6. 1. GENERAL INFORMATION 1.2. MULTIPLE PORTS TEN PORTS : 2 PORTS - PACIFIC OCEAN 8 PORTS- ATLANTIC OCEAN Buenaventura is an important port in the Pacific Ocean that facilitates de trade exchange with Asian countries and Australia.
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10. 2. CURRENT ECONOMIC SITUATION IN COLOMBIA Colombia: Outlook and Investment Potential
11. 2. ECONOMIC SITUATION 2.1. ECONOMIC GROWTH GDP Growth: Colombia Good Performance in Latin American context. Third greatest in Latin America. In 2005, the economy grew 5.13% GDP per capita: US$ 2,277 Fuente: Comisión Económica para América Latina y el Caribe – CEPAL, DANE Colombia vs. Latinoamerica (1980-2005) %
12. 2. ECONOMIC SITUATION 2.2. ECONOMIC STABILITY Inflation Rate Colombia had an inflation of 4,85% during 2005 . The savings and lending rates have shown a stable performance , as they reached 6.3% and 12%, respectively, in January 2005. Interest rates 1997-2005 4.85% 1994- January 2006
13. 2. ECONOMIC SITUATION 2.3. ECONOMIC STABILITY Finance obligations Colombia has never experienced defaulted on its international debts or financial obligations. 11.8% 12.10% Unenployment rate 27% Imports grew 54.6% 21% Exports grew 44% 43.5% Private investment increased 2005 2004 Some economic indicators
14. Colombia: Outlook and Investment Potential 3. CURRENT BUSINESS OPPORTUNITIES AUSTRALIA-COLOMBIA
15. GDP in Latin America (2005) Current Prices, US$ Millions Fifth largest economy and third largest population in Latin America Source: International Monetary Fund and World Bank, *Data for Colombia in 2005 from Bank of the Republic (Central Bank) and DANE Colombia Among the Andean countries, Colombia has the second-largest economy and the largest population. Population in Latin America (2005) Millions of persons Colombia Market size Qualified human capital 3. BUSINESS OPPORTUNITIES 3.1 MARKET SIZE
16. Source: The World Competitiveness Yearbook 2006-IMD Qualified human capital Availability of trained workforce (0= not available; 10= available) Ranking (61 countries) 26 39 44 40 57 12 Competent managers (0= not available; 10= available) Ranking (61 countries) 3 6 29 37 40 55 Colombia Colombia 3. BUSINESS OPPORTUNITIES 3.2. HUMAN RESOURCES AVAILABILITY
17. Remuneration manufacturing industry US$/hour (Including benefits) Source: The World Competitiveness Yearbook 2006-IMD Remuneration service professionals US$/year (Department Managers) 43 35 13 11 10 5 18 19 16 56 35 22 19 17 9 12 10 Colombia 19,500 Ranking (60 countries) Ranking (60 countries) Colombia Qualified human capital 3. BUSINESS OPPORTUNITIES 3.3. LOW LABOR COSTS
18. 3. BUSINESS OPPORTUNITIES 3.4. INVESTMENT GRADE RATING ACORDDING TO THE LEADING CREDIT RATING AGENCIES Chile Mexico Standard & Poor‘s Chile*** Mexico Colombia* * Peru** Brazil** Argentina * Venezuela** A - BBB- BB BB- B+ CCC+ SD Investment Grade Chile** Mexico*** Colombia* Brazil** Peru ** Argentina ** Venezuela** Moody’s Baa1 Baa2 Ba2 Ba3 B1 Caa1 Ca Investment Grade Colombia Peru Brazil Argentina Venezuela Fitch A - BBB- BB BB- B B DDD Investment Grade Colombia has the third best rating on foreign currency sovereign bonds * Negative Outlook ** Stable Outlook *** Positive Outlook
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22. 3. BUSINESS OPPORTUNITIES 3.8. FOREIGN DIRECT INVESTMENT IN LATIN AMERICA Colombia: Fourth Foreign Direct Investment destination in Latin America 2006 Trend Report: PROEXPORT
23. Trend Report: PROEXPORT 3. BUSINESS OPPORTUNITIES 3.8. FOREIGN DIRECT INVESTMENT IN COLOMBIA
24. 16% 14% 12% 8% 8% 10% 6% 5% 3% 4% TOTAL*: US $32,444 MM 16% * Excluding the petroleum sector and reinvestment of profits Source: Bank of the Republic (Central Bank) Main investment partners Accumulated FDI by country* (1994 – 2005) % of Total The main foreign investors in Colombia are: 3. BUSINESS OPPORTUNITIES 3.9. FOREIGN DIRECT INVESTMENT BY COUNTRY OF ORIGIN
25. 3. BUSINESS OPPORTUNITIES 3.10. FOREIGN COMPANIES IN COLOMBIA Some Strategic Alliances / Acquisitions Type Sector Colombian Company Foreign Company Country Acquisition Public Services Procesos y Diseños S.A John Wood Group Pcl Scotland Acquisition Mining Intercor Consorcio CZN UK Capital /Expansion Commerce Carulla Newbridge Andean Partners US Capital / Expansion Mining Gas Natural S.A Gas Natural Spain Capital / Expansion Communications Comcel America Movil Mexico Capital / Expansion Communications Caracol Radio Grupo Prisa Spain Joint Venture Food Services Colombina Joyco Spain Local Market Pharmaceutics Nucleotronics Bio Products Laboratory UK Joint Venture Basic drainage Aguas de Cartagena Aguas de Barcelona Spain Internet Communications/IT Bavaria UOL Brazil Technological Transference Insurance Colseguros Allianz France/Germany Capital / Expansion Commerce Exito Casino France Distribution Food services C. Nacional de Chocolates Mavesa Venezuela Capital / Expansion Communications Celumóvil Bell South US Acquisition Financial Banco Ganadero BBVA Spain Acquisition Financial Banco Real ABN-AMRO Netherlands Expansion Automobile CCA Ford Motor US
26. 3. BUSINESS OPPORTUNITIES 3.11. AN EXAMPLE OF POSITIVE EXPERIENCE BHP BILLITON BHP Billiton owns a third of Latin America’s biggest coal mine: El Cerrejon. The biggest coal mine in the world, located in the province of La Guajira on the Colombian Caribbean coast. It produces the lowest cost coal supplying the Atlantic basin. Billiton's owns 99.9% of the nickel mine Cerro Matoso. Cerro Matoso is located in the province of Córdoba, in northern Colombia. An integrated nickel mining and smelting operation, Cerro Matoso combines one of the richest lateritic nickel deposits in the world with a low-cost ferronickel smelter. Cerro Matoso is one of the world's lowest cost, major ferronickel producers.
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29. 4. EXPORTS TRADE BALANCE COLOMBIA - AUSTRALIA Total trade between Colombia and Australia has had a decrease in the last years. In 2005, the total trade was (A$m) 49 EXPORTS Australia to Colombia IMPORTS Colombia to Australia Source: DFAT (Department of Foreign Affairs and Trade Australia
30. 4. EXPORTS 4.1. TRADE BALANCE AUSTRALIA EXPORTED US$22 MILLIONS IN 2005 TO COLOMBIA. Source: DFAT (Department of Foreign Affairs and Trade Australia
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32. 5. IMPORTS 5.1. TRADE BALANCE IN 2005 AUSTRALIA IMPORTED US$28 MILLION FROM COLOMBIA. Calima Pty Limited has been distributing its 100% Colombian Coffee to the industry for the last 2 years, increasing a broader awareness of the culture, and heritage of Colombia through a number of high profile cafes/restaurants in Sydney, and expanding to other cities. Source: DFAT (Department of Foreign Affairs and Trade Australia
33. 5. IMPORTS 5.1. TRADE BALANCE IN 2005 AUSTRALIA IMPORTED US$28 MILLION FROM COLOMBIA. Calima Pty Limited has been distributing its 100% Colombian Coffee to the industry for the last 2 years, increasing a broader awareness of the culture, and heritage of Colombia through a number of high profile cafes/restaurants in Sydney, and expanding to other cities. Source: DFAT (Department of Foreign Affairs and Trade Australia
34. 5. IMPORTS 5.2. THE 25 COLOMBIAN COMPANIES WITH MORE EXPORTATIONS Out of the 25 colombian companies with higher exports. Australia already has a very important investment in two of them (Cerro Matoso and Cerrejon). Australian investors have ample business opportunities with several other companies. The potential products are: chemicals, fertilizer, chocolates, biscuits, confectionery, dairy products, construction materials, etc.
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