Transcript Diapositiva 1

Colombia Presentation
Jorge Montero
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OUTLINE
Who We Are
Latin America, the world's source of development
"The world is talking about Colombia"
Why invest in Colombia?
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WHO WE ARE
Who we are
Entity in charge of Promoting International
Tourism, Foreign Direct Investment, and
Exports
EXPORTS
INVESTMENT
TOURISM
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Proexport supports foreign investors
 Information
tailored to your needs.
 Contacts with public and private sector.
 Itinerary planning and travel assistance
 Startup process assistance and monitoring
established investors.
 Free information during the process and absolute
confidentiality
www.proexport.com.co
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Proexport around the world
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ECONOMIC TRENDS IN
LATIN AMERICA &
COLOMBIA
The largest economies in a crisis
…where the emerging economies
are becoming their strategic allies
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Latin America - Larger GDP than Russia and ME and
Sub–Saharan Africa.
NOMINAL GDP (US $ Billion)
2000 – 2014p
+126
%
Source: EIU; p: forecast
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Colombia has shown attractive and stable GDP growth
which is forecast to continue.
Growth of Colombia's GDP vs. Latin America and the World
2001 – 2014p (%)
Source: ANDI (National Business Association of Colombia), EIU, p:forecast
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Colombia: The C in CIVETS
“The new BRICs are Colombia, Indonesia,
Vietnam, Egypt, Turkey and South Africa (CIVETS). These are countries
with major populations, dynamic, diverse economies, political stability
and a promising brilliant future. Any company with global ambitions will
have to take immediate action in these markets.”
Michael Geoghegan, CEO HSBC
April 26, 2010 in his speech to AmCham Hong Kong
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Colombia ´s GDP is 28th in the world (PPP method) and 3rd
in LATAM.
466
GDP (PPP)
US $ Billion - 2011
443
423
387
378
348
298
246
Note: PPP (Purchasing Power Parity)
(February 7 2012))
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Colombia's population is 47 million
More than half of them under age 30
7 metropolitan areas with a population above 1 million people
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Macroeconomic stability
GDP, Inflation and Unemployment (%) 2002 – 2011
(Annual Average)
Unemployment
rate
GDP
growth
Inflation
Source: DANE- Colombia Central Bank - EIU: Economist Intelligence Unit Forecast
e: Estimated (February 2012)
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Insecurity problems decreased significantly
Insecurity Problem
GDP – Growth Rate (%)
Economic Growth vs Security- Colombia
GDP- Growth Rate
Insecurity
Source: DANE, Cuentas Nacionales, ANDI “Monthly Industrial Survey”
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“From nearly failed state to emerging
global player, in less than a decade.”
THE COLOMBIAN COMEBACK:
Colombia’s President Juan Manual
Santos talks with TIME.
Source: TIME Magazine, April 23, 2012
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Recognition of Colombia´s progress
“Colombia will do better than other countries of the region in case of a
new global recession… The country has accumulated savings which
can stimulate the economy in the case of an economic downturn.”
Rodrigo Chavez – Director, Latin America and Caribbean
“Colombia has become an attractive destination for investment…Increased
security promoted per capita GDP growth since 2002.”
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THAT’S WHY THE WORLD IS
TALKING ABOUT
COLOMBIA...
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WHY INVEST IN
COLOMBIA?
Investor Protection Index 2011
Colombia is ranked 5th worldwide and
1st in Latin America in terms of
Investor Protection
World Ranking
Source: Doing Business, 2011 – World Bank
Country
5
Colombia
20
Peru
28
Chile
44
Mexico
74
Brazil
109
Argentina
109
Panama
179
Venezuela
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Three of the top risk rating agencies gave
Colombia the "Investment Grade”
The three agencies agree on the country's
positive economic and financial situation,
highlighting:
 Its ability to deal with external shocks
 Its historic fulfillment of obligations
 An increase in its macroeconomic credibility
 A visible improvement in security conditions
7 February 2012
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Record FDI Flows in 2011
Main Investors in Colombia
2000 – 2011**
United States
• Accumulated US $9,595 million
• Share of 24.8%
England
• Accumulated US $5,684 million
• Share of 14.7%
Spain
• Accumulated US $3,431 million
• Share of 8.9%
Canada
• Accumulated US $1,373 million
• Share of 3.6%
Variation 2010–2011: +92%
*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 – 2011: US $38,615 million
Note: the list of the top countries investing in Colombia does not include Anguilla or Panama, in third and fourth
place.
Source: Bank of the Republic - Balance of Payments
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Significant FDI in Non oil & mining sectors
FDI in Colombia by Sectors
2009 - 2011
Transport,
Storage and
Communications
5%
Construction
4%
Agribusiness
1%
Agribusiness
2%
Construction
10%
Manufacturing
6%
Financial Services
8%
Commerce,
Rest. & Hotels
12%
FDI in Colombia excluding Oil and Mining
Sectors 2009 - 2011
Oil
37%
Transport,
Storage and
Communication
14%
Manufacturing
18%
Mining
27%
Retail and
Hospitality
33%
Financial
Services
23%
% Share by total FDI of positive flows by origin country, without reinvesting profit and not including the petroleum sector.
Total investment 2009 – 2011: US$ 27,629 million.
Source: Banco de la República.
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In 10 years imports grew four times
Imports, 2000 – 2011
US$ Million
Top import origins, 2011
United States
• US $13,593 million
• Share of 24.9%
China
• US $8,176 million
• Share of 15%
Mexico
• US $6,059 million
• Share of 11%
Brazil
Variation 2009 - 2010: 23.7%
Variation 2010 - 2011: 34.4%
Source: DANE (National Department of Statistics) – CIF Values
• US $2,740 million
• Share of 5%
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In 10 years, exports quadrupled
Top Export Destinations,
2011
United States
• US $21.720 million
• Share of 38.1%
Netherlands
• US $2.524 million
• Share of 4.4%
Chile
• US $2.205 million
• Share of 3.9%
China
Variation 2009 - 2010: -21.2%
Variation 2010 - 2011: 43%
Variation Jan – Mar 2010 vs. Jan – Mar 2011: 23.2%
• US $1.989 million
• Share of 3.5%
Source: DANE (National Department of Statistics)
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11 free trade agreements (FTA) ,allowing preferential access to
over 1.5 billion consumers .
Noruega
Noruega
Unión Europea
European
Union
Islandia
Islandia
Canada
Canadá
Liechtenstein
Liechtenstein
Switzerland
Suiza
Estados Unidos
Turquía
Turkey
Corea Korea
del Sur
South
Israel
Guatemala
Guatemala
Mexico
México
Jaan
Honduras
Honduras
El
El Salvador
Salvador
Panamá
Ecuador
Ecuador
Brazil
Brasil
Perú
Perú
Bolivia
Bolivia
Uruguay
Uruguay
Chile
Chile
Paraguay
Paraguay
Argentina
Argentina
In force
Source: (SICE) (OAS)
signed
In negociation
Future
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Attractive Free Trade Zone Legislation
15% income tax rate.
VAT exemption for goods sold from Colombia to other
FTZ
Benefit from international trade agreements. (Except
Peru)
Allows sales to the local market.
Free Trade Zones
Permanent/Multi
company (PFTZ)
Single-Company
(SCFTZ)
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Opportunities Linked to the five “Engines”
INNOVATION
•Science and Technology share of 2019 GDP: 2%
•Increase the number of patents per 100,000 inhabitants
•Since 2006 Graduate Education has quadrupled.
INFRASTRUCTURE
•Government launched an ambitious infrastructure plan.
•New inter-departmental highways, ports and airports for
increased competitiveness.
•US $50 billion and significant support from the private sector.
MINING
•17 billion tons of possible coal reserves
•28 million ounces of gold
•Access to both Pacific and Atlantic oceans
Opportunities Linked to the Engines
HOUSING
Requirements: • One Million Homes
• Colombia has a high housing deficit in the country's
largest cities due to internal displacement and economic
difficulties.
• The sector is divided into 2 major areas: Low Income
Housing and Non-LIH. The government has planned to
build one million homes, 70% of which will be LIH.
AGRIBUSINESS
Opportunities in: Biofuels, Reforestation, Dairy Sector
•Potential to open new arable areas,
•Significant capital investment to mechanize the
sector in order to increase exports.
•Most Biodiverse country in the world by km2
Productive Transformation Program: PPP to strengthen
and build “world class sectors”
INNOVATION
SERVICE
SECTOR
Business process,
outsourcing and
offshoring BPO&O
AGRIBUSINESS
IT Services and
MANUFACTURING
SECTOR
Graphic
communication
industry
Textiles, Fashion &
Design
Software
MININGHealth Services
Exports
AGRIBUSINES
SECTOR
INFRASTRUCTURE
Chocolate
Confectionery and Raw
Materials
Cattle
Electric Power
Palm and Vegetable
Oil
Automotive Industry
Shrimp Farming
Cosmetics and
Personal Care
Products
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2011 - Established one of its two worldclass product
research and development centers.
United
Investment: US $20 M
States
Jobs: 400
2011 - Service center for financial and accounting
operations - Spanish Market-.
Investment: US $5 - 8 M
India
Jobs: 1500
2011 - Global service center for BPO and IT operations
Investment: US $100 M
United
Jobs: 1000
States
2011 - Development of 12,000 hectares of sugar cane and the construction of an
ethanol plant with a capacity of 376,000 liters per day
Investment: US $300 M
Israel
Jobs: 1,000
MERHAV
2010 – Established a Private Capital Fund in Colombia for
Infrastructure
Investment: (Amount of the Fund): US $400 M
Canada
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