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Colombia:An Upcoming Emerging Market for International Investors                        March 2012
Proexport is Colombia’s Government responsiblefor the promotion of International Tourism, Foreign     Direct Investment, a...
Proexport Around the World                       Canada                                                                   ...
Colombia   Basics
Colombia, almost the size of Ontario   Ontario   Total: 1,076,395 Km2   Land: 917,741 Km2   Water: 158,654 Km2   COLOMBIA ...
A competitive location with easy accessto cover the Americas                                      1,100 direct internatio...
A diversified economy with several dynamic poles                                    Barranquilla                   Santa M...
Capital: Bogota, Population 8.4 Million
Medellin, Population 3.5 million
Cali, Population 2.7 million
Barranquilla, Population 1.8 million
Key Economic  Figures
Colombian economy comparison       Colombian economy is bigger than countries such as Chile, Ireland,                Malay...
Colombia’s Population                                The twenty-fourth largest population in the world;                   ...
Colombias GDP per capita has tripled since 2003                                                                    +176%  ...
Colombia economic performance:Increasing international reserves and lower inflation                                       ...
Positioning Colombia as an export platform: 11 free trade agreements(FTA) with 48 countries allowing preferential access t...
Colombia has negotiated 18 internationalinvestment agreements (IIA) in 2011         In Force         Signed         In Neg...
…and 16 double taxation agreements (DTA)       In Force       Signed       In Negotiation          IN FORCE               ...
Three of the most important rating agencies havegranted the “Investment Grade” to Colombia                           The t...
Colombia reached highest FDI flows last year                                                                              ...
Although natural resource extraction is the top area receiving FDI,financial services, trade and manufacturing are getting...
In 10 years, exports tripled                                                       Top destinations of exports            ...
Colombia is increasingly attractive to tourists                          Foreign visitors to Colombia                     ...
Colombia, is playing a positiverole in the regions performance    showing higher growth than    Latin America and the world
Colombia´s GDP Vs. Latin América and The World          Growth of Colombias GDP vs. Latin America 2001 - 2010 (%)         ...
Doing Business Ranking 2012  Colombia: 3rd "friendliest" country to do business in Latin America and the major  reformer o...
Investor Protection Index 2011                                                                          Colombia ranks 5th...
Energy Infrastructure                       Colombia, energy infrastructure leader in Latin America.                     E...
The most competitive ftz’s in latin america: 15%income tax and allows sales to the local market  15% income tax.  No imp...
Sustainability                                                                           Sustainable Development, 2011 1/ ...
ALVARO CONCHAColombia’s Trade Commissioner  aconcha@proexport.com.co   DIEGO PENAGOS Foreign Investment Specialist dpenago...
Colombia: An Upcoming Emerging Market for International Investors
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Colombia: An Upcoming Emerging Market for International Investors

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Colombia: An Upcoming Emerging Market for International Investors

  1. 1. Colombia:An Upcoming Emerging Market for International Investors March 2012
  2. 2. Proexport is Colombia’s Government responsiblefor the promotion of International Tourism, Foreign Direct Investment, and Colombian 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. Colombia Basics
  5. 5. Colombia, almost the size of Ontario Ontario Total: 1,076,395 Km2 Land: 917,741 Km2 Water: 158,654 Km2 COLOMBIA Total: 1,138,910 Km2 Land: 1,109,104 Km2 Water: 100,210 Km2
  6. 6. A competitive location with easy accessto cover the Americas  1,100 direct international frecuencies per week  5,000 domestic frecuencies/week  Easy-quick access to major cities in the Americas  same time zone as Toronto and only 6 hours away on direct flights to Bogota
  7. 7. A diversified economy with several dynamic poles Barranquilla Santa Marta Cartagena Medellín Bucaramanga Coffee Triangle: Pereira, Manizales, Armenia and Cartago Bogota Cali Total Population in Colombia 2011 46 Million Total Population in Metropolitan Areas 23.3 Million Population in mayor cities, including metropolitan area. 2011 Source DANE
  8. 8. Capital: Bogota, Population 8.4 Million
  9. 9. Medellin, Population 3.5 million
  10. 10. Cali, Population 2.7 million
  11. 11. Barranquilla, Population 1.8 million
  12. 12. Key Economic Figures
  13. 13. Colombian economy comparison Colombian economy is bigger than countries such as Chile, Ireland, Malaysia, Egypt, Singapore and New Zealand Source: EIU (Economist Intelligence Unit) (October 10, 2011)
  14. 14. Colombia’s Population The twenty-fourth largest population in the world; The second most numerous Spanish-speaking population Population 112.469 Millions of People - 2010* 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)
  15. 15. Colombias GDP per capita has tripled since 2003 +176% Source: EIU (Economist Intelligence Unit) (October 12, 2011)
  16. 16. Colombia economic performance:Increasing international reserves and lower inflation International Reserves Colombia, 40,000 US$ Millions 2000-2011 28,445 29,987 30,000 20,000 14,957 15,440 24,041 25,365 10,844 10,921 13,540 20,955 9,006 10,245 10,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Colombias Inflation Rate (%) 2000 – 2011 Source: Bank of the Republic - DANE
  17. 17. Positioning Colombia as an export platform: 11 free trade agreements(FTA) with 48 countries allowing preferential access to over 1,500million consumers In Force Signed In Negotiation Future IN FORCE SIGNED IN NEGOTIATION FUTURE • CAN (Peru, Ecuador y Bolivia) • United States • South Korea • Japan • MERCOSUR (Argentina, Paraguay, • EFTA (Iceland and Norway) • Panama • Australia Uruguay and Brazil) • Turkey • New Zealand • Chile • European Union (Signature) • Costa Rica • G2-Mexico • Dominican Republic • North Triangle (Honduras, • Gulf Community Guatemala y El Salvador) • Switzerland • Liechtenstein • Canada
  18. 18. Colombia has negotiated 18 internationalinvestment agreements (IIA) in 2011 In Force Signed In Negotiation IN FORCE SIGNED IN NEGOTIATION • Peru (Agreement) • China (Agreement) • Mexico (Agreement) • India (Agreement) • Kuwait • Spain (Agreement) • United Kingdom (Agreement) • Turkey • Switzerland (Agreement) • South Korea (Agreement) • Liechtenstein (Chapter) • EFTA (Iceland and Norway) (Chapter) • European Union • CAN (Ecuador and Bolivia) (Chapter) • United States (Chapter) • Japan • Panamá • Chile (Chapter) • North Triangle (Honduras, Guatemala and El Salvador) (Chapter) • Canada (Chapter)Note: The International investment agreements (IIA) include Agreement Investment Treaties (BIT) (agreement) and Free TradeAgreements (FTA) with investment section (chapter).
  19. 19. …and 16 double taxation agreements (DTA) In Force Signed In Negotiation IN FORCE SIGNED IN NEGOTIATION • CAN – Peru, Ecuador and • Canada • United States, Germany, Bolivia • Mexico Czech Republic, Netherlands, • Spain • South Korea Belgium, Portugal, Japan, • Chile France • India • Switzerland
  20. 20. Three of the most important rating agencies havegranted the “Investment Grade” to Colombia The three rating agencies agree on the good economic and financial performance of the country, highlighting:  Its ability to deal with internal and external shocks  The countrys long history of timely debt payments  Increased macroeconomic policy credibility  A visible improvement in Security 31st May 2011
  21. 21. Colombia reached highest FDI flows last year Main Investors in Colombia 2000 – 2010** United States • Accumulated US $9.333 Billion • 28.8% share England • Accumulated US $4.631 Billion • 12.8% share Spain • Accumulated US $2.637 Billion • 7.3% share Mexico • Accumulated US $1.517 Billion • 4.2% share Variation 2009–2010: -3.1% Variation 3rd Quarter 2010 – 3rd Quarter 2011: 88.7% *Figures obtained through the foreign currency balance of the Bank of the Republic. **Share of all countries with positive cumulative investment, without reinvested profits or investments in the oil sector. Accumulated value 2000 – 2010: US $45,946 million Note: the list of the top countries investing in Colombia does not include Anguilla or Panama, in third and fourth place. Source: Bank of the Republic - Balance of Payments
  22. 22. Although natural resource extraction is the top area receiving FDI,financial services, trade and manufacturing are getting stronger. FDI in Colombia by Sector, FDI in Colombia by Non-Traditional Sectors, 2009 – 3rd Quarter 2011 2009 – 3rd Quarter 2011 Share of all countries with positive cumulative investment, without reinvested profits or investments in the oil sector. Accumulated value 2009 – 3rd Quarter 2011: US $17,999 million Source: Bank of the Republic
  23. 23. In 10 years, exports tripled Top destinations of exports United States • US $16.879 B • 42.5% share China • US $1.967 B • 4.9% share Ecuador • US $1.825 B • 4.5% share Holland • US $1.617 B • 4.1% share Variation 2008 - 2009: -12.7% Variation 2009 - 2010: 21.2% Variation Jan Nov 2010 - Jan Nov 2011: 42.3% Source: DANE (National Department of Statistics)
  24. 24. Colombia is increasingly attractive to tourists Foreign visitors to Colombia Main nationalities of visitors 2006 - January November 2011 arriving to Colombia* (thousands) United States • 345,158 Visitors • 23.4% share Venezuela • 197,173 Visitors • 13.4% share Ecuador • 122,076 Visitors • 8.3% share Argentina • 83,674 Visitors • 5.7% share * DAS and Cruise information to November 2011; Land Border Crossings to June 2011 Sources: DAS, MCIT, Bank of the Republic. Proexport Calculations.
  25. 25. Colombia, is playing a positiverole in the regions performance showing higher growth than Latin America and the world
  26. 26. Colombia´s GDP Vs. Latin América and The World Growth of Colombias GDP vs. Latin America 2001 - 2010 (%) Performance higher than Latin America and the World is expected over the next few years. Source: ANDI (National Business Association of Colombia), EIU
  27. 27. Doing Business Ranking 2012 Colombia: 3rd "friendliest" country to do business in Latin America and the major reformer of the region Change in Doing Business Ranking, 2007-2012* (Variation in the number of positions) World World Country Ranking 2012 Ranking 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 175Source: Doing Business 2011 - World Bank Ranking of 183 countries.*Positive figures show improvement in business environment. All changes are included in the methodology of the World Bank 2010 -2012.
  28. 28. Investor Protection Index 2011 Colombia ranks 5th in the world and 1st in Latin America in terms of the best protection for investors. World Ranking Country 5 Colombia 20 Peru 28 Chile 44 Mexico 74 Brazil 109 Argentina 109 Panama 179 VenezuelaNote: The investor protection index is the average of three variables: executive liability, ease of shareholders suits, and transparency. Ranking of 183countries.Source: Doing Business, 2011 - World Bank
  29. 29. Energy Infrastructure Colombia, energy infrastructure leader in Latin America. Energy Infrastructure, 20111/ Future Energy Supply, 20112/ Scale 0-10. 0: Inadequate – 10: Adequate Scale 0-10. 0: Not guaranteed - 10: GuaranteedSource: IMD World Competitiveness, 2011. Ranking of 59 countries.1/ Energy infrastructure is adequate and efficient.2/ Future energy supply is adequately ensured
  30. 30. The most competitive ftz’s in latin america: 15%income tax and allows sales to the local market 15% income tax. No import duties. Benefit from international trade agreements. Barranquilla Can also sell in domestic market. Cartagena Medellin Bucaramanga Pereira Bogota Cali
  31. 31. Sustainability Sustainable Development, 2011 1/ Scale 0-10. 0: it is not a priority – 10: it is a priority Colombia Chile Colombia is moving forward Brazil as a leader in Latin America toward sustainable Peru development. Mexico Venezuela ArgentinaSource: IMD World Competitiveness, 2011. Ranking of 59 countries.1/ Sustainable development is a priority in companies.
  32. 32. ALVARO CONCHAColombia’s Trade Commissioner aconcha@proexport.com.co DIEGO PENAGOS Foreign Investment Specialist dpenagos@proexport.com.co

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