Colombia Presentation 2016

1. Investment environment and
business opportunities in Colombia
March 2016

2. A dynamic and stable
economy
Multiple development
centers and regions coupled
with a growing middle class
securing greater product
and services demand.
A growing pool of qualified
Colombian companies able
to partner with international
investors to reach out to
regional markets.
Diverse Opportunities
for investment in a
wide variety of sectors
A trade platform with over
10 Trade Agreements
enabling investors to reach
third markets with
preferential access
A growing market
located strategically
to facilitate business
transactions with the
region.
Colombia Offers:

3. 24
30
35
57
102
134
180
193
204
215
237
240
263
312
579
11,385
1.187
1.673
Estonia
Paraguay
Bolivia
Uruguay
Ecuador
Venezuela
Peru
Greece
Portugal
Vietnam
Finland
Chile
Colombia
Israel
Argentina
Turkey
Mexico
Brazil
*Estimated.
Source: IMF, 2015
GDP current prices 2016* (US$ billion)
Latin American Economies
Colombia is the 38th largest economy in the
world and the 4th in Latin America

4. 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 – 2015 (e)
Colombian growth drivers
according to OECD
4.5%Colombia
5.3%
Peru
3.2%
Mexico
4.2%
Chile
3%
LATAM
2.1%
Brazil
3.9%
Argentina
High investment in housing and
infrastructure (12% growth)
Growth in private consumption (4.6%)
Solid labor market
Public expenditure
-0.7%
Venezuela
Source: IMF, 2015.

5. Gross Domestic Product
Estimated growth 2016
Image taken from: http://www.agenciadenoticias.unal.edu.co/typo3temp/pics/e16bc4deb4.jpg
Colombia,
one of the top
growing economies
in 2016 among the
largest Latin
American
countries
2.7%
Colombia
3.3%
Peru
2.6%
Mexico
LATAM
Brazil
2.1%
Chile
Venezuela
Source: IMF, 2016.
-1%
Argentina
-3.5%
-8%
-0.3%

6. 258,8
206,1
122,5
92,5
78,6 69,0
48,8 43,6 32,4 31,6 31,4
18,2 16,5 11,7 11,4 10,9 10,4 10,0 9,9 8,6 8,5 7,1 5,6 5,5 5,3 3,4 1,3
Population 2016* (million)
* Estimated.
Source: IMF, 2015.
Latin American Economies
The second largest spanish speaking country
in the world and among the 30 most populated

7. 49.7%
30.6%
28.5%
17.7%
9.1% 8.1%16.3%
29.6%
31.0%
2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014
A growing
middle class
Colombia has
continuously
decreased its
poverty levels
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

8. 16%
25%
37% 46%
2002 2012 2020 2025
46% OF THE TOTAL POPULATION
will become middle class by
2025
Average real growth of consumer
expenditure,
2014 – 2018
Middle class* in Colombia as a
percentage of total population
(Million 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
PER
COL
CHI
MEX
BRA
Imagen tomada de: http://www.sen-soyle.com/g/1modern_wall_texture_30.jpg
2.9%
4.1%
4.2%
4.7%
5.5%

9. Source: S&P Ratings; Dinero magazine, Colombian Treasury.
RatingTerm
Long Term –
Foreign
currency
BBB BBB Baa2
Long Term –
Foreign
currency
Long Term –
Foreign
currency
COLOMBIA,
an investment
grade country
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.

10. 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
Latin America economies
Average
OECD Average

11. 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

12. 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
HAS THE MOST REFORMS IN
LATIN AMERICA TO
IMPROVE BUSINESS
ENVIRONMENT
Country Ranking 2016
# de reforms
2006 - 2016
Colombia 54 30
Mexico 38 23
Ecuador 117 23
Peru 50 21
Chile 48 13
Panama 58 13
Brazil 116 11
Argentina 121 5
Ranking Doing Business*
2007-2016
Change in positions
25
23
12
6
5
5
3
-20
Colombia
Panama
Chile
Ecuador
Mexico
Brazil
Peru
Argentina

13. Developed economies 2014
Developing and transition economies 2014
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)
14 15 16 19 21 22 23 23 2323
30
34
54
62
68 71 72
92
103
129
Rank
18

14. FDI IS LARGELY DRIVEN BY OTHER THAN OIL AND MINING SECTORS
DURING THE LAST 2 YEARS
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 IIIQ
FDI Inflows. 2008 to 2015
US$ million
4,197
7,095 8,120
10,011 8,512
5,722
7,945
8,089
6,313
3,596
Average 2008-
2011
2012 2013 2014 2015
12,108
16,209
15,039
9,919
16,325
Oil and mining
Other sectors
22%
SPAIN
8.4%
UK
13%
SPAI
N
8.4%
SWITZERLAND
6.2%
TOTAL 2000-2015 IIIQ
US$ 134.306 M

15. 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 VAT Exemptions allowing access to local market
Total number Free Trade
Zones:102
Number of Special
Standing Single
enterprise: (62)
Number of
permanent Free
Trade Zones
(40)

16. 3.652
47,779
1994 - 2002 1994 - 2015
The stock of investment flows from Colombia to the world has grown
12-fold since 2002
Source: Banrep, 2015.
Source Top Latin American investors: EIU, 2015.
Stock of outward FDI
1994 – 2015 US$ million
Top Latin American
investors to the world
(2014) US Billion
MEXICO
US$8.3
COLOMBIA
US$3.9
US$12.05
CHILE
US$26.05
BRAZIL

17. Colombia has access to 47 countries and more than 1.5 billion
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
BrazilPeru
Argentina
Paraguay
Uruguay
EFTA
European
Union
Turkey
Israel
Japan
Panama
Chile
Bolivia
Costa Rica
Venezuela
South Korea
Cuba*
Nicaragua*
Pacific Alliance
In force
Signed
In negotiation
Caricom*

18. Colombia, 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, Bogotá, Cali, and Medellín.
Source: Routes and Tariffs - Tools for the
Colombian Exporter, processed by
ProColombia.
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)
1,017 international direct frequencies per week.
Istanbul
(15hr 25 min)
More than 6,052 domestic frequencies per week

19. 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
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
Listed companies:
590
44% of the regional FDI
Total FDI of US$69,608 million
(2014)

20. Major multinational corporations have chosen
Colombia as an investment project destination

21. Source: Ministry of Transport - The annual avarage exchange rate for 2014 US$=2.001,1
Sectors of opportunity – Infrastructure:
A major driver for growth
Airports
Current improvements and
adaptations US$1.8
Billion
(10 projects) and expected
constructions
US$ 2.3 Billion (2
projects).
(2015-2018)
Ports
US$2.1
Billion
(2015-2018)
Roads
US$ 24 Billion
Maintenance along 8,000 Km of
roads, Construction of 1,300 km
of new roads and 40 new
concessions
River Navigability
US$1.3 Billion
Improvement of the
Magdalena River
Step Railways
US$4.2 Billion
Concession Program

22. Source: DINERO Magazine, July 2014
Sectors of opportunity - Infrastructure:
A major drive for growth
In 2014, Iridium awarded
two road concession
projects in the
government’s “highway
concession program
(4G)”.
Those projects total
78Km and are expected
to help strengthen the
transportation
infrastructure.
Strabag will be part of
the country’s highway
development
involving the completion
of 75 Km of new
highways, the
modernization of a 65
km section and the
construction of
numerous bridges
In 2015, Ferrovial was
awarded the design,
construction, nancing,
operation and
maintenance of a road
concession totaling 152 km
long. Historically, they have
also developed other
projects such as tunnels in
the Ituango hydroelectric
plant and other highways.
OHL is participating in
the construction and
future operation of a
highway totaling 144 km
long. The project will
include the construction
of 2 tunnels and 79
bridges; it will reduce
the travel time between
the center and the
northern coast of
Colombia.
Spain Austria Spain Spain

23. 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 2014
Colombia 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*
13 power transmission projects in different
stages*
High potential in Biofuels and alternative energies
Wind GeothermalSolar
Some niche opportunities
Sectors of opportunity – Energy: a diversified source base and
a pivotal location in the Americas

24. Sectors of opportunity - Energy:
A diversified source
base and a pivotal location in the Americas
Endesa, the 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,
the 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 manages
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-red
power plant
Termopaipa in Paipa
(Colombia) was the rst
power plant abroad
which was planned,
financed and built by
Steag.
Spain Spain United States Germany

25. Sectors of opportunity – Manufacturing:
manufacturing for the local and foreign markets
Some niche opportunities:
Automotive
Ceramic
Metalworking Architectural
glass
Fertilizers Plastic
Packaging
Natural ingredients
for cosmetics Pesticides
The manufacturing sector represents 11% of total GDP
• The manufacturing sector has been displacing investment in
traditional sectors.
• Since 2010 industry has grown an average of 1.5%, and 2.5%
in the past 6 months.
Competitive industry and labor costs
• Second in the region for cheap industrial labor (US$1.6/hour)
and the third largest labor force in Latin America.
• IMD- World Competitiveness 2015 ranks Colombia as the third
most competitive industry and the second most efficient in
the region.
Incentives available to support industrial competitiveness and
reduce production costs
• Stimulus Plan for productivity and employment - PIPE(2.0):
• 0% import tariff for key industrial sectors
• Tax benefits for innovation: for every COP$ 100
invested in innovation, science and technology COP$
175 can be deducted from income tax
• Sector incentives such as the Automotive Industry Promotion
Program (PROFIA)
• Job creation incentives

26. Mexico
Its factory in
Colombia is among
the three most
efficient in the
world due to its
productivity and
competitiveness.
The new factory is
one of its three most
modern factories in
the world, due to its
modern approach
and care for the
environment.
The factory located
in Colombia ranks
first given its good
performance in
production
processes and high
international
standards of
manufacturing.
Mexichem opened
the most modern
and automated
plant in Latin
America to
manufacture pipes
made of polyester
resin reinforced with
berglass.
Germany
Netherlands &
United Kingdom
Germany
A regional platform for manufacturing
activities with high standards of productivity
Source: DINERO Magazine, July 2014
Mexico

27. Its factory in
Colombia is listed as
one of the 'flagship
factories'
in 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.
The French cosmetic
producer acquired the
Colombian company
Laboratorios
Cósmeticos Vogue in
2013, and positioned its
brand locally and
regionally.
Since 2008 UPL
Colombia
exports more than 95%
of its production to the
United States, Mexico,
Brazil and Argentina.
Switzerland France France India
A regional platform for manufacturing
activities with high standards of productivity

28. Sectors of opportunity - Services
IT, BPO, ITO, Shared Services, Apps
Source: MinTic and IDC
Some niche opportunities
Cloud
computing
Big data
Software
development
Innovation and
development
centers
Aggregated
shared services
centers for
diverse
industries
Colombia is one the three major
providers of IT services in the region.
The broadband connections increased
from 2.2 to 10.1 million between 2010 and
2014.
In the next 4 years, broadband
connections will be triple 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.

29. In September of 2014 IBM
opened its third Data
Center in Colombia
offering a processing
power of 5 petabytes,
making it one of the
most advanced centers
for Cloud Computing
and Big Data Analytics
companies in the
country.
It has two operations
centers in Bogota
where it manages a
diverse portfolio of
blue ribbon clients,
with the capacity for
up to a thousand
positions.
In Colombia the
operation currently has
more than 1,400 credit
processes, customer
service, and document
management active
positions servicing the
banking, manufacturing,
mining, mass
consumption and other
sectors
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
ource: DINERO Magazine, July 2014

30. Sectors of opportunity
Agribusiness
Rubber Biofuels Forestry
Some niche opportunities
Aquaculture Cocoa Cereals
Fruits and
vegetables
Meat Processed food
Source: FAO, Ministry of Agriculture.
With 272,461 hectares and 4 million tons in
2014, Colombia is the 3th largest fruit producer
in Latin America.
With 116,509 hectares and 2 million tons in
2014, Colombia is the 5th largest producer of
vegetables in Latin America.
An international deficit of 1 million tons of
cocoa is expected by 2020. Colombia has 2
million hectares to potentially grow cocoa
crops.
In 2014 the ethanol production reached 406
million liters, meanwhile the output of
biodiesel reached 518 thousand tons.
Investment Opportunities

31. Dole, the North American
multinational, opened a
salad plant and a distribution
center in Colombia, where
the company invested close
to US$15 million in both
projects.
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.
Established in 2007 as a result
of a joint venture with the
Colombian company Alquería,
combining the international
experience, innovation,
capacity and development of
Danone with Alquería’s
knowhow of the local market.
United States Ireland France
Sectors of opportunity
Agribusiness

32. Sectors of opportunity - Tourism
infrastructure, real estate and retail
Investment Opportunities in:
Nature &
Adventure
Wellness
City
Hotels
Entertain
ment
Some niche
opportunities
*Inbound tourist includes: resident Colombians abroad, foreign non resident in Colombia,
special cross borders, and cruise visitors.
Source: Migration Colombia and MinCIT. ProColombia calculations.
Colombia ranks 25th in the ICCA
ranking (International Congress and
Convention Association)
Corporate Tax Exemption
2012 2013 2014 2015
3.5 3.7
4.2
4.4
Inbound tourists*
2012 – 2015
(million of people)

33. 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,
totaling 331 rooms. In
addition, 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 airport.
Also, the prestigious 264-room
JW Marriott hotel opened in
Bogota’s financial district
(72nd Street), and a 182-room
Marriott hotel opened 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
Sectors of opportunity
Tourism infrastructure, real estate and retail
Source: DINERO Magazine, July 2014

34. Source: MinTic and IDC
Sectors of opportunity – Services
Capital Funds
Colombia offers several benefits
to invest in capital funds.
Colombia was ranked fourth in
Latin American and the
Caribbean due to its favorable
conditions for development of the PEF
industry.
19 International General
Partners in Colombia.
Capital funds such as Advent International
and Victoria Capital have chosen the
country as a hub to service
other countries in the region
Some niche opportunities
Health
TIC Biotechnology
Agribusiness
Real Estate
Infrastructure
Banking
Energy

35. Source: ProColombia compilations
Canada
Mainly infrastructure
investments.
In Colombia its
investments have been
focused in companies such
as Intertug and Ocensa.
United States
Firm focused on investing in
the category of hotel assets
in Colombia.
Its largest investment in
Colombia has been the
Hyatt Regency Hotel in
Cartagena.
Investments mainly in the
sectors of infrastructure,
energy and real estate.
Investments in the
Colombian power
company SA as part of its
expansion plan in the
region.
United States
Sectors of opportunity
Services Capital Funds

36. PROCOLOMBIA
ready to assist you in assessing
investment opportunities

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

38. 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
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39. THANK YOU