Presentación
Colombia–Inglés
Colombia: Attractive Business

Environment and Reliable Partner forJapanese Investors

July 2016

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Colombia Offers:
A dynamic and stableeconomy

A growing market
located strategicallyto facilitate business
transactions with theregion.

A trade platform with over
10 Trade Agreements
enabling investors to reachthird markets withpreferential accessMultiple development
centers and regions coupledwith a growing middle classsecuring greater productand services demand.

A growing pool of qualified
Colombian companies able
to partner with international
investors to reach out toregional markets.

Diverse Opportunities
for investment in awide variety of sectors

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Colombia is the 38th largest economy in theworld and the 4th in Latin America
BrazilMexicoTurkeyArgentina
IsraelColombia
Chile
FinlandVietnam
Portugal
GreecePeru
Venezuela
Ecuador
Uruguay
BoliviaParaguay
Estonia

1,673
1,187
11,385
579
312
263
240
237
215
204
193
180
134
102
57
353024GDP current prices 2016* (US$ billion)
Latin American Economies*Estimated.
Source: IMF, 2015Colombia has a stableeconomyGross Domestic Product, average growth2010 – 2015*
4.3%

3.7%

3.7%

Source: IMF, 2016
* Biggest economies in the region .

MexicoLATAM

Argentina

Chile

Colombia

Peru

3.2%

2.2%

Venezuela

4.5%

Brazil5.2%

Number of years of recession
1966– 2015
Colombia

1Mexico

6

Chile

7Peru

7

Brazil7

Argentine

15-0.7%

Source: 1966 – 2014: World Bank - 2015: IMF

4

5Gross Domestic Product
Estimated growth 2016

Venezuela

1.5%

Brazil2.4%

Colombia,

Argentina

2.5%

LATAM

3.7%

one of the top
growing economies
in 2016 among thelargest Latin

Chile

MexicoColombia

Peru

American-0.3%

countries-1%
-3.7%
-8%

Source: IMF, 2016.

Image taken from: http://www.agenciadenoticias.unal.edu.co/typo3temp/pics/e16bc4deb4.jpg

Colombia is the 27th most populated in the world
and the 3rd in Latin America

6206.1

Population 2016* (million)
Latin American Economies

122.5
64.5 61.2

50.8 48.8 46.3 43.6

32.4 31.6 31.4 24.4

18.2 16.5 11.7 11.4 10.9 10.4 10.0 9.9

8.6 8.5 5.6 5.3 3.4* Estimated.
Source: IMF, 2015.

A growing

7

middle class
Percentage of people in poverty

Colombia has

2002 – 2015

49.7%

continuously
PovertyMiddle Class

30.6%

30.5%

29.9%

27.8%

16.3%

2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014 2015
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. Document CEDE # 50. Universidad de los Andes. And RADDAR for 2013 data.
Middle class 2015: DNP

decreased its
poverty levels

Middle class boosts consumer
expenditure
Gross domestic product by intended
purpose – CAGR* 2010 – 2015

In the last 5years,consumer
expenditure
grew

8.27%

Source: DANE, 2016
*CAGR: Compound Growth Annual Rate

Apparel and footwear

9.79%

Entertainment and culture

9.77%

Restaurants & hotels

9.02%

Transport

8.98%

Different goods and services

8.91%
8.47%

Education
Home furniture

7.54%

Home lease and utilities

7.53%

Communications

7.46%

Health

7.28%

Food and non-alcoholic drinks

7.27%

Alcoholic drinks and tobacco

6.55%

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COLOMBIA,
TermLong Term –Foreigncurrency

Long Term –Foreigncurrency

Long Term –Foreigncurrency

Ratingan investment
grade country

BBBBBB

Baa2

In July 2014, Moody´s was the last
rating agency in improving
Colombia´s rating due to two keydrivers:
1. Positive growth forecast thanks
to 4G infrastructure.
2. A sound fiscal managementthat will continue in the future.

Source: S&P Ratings; Dinero magazine, Colombian Treasury.

9COLOMBIA

10

Low barriers to FDI
0.30

FDI Regulatory Restrictiveness Index 2014
Closed = 1 - Open = 0Latin America economies

0.25
0.20
0.15

Average

0.10

OECD Average

0.05
0.00

Source: OECDColombia is implementing
the roadmap to become
full member of the OECD
Colombia was officiallyinvited on may 2013 toinitiate the process to
become full member of theOECD“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”
OECDOECD already approved
Colombian committees
•
•
•
•
•
•

•
•

Competition
Statistics
HealthConsumer policy
Financial markets
ScientificandTechnologicalPolicy
Regulatory Policy
Fiscal Affairs

••
•

•

•

15

outof1123

Education
Territorial Development
PolicyInformation, Computerand Communications
PolicyWorkingGrouponBribery in International
Business Transactions
Investment CorporateGovernanceColombia

Ranking Doing Business*
2007-2016
Change in positions
Colombia

25Panama

23

Chile

HAS THE MOST REFORMS IN
LATIN AMERICA TO
IMPROVE BUSINESSENVIRONMENT

12Ecuador

6Mexico5Brazil

5Peru

3Argentina

12-20

Country

Ranking 2016

# de reforms
2006 - 2016

Colombia
MexicoEcuadorPeru
Chile
PanamaBrazilArgentina

5438
117504858116
121

30
23
23
21
1313115

Source: World Bank. Doing Business 2016.
*Positive numbers indicate an improvement in the business environment
In 2016, the World Bank changed its methodology including new variables for 5 topics: Dealing with construction permits, getting electricity,enforcing contracts and labor market regulation.

Photo taken from: http://orig12.deviantart.net/1026/f/2008/176/b/4/brick_road_2_texture_by_jay_b_rich.jpg

Colombia remains as one of the top 20 destinations for FDI
Top 20 host economies in 2014
(USD billion)

13

Developed economies 2014
Developing and transition economies 2014

129
103

1672

71

68

62

Rank
18

54
30

34
23

23

23

23

22

21

Source: UNCTAD – World Investment Report 2013 and 2014

1916

15

14

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Non-mining sectors accounts 70% of FDI inflows in 2015
FDI Inflows. 2008 to 2015
US$ million

Oil and mining

15.039Top Investing countries in Colombia
2000 – 201516.209Other sectors

9.919

7.945

8.089

16.3255.854

22%12.108
3.596

5.722

4.197
Average 20082011

7.095

2012

UK
13%

8.120

2013

10.011

2014

8.511

2015

70%

SPAIN
8.6%

TOTAL 2000-2015
US$ 137,179 M

Source: Balance of Payments - Banco de la Republica.
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. Last values available by country at 2014

SPAIN
6.2%
8.4%

SWITZERLAND

The stock of investment flows from Colombia to the world has grown15
12-fold since 2002
Stock of outward FDI
1994 – 2015 US$ million

47,779Top Latin American
investors to the world(2014) US Billion

MEXICO

US$8.3COLOMBIA

US$3.93,652

1994 - 2002

1994 - 2015

Source: Banrep, 2015.
Source Top Latin American investors: EIU, 2015.

CHILE

US$12.05

BRAZIL

US$26.05

16EFTA
CanadaEuropeanUnion

United States
MexicoCuba*

Honduras
GuatemalaNicaragua*El Salvador
PanamaPacific Alliance

Caricom*Turkey

South Korea

JapanIsrael

Costa Rica
Venezuela

Ecuador
Bolivia

PeruBrazil

Paraguay

In force
Chile

UruguayArgentina

SignedIn negotiation

Colombia has access to 47 countries and more than 1.5 billion
consumers through its network of trade agreements*These are Partial Scope Agreements (PSA)- - - The dotted line refers to member countries of The Pacific Alliance other than Colombia. – Chile, Peru and México.
Source: Colombian Ministry of Commerce, Industry and Tourism. 2015.

Colombia:
A gateway to the Pacific Alliance

17FTAs with 60 countries
Access to86% of the World GDP

Population of 219 million
More than Brazil´spopulation

MILA is the first cross border initiative tointegrate equities markets, without any
sort of merger or global corporate
integration, using only technological tools
Listed companies:

MexicoColombia

590

Peru
Chile

44% of the regional FDI
Total FDI of US$69,608 million(2014)

Source: IMF – UNCTAD, 2015.

GDP of US$2,129 billion
The members generate 37%of the region´s GDPReduced Income tax and VAT Exemptions allowing access to local market

No import duties. VAT
exemption for goods sold from
Colombia to FTZ.

Free trade zones fordifferent investor styles.

Benefit from international
trade agreements.

Allows sales tothe local market.

Total number Free Trade
Zones:102

Number of Special
Standing Single
enterprise: (62)

Number ofpermanent Free
Trade Zones
(40)

18

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Major multinational corporations have chosen
Colombia as an investment project destination

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We
promoteWe
promoteinvestment

exports

and industrial
expansion forinternationalizationWe
promotetourismWe
promotecountry
brand2226 commercial offices 30 countries
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

For further information:• PROCOLOMBIA Japan, Commercial Section,
Embassy of Colombia in Japan

TEL: 03-5575-5970• Hiroshi Wago – Executive Representative
hwago@procolombia.co• Ryunosuke Nakazono – Investment Advisor
rnakazono@procolombia.co23

PROCOLOMBIA
ready to assist you in assessing

investment opportunities