkforce. We were positioned in the2019 Global Competitiveness Rankingas the country with the most efficientlabor market in Latin America.

Diversified and growing manufacturing industry.Colombia has more than 121.000 activemanufacturing, and each year around 8.000thousand new ones are created, which representsan annual growth of 2%.

1. 2. 3.

4. 5.

Some sectors with investment opportunities:

MANUFACTURING

INDUSTRIESColombia serves as an export

platform to an extensive market

in the region The Colombian manufacturing sector has facilitators to invest in the country and take advantage of the opportunities it offers.

AUTOMOTIVE METAL MECHANICBUILDING

MATERIALESCOSMETICS AND PERSONAL CARE

PACKAGING

The country has income taxexemptions to promote localmanufacturing, such as the free tradezone regime and large-investmentincentives. Colombia is the secondcountry in Latin America with thehighest number of free zones.

Colombia’s 16 FTA's provide excellent trade conditions,and access to 1,5 billion consumers for example, theFTA with the United States has very flexible rules oforigin, 0% tax on many products, and no minimumwage requirements in the manufacturing process.

50

The Japanese continuouscasting and high precisionparts production companydecided to open a plantto serve the Americanmarket.

Source: National and international press

JAPANUNITED STATES

Minnesota Mining andManufacturing Company,opened a distributioncenter in Funza, to sell2,800 references, focusingon personal safety itemsfor the Colombian market.

They currently have 2,500direct jobs in the citieswhere they haveoperations: Medellin, Cali,Barranquilla, and Bogotá.In early 2020, thecompany announced aUSD 36 millionreinvestment in Palmira,Valle del Cauca, toexpand its paper bagoperation.

IRELAND

SUCESS STORIES

MANUFACTURING

INDUSTRIES

Ternium has had an industrialpresence in Colombia since2010 when it acquired morethan 50% of the FerrasaGroup. In the first semester of2020, they have advanced inthe construction of their newoperations plant in Palmar deVarela, with an investment ofUSD 270 billion and ageneration of 800 direct jobs.

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51

The new factory set up inColombia is one of itsthree most modernfactories in the world,thanks to its cutting-edgetechnology andecofriendly facilities.

NETHERLANDSUNITED STATES

The company has beeninvesting in technologicalreconversion projects toincrease its productioncapacity, reduce itsenergy consumption, andraise its quality standards,with investments ofapproximately USD 7.2million.

In 2015, the companyreinvested close to USD 18million for the upgrade of itsplant. Their goal is to exportabout 50% of its productionto Central America and theAndean region. Theyopened a new plant on theoutskirts of Bogotá(USD 30 million investment),which will be in charge ofproducing mainly Vogueproducts.

FRANCE

SUCESS STORIES

MANUFACTURING

INDUSTRIES

Source: National and international press

Isuzu Motors Limited's alliancewith actors installed inColombia has allowed them tobecome automotivetechnology leaders for tenyears. Recently, they made anew investment of USD 2.5million to expand theiroperations.

JAPAN

52

TECHNOLOGY BASED

SERVICES

Colombia promotesthe digitaltransformation.

The NationalGovernment hasestablished digitaltransformation asthe driving force forthe coming years.

1.

Colombian IT servicesexports grew 3%between 2015 and2019, positioning as anexport platform todifferent markets, suchas the United Statesand Mexico.

3.

Global connectivity withworld classInfrastructure, Colombiais the second country inthe region in number ofcables (11). In addition,it went from registering2.8 million broadbandinternet connectionsin 2010 to a total of 32.7million in 2018

4.

Colombia is thefourth largest ITmarket in theregion after Brazil,Mexico andArgentina.

2. 5.

Highly qualifiedhuman capital andlow operating costs,the country has thelargest workforce inthe region, and thefirst in terms of growthand training,surpassing countriessuch as Peru, Mexicoand Brazil. IMD WorldTalent 2019.

Software, BPO, CSC, Data Center and

telecommunications.

4G 5G ICT INFRASTRUCTURE MODERNIZATION

BPO

SHARED SERVICES

CENTER

BLOCKCHAIN, INTERNET

OF THINGS, ARTIFIAL

INTELLIGENCE

DATA CENTERS

FINTECH


Source: MinTIC, Fitch, Statista.

53

SUCCESS STORIES –

ITC SERVICES

IBM opened its third DataCenter in Colombiaoffering a processingpower of 5 petabytes.It´s one of the mostadvanced centers forCloud Computing andBig Data Analyticscompanies inthe country.

The renewal in thecompany continues. Afterannouncing themodifications on its logo,the company announcedthat they will startmanaging the operationof Bolivia, Ecuador,Guyana, Suriname, Peruand Venezuela fromColombia.

UNITED KINGDOM


UNITED STATES

Thanks to the success of itsoperations in Colombia,Endava, a British ITcompany, announced itsexpansion with a projectedinvestment of at least 10million dollars and offering500 jobs in the next fiveyears. The companydecided to expand itsoperation in the country,opening a new office in thecity of Medellín.

JAPAN

Its BPO operationcurrently has more than1,400 credit processes,customer service, anddocument managementactive positions.

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TOURISMSome niche opportunities:

ECOLODGE AND GLAMPING

WELLNESS URBANHOTELS

Colombia is an international touristdestination. USTOA* chose Colombia asthe first destination of interest in 2020 andFinancial Times** highlighted Colombia asone of the global markets with the bestinvestment attraction strategy in theworld.

1.

Colombia´s growth is almost twice compared to theglobal average rate. The average annual growth ofnon-resident visitors into the country was 9%between 2012 and 2019, while world’s growth was5.3% and the Americas’ growth was 4.4%. Tourism isthe second exporting sector with USD 6,7 million,after energy and mining activities.

2.

Colombia is connected to 27countries and 26 airlinesthrough more than 1,000direct weekly frequencies,offering 194 thousand seatsweekly.

3.

Colombia offers attractive incentives for investing in hotel and tourisminfrastructure. The 2019 tax reform offers a preferential income tax ratefor new hotels, themed parks, agritourism, ecotourism and docks. Inmunicipalities with less than 200 thousand inhabitants, rate will be 9% for20 years; for cities with more than 200 thousand inhabitants, the samerate applies for 10 years.

4. 5.Colombia has 14 cities with more than 500 thousandinhabitants and 31 with more than 200 thousandinhabitants. These are attractive regions for thedevelopment of: urban hotels, mixed uses, sun andbeach resorts, ecotourism, wellness, entertainment(themed parks), tourism infrastructure and investmentin heritage towns.

Colombia is considered a unique destination thanks to its mega diversity, international air connectivity, different climates and touristic attractions

Colombia, a high-quality

sustainable destination SUN AND BEACH - RESORTS

THEMED PARKS

Source: MinCIT, DANE, OAG Aviation, United States Operators Association.

**Research Center fDi Intelligence report

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SUCCESS STORIES

TOURISM

Hyatt is present in Bogotá(the Grand Hyatt Bogotáand the Hyatt Place Bogotá/ Convention Center) andin Cartagena with the HyattRegency, which is alsoamong the 25 best in thecountry. The expansion ofthe Hyatt RegencyCartagena hotel in 2020 willadd 285 rooms and 90rooms.

The Selina hotel chain wasestablished in 2017 in Colombiaand in the last two years it hasexpanded with a restaurant inBogotá and subsequently 2lodging locations. In its growthplan, it already has a hotel inMedellín, one in Cartagena andthe most recent one in Quindío.The firm plans to add 15 hotels in2021 in places like Santa Marta,Palomino and Cali, among othercities.

FRANCE

Source: ProColombia con base en prensa nacional

PANAMA

The Accor hotel chaininvested in 6 projects,generating more than 550jobs. The projects areconcentrated in Bogotá,Montería, Apartadó andChía. Coming soon will bethe development of anew hotel located inItuango (IBIS BUDGET).

The chain, in alliance witha local developer,invested in theconstruction of a newhotel under the Ramadabrand, which will belocated in the Bogotá FreeZone, it will have 87 roomsand its opening is plannedfor May 2020.

UNITEDSTATES

Real estate and retail

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56

INFRASTRUCTURESome niche opportunities:

AIRPORTS PORTS ROADS

Infrastructure is the maindevelopment sector stated by theGovernment to enhance theeconomy. Public investment grewfrom 0.6% in 2003 to 3% of GDP in2018 and represented 8.6% oftotal FDI in 2019.

1.

Due to the Health emergency, thegovernment prioritizedinvestments of USD 5,288 million inPPP's as a reactivation strategy ofthe economy, generating morethan 90,000 jobs between 2020 –2022.

2.

Colombia is the third country in the worldaccording to the Procuring InfrastructurePPP 20181, given the efficiency of the PPPmodel for the development ofinfrastructure projects.

3.

Colombia has a dynamic infrastructuresecondary market2, which allows the entryof Foreign Investment Capital Funds intoongoing projects, with stable and safeprofitability.

4.

5.

Colombia has a diverse portfolio ofinfrastructure projects by 2035•Road: USD 60,000 million•Airports: USD $ 5.700 Million•Rail: USD 3.400 Million•Fluvial: USD 1,600 Million•Ports: USD 433 Million•Social: More than USD 1,500 Million

A major driver for growth

STEP RAILWAYS FLUVIAL

NATIONAL PLAN R

1 Word Bank Ranking2 Marketing of PPP projects already awarded Source: Intermodal Transport Master Plan 2015-2035 (PMTI) Exchange

rate: US$ = COP$3.282

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SUCCESS STORIES -

INFRASTRUCTURE

InfraRED is a globalinvestment fund focused onthe infrastructure andenergy sectors. Thecompany acquired a localconcession, a roadwayproject of the 4Ginfrastructure program.

Strabag will be in charge of 75Km new highways, and themodernization of a 65 kmsection.

ISRAEL


AUSTRIA

Shikun & Binui awardedthe project “CorredorPerimetral de Oriente deCundinamarca = 153 kmlength”.

The investment of aroundUSD600M of PSA inAquadulce Port turns thisPacific Sea port into themost modern in thecountry.

UNITEDKINDOM

A major driver for growth

SINGAPORE

58

ENERGY


THERMAL PCH SOLAR

WIND TRANSMISSION

NETWORKBIOMASS

After a successful energy auction, Colombiawill increase its installed capacity in thegeneration of NCRE1 50 times, going from lessthan 50 MW in 2018 to 2,500 MW in 2022. Thisimportant fact will allow to achieve the goal ofdiversifying the Colombian energy matrix.

1.

Colombia is the second largest economy in theAmericas and ranks 25th out of 115 globally inthe Energy Transition Index 20202 ranking, incapacity to supply energy in a self-sustainingand quality manner.

2.

The development of renewable energy inColombia has incentives, such as the deductionof 50% of the income tax for 15 years forinvestments in alternative sources.

3.

Colombia has one of the highest availability of energyresources worldwide:•Solar: average daily radiation 25% higher than the worldaverage.•Wind: wind speed is twice the world average.•Biomass: sufficient potential to supply 46% of nationalenergy demand.

4.

5.

In 2019, 19 transmission projects for more than USD 291million came into operation. In 2020, 11 calls for investmentprojects will be opened, which will increase reliability andallow flexibility in the operation of the system. Additionally,Government launched the first project of energy storage.

By 2050, 25% of the energy matrix will be from NCRE1

1 Energies with unconventional sources2 Ranking of the World Economic Forum3 UPME public calls

59

SUCCESS STORIES -

ENERGY

Between 2017 - 2019, theItalian multinational Enel willinvest close toUSD 561 million in energyprojects in Colombia.

Trina solar energy supports thetransformation of the Colombianenergy matrix with theinvestment in a solar energy park(Llanos 1) supported by the FDN.

UNITEDSTATES


CHINA

Colombian subsidiary ofAES Corporation (AppliedEnergy Services). Chivor isone of the country'slargest power generatorwith a total effectiveinstalled capacity of 1,000MW.

A diversified resource base and a

strategic location in the Americas

ITALY

60

CAPITAL

FUNDS


REAL ESTATE HEALTH ITCBANKING

BIOTECH AGRIBUSINESSENERGY

Colombia was ranked fourth in LatinAmerican andthe Caribbean due to its favorableconditions for development of thePEF industry.

1.

19 International GeneralPartners in Colombia.

2.

Capital funds such as AdventInternational and Victoria Capitalhave chosen the country as a hubto service other countries in theregion.

3.

Colombia offers several benefitsto invest in capital funds.

INFRASTRUCTURE

61

SUCCESS STORIES –

CAPITAL FUNDS

Investments mainly in the sectorsof infrastructure, energy and realestate.Investments in the Colombianpower company SA as part of itsexpansion plan in the region.

Colombia's Rappi unicorn, ahome and e-commercecompany, received a $1 billioninvestment from Japan'sSoftBank Group and SoftBankVision Fund. This was the largestinvestment of its kind for a LatinAmerican technology company.

Caisse de Depot et Placementdu Quebec created aninfrastructure co-investmentfund with the Colombiangovernment and four pensionfunds in the South Americancountry that's expected toreach $1 billion. Infrastructureinvestments will targetrenewable and other forms ofenergy, transportation, socialinfrastructure,telecommunications, water andbasic sanitation.

CANADA


JAPAN CANADA

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P R O C O L O M B I Ai s r e a d y t o

a s s i s t y o u i n

a s s e s s i n g i n v e s t m e n t

o p p o r t u n i t i e s

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THANK YOU

Presentación de PowerPoint · 2020. 12. 18. · 9 Source: Banco de la República, IMF and World...

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