Investment Colombia Dec2011 Small

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Colombia is leading the wave of the next hottest commercial and outsourcing destinations. See why.

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Investment Colombia Dec2011 Small

  1. 1. Accelerance,)Inc.) 303)Twin)Dolphin)Drive,)Suite)600) Redwood)City,)CA))94065))USA) +1D877D992D2235)x101)U.S.)TollDFree) +1D650D472D3785)Global)Calls)+)Fax) http://www.Accelerance.comInvestment Environment and Business Opportunities in Colombia December, 2011 |
  2. 2. About Proexport Proexport is Colombia’s entity in charge of the promotion of International Tourism, Foreign Direct Investment, and non-traditional exports TOURISM INVESTMENT EXPORTS
  3. 3. Proexport Around the World Canada Russia UK UK Germany United States China Japan Turkey Mexico Spain Caribbean France India South Korea North Triangle Venezuela Arab Emirates Shanghai South Central America Brazil Hong Kong Singapore Ecuador Peru Chile NEW OFFICES
  4. 4. Proexport’s Representatives in the US New Chicago York San Francisco Washington Atlanta Los Angeles Houston Miami
  5. 5. Some recent investment projects supported by Proexport 2011 - Announced a new product and development research center 2010 - Bilingual contact center operation for the United States and Colombia 2011 - Global service center for BPO and IT operations2011 - Investment in Terranum Development, a leading corporateproperty company in Bogota 2010 – Opened a new business hotel offering 264 rooms, located in the heart of Bogota´s financial district. 2010 – Acquired the assets of ESI de Colombia. ESI is a value added reseller of industrial electrical equipment an engineering services
  6. 6. General facts  The land area of ​Colombia" is nearly 1,141,000 km2, almost" 3 times the size of California and twice the size of Texas"  Bordering the Pacific and
 Atlantic oceans"  Colombia is one of the most biodiverse countries in the world." |
  7. 7. Same time zone with the East Coast of the US – Rapidlyincreasing connectivity (Aprox. 3 hour flight to Miami and 5 hours to NY) In January 2013 an Open Skies agreement will enter into full force City of Weekly direct City of Origin Destination Frequencies Miami Bogota 42 New York Bogota 26 Ft. Lauderdale Bogota 21 Houston Bogota 14 Orlando Bogota 14 Miami Cali 14 Miami Medellin 14 Miami Barranquilla 7 Atlanta Bogota 7 Miami Cartagena 7 New York Medellin 7 Ft. Lauderdale Cartagena 6 Washington Bogota 5 Ft. Lauderdale Medellin 5 Ft. Lauderdale Armenia 4Source: Aerocivil. Proexport Calculation Total: 193
  8. 8. Colombias population is 46 million
The percentage of population under 30 years of age is 55%" 7 metropolitan areas with over 1 million people" |
  9. 9. The second largest Spanish speaking country in the world Population Millions of People - 2010* 112.469 46.927 45.92 40.52 38.206 34.033 29.96 28.631 22.2 17.09 11.27 10.637 10.63 9.4119 8.417 7.8665 7.6247 5.077 4.9181 4.388 Source: EIU (Economist Intelligence Unit) *Forecast (October 10, 2011)
  10. 10. Macroeconomic stability GDP, Inflation and Unemployment rate (%) 2002 – 2011e 15.5 14.0 13.6 Unemployment 11.8 12.0 12.0 11.8 11.2 11.3 rate 9.0 7.7 7.0 6.5 6.7 6.9 5.5 5%-6% 4.9 GDP 4.3 5.7 5.3 4.7 4.5 Inflation 3.9 2.0 3.5 3.2 3%-4% 2.6 1.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011eSource: DANE- Colombia Central Bank - Economist Intelligence Unit Forecaste: Estimated
  11. 11. The three top risk rating agencies granted Colombia“investment grade” on its sovereign debt in 2011 The three agencies agree on the countrys positive economic and financial situation, highlighting:   Its ability to deal with external shocks   Its historic fulfillment of obligations   An increase in its macroeconomic credibility   A visible improvement in security conditions May 31, 2011
  12. 12. The third "friendliest" country to do business in Latin America andthe top reformer in the region Change in Doing Business Ranking, 2007-2012* (Variation in the number of positions) World World Country Ranking Ranking 2012 2011 Chile 39 41 Peru 41 39 Colombia 42 47 Mexico 53 54 Panama 61 63 Argentina 113 114 Costa Rica 121 121 Brazil 126 120 Ecuador 130 131 Venezuela 177 175 Source: Doing Business 2012 World Bank Report *Positive numbers indicate improvements in business environment
  13. 13. Colombia: the 28th largest economy in the world whenadjusted by PPP and one of the largest non-OECDeconomies GDP (PPP) US $ Billions - 2010 437 417 383 352 348 342 327 277 277 259 259 229 220 188 173 121 Note: GDP adjusted by purchasing power parity (PPP) Source: EIU (Economist Intelligence Unit) (October, 2011)
  14. 14. Colombia among the top economies in the world by 2050 Top 30 economies of the world, by 2050 GDP US$ constant 2000 (Billion)Colombia will be the top economy in Latin America for growth in GDP per capita. h"p://www.research.hsbc.com/midas/Res/RDV? p=pdf&key=ej73gSSJVj&n=282364.PDFHSource: The World in 2050, Quantifying the shift in the global economy, HSBC, Global Research. 2011.
  15. 15. GDP Per Capita adjusted by PPP is close to US $10,000 Colombias GDP Per Capita (PPP)*, 2000 – 2010 (US $) 9,820 9,300 8,842 8,940 8,474 7,817 7,204 6,817 6,343 5,826 5,984 6,151 +126% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (f) • GDP Per Capita adjusted to prices at purchasing power parity (PPP) • (f) : Forecast Source: EIU (Economist Intelligence Unit) (October 12, 2011)
  16. 16. According to international standards, Colombia is part ofthe group of upper-middle-income countries since 2005 US$ 7000 Per-Capita National Income * (Current USD) 6000 Upper Middle Income 5000 4000 3000 Lower Middle Income 2000 1000 Low Income 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Source: Ministerio de Hacienda y Crédito Público – EIU * Classification based on a World Bank methodology
  17. 17. A rapidly growing consumer market: 46 million of MobileTelephony lines by 2011 Mobile Phone Penetration 2010 98.20% 2009 91% Active cell phone users per year 2008 85.20% 2007 77.3% Year Active lines Variation % 2006 68.6% 2005 47.5% 2000 2,256,801 2004 23.0% 2003 13.9% 2001 3,265,261 44.69% 2002 10.5% 2001 7.6% 2002 4,596,594 40.77% 2000 5.3% 2003 6,186,206 34.58% 1999 4.7% 1998 4.4% 2004 10,400,000 68.12% 1997 3.2% 2005 21,849,993 110.10% 1996 1.3% 1995 0.7% 2006 29,762,715 36.21% 1994 0.2% 2007 33,941,118 14.04% 2008 41,364,753 21.87% Operator Users 2008 Users 2009 Users 2010 Variation 2009 42,025,520 1.60% Colombia Móvil 4,012,102 4,516,509 5,208,793 15,33% 2010 44,477,653 5,83% Telefónica Móviles 9,963,095 8,964,575 10,004,521 11,60% June 2011 46,147,937 - Comcel 27,389,556 27,673,546 29,264,339 5,75% Total 41,364,753 41,154,630 44,477,653 Source: CRC, Communication Regulation Comission
  18. 18. Strong growth in internet connections 4,384,181 3,181,431 2,150,718 2,179,951 1,072,881 501,238 218,405 2004 2005 2006 2007 2008 2009 2010Source: CRC, Communication Regulation Comission 2008, 2009, 2010 include mobile networks
  19. 19. 2011 will be a record year in exports Colombia Exports by Country Exports, 2000 – September 2011 Jan – Sept 2011 US$ Billions 45,000 41.5 37.6 39.8 United States 40,000 •  US$ 15.5 35,000 •  Share 37.5% 30,000 32.8 28.9 Netherlands 25,000 •  US$ 1.9 20,000 •  Share 4.7% 15,000 13.1 Chile 10,000 •  US$ 1.7 5,000 •  Share 4.1% 0 China •  US$ 1.6 •  Share 4% Variation 2008 - 2009: -12,7% Variation 2009 - 2010: 21,2% Variation Jan Sep 2010 – Jan Sep 2011: 43,2% Source: DANE (Departamento Nacional de Estadísticas) ( National Department of Statistics)
  20. 20. Colombia has access to 486 million consumers with thecurrent agreements that are in force Europe North America EFTA Russia Canada European Union United States Mexico Dominican Republic Panama Venezuela North Triangle Costa Rica Colombia CAN LATAM Chile Mercosur In Force: CAN, Mexico, Chile, Mercosur, Northern Triangle, Canada, Switzerland and Liechtenstein (members of EFTA)" Under Negotiation: Panama Upcoming: United States, European Union, Norway, and Iceland Venezuela Future: Costa Rica, Dominican Republic Elaborado por OEE-MCIT
  21. 21. Future trade agreements North America Europe EFTA Russia Canada European Union United States Turkey Japan South Dominican Rep. Korea Asia Mexico North Triangle Panamá Venezuela Persian Gulf Costa Rica Colombia CAN LATAM Mercosur Chile In Force: CAN, Mexico, Chile, Mercosur, Northern Triangle, Canada, Under Negotiation: Panama, Venezuela, South Switzerland and Liechtenstein (members of EFTA) Korea, Turkey. Upcoming: United States, European Union, Norway, and Iceland Future: Costa Rica, Dominican Republic, Russia, Gulf Community, Japan. Elaborado por OEE-MCIT
  22. 22. Colombia and US Bilateral Trade Relationship (2010)   Colombia and the US traded US$27 billion in 2010 and US$25.5 billion between January and September 2011.  The US is the top market for Colombia exports and the first source of Colombia´s imports.  Colombia is the 20th market for US exports the 25th supplier of US imports.  Colombia is the 3rd market for the US in Latin America and its 4th supplier.   Selected by the US Eximbank as one of nine priority countries for the US around the world.
  23. 23. 2011 will be a record year in FDI flows to Colombia Main Investors in Colombia 2000 – 2010** United States •  Stock US$ 9,333 M •  Share 28.8% Great Britain •  Stock US$ 4,631 M •  Share 12.8% Spain •  Stock US$ 2,637 M •  Share 7.3% Mexico •  Stock US$ 1,517 M •  Share 4.2% Variation 2008 - 2009: -32% Variation 2009 – 2010: -5% Variation I Sem 2010 – I Sem 2011: +91.4% *FDI by Exchange Balance **Participation by country positive accumulated inflows, it doesn´t includes investment or reinvestment of profits in the oil sector, Value 2000 - 2010: US$ 32.462 million Source: Banco de la República (Balance of Payments) (Central Bank)
  24. 24. US companies have a strong presence in Colombia Eight US companies in different sectors rank among the largest in Colombia. In 2010 they recorded:   Close to US$ 8.3 billion in sales .  Exports over US$ 670 million   Approximately 120,000 related jobsSource:Calculations by Proexport using Revista Dinero’s “2010 top companies in Colombia” figures
  25. 25. Colombia is also increasing its investment flows abroad(utilities, banking and financial services)US $Million 6,529 4,662 3,088 2,254 938 325 913 142 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Assembly of the first 500,000-volt electric Purchased 60% of Peruvian energy transmission system in Peru. Investment: company Cálidda. US $130 Million Investment: US$ 111 Million Purchased ING companies in Chile, Acquisition of one hundred percent of the Mexico, Peru, Uruguay and Colombia Central American Bank Investment: US$ 3.763 Billion Investment: US$ 1.9 Billion Source: Banrep
  26. 26. National Development Plan 2010 - 2014 Strengthen cultivable Make use of large, areas and update them unexplored gold and with technology to coal reserves increase exports Leading driver of economic and social development Stimulate the creation, Promote the improvement and development of expansion of “Housing for All” infraestructure
  27. 27. The Government is boosting 12 sectors through itsProductive Transformation Program SERVICES" MANUFACTURING" AGRO-INDUSTRIES" Business process Chocolate, Graphic Arts outsourcing Confectionary, and Industry " BPO&O" its raw materials" Textile, Apparel, Beef" Software & IT" Fashion & Design " Electric Energy and Palm, vegetable Health Tourism " related Goods and oils & fats " Services" Auto Parts & Shrimp Farming" Vehicles" Cosmetics & Personal Care"
  28. 28. International research and consulting firmsrecognize Colombia as a key player in BPO Top 30 Countries for Offshore Services in 2010-2011 and 2011-2012 Gartner identified the following variables as Colombia’s strongest Latin America’s main BPO&O countries selected by Gartner: assets for Offshore Services: Criterion Rating Argentina Costa Rica Cost Good Brazil Mexico Chile Panama Political and Economic Environment Good Colombia Peru Cultural Compatibility Good Source: Gartner (November 2011) Labor Pool Good Government Support Good Colombia: Latin America’s Hidden Outsourcing Jewel Tholons identified the KPO segments were Colombia will be going in 2014: 1.  Pharmaceutical R&D KPO Market Value in 2014: 2.  Engineering Services (ESO) 3.  Information Technology Services (ITO) USD 1,745 million 4.  Other KPO Source: Tholons (September 2010)
  29. 29. A competitive Free Trade Zone framework  Tax, trade and customs benefits.  No restriction on sales to the local market.   Different types of FTZs suited to investors needs .  Approximately 30 Free Trade Zone Parks (multi-user) and 70 single - enterprise FTZs around the country   Close to 4 million square meters available to companies in FTZ parks around the country  Companies such as Unisys, Convergies, Teleperformance and Genpact operate out of FTZs in Colombia. |
  30. 30. To sum up•  Colombia stands as one of the most interesting emerging markets. It ranks among thetop countries in Latin America due to its market size, macroeconomic stability, long termgrowth potential, oppennes to foreign investment and new business opportunities.•  A sustained improvement in security conditions has led to a significant growth in foreigninvestment, exports and international tourism. An increasing number of foreign companiesin the oil&mining, manufacturing and services sectors are choosing Colombia as alocation for their investments.•  The US is Colombia’s largerst trading partner and investor and US companies alreadyhave a strong presence in the country. This relationship will grow stronger thanks to theFTA.•  Colombias offers a wide range of opportunities to IT/BPO companies to serve thegrowing domestic and regional markets. Foreign companies can find reliable localpartners to explore new business ventures.•  Count with Proexport as a partner to further your growth in Colombia and Latin America. |
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