Colombia Presentation - 2014

1. COLOMBIA
Investment Environment and Business Opportunities in Colombia
2014

2. About us
Proexport is in charge of the promotion of International Tourism, Foreign Direct
Investment, and non-traditional exports in Colombia
www.proexport.com.co
EXPORTS INVESTMENT TOURISM

3. Proexport Services

4. Proexport Services

5. Proexport Services

6. Proexport in Colombia
www.proexport.com.co
25
Regional Ofices8
Information centers
BARRANQUILLA. BOGOTÁ. BUCARAMANGA.
CALI. CARTAGENA. CÚCUTA. MEDELLÍN.
PEREIRA
VALLEDUPAR. PASTO. PALMIRA. ARMENIA = UNIVERSIDAD GRAN
COLOMBIA – CÁMARA DE COMERCIO. VILLAVICENCIO. BOYACÁ =
TUNJA - DUITAMA - SOGAMOSO. IBAGUÉ. SANTA MARTA. SAN
ANDRÉS. ABURRÁ SUR. NEIVA. BARRANQUILLA = CÁMARA
COMERCIO – UNIVERSIDAD NORTE. CARTAGENA. MEDELLÍN.
BUCARAMANGA. CALI = CÁMARA COMERCIO. PEREIRA. BOGOTÁ.
MANIZALES. CÚCUTA. POPAYÁN. BOYACÁ.

7. 26 commercial offices
prescence in 30 countries
UNITED STATES. CANADA. MEXICO. GUATEMALA. COSTA RICA.
CARIBBEN. VENEZUELA. BRAZIL. ECUADOR. CHILE. PERU. ARGENTINA.
SPAIN. GERMANY. PORTUGAL. UK. FRANCE. TURKEY. UNITED ARAB
EMIRATES. INDIA. CHINA. SOUTH KOREA. RUSSIA. JAPAN. SINGAPORE.
INDONESIA.
Proexport en in the world

8. General facts
Second most bio-diverse
country in the World
It is among the 12 most
megadiverse countries of the planet.

55%
of the population is less than 30 years
old. There are seven cities with over
one million people.
With an extension of
1,141,000 km2 almost 3
times the size of California and
twice the size of Texas.
Colombia is the only country in
South America with access to
both, the Atlantic and the
Pacific ocean.

9. Times of great economic achievements
GDP2013: +4.3%
GDP 2012 : +4.0%
Higher than the Latin American
average growth (3.2%).
Controlled
Inflation: 1.94%
Below target inflation
Unemployment rate 2013:8.5%
Unemployment rate for December
2012: 9.2%.
FDI2013: US$16,772
FDI 2012 : US$ 15,529
Record figure in Colombian history
1.01 million barrels per day
of oil production
Fourth largest producer in South America

10. A competitive location with easy access
to markets around the globe
Mexico City
4H45M
Los Angeles
8H20M
Quito
1H30M
Lima
3H00M
Peru
Ecuador
México
United States
Canada
Brazil
ArgentinaChile
Spain
France
Germany
Over 878 weekly direct international flights.
More than 4,500 weekly domestic flights.
Less than 6 hours to the main capital cities
in Latin America.
More than 20 different airlines
New York
5H35M
Toronto
6H05M
Caracas
1H20M
Santiago
Chile
5H00M
Buenos Aires
6H15M
Sao Paulo
5H45M
Madrid
9H40M
Paris
10H40M
Frankfurt
11H15M

11. 202.80
116.20
81.67 78.09 83.70
64.60
47.40 50.50
35.60 31.60 30.20
23.51 17.70
10.50 9.70 8.50 8.10 7.20 8.20 5.10 5.50 4.60
Population 2014*
Millones
The second largest spanish speaking country in the
world and the 23rd most populated
Source: DANE. EIU - Economist Intelligence Unit. 2014.
* Forecast.

12. 167
257
299
301
373
380
400
420
422
455
481
481
535
599
606
1,176
1,790
2,324
2,560
2,644
3,688
New Zeland
Denmark
Singapur
Israel
Norway
Chile
Peru
Vietnam
Hong Kong
Sweden
Belgium
Switzerland
Philippines
Colombia
Malaysia
Australia
South Korea
Mexico
France
Brazil
Germany
GDP at PPP – 2015
US$ billion
Colombia is the 28th largest economy in the world
and one of the largest non-OECD economies
PPP - Purchasing Power Parity. e: estimated.
Source: EIU - Economist Intelligence Unit. 2014

13. 0 1 2 3 4 5 6 7 8 9
China
India
Nigeria
Vietnam
Indonesia
Colombia
Egypt
Turkey
Brazil
Russia
South Korea
Mexico
South Africa
United States
Canada
Japan
United Kingdom
Germany
France
Italy
Colombia will contribute significantly to world economic
growth
BRICs
Other EM
CIVETs
G7
Why?
Respect for private and intellectual
property.
Natural resource boom
Advance in national security and peace
process
FTAs with almost 50 countries (including the
US)
Rapid FDI growth
Source: “Diamonds in the rough: Unearthing opportunity in an uncertain world” .
The Economist March 2013.

14. Colombia's per capita income has nearly
doubled since 2000
Per capita National Income (PPP)
2000 – 2018p, US$
5,826
8,940
10,910
14,400
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013p 2015p 2018p
High Income
Middle High
Income
Middle Low
Income
Low Income
Income
Source: EIU – Economist Intelligence Unit. PPP = purchasing power parity.
Economies are divided according to 2012 income per capita, calculated using the World Bank Atlas method. The groups are: low income,
US$1,035 or less; lower middle income, US$1,036 - US$4,085; upper middle income, US$4,086 - US$12,615; and high income, US$12,616 or

15. 15.6
14.1
13.7
11.8 12.0
11.2 11.3
12.0 11.8
10.8
10.4
8.5
7.0
6.5
5.5
4.9
4.5
5.7
7.7
2.0
3.7
2.4
1.9
8.8
8.1
7.4 7.1 6.8
3.0
3.4 3.6 3.5 3.3
2.5 3.9
5.3
4.7
6.7 6.9
3.5
1.7
4.0
6.6
4.0 4.3 4.4 4.6 4.5 4.3 4.5
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018f
Macroeconomic stability and strong economic
performance in the long run
Inflation
GDP
Unemployment rate
GDP Growth, Inflation and unemployment Rate
2002 – 2018p (%)
f: Preyected e: Estimates
Source:: DANE; Banco de la República; EIU - Economist Intelligence Unit . 2014

16. Economic growth has been fueled by high rates
of investment
14%
16%
18%
25% 24%
27%
33%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014f 2015f 2016f
Gross Capital Formation (% of GDP)
2000 – 2016f
Source: EIU – Economist Intelligence Unit
Figures at constant prices of 2005.
e- Estimates

17. A rapidly growing middle class
16.2%
25.3%
37.3%
46.3%
43.8%
59.9%
2002
2012
2020
2025
Below Baseline Scenario
Above Baseline Scenario
6.7
6.7
22.3
19.0
32.1
24.7
Million
inhabitants
11.6
11.6
Middle class in Colombia as a percentage of total population
Baseline scenario: 4.6% GDP growth
Below baseline scenario: 4.2% GDP growth
Above baseline scenario: 5.3% GDP growth
Middle class: Monthly household income between 3.2MW and 13MW
(MW) Minimum wage in Colombia 2013: US $333.

18. Economic growth, Investor Confidence and Security
* Figures do not include FDI registered for SabMiller adquisition of Bavaria in 2005 (USD 4,800 MM).
** Perception of insecurity as a key issue affecting industrial growth in the country. Monthly Industrial Survey -ANDI.
0,0
5,0
10,0
15,0
20,0
25,0
30,0
0
1000
2000
3000
4000
5000
6000
IED - US$ million* Insecurity perception**

19. Colombia, an investment-grade country with positive
outlook
S&P (April 2013) and Fitch
(december 2013) improved
Colombia´s sovereign debt
outlook.
“Effective implementation of
recent fiscal reforms could
improve its debt and interest
burdens”– S&P
On December 2013 Fitch Ratings upgraded Colombia's ratings due to Colombia's improvement in its external accounts and positive
government debt dynamics, which support the convergence of external and fiscal credit metrics with rating peers. In addition, the
sovereign's credible and consistent policies provide it with the capacity to withstand external shocks; this was demonstrated during
the recent increase in financial volatility witnessed by several emerging markets.
Since 2011 the Colombian sovereign debt has been rated positively by all three agencies, coinciding with a reduction in the
vulnerability to external shocks, the fulfillment of its obligations, confidence in the macroeconomic policy of the country and
improved security policies.
Rating Date
Rating
Agency
Long Term– Foreign
Currency
Short Term–
Foreign Currency
Long Term– Local
Currency
Short Term – Local
Currency
Outlook
Stable
BBB
A – 2
BBB +
A - 2
24– Apr- 2013
24– Apr- 2013
5 – Mar - 2007
5 – Mar - 2007
Long Term–
Foreign Currency
Short Term–
Foreign Currency
Long Term – Local
Currency
BBB
F – 2
BBB+
13 – Dic- 2013
22 – Jun - 2011
22 – Jun - 2011
Long Term– Foreign
Currency
PositiveBaa3 7– Feb- 2012
Term
Stable

20. Colombia with the most reforms in Latin America
towards the improvement of Business environment
Source: Doing Business 2014. World Bank.
*Positive numbers indicate improvements in business environment.
Country
Ranking
2014*
Chile 34
Peru 42
Colombia 43
Mexico 53
Panama 55
Costa Rica 102
Brazil 116
Argentina 126
Ecuador 135
Venezuela 181
Ranking Doing Business*
2008-2014
Change in the number of positions
23
16
13
10
6
-1
-7
-9
-9
-17
Colombia
Panama
Costa Rica
Mexico
Peru
Venezuela
Ecuador
Brazil
Chile
Argentina

21. Colombia is the leader in terms of Investor Protection in
the region
Source: Doing Business. World Bank . 2014.
Ranking
Country
6 Colombia
16 Peru
34 Chile
68 Mexico
80 Brazil
80 Panama
98 Argentina
182 Venezuela
8.3
7.0
6.3
5.7
5.3 5.3 5.0
2.3
Colombia
Peru
Chile
Mexico
Brazil
Panamá
Argentina
Venezuela
Investment Protection Index
Doing Business - 2014

22. Total commerce has grown almost 5 times in
the past 10 years
24.915
25.151
24.671
27.009
33.476
42.395
50.553
62.888
77.295
65.682
80.502
112.095
119.299
118.219
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Total Comerce (X+M)
United States
• Exports: US$18.458 million
• Imports: US$ 15.681 million
China
• Exports: US$ 5.102 million
• Imports: $9.841 million
Mexico
Exports: US $863 million
Imports: US$ 5.299 million
Brazil
• Exports: US $2.457 million
• Imports: US$ 1.590 million
Exports and Imports.
2000 – 2013
US$ millions
Source: DANE, 2014

23. Colombia shows a remarkable growth of its exports
Variation 2010 - 2011: 43%
Variation 2011 - 2012: 5,7%
Variation 2012 -2013: -2.2%
13,158 13,129
21,190
37,626
56,915 58,822
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Exports. 2000 – 2013
FOB Values US$ millions Top export destinations 2013
United States
• US$ 18,459 million
• Part. 31.4%
Panama
• US $2,939 million
• Part. 5.7%
China
• US $5,102 million
• Part. 8.7%
India
• US $2,993 million
• Part. 5.1%

24. Imports also have increased rapidly
Variación 2011 – 2012: 7.2%
Fuente: DANE
11,757
21,204
39,666
32,891
54,233
59,397
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Top imports by origin 2013Imports 2000 – 2013
CIF Values - US$ million
United States
• US$ 16,337 million
• 27.5%
Mexico
• US$ 5,496 million
• 9.3%
China
• US$ 10,363 million
• 17.4%
Brasil
• US$ 2.590 millones
• Participación: 4.4%

25. Free Trade Agreements
Source: Colombian Ministry of Commerce, Industry and Tourism. 2013.
Canada
United States
Mexico
Guatemala
Honduras
El Salvador
Ecuador
Brazil
Peru
Argentina
Paraguay
Uruguay
Liechtenstein
Switze
rland
Island
Norway
European
Union
Turkey
Israel
Japan
Panama
Chile
Bolivia
Costa Rica
Venezuela*
Pacific
Alliance
South Korea
Cuba*
Nicaragua*
*These are Partial Scope Agreements (PSA)
- - - The dotted line refers to member countries of The Pacific Alliance other than Colombia. – Chile, Perú
and México.
In force
Signed
In negotiation

26. International Investment Agreements - IIA
Source: Colombian Ministry of Commerce, Industry and Tourism. 2013.
Canada
United States
Mexico
Guatemala
Honduras
El Salvador
Peru
Uruguay
Liechtenstein
Switzerland
Island
Norway
European
Union
Turkey
Israel
Japan
Panama
Chile
South Korea
* Negotiations recently concluded.
Note: The International investment agreements (IIA) include Agreement Investment Treaties – BIT
(agreement) and Free Trade Agreements – FTA- with investment section (chapter).
Spain
China
India
United
Kingdom
Kuwait
Singapur
Azerbaijan
Qatar
Russia
In force
Signed
In negotiation

27. Double Taxation Agreements - DTA
Source: Colombian Ministry of Commerce, Industry and Tourism. 2013.
Canada
United States
Mexico
Peru
Switzerland
Holland
Norway
Turkey
Israel
Japan
Chile
South Korea
*Negotiations recently concluded.
Note: The International investment agreements (IIA) include Agreement Investment Treaties – BIT (agreement)
and Free Trade Agreements – FTA- with investment section (chapter).
In force
Signed
In negotiation
Future
Spain
China
India
Belgium
Singapur
Qatar
Bolivia
Ecuador
Honduras
Brazil
United Arab
Emirates
Italy
Germany
France
Czech
Republic

28. Colombia: A gateway to the Pacific Alliance
Source: MCIT, 2013
GDP of USD 2,010.3
billion
The members generate 35% of
the region´s GDP
Population of 209 million
Almost Brazil´s Population
50% of Latin American
commerce
Total trade of US$ 1,116
billion (2012)
FTAs with 60
countries
Access to benefits of
markets that represent
85.7% of the World GDP
Mexico
Colombia
Peru
Chile

29. In 2013 Colombia reached a new record in FDI:
Nearly 7 times of what it received 10 years ago
2,504
6,897
13,405
15,529
16,770
Average
1994 - 2002
Average
2003 - 2010
2011 2012 2013
Var.
8%
Top Investing Countries in
Colombia 2000– 2013
FDI Inflows. 1994 –2013
USD million
United States
• US$ 25,980 million
• 24 %
United Kingdom
• US$ 15,672 million
• 14,5%
Spain
• US$ 7,902 million
• 7,3%
Chile
• US$ 4,283 million
• 4,1%
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.

30. Colombia was among the top 20 destinations of FDI in
the world in 2012
Source: World Investment Report, Overview 2013; FDI Markets, Global Greenfield Investement Trends. 2013; CEPAL 2013.
According to The World Investment Report -UNCTAD Colombia is one of the top twenty host
economies for FDI in the world with USD 16 billion in 2012.
168
121
75
65
65
62
57
57
51
45
30
29
28
28
26
25
20
16
14
14
1; United States
2; China
3; Hong Kong (China)
4; Brazil
5; Virgin Islands (UK)
6; United Kingdom
7; Australia
8; Singapur
9; Russia
10; Canada
11; Chile
12; Ireland
13; Luxembourg
14; Spain
15; India
16; France
17; Indonesia
18; Colombia
19; Kazakhistán
20; Sweden
During 2012 Colombia attracted 93
Greenfield projects making it the third
country in the region in terms of the
number of projects.
Colombia is the third destination for
FDI in Latin America with
USD 15,649 Million.

31. The stock of Colombia’s outward FDI has grown nearly
ten-fold since 1994
Source: Banrep, 2014; World Investment Report, Overview 2013; FDI Markets, Global Greenfield Investement Trends. 2013; CEPAL 2013.
Stock of outward FDI. 1994 - 2013
USD million
3,652
39,482
Stock
1994 - 2002
Stock
1994 - 2013
FDI outflows by sectors,
1994 – 2013
Industry,
25,1%
Oil &
Mining,
21,4%
Financial
services,
27,7%
Electricity, gas
& water,
12,4%
Transport &
communicatio
n, 6,0%
Commerce,
restaurants &
hotels, 4,6%
Others, 2,8%
United States
USD 6,455 million
17%
United Kingdom
USD 5,180 million
14%
Panama
USD 6,505 million
18%
Peru
USD 2,507 million
7%
-606
7,652
2012 2013

32. Sectors of opportunity- Tourism
Source: Migración Colombia, MCIT, Banco de la República. Cálculos de Proexport
1,053 1,195 1,223 1,354 1,475 1,582 1,692 1,832
51
127 228
285
296
313
254
306
2006 2007 2008 2009 2010 2011 2012 2013
Arrivals (Migración Colombia) Visitors in cruises
United States
• 336,454 visitors
• 18.4%
European Union
• 307,212 visitors
• 16.8%
Venezuela
• 261,343 visitors
• 14.3%
Argentina
• 129,069 visiors
• 6.4%
Main nationalities of foreign
visitors in Colombia, 2013
Foreign visitors in Colombia
2006 – 2013, thousands

33. Some examples of high profile Colombian “multilatinas”
One of the largest food companies in
Colombia, Nutresa has presence in
12 countries in Latam, with
manufacturing plants in 8 of them.
Recently, the company signed an
agreement to acquire 100% of the
shares in Tresmontes Lucchetti
S. A. in Chile for USD 758
million.
SURA Brand is currently well known in the
insurance, pension and investment fund
business through its operations in Mexico,
Peru, Uruguay and Chile.
In 2011, the group bought ING assets in Latin
America for USD $ 3,614 million.
It is the largest financial conglomerate in
Colombia. The Group has subsidiaries in El
Salvador, Panama, and Puerto Rico.
In 2012, Bancolombia acquired 100% of the
ordinary shares and 90.9% of the preferred
shares of HSBC Bank in Panama.

34. Carvajal SA, is a conglomerate with
presence in 15 countries and
recognized for its role in the field of
packaging, stationery, design and
advertising.
In 2013, Carvajal S.A made an
investment of $ 23.7 million for the
construction of a manufacturing and
distribution center in Peru.
Colombiana SA is one of the country's
leading companies in the production and
marketing of sweets, chocolate and biscuits.
The company has strengthened its
international strategy with the opening of 11
branches throughout the Americas and has a
production plant in Guatemala to supply the
American market.
Tecnoquímicas is specialized in heath products
and services, personal care and household
cleaning, processed foods, and agricultural and
veterinary products in Colombia and Latin
America.
The company has direct presence in Central
America through its 3 production plants in El
Salvador.
Some examples of high profile Colombian “multilatinas”

35. Labor incentives
New employees with incomes lower
than 1.5 Minimum Wages (US$
476). Length of benefit by employee :
2 years.
New women employees above 40 years
old with more than 1 year
unemployed. Length of benefit by
employee: 2 years.
New employees under twenty eight
(28) years old. Length of benefit by
employee: 2 years.
New employees certified in displacement
situation, reintegration or disability.
Length of benefit by employee: 3 years.
Discount in the income tax and supplementary contributions, and other contributions
from payroll.
(Do not include positions generated by mergers or replacements)

36. Incentives for job creation and formalization
Start of main economic activity: date of registration in the commercial register.
Small firms: staff no more than 50 employees, total assets not exceeding 5,000
SMMLV.
Payment of income tax.
Payment of levies and other contributions from
payroll.
The business registration and renewal.
0% - 2 first years
25% - third year
50% - fourth year
75% - fifth year
100% - from the sixth
year.
0% - first year
50% - second year
75% - third year
100% - from the fourth
year.
Application of escalation

37. Free Trade
Zone
Permanent
Free Trade
Zone
Special
Standing
"Uniempres
arial" (FTZ)
Guajira
MagdalenaAtlántico
Bolívar
Valle del
Cauca
Cauca
Norte de
Santander
Santander
Boyacá
Cundinamarca
Huila
Antioquia
Caldas
Risaralda
Quindío
FTZ requested or
approved prior to
December 31, 2012.
• 15% Income tax.
FTZ filed after
December 31,
2012.
• Income tax of
15% + 9% tax
CREE.Caribbean Region
Andean Region
Pacific Region
Free Trade Zones: Reduced income tax and sales
allowed to the local market

38. Free Trade Zones: Reduced income tax and sales
allowed to the local market
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.

39. A country of regions and differentiated
opportunities for investors
Caribbean Region
Tourism, Logistics, Petrochemical,
Construction Supplies
Atlantic Export Platform.
Central/Andean Region
Outsourcing Services, high value-added
manufacturing, hub to cover domestic
market, specialized agribusiness.
Pacific Region
Manufacturing, Agribusiness, logistics,
biotechnology, Pacific export platform.
Eastern Region
Agriculture, forestry, biofuels,
hydrocarbons
Amazon Region
Conservation, ecotourism (Leticia)