colombia: an upcoming emerging market for international investors
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Colombia: An Upcoming Emerging Market for International InvestorsTRANSCRIPT
Colombia: An Upcoming Emerging Market for International Investors
March 2012
EXPORTS INVESTMENT TOURISM
Proexport is Colombia’s Government responsible
for the promotion of International Tourism, Foreign
Direct Investment, and Colombian exports
Canada
UK
United States
Mexico
Germany
Spain France
Russia
Chile
Peru
Brazil
Ecuador
North
Triangle
South Central America
Venezuela
Caribbean
China
India
UK
Proexport Around the World
Arab Emirates
Turkey Japan
South Korea
Shanghai
Hong Kong
Singapore
NEW OFFICES
Colombia Basics
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
Colombia, almost the size of Ontario
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
A competitive location with easy access
to cover the Americas
A diversified economy with several dynamic poles
Medellín Bucaramanga
Bogota Cali
Coffee Triangle: Pereira, Manizales,
Armenia and Cartago
Population in mayor cities, including metropolitan area. 2011 Source DANE
Total Population in Colombia 2011
46 Million
Total Population in Metropolitan Areas
23.3 Million
Santa Marta
Cartagena
Barranquilla
Capital: Bogota, Population 8.4 Million
Medellin, Population 3.5 million
Cali, Population 2.7 million
Barranquilla, Population 1.8 million
Key Economic
Figures
Source: EIU (Economist Intelligence Unit)
(October 10, 2011)
Colombian economy comparison
Colombian economy is bigger than countries such as Chile, Ireland,
Malaysia, Egypt, Singapore and New Zealand
Source: EIU (Economist Intelligence Unit)
*Forecast (October 10, 2011)
The twenty-fourth largest population in the world;
The second most numerous Spanish-speaking population
112.469
46.927 45.9240.52 38.206
34.03329.96 28.631
22.217.09
11.27 10.637 10.63 9.4119 8.417 7.8665 7.6247 5.077 4.9181 4.388
Population Millions of People - 2010*
Colombia’s Population
Colombia's GDP per capita has tripled since 2003
Source: EIU (Economist Intelligence Unit)
(October 12, 2011)
+176%
Colombia economic performance:
Increasing international reserves and lower inflation
Source: Bank of the Republic - DANE
Colombia's Inflation Rate (%)
2000 – 2011
9,006 10,245 10,844 10,921 13,540 14,957 15,440 20,955
24,041 25,365
28,445 29,987
0
10,000
20,000
30,000
40,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
International Reserves Colombia, US$ Millions 2000-2011
In Force
Signed
In Negotiation
Future
IN FORCE
• CAN (Peru, Ecuador y Bolivia)
• MERCOSUR (Argentina, Paraguay, Uruguay and Brazil)
• Chile
• G2-Mexico
• North Triangle (Honduras, Guatemala y El Salvador)
• Switzerland
• Liechtenstein
• Canada
SIGNED
• United States
• EFTA (Iceland and Norway)
IN NEGOTIATION
• South Korea
• Panama
• Turkey
• European Union (Signature)
FUTURE
• Japan
• Australia
• New Zealand
• Costa Rica
• Dominican Republic
• Gulf Community
Positioning Colombia as an export platform: 11 free trade agreements
(FTA) with 48 countries allowing preferential access to over 1,500
million consumers
IN FORCE
• Peru (Agreement)
• Mexico (Agreement)
• Spain (Agreement)
• Switzerland (Agreement)
• Liechtenstein (Chapter)
• CAN (Ecuador and Bolivia) (Chapter)
• Chile (Chapter)
• North Triangle (Honduras, Guatemala and El Salvador) (Chapter)
• Canada (Chapter)
SIGNED
•China (Agreement)
• India (Agreement)
•United Kingdom (Agreement)
•South Korea (Agreement)
•EFTA (Iceland and Norway) (Chapter)
•United States (Chapter)
•Japan
IN NEGOTIATION
•Kuwait
•Turkey
• European Union
• Panamá
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
Colombia has negotiated 18 international
investment agreements (IIA) in 2011
IN FORCE
• CAN – Peru, Ecuador and Bolivia
• Spain
• Chile
• Switzerland
SIGNED
• Canada
• Mexico
• South Korea
• India
IN NEGOTIATION
• United States, Germany, Czech Republic, Netherlands, Belgium, Portugal, Japan, France
In Force
Signed
In Negotiation
…and 16 double taxation agreements (DTA)
31st May 2011
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 country's long history of timely debt payments
Increased macroeconomic policy credibility
A visible improvement in Security
Three of the most important rating agencies have
granted the “Investment Grade” to Colombia
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
Main Investors in Colombia
2000 – 2010**
Colombia reached highest FDI flows last year
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
Although natural resource extraction is the top area receiving FDI,
financial services, trade and manufacturing are getting stronger.
FDI in Colombia by Sector,
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
FDI in Colombia by Non-Traditional Sectors,
2009 – 3rd Quarter 2011
United States
• US $16.879 B
• 42.5% share
China
• US $1.967 B
• 4.9% share
Holland
• US $1.617 B
• 4.1% share
Ecuador
• US $1.825 B
• 4.5% share
In 10 years, exports tripled
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)
Top destinations of exports
Colombia is increasingly attractive to tourists
Sources: DAS, MCIT, Bank of the Republic. Proexport Calculations.
Foreign visitors to Colombia
2006 - January November 2011
(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
Main nationalities of visitors
arriving to Colombia*
* DAS and Cruise information to November 2011; Land Border Crossings to June 2011
Colombia, is playing a positive
role in the region's performance
showing higher growth than
Latin America and the world
Performance higher than Latin America and the
World is expected over the next few years.
Source: ANDI (National Business Association of Colombia), EIU
Growth of Colombia's GDP vs. Latin America 2001 - 2010 (%)
Colombia´s GDP Vs. Latin América and The World
Change in Doing Business Ranking, 2007-2012* (Variation in the number of positions)
Source: 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.
Doing Business Ranking 2012
Colombia: 3rd "friendliest" country to do business in Latin America and the major
reformer of the region
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
Country World
Ranking 2012
World
Ranking 2011
Note: The investor protection index is the average of three variables: executive liability, ease of shareholders suits, and transparency. Ranking of 183
countries.
Source: Doing Business, 2011 - World Bank
5 Colombia
20 Peru
28 Chile
44 Mexico
74 Brazil
109 Argentina
109 Panama
179 Venezuela
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
Energy Infrastructure
Source: IMD World Competitiveness, 2011. Ranking of 59 countries.
1/ Energy infrastructure is adequate and efficient.
2/ Future energy supply is adequately ensured
Future Energy Supply, 20112/
Scale 0-10. 0: Not guaranteed - 10: Guaranteed
Energy Infrastructure, 20111/
Scale 0-10. 0: Inadequate – 10: Adequate
Colombia, energy infrastructure leader in Latin America.
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.
Can also sell in domestic market.
Barranquilla
Cartagena
Cali
Medellin
Bogota
Bucaramanga Pereira
Sustainability
Source: IMD World Competitiveness, 2011. Ranking of 59 countries.
1/ Sustainable development is a priority in companies.
Sustainable Development, 2011 1/
Scale 0-10. 0: it is not a priority – 10: it is a priority
Colombia is moving forward
as a leader in Latin America
toward sustainable
development.
Chile
Venezuela
Mexico
Brazil
Peru
Colombia
Argentina
ALVARO CONCHA Colombia’s Trade Commissioner
DIEGO PENAGOS Foreign Investment Specialist