Investment Enviroment and Business Oportunities in Colombia

1. Investment environment and
business opportunities in Colombia
September 2015

2. We
promote
exports
We
promote
tourism
We
promote
investment
and industrial
expansion for
internationalization
We
promote
country
brand

3. PROCOLOMBIA AROUND THE WORLD
United States / Canada / Mexico / Guatemala / Costa Rica / Caribbean /
Venezuela / Brazil / Ecuador / Chile / Peru / Argentina / Spain / Germany /
Portugal. / United Kingdom / France /Turkey / United Arab Emirates / India
/ China / South Korea / Russia / Japan / Singapore / Indonesia.
26 commercialoffices
30countries

4. CONTENT
Colombia´s Economic Overview
Colombia´s Investment and Trade
Investment Opportunities
1
2
3

5. Colombia´s Economic
Overview

7. Around
1.0
million of
oil barrel
per day
3rd oil
producer in
the region
COLOMBIA’S GENERAL FACTS
Fifth coal
exporter
worldwide
First exporter in
Latin America
Fourth
largest
producer
of crude
palm oil
in the
world
Over 1.0
million tons
produced
Country
with the
highest
biodiversity
per km2
Among the
17most
megadiverse
countries of the
planet

8. LESS THAN 6 HOURS AWAY BY
AIRPLANE FROM THE MAIN
CITIES IN THE AMERICAS
* This information takes into account the routes departing from international airports in Barranquilla, Bogota, Cali, and Medellin.
Source: Routes and Tariffs- Tools for the Colombian Exporter, Processed by Proexport Colombia.
New York
(5hr 35min)
Los Angeles
(9hr 25min)
Mexico City
(4hr 20min)
Paris
(13hr 20min)
Madrid
(9hr 40min)
London
(14hr 05min)
Tokyo
(25hr 05min)
Beijing
(24hr 40min)
Dubai
(19hr 40min)
Moscow
(17hr)
Miami
(4hr 30 min)
Lima
(3hr 10 min)
Santiago de Chile
(6hr 55 min)
Berlin
(14hr 10 min)
Hong Kong
(24hr 15min)
Toronto
(8hr 54 min)
Mumbai
(24hr 30min)
Seoul
(23hr 35min)
Sao Paulo
(5hr 50min)
878 INTERNATIONAL DIRECT FREQUENCIES PER WEEK.
MORE THAN 4,500 DOMESTIC FREQUENCIES PER WEEK.

9. A country with
multiple development
poles and regions
Caribbean Region
Andean Region
Pacific Region
Orinoco RegionAmazon Region
 Agribusiness
 Automotive
 Infrastructure
 BPO & KPO
 IT Services
 Hotel & Tourism
Infrastructure
 Agribusiness
 Oil Goods and
Services
 Automotive
 BPO
 Hotel & Tourism
Infrastructure
 Shared Services
Centers
 Agribusiness
 Metalworking
 Chemicals
 Automotive
 Hotel & Tourism
Infrastructure
 Agribusiness
 Hotel & Tourism
Infrastructure
 Agribusiness
 Hotel & Tourism
Infrastructure
Colombia has 9 cities with over 500,000 inhabitants
and 37 with more than 250,000 inhabitants.
It is expected that by 2020, 14 cities have
more than 500 thousand inhabitants.
Cartagena
990,179 hab.
Medellín
2,441,123 hab.
Cali
2,344,734 hab.
Ibagué
512,631 hab.
Bogotá
7,776,845 hab.
Bucaramanga
527,451 hab.
Cúcuta
643,666 hab.
Barranquilla
1,212,943 hab.
Soledad
599,012 hab.

10. The second largest spanish
speaking country in the world and
among the 30 most populated
255,07
204,5
121,1
101,4
91,6
68,8
50,6 48,2 42,4
31,9 30,8
18,0
9,8 8,6 8,4 8,2 7,3 5,5 5,2 4,6
Population 2015* (millions)
* Estimated.
Source: IMF, 2015.
Latin America economies

11. Colombia is within the largest
economies in the world and one
of the largest non-OECD economies
190
192
204
250
296
307
308
310
328
332
381
386
421
487
563
688
896
1,232
1,435
1,904
Peru
New Zealand
Vietnam
Chile
Singapore
Israel
Philippines
Hong Kong
Malaysia
Colombia
Austria
Thailand
Norway
Sweden
Argentina
Switzerland
Indonesia
Mexico
South Korea
Brazil
GDP current prices 2015* (US$ billions)
* Estimated.
Source: IMF, 2015.
Latin America economies

12. GDP per capita in Colombia has tripled in just a decade,
going from US$2,200 in 2003 to US$8,000 in 2014
2.053
2.865
3.534
5.445
6.458
8.076
10.715
10.804
11.604
12.873
14.447
28.101
36.991
39.871
43.837
51.307
56.319
58.491
87.475
97.013
Vietnam
Philippines
Indonesia
Thailand
Peru
Colombia
Mexico
Malaysia
Brazil
Argentina
Chile
South Korea
Israel
Hong Kong
New Zealand
Austria
Singapore
Sweden
Switzerland
Norway
Source: IMF, 2015.
GDP per capita, current prices 2014 (US$)
Latin America economies

13. In the past five years,
Colombia ranked
second in terms of
economic growth
among the largest
countries in the region
Gross Domestic Product, average growth
2010 - 2014
Colombian growth drivers
according to OECD
For Colombia data, corresponds to real GDP growth reported for 2014 according
to DANE.
For the rest of L.A data corresponds to the estimated growth for 2014 according
to IMF (World Economic Outlook Update – July 2014).
100
5,8%
4,8%
4,4%
4,6%
3,7%
1,1%
3,3% 3,2%
Colombia
Peru
Mexico
Chile
LATAM
Brazil
Argentina
Venezuela
High investment in housing and
infrastructure (12% growth)
Growth in private consumption (4.6%)
Solid labor market
Public expenditure

14. 100
Colombia
Peru
Mexico
Chile
LATAM
Brazil
Argentina
Venezuela
Peru and
Colombia, the
top growing
economies in
2015 among
the largest
Latin American
countries
Source: IMF (World Economic Outlook – July 2015)
e = estimated
Gross Domestic Product
Average growth 2015
3,2%
3,0%
2,5% 2,4%
0,5%
0,1%
-1,5%
-7%
Image taken from: http://www.agenciadenoticias.unal.edu.co/typo3temp/pics/e16bc4deb4.jpg

15. Inflation in Colombia shows a
downward trend for over 2 decades
Source: Banco de la República.
32,4%
26,8%
25,1%
22,6%
22,6%
19,5%
21,6%
17,7%
16,7%
9,2%
8,8%
7,7%
7,0%
6,5%
5,5%
4,9%
4,5%
5,7%
7,7%
2,0%
3,2%
3,7%
2,4%
1,9%
3,7%
3,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Inflation, annual variation
1990 – 2014
Target inflation
range 2015:
2% - 4%
Image taken from: https://blog.mint.com/wp-content/uploads/2013/12/Can-Peer-to-Peer-Lending-Save-the-Economy.jpg

16. Colombia, an
investment-grade
country with
positive outlook
Source: S&P Ratings; Dinero magazine, Colombian Treasury.
RatingPerspectiveTerm
Long Term –
Foreign currency
BBB BBB Baa2
Stable PositiveStable
In July 2014, Moody´s was the last
rating agency in improving Colombia´s
rating due to two key drivers:
1. Positive growth forecast thanks to 4G
infrastructure.
2. A sound fiscal management that will
continue in the future.
Long Term –
Foreign currency
Long Term –
Foreign currency

17. 50%
31%
28%
18%
9% 8%
16%
30%
2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014
Agrowing middle class
Source: Poverty: National Administrative Department of Statistics – DANE
Middle class: The gained decade: the evolution of the middle class in Colombia
between 2002 and 2011. Documento CEDE # 50. Universidad de los Andes. And RADDAR for 2013 data.
Percentage of people in poverty
2002 – 2014
Poverty
Middle Class
Extremely Poverty
Image taken from: https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcQ79OzZHG0AAyCQ8zoXkPS0SP4MuUBsz16sgncuMCIT7Vo5iH2R
Colombia has
continuously
decreased its
poverty levels

18. 16%
25%
37%
46%
2002 2012 2020 2025
The middle class will represent
the 46% of the population in 2025
Average real growth of consumer expenditure,
2014 – 2018
Middle class* in Colombia as a percentage
of total population (Millions 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
19.0
11.6
6.7
24.7
2.9%
4.1%
4.2%
4.7%
5.5%PER
COL
CHI
MEX
BRA
Imagen tomada de: http://www.sen-soyle.com/g/1modern_wall_texture_30.jpg

19. PERU
COLOMBIA
MEXICO
CHILE
PANAMA
ECUADOR
BRAZIL
Source: Doing Business Report 2015. World Bank
* Position between 189 economies. ** Positive numbers indicate an
improvement in the business environment
35
-1
19
39
34
+4
41
-2
52
+3
115
0
120
+3
Position out of 189 economies
Change in rank 2014 – 2015**
Colombia´s Position out of 189 economies.
Image taken from: http://orig12.deviantart.net/1026/f/2008/176/b/4/brick_road_2_texture_by_jay_b_rich.jpg
Colombia tops the
region as the best
country for doing
business in 2015

20. COLOMBIA WAS OFFICIALLY
INVITED ON MAY 2013 TO INITIATE
THE PROCESS TO BECOME FULL
MEMBER OF THE OECD
“The OCDE investment policy
review examines Colombia's
achievements in developing an
open and transparent
investment regime and its
efforts to reduce restrictions on
international investment” OECD
Colombia is implementing
the roadmap to become full
member of the OECD
PROCOLOMBIA.CO

21. Colombia´s
Investment and Trade

23. 0,00
0,05
0,10
0,15
0,20
0,25
0,30
0,35
0,40
0,45
China
Myanmar
SaudiArabia
Indonesia
Jordan
India
NewZealand
Malaysia
Mexico
Tunisia
Russia
Canada
Iceland
Kazakhstan
Korea
Australia
Israel
Ukraine
Austria
Brazil
Mongolia
UnitedStates
Norway
Switzerland
Kyrgyzstan
Peru
Poland
Morocco
Egypt
UnitedKingdom
Turkey
Sweden
Chile
SouthAfrica
Italy
Japan
CostaRica
SlovakRepublic
France
Ireland
Belgium
Argentina
Latvia
Lithuania
Denmark
Greece
Hungary
Colombia
Germany
Spain
Finland
Estonia
Netherlands
CzechRepublic
Romania
Slovenia
Portugal
Luxembourg
FDI Regulatory Restrictiveness Index
Closed = 1 - Open = 0
COLOMBIA
Low barriers to FDI
FDI Restrictiviness index 2013 Source: OECD
Image taken from: http://www.murando.es/mediacache/catalog/product/cache/6/5/32856/image/5e06319eda06f020e43594a9c230972d/32856_1.jpg
Latin America economies
Average
OECD Average

24. Developed economies 2014
Developed economies 2013
Developing and transition economies 2014
Developing and transition economies 2013
Colombia remains one of the
top 20 destinations for FDI
Source: UNCTAD – World Investment Report 2013 and 2014
Top 20 host economies in 2014
(USD billion)Rank18
0
43
16
-5
69
-23
19
45
42
17
32
28
52
54
64 65
48
231
74
124
14 15 16
19 21 22 23 23 2323
30
34
54
71
62
68
72
92
103
129

25. Colombia recorded US$16,257
million of inward FDI in 2014
3.391
4.675
6.201
6.432
6.612
7.607
8.682
9.200
9.899
10.036
10.799
12.566
16.257
21.914
22.580
22.795
22.949
62.495
67.523
103.254
New Zealand
Austria
Philippines
Israel
Argentina
Peru
Norway
Vietnam
South Korea
Sweden
Malaysia
Thailand
Colombia
Switzerland
Indonesia
Mexico
Chile
Brazil
Singapore
Hong Kong
FDI inflows 2014
(US$ millions)
Source: UNCTAD – World Investment Report 2015.
Latin America economies

26. NON OIL AND MINING SECTORS
ARE TAKING A LARGER SHARE
OF INWARD FDI
Source: Balance of Payments - Banco de la República.
Share of all countries with positive cumulative investment, The information includes reinvested
profits or investments in the oil sector
Note: the list of the top countries investing in Colombia does not include Panama.
Top Investing Countries in Colombia
2000– 2015 IQ
FDI Inflows. 2008 –2015 II Q
US$ million
UNITED STATES
•22%
UNITED KINGDOM
•13.2%
SPAIN
•8.4%
SWITZERLAND
•6%
TOTAL 2005 – 2015 IQ: US$ 127,829
4,197
7,095
8,120
9,838
4,646 4,328
5,722
7,945
8,809
6,419
4,169
2,507
Promedio
2008-2011
2012 2013 2014 2014 II Q 2015 II Q
2,825
3,814
16,209
15,039
9,919
16,257
Oil and mining
Other sectors

27. COLOMBIA HAS ACCESS TO MORE THAN 45 COUNTRIES AND 1,500
MILLION CONSUMERS THROUGH ITS NETWORK OF TRADE
AGREEMENTS
Source: Colombian Ministry of Commerce, Industry and Tourism. 2015.
*These are Partial Scope Agreements (PSA)
- - - The dotted line refers to member countries of The Pacific Alliance other than
Colombia. – Chile, Peru and México.
Canada
United States
Mexico
Guatemala
Honduras
El Salvador
Ecuador
Brazil
Peru
Argentina
Paraguay
Uruguay
EFTA
European
Union
Turkey
Israel
Japan
Panama
Chile
Bolivia
Costa Rica
Venezuela*
Pacific
Alliance
South Korea
Cuba*
Nicaragua*
In force
Signed
In negotiation

28. Colombia:
A gateway to the Pacific Alliance
Source: IMF – UNCTAD, 2015.
Mexico
Colombia
Peru
Chile
GDP of
US$2,129
billion
The members
generate 37% of
the region´s
GDP
Population of
219 million
More than Brazil´s
population
FTAs with 60
countries
Access to benefits of
markets that represent
86% of the World
GDP
MILA is the first cross border
initiative to integrate equities
markets, without any sort of merger
or global corporate integration, using
only technological tools along with.
Listed companies: 590
44% of the
regional FDI
Total FDI of US$69,608
million (2014)

29. 38.432
16.363
54.795
-
10.000
20.000
30.000
40.000
50.000
60.000
2014
US$millions
Non mining
Mining
15%
8%
6%
5%
4%
4%
58%
Non mining exports by subsector
Coffee
Fresh flowers
Plastics in primary forms
Banana
Cosmetics and toiletries
Confections
Others
23%
10%
6%
5%
5%
51%
Non mining exports by country
United States
Venezuela
Peru
Brazil
Mexico
Others
In 2014, 30% of Colombian non mining exports
were concentrated in coffee (15%), fresh flowers
(8%) and plastics (6%)
Source: DANE.
29.9%
Colombian Exports

30. 7.551
53.536
61,088
-
10.000
20.000
30.000
40.000
50.000
60.000
70.000
2014
US$millions
Non mining
Mining
9%
8%
8%
7%
5%
63%
Non mining imports by subsector
Vehicles
Telecommunications and sound
Industrial machinery
Other transportation
Manufacturing of iron or steel
Others
21%
20%
9%5%
4%
41%
Non mining imports by country
China
United States
Mexico
Germany
Brazil
Others
In 2014, more than 30% of the Colombian non
mining imports came from China and United States
Source: DANE.
87.6%
Colombian Imports

31. 3.652
43,561
1994 - 2002 1994 - 2014
The stock of investment flows from Colombia
to the world has grown 12-fold since 2002
Source: Banrep, 2015
Source TOP three Latin American investors: EIU, 2015
Stock of outward FDI
1994 – 2014, US$ million
Top Latin American
investors to the world
(2014) USD million
BRAZIL
• US$ 26,020
CHILE
• US$ 11,949
MEXICO
• US$ 7,610
COLOMBIA
• US$ 3,899

32. 10,0%
4,0%
4,0%
4,0%
4,0%
5,0%
6,0%
7,0%
8,0%
11,0%
28,0%
Other sectors
Pharmaceuticals
Petrochemicals
Hotels and tourism
Construction materials
Chemicals
ICT
Utilities
Financial services
Processed foods
Apparel retail
We have identified more than 45O expansion operations overseas,
driven by 123 Colombian companies which have undertaken an
internationalization process through investments abroad
Source: fDi Markets, EMIS and mass media.
Agribusiness
12%
Manufacturing
23%
Services
39%
Fashion
industry
26%
Distribution of companies by sector
Main subsectors
% of companies
THE EXPANDING ROLE OF
COLOMBIAN “MULTILATINAS”

33. We have identified more than 500
operations, with different international
expansion models, around the globe
Number of Operations
50-60
40-50
30-40
20-30
10 and 20
Peru
Panama
U.S.A
México
Main investment
destinations

34. Investment cases of Colombian
companies
Alpina has 3
production plants
in Ecuador, Peru
and the United
States. The latter
plant has created
50 new direct jobs
and has a yearly
production
capacity of 4,000
tons of yogurt.
Nutresa is a
multinational
company with
investments in
Malaysia, Chile,
Dominican Republic,
Mexico, Nicaragua,
Peru, Panama, Costa
Rica and Puerto
Rico. In 2014,
Nutresa invested in
the construction of
a new factory of
crackers in Texas.
Argos has become
one of the largest
concrete producers
in the state of
Florida and the
southeastern
region. The
company also has
invested in Puerto
Rico, Honduras and
French Guyana.
Corona has invested
in Brazil, Mexico,
China and the United
States. The
reinvestment
objective of its plant
in Perrysville (Ohio)
was to increase its
production of
plumbing products by
50% in the upcoming
years.
Source: DINERO Magazine, July 2014
Grupo Phoenix has
emerged as the
Latin American
leader in
packaging
solutions. With 5
production plants:
Virginia, Arizona,
México, Venezuela
and Ecuador.

35. Investment
Opportunities

37. Source: Ministry of Transport - The annual avarage exchange rate for 2014 US$=2.001,1
Sectors of opportunity – Infrastructure:
A major drive for growth
Airports
Interventions US$ 1.8 Bill
(10 projects) and constructions
US$ 2.3 Bill (2 projects).
(2015-2018)
Ports
US$ 2.1 Bill.
(2015-2018)
Roads
US$ 24 Bill.
Fourth Generation of PPP’S (4g)
Intervention of 8.000 Km of Roads
1.300 Km of new Roads
40 new concessions
River Navigability
US$ 1.3 Bill.
Improvement of the
Magdalena
Step Rail Ways
US$ 4.2 Bill.
Concession Program
(feasibility study – step 2)

38. 0
Sectors of opportunity – Infrastructure:
A major drive for growth
Source: DINERO Magazine, July 2014
In 2014, Iridium awarded
two road concession
projects in the
government’s “highway
concession program
(4G)”. Those projects
sum 78 Km long and will
help with the
strengthening of the
transportation
infrastructure.
Strabag will participate
in a highway project in
the country. it involves
the completion of 75 km
of new highway, the
modernization of a 65
km section and the
construction of
numerous bridges and
tunnels.
In 2015, Ferrovial has
awarded the design,
construction, financing,
operation and
maintenance of a road
concession of 152 km
long. They have also
developed other projects
such as tunnels in
Ituango hydroelectric
plant and some other
highways.
OHL is participating in
the construction and
future operation of a
highway of 144 km long.
The project will include
the construction of 2
tunnels and 79 bridges;
it will reduce the
transport time between
the center and the north
coast of the country.
Spain Austria Spain Spain

39. Sectors of opportunity – Energy: a diversified
source base and a pivotal location in the Americas
Source: World Economic Forum 2014 and UPME
* UPME (Colombian Planning Unit of Mines and Energy). MW approx.
0,66
0,67
0,67
0,7
0,71
0,72
0,72
0,72
0,73
0,75
Latvia
Costa Rica
Spain
Colombia
Denmark
Switzerland
Sweden
France
New Zealand
Norway
The Global Energy Architecture Performance Index 2014Colombia was ranked first in Latin America and
seventh in the world according to the “Energy
Architecture Performance Index 2014”. WEF, 2014.
103Power Generation projects in
different stages: Installed capacity of
4,974 MW*
13power transmission projects
in different stages*
High potential in Biofuels and
alternative energies
Wind GeothermalSolarBiomass Solid Residues Gas
Some niche with oportunities

40. 0
Source: DINERO Magazine, July 2014
Endesa, subsidiary of the
Italian group Enel,
acquired participation in
Emgesa and Betania
power generation
companies with 2,895
MW of installed capacity.
The company has also
investment in Codensa,
main power distribution
and trading Company in
Bogota and other cities.
Union Fenosa bought "
Electricaribe and
Electrocosta " and
became the main power
distribution and trading
company in the north
coast of Colombia.
Fenosa also manage
natural gas and currently
has more than 4 million
users through the
country.
Colombia subsidiary of
AES Corporation (Applied
Energy Services). Chivor
is one of the country's
largest generator with a
total effective installed
capacity of 1,000 MW.
The low-grade coal-fired
power plant Termopaipa
in Paipa (Colombia) was
the first power plant
abroad which was
planned, financed and
built by Steag.
Spain Spain United States Germany
Sectors of opportunity – Energy: a diversified
source base and a pivotal location in the Americas

41. Sectors of opportunity – Oil and gas goods
and services
South American oil production in 2014
KBPD
Brazil
2,346
Argentina
629
Peru
110
Ecuador
556
Colombia
990
Venezuela
2,700
Colombia is within the top twenty oil producing
countries in the world
Source: BP Statistical Review of World Energy 2015.
Goods and services for the Offshore industry
Exploration: 23 blocks.
Round 2014 results: 5 blocks awarded.
Offshore potential resources would multiply by 6 oil
reserves in Colombia; gas reserves would triple as well.
Non-conventional resources
7 shale gas and oil gas basins.
Colombia is the third country in South America with the
greatest potential in Shale gas and Shale oil after Brazil and
Argentina.
ACP (Colombian Oil Association): 36 oil wells are expected between
2014 and 2016.

42. 0
The group of
companies specializing
in services for the oil
industry, since 2007
have been seeking
new strategic
partnerships with
Colombian companies
to expand its coverage
in the domestic
market.
The Company arrived to
Colombia in 1943. They
offer general provision of
services for the oil
industry and develop
several projects related
with and supporting the
oil sector process
The Peruvian company,
leader in fixed and
temporary building
solutions, has developed
projects in temporary
housing and other
infrastructure for the oil
and mining sector.
The Canadian signed an
agreement to acquire all
of the shares of SAI
Colombia. This will take
control of 37% of oil
platforms in the
Colombian market and
become the largest
operator of holes in the
country.
China United States Peru Canada
Sectors of opportunity – Oil and gas goods
and services

43. Sectors of opportunity – Manufacturing:
manufactures for the local and foreign markets
Some niche with opportunities
Domestic market with potential growth
• Colombia's middle class will triple in the next ten years.
• Colombia's purchasing power has doubled in the last 10
years.
• According to Fedesarrollo, the expected growth will be
higher than 5% in the next three years.
Capable workforce and reliable business network
• More than 400,000 graduates and specialists in
engineering related areas between 2000 and 2013.
• More than 3,700 industrial companies with export
experience.
A well-established exporting platform for the
manufacturing sector
• 13 Trade Agreements granting tariff-free access to a
market with approximately 1.5 Billion consumers.
Automotive Ceramic
Metalworking
Architectural
glass
Fertilizers Plastic
Packaging
Natural
ingedients for
consmetics
Pesticides

44. 0
Source: DINERO Magazine, July 2014
Its factory in Colombia is
among the three most
efficient in the world due
to its results in
productivity and
competitiveness.
The new factory is one of
its three most modern
factories in the world.
The products
manufactured there are
free of phosphates,
which shows its modern
approach and care for
the environment.
The factory located in
Colombia is the most
efficient and ranks first
(it has 8 in total) by its
good performance in
production processes
and high international
standards of
manufacturing.
In 2014, Mexichem
opened the most
modern and automated
plant in Latin America to
manufacture pipes made
of polyester resin
reinforced with
fiberglass.
Germany Netherlands &
United Kingdom
Germany Mexico
A regional platform for manufacturing
activities with high standards of productivity

45. 0
Source: DINERO Magazine, July 2014
Its factory in Colombia is
one of the most
productive and
sustainable and is listed
as one of the 'focus
factories' for the group,
which has operations in
more than 130 countries.
French company Saint
Gobain set up in
Colombia one of the
most modern plants in
the region to supply
glass to the automotive
industry market.
The French cosmetic
producer acquired the
Colombian company
Laboratorios Cósmeticos
Vogue in 2013. With this
acquisition the
multinational has
positioned its brand
locally and regionally.
The company begun
operations in Colombia
in 2008. UPL Colombia is
the group's exporting
platform in the Americas,
exporting more than
95% of its production
towards major markets
like United States,
Mexico, Brazil and
Argentina.
Switzerland France France India
A regional platform for manufacturing
activities with high standards of productivity

46. Sectors of opportunity – Automotive
Sales of vehicles in Colombia. Thousands of unitsIn 2014, Colombia set a new record in car
sales with more than 328,000 units.
8 OEM´s (Original Equipment Manufacturer)
have facilities in Colombia. 73% of cargo is
transported by road.
Colombia is the second largest producer of
motorcycles in the region.
The production of auto parts has
doubled in last ten years.
Assembly of passenger
vehicles
Some niche with opportunities
Assembly of
cargo vehicles
Assembly of
motorcycles
Manufacture of
auto parts
253,9
324,6 316,0
293,8
328,5
350,9 362,8
381,0
398,7
436,0
2010 2011 2012 2013 2014 2015e 2016e 2017e 2018e 2019e
Source: ANDI and Business Monitor International
Source: ANDI.

47. 0
The North American
company General
Motors, invested to
create its own Industrial
Free Trade Zone for
stamping processes.
Daimler, along with
DANA, invested in a
plant for the assembly of
passenger vehicles. An
estimated 3,000 unit per
year will be assembled
by 2015.
The North American
company Johnson
Controls made an
alliance with Baterías
Mac for lead batteries
production destined to
the local market, Central,
South America and The
Caribbean.
Foton recently invested
in a new assembly
facility for its SUV
models.
United States Germany United States China
Sectors of opportunity – Automotive

48. Source: MinTic and IDC
Sectors of opportunity – Services
IT, BPO, ITO, Shared Services, Apps
Colombia is one the three major providers
of IT services in the region.
The broadband connections increased
from 2.2 to 8.8 millions between 2010
and 2014
In the next 4 years, the broadband
connections will be tripled reaching 27
million connections
Available labor force of more than 1,200,000
professionals graduated in fields related to
financial and value added shared service
operations
Some niche with oportunities
Cloud computing
Big data
Software develpment
Innovation and
development centers
Agregated
shared services
centres for
diverse
industries

49. 0
Source: DINERO Magazine, July 2014
In September of 2014
the assembly of IBM’s
third Data Center in
Colombia was made
official, with a processing
capacity of 5 petabytes,
makes it one of the most
advanced centers for
Cloud Computing and
Big Data Analytics in the
country
It has two operations
centers in Bogota where
it manages a diversified
portfolio of blue ribbon
clients, with the capacity
for up to a thousand
positions.
In Colombia the
operation currently has
more than 1,400 active
work positions in credit
processes, customer
service, and document
management, attending
and responding to
clients in sectors that
include banking,
manufacturing, mining,
mass consumption,
among others
The Operation of the
Diageo Shared Services
Center in Bogota serves
12 markets in the region
and has about 110
positions.
Software & IT Services
United States
BPO
Spain
BPO & IT
Japan
Shared Services
United Kingdom
Sectors of opportunity – Services
IT, BPO, ITO, Shared Services, Apps

50.  Projects that increase availability of convention
centers, exhibition centers and corporate
hotels. Colombia ranks 25th in the ICCA
ranking (International Congress and Convention
Association)
Sectors of opportunity
Tourism infrastructure,
real estate and retail
 Increase availability of Hotel rooms in secondary
cities.
 Projects that develop adequate infrastructure
and that take advantage of Colombia´s nature
and wellness potential, reflected in the countries
biodiversity and the quality of it´s health
services.
 Investment in luxury hospitality.
Investment Opportunities in:
Nature &
Adventure
Wellness
City HotelsEntertainment
Some niche with
oportunities
2012 2013 2014
3.5
3,7
4,2
Inbound tourist*
2012 – 2014
(millions of people)
* Inbound tourist includes: resident Colombians abroad, foreign non resident in
Colombia, special cross borders, and cruise visitors.
Source: Migration Colombia and MinCIT. ProColombia calculations.

51. Sectors of opportunity
Tourism infrastructure,
real estate and retail
Source: DINERO Magazine, July 2014
This American chain
opened its first hotel in
Bogota's financial district
(73rd Street), with
approximately 240
rooms focusing on
business tourism. Hilton
operates in the
Caribbean region of
Colombia through the
Hampton brand in
Cartagena and
Barranquilla.
Holiday Inn hotels
opened in Bogota and
Cartagena, and
combined provide 331
rooms. Also, there is a
Holiday Inn Express in
Bogota with 76 rooms,
one in Cucuta with 98
rooms, and one in
Bucaramanga with 170
rooms. Currently, there
is an Intercontinental
hotel under construction
in Cartagena.
The American company
Marriott International
operates in Bogota with
a 239-room hotel located
in the southern section
of El Dorado Avenue, 15
minutes away from the
international and
domestic air terminals.
Also, the prestigious
264-room JW Marriott
hotel opened in Bogota’s
financial district (72nd
Street), and a 182-room
Marriott hotel will soon
open in Cali.
Ibis Bogota is located in
the International Center
(one of Bogota’s business
districts), close to the
National Museum, 15
minutes from the
Colonial Candelaria
district and 45 minutes
away from the airport.
Medellin also has an
Accor hotel brand which
has added 216 rooms to
the city.
United States United Kingdom United States France

52. Rubber Biofuels
 Build specialized industrial facilities to
transform natural rubber into value-added
items.
 Build biorefineries, biomass plants and / or
development of transesterification
intended to transform the palm oil into
biodiesel.
 Establish local partnerships and invest in
biotechnology laboratories to develop
quality seeds.
 Build cocoa plants to process cocoa
byproducts such as cocoa butter, cocoa
liquor and chocolate products.
Sectors of opportunity - Agribusiness
Forestry
Some niche with opportunities Investment Opportunities
Aquaculture Cacao Cereals
Fruits and
vegetables
Meat Processed food

53. Source: DINERO Magazine, July 2014
Sectors of opportunity - Agribusiness
0
Dole, the North
American multinational,
began to operate a plant
of salads and a
distribution center of
production in Colombia,
projects in which the
company had to invest
around US$15 million.
Smurfit Kappa is one of the
leading providers of paper-
based packaging solutions in
the world, with around
43,000 employees in
approximately 350
production sites across 33
countries and with revenue
of €8.1 billion in 2014.
Entered the country in 2007 as
a result of a joint venture with
the Colombian company
Alquería, combining the
international experience and
the innovation capacity and
development of Danone with
the know how and knowledge
of the local market of Alquería.
Chile
Ireland France

54. Sectors of opportunity – Oil palm and rubber
Agricultural GDP in Latin America
4th country in the world with higher oil
palm production: 1.2 million tons (3.1% of the
global demand).
Colombia produces 20% of the South
American rubber: 44,100 tonnes/year.
High potential tire demand: between 2008
and 2013, sales in excess of 6.4 million tires were
estimated and the figure could be higher.
Oil and fat
processed food
Rubber auto
parts
Biofuels
Some niche with opportunities
4%
4%
5%
6%
6%
6%
7%
9%
0% 2% 4% 6% 8% 10%
Venezuela
Mexico
Brazil
Ecuador
Latam
Peru
Colombia
Argentina
Source: FAO, Ministry of Agriculture.

55. 0
Mitsubishi has become
partner with Ecopetrol in
the project Bioenergy
(Ethanol Production,
2012).
Likewise, Mitsubishi
aqcuired a part of
Colombian BioOriente
(which is building the
largest biodiesel plant of
Colombia)
A factory of radial tires
for trucks and neumatic
tires, among others,
operates in Yumbo (Valle
del Cauca).
The first air-retreading
plant for Latin America
will begin operations in
Colombia.
Merhav produces more
than 376,000 lt/daily in
a 10,000 hectares plant
of sugar cane located in
Magdalena.
Merhay contributes to
generate around 1.000
direct jobs in Colombia.
AAK has acquired the
Fabrica Nacional de
Grasas S.A. (FANAGRA),
a Colombian company
that specializes in
vegetable oils and fats
for the bakery segment.
The company has 155
employees and an
annual volume of
production of 30,000
tonnes.
Japan United States Israel Sweeden
Sectors of opportunity – Oil palm and rubber

56. 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.
REDUCED INCOME TAX AND SALES
ALLOWED TO THE LOCAL MARKET
Free Trade Zone (102)
“Special Standing
Uniempresarial”
(FTZ) (62)
Permanent Free
Trade Zone
(40)

57. Investment cases in colombian free
trade zones
Source: DINERO Magazine, July 2014
Teleperformance
Colombia has 11
campuses and
approximately 10,000
employees in its offices
in Bogota and Medellin.
The company stands out
for providing nearshore
services in Colombia
(United States) and
Offshore (Spain).
In 2015, opened a
precision component
factory in the country.
It’s the first midsize
Japanese company who
decides to invest in
Colombia.
Through the construction
of the largest assembly
plant in Latin America,
Hero MotoCorp serves
the markets of Central
and South America.
Mexican Coca-Cola
Femsa bottling plant in
Tocancipá free trade
zone is the starting point
of FEMSA Industrial
Park, the first cluster of
soft drinks in the
country.
France Japan India Mexico

58. Summing up,
Colombia offers:
A dynamic and stable and
economy
An agency, PROCOLOMBIA, ready
to assist you in assessing
investment opportunities
A solid base of expanding Colombian
companies to partner with to reach
the local and regional markets
Diverse Opportunities for
investment in a wide
variety of sectors
A platform to reach third
markets through a
network of FTAs
A very interesting and
expanding market

59. THANK YOU