Colombia Presentation 2020

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INVESTMENT ENVIRONMENT
BUSINESS OPPORTUNITIES IN COLOMBIA
2 0 2 0

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PROCOLOMBIA
PROMOTES
Tourism
Investment and
industrial expansion
for internationalization
Exports
Country Brand

3
32COUNTRIES
* In conjunction with the MinCIT
PRESENCE OF PROCOLOMBIA
IN THE WORLD

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O F F E R S :
COLOMBIA
A responsible Government committed with public health and
economic reactivation, which allows the country to capitalize
50 years of economic growth to withstand the COVID-19 crisis
The greatest political stability in Latin America thanks to its
government's commitment to the development of private
activity
A strategic point for regional supply, because of its location
and its network of free trade agreements
A developed technology ecosystem, which meets the
necessary standards for the "new normality" in the post-
COVID-19 recovery
A leading country in receiving FDI in the region

5
The Colombian Government has given the pandemic a
quick and responsible handling, reducing its impact on the
country's public health
T Í T U L O T Í T U L O
Source: Presidency of the Republic and Global Data. Based on 4th August 2020 figures..
*United Nations Development Programme
The quick actions taken by the
government have made
Colombia one of the countries in
the region, with the lowest rate of
infections and deaths, per million
inhabitants.
The Colombian Government has
promoted responsible, supportive
and appropriate policies to serve
the most vulnerable groups,
protecting life and health. In
addition, the support packages
for the business sector that the
country has made are very
important, especially talking
about guarantees and credits.
Jessica Faieta
Resident Representative of UNDP*
13.971
20.165
13.159
3.522
5.174
7.441
6.691
4.699
639,1
541,4
452,9
381,0
341,6
293,5
224,8
87,8
0
100
200
300
400
500
600
700
0
5.000
10.000
15.000
20.000
25.000
Peru Chile Brazil Mexico Ecuador Bolivia Colombia Argentina
#ofpeople
Sanitary outlook
in Latin America
infections per million deaths per million

6
Furthermore, Colombia has been the Latin American country
which has invested the most as a percentage of its GDP, as a
measure to mitigate the effects of the pandemic
9,6
8,6
7
5 4,7
4
3,5 3,4
2,5
1,4 1,1
0,6
0
2
4
6
8
10
12
Fiscal support measures announced
% GDP
Source: International Monetary Fund; national sources; World Bank.
Note: Measures are the total amount announced, including discretionary spending, loan guarantees, and other credit
measures. Data are as of May 29, 2020 and are subject to change.

7
On the other hand, before the pandemic Colombia was
already excelling due to its sustained economic growth
over the past 50 years
Source: Anif based on Dane and World Bank.
Real GDP growth
in Latin America
(1968=100)
Over the past 50 years, the
Colombian economy has been the
fastest growing in the region.

8
As a result, Colombia has become a resilient country
and one of the economies with the greatest capacity to
withstand the crisis in 2020
T Í T U L O T Í T U L O
Source: IMF (World Economic Outlook, June, 2020).
• In 2019, the country’s economy grew by 3.3%,
above the average growth for Latin America and
the Caribbean (0.8%).
• The IMF, the World Bank and the ECLAC project
that the Colombian economy will present one of
the smallest contractions in 2020, both in Latin
America and around the world.
T Í T U L O
T Í T U L O
Chile
Colombia
-7,5%
-7,8%
Estimated GDP growth
for 2020
-9,4% Latin America &
Caribbean
-9,9%
Brazil-9,1%
Mexico-10,5%
Argentina
Peru-13,9%

9
Source: Banco de la República, IMF and World Bank.
3.2%
Inflation rate, 2020
The inflation rate will remain within
the target range by 2020 (2% - 4%)
US $2,486 millions
received in non-mining FDI, between
January and March 2020
22.7% more
compared with the same
period of 2019
4.0% and 3.6%
will be the estimated growth of the
Colombian economy in 2021,
according to international
organizations such as the IMF and the
World Bank, respectively
The dynamism of its economy has enabled the country to
continue having outstanding indicators, despite the global
economic impact due to COVID-19

11
Colombia stands out in the
region for its political
stability a n d s o l i d
i n s t i t u t i o n s

12
The country has excelled in maintaining political stability
regardless the presidential administration, which has led
Colombia to become a resilient economy
Source: IMF, GDP costant prices.
300
400
500
600
700
800
900
1000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Real GDP growth
COP Trillion
Álvaro Uribe Vélez
(1st term)
Álvaro Uribe Vélez
(2nd term)
Juan Manuel Santos
(1st term)
Juan Manuel Santos
(2nd term)
Iván Duque Márquez
Governments, regardless of presidential administration,
have been committed to the country's economic
development.
Presidential
term

13
Furthermore, Colombia has strong institutions which
have allowed to position itself in the international context
According to the Global
Competitiveness Report:
Business dynamism
1st in Latin America
Corporate government
2nd in Latin America
Global Competitiveness
Report 2019
Source: Global Competitiveness Report 2019, World Economic Forum.
48 8354 716533 57
2nd in Latin America
Financial system stability

14
Thanks to the above, Colombia was officially accepted by the
, giving it access to the best economic and social practices
G u i d e l i n e t o i m p r o v e
t r a d e a n d
i n v e s t m e n t b a r r i e r s
AUSTRALIA
NEW ZEALAND
JAPAN
SOUTH KOREA
CANADA
UNITED STATES
MEXICO
CHILE
COLOMBIA
AUSTRIA
BELGIUM
CZECH REPUBLIC
DENMARK
ESTONIA
FINLAND
FRANCE
GERMANY
GREECE
HUNGARY
ICELAND
IRELAND
ISRAEL
ITALY
LITHUANIA
LATVIA
LUXEMBOURG
NETHERLANDS
NORWAY
POLAND
PORTUGAL
SLOVAK REPUBLIC
SLOVENIA
SPAIN
SWEDEN
SWITZERLAND
TURKEY
UNITED KINGDOM
E c o n o m i c s t a b i l i t y ,
t r a n s p a r e n c y a n d
g o v e r n m e n t d i s c i p l i n e

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Additionally, Colombia is a member of the Pacific Alliance,
a regional integration initiative, which seeks to overcome international
economic challenges
Canada
Mexico
Colombia
Chile
Peru
Singapore
Australia
New Zealand
In negotiation to become
associate member
State member

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The country stands out among the economies of the region, for
having a government committed to the private sector
According to Doing Business:
In protecting minority
investors
In getting credit
Doing Business 2020
World ranking 2020
60 125101 1247659 67
Source: Doing Business 2020, World Bank.

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This is recognized by the most important competitiveness
rankings worldwide, thanks to the great progress made by
Colombia in terms of reforms and fiscal policies
In 2019, Colombia stands out among the
countries of the region, being the economy that
made the greatest progress in terms of
competitiveness, thanks to the new fiscal policies
developed in the last year.
Source: Doing Business 2020 (World Bank), Global Competitiveness Report 2019 (World Economic Forum), World
Competitiveness Ranking 2019 (International Institute for Management Development).
Measuring Business Regulations

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With that in mind, Colombia has the lowest FDI barriers of
Latin America
0
0,02
0,04
0,06
0,08
0,1
0,12
0,14
0,16
0,18
0,2
Mexico Brazil Peru Chile Costa Rica Argentina Colombia
FDI’s Regulatory
Restrictiveness Index 2018
Closed = 1 - Open = 0
Colombia has a lower FDI
restriction rate than countries
such as Canada (0.16) and
the United States (0.09).
Low barriers
High barriers
Source: OECD, December 2019.

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In addition, it outstands due to its great capacity for conflict
resolution, thanks to the well-known
Making Colombia an ideal
environment for international investors
# 1 A r b i t r a t i o n i n s t i t u t e
i n L a t i n A m e r i c a
( G l o b a l A r b i t r a t i o n
R , “ W 2 0 1 8 ” )
I n 2 0 2 0 a n d f o r t h e t h i r d y e a r
i n a r o w , i t w a s i n c l u d e d i n t o
t h e m o s t - i n f l u e n t i a l g r o u p
o f a r b i t r a t i o n c e n t e r s i n t h e
r e g i o n

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Rating agencies also
recognize Colombia
with an investment
rate
RatingTerm
Long Term –
Foreign
currency
BBB- BBB-
Long Term –
Foreign
currency
FitchRatings MOODY S
,
STANDARD
& POOR S
,
Baa2
Long Term –
Foreign
currency
In June 2020, Moody’s* maintained Colombia´s
rating outlook as stable.
In the last review of 2020, Moody's maintained
the Baa2 rating for Colombia, a step up of
investment grade.
Source: S&P Ratings; Dinero magazine,
Colombian Treasury.
* Moody’s, 2020.
Large,
dynamic
and resilient
economy.
1.
Prudent and
predictable
macroeconomic
policies.
2.
Strong tradition
of payment of
debt obligations.
3.

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T h e n e w d y n a m i c o f g l o b a l
t r a d e o p e n s t h e o p p o r t u n i t y
t o C o l o m b i a f o r re gio nal
supply

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The current situation brings different changes in the world, such as
the reorganization of global supply chains, which are tending
to regionalization
More than 80% out of 3,000 companies
surveyed in 12 global sectors, in North
America, Europe, and Asia Pacific (ex-China),
have implemented or announced plans to
relocate at least part of their supply chains
from current locations.
-Bank of America
Companies will be increasingly inclined to
spread their risks rather than “putting all their
eggs in the lowest-cost basket”. The threat of
a future crisis will force companies to structure
their global supply chains, looking for greater
resilience, as well as lower risks and costs.
-Re-shoring index, Kearney
Source: McKinsey & Company, “Economic
Conditions Snapshot, March 2020”.

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Colombia is ready to address this relocation challenge,
offering preferential access to 97%* of the countries of the region
Source: MinCIT
*Non-self-governing terrirories are not included.
Colombia has 16 free trade
agreements in force, which allow
preferential access to 60 countries
and 1.5 billion consumers
Regional agreements
• Andean Community
• Pacific Alliance
• Chile
• Mexico
• Canada
• United States
• Northern Triangle
• Costa Rica
• Mercosur
• Cuba
• Caricom
• Nicaragua
• Venezuela
Other agreements
• EFTA
• European Union
• South Korea
Signed agreements
• Panama
• Israel
• United Kingdom
Pacific Alliance
In force
Signed
Peru
Canada
United States
Mexico
Ecuador
Brazil
Argentina
Paraguay
Uruguay
Panama
Chile
Bolivia
Costa Rica Venezuela
Cuba*
CAN
Northern Triangle
CARICOM*
Nicaragua*
ALADI
MERCOSUR

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Thanks to the above, the country has privileged access to the
continent's largest markets
Source: TradeMap, IMF.
Imports 2019
US$ Million
United States
US$ 2,568,396
Population:
329.3 million
Pacific Alliance
US$ 624,189
Population:
227.9 million
Canada
US$ 453,157
Population:
37.5 million
Mercosur
US$ 252,563
Population:
293.5 million
Central America
US$ 106,285
Population:
50.2 million

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United States
Furthermore, among the countries of the region, Colombia has the
FTA with the best access conditions to the United States, the
world’s largest importing market
• Average tariff of 0% from Colombia to
the U.S.
• 2,157 (96%) of the subheadings that
Colombia exports to the United States,
entered the market with a 0% tariff.
• Convenient regional content value
rules.
Source: Araújo Ibarra, MinCIT.
U.S. market share in the
world's imports
13.5%

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Maritime routes
Air routes
Mexico City
Air: 4hr 55min
ACCESS TO PERU JUST IN 2
DAYS (CALLAO)
ACCESS TO THE U.S. JUST
IN 3 DAYS
(PORT EVERGLADES)
Vancouver
(18 days)
New York
(6 days)
Air: 5h 35min
Miami
(6 days)
Air: 4h
Montreal
(15 days)
Los Angeles
(10 days)
Air: 7h 40min
Veracruz
(5 days)
Rio de Janeiro
(19 days)
Buenos Aires
(17 days)
Callao
(2 days)
Valparaíso
(13 days)
Toronto
Air: 6hr 10min
Lima
Air: 3hr 05min
Santiago de Chile
Air: 5hr 55 min
Sao Paulo
Air: 6hr 10min
Source: Routes and rates - Tools for the Colombian Exporter, processed by ProColombia.
Legal guide for doing business in Colombia 2019
The preferential access is
complemented by air
and sea logistics
advantages
Colombia has more than 4,500 sea
export routes and access to 680
ports around the world. In addition,
by less than six hours by plane the
country manages to deliver goods to
the main cities in the Americas.

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The country has one of the most competitive air freights in the
region and the busiest cargo terminal
Mexico City
581,670
Bogota
741,500
Sao Paulo
552,280
Lima
294,700
Santiago
420,950
Top air cargo movement
in Latin America
(metric tones)
Source: Central and South America; ACI; 2018.
Statista 2020
Country
Average air freights to the
U.S. / Kg
Colombia USD 1.12
Mexico USD 1.55
Brazil USD 2.17
Peru USD 2.62
Chile USD 1.99
* Source: IATA TACT – Referential route MIA, Scale +500Kg
There are more than 30 direct
and in connection routes,
offered by more than 8 airlines.

28
Its location in the middle of the continent allows businesses
to access America's main ports in a short time
Destiny
port
Port logistics in Latin America
Distance in days by port of origin
Colombia Mexico
(Veracruz)
Peru
(Callao)
Chile
(Valparaiso)
Argentina
(Buenos Aires)
Brazil
(Santos)Cartagena Buenaventura
New York 6 12 22 16 24 23 16
Los Angeles 10 10 24 12 22 34 27
Montreal 15 23 38 26 31 33 26
Vancouver 18 21 32 22 32 44 35
Callao 9 2 22 - 7 34 16
Valparaiso 18 13 36 5 - 43 32
Source: Maritime lines – Routes and rates system. ProColombia (June 2020)

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In addition, it has a free trade zone regime with one of the
region's most attractive incentive packages
Source: Free trade zone directory 2019. DANE
No causation of tariff
or VAT for goods and
infrastructure, in the
free trade zone
Purchases to the rest of
the country related to
the development of the
social object of the users,
exempt from VAT
20% income tax rate
in free trade zone
Possibility of nationalizing
raw materials or the final
product, when the
goods are sold in the
rest of the country via
MFN
Goods produced in the
free trade zone acquire
origin for the purpose of
free trade agreements
Benefits in free zones

30
Free trade zones* map
Free trade zones are located throughout the country, especially
close to the country's main seaports and airports
Atlantic
ocean
Pacific
ocean
Thanks to its location,
Colombia offers direct access
to the two main oceans that
surround the continent.
Free trade zones* by
department
• Bogota
• Cundinamarca
• Santander
• Norte de Santander
• Atlántico
• Bolivar
• Magdalena
• Risaralda
• Quindío
• Antioquia
• Valle del Cauca
• Huila
El Dorado,
Bogota
José M. Córdova,
Rionegro-Antioquia
Buenaventura,
Valle del Cauca
Cartagena,
Bolivar
Maritime ports
Airports
Alfonso Bonilla Aragón,
Cali-Valle del Cauca
Ernesto Cortissoz
Barranquilla-Atlántico
Source: Free trade zone directory 2019, ProColombia.
*Permanent free trade zones

31
Colombia is the
second Latin
American country
with the highest
number of free
trade zones
Source: AZFA.
Number of FTZ in Latin America, 2018
18
39
48
52
43
71
2
69
144
Panama
Honduras
Costa Rica
Nicaragua
Colombia
Dominican Rep.
FTZ
Special FTZ
Total number of free
trade zones:
114
Number of permanent
free trade zones:
40
Special permanent free trade
zone or Single-Company free
trade zone :
74

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Free trade zone regime is complemented by other investment
incentive packages
PROGRESSIVE
REDUCTION
MEGA-
INVESTMENTS
HOLDING
COMPANIES
REDUCTION
SPECIAL
BENEFITS
O F I N C O M E T A X
F O R I N V E S T M E N T
O N P R O D U C T I V E
R E A L F I X E D A S S E T S
O F T H E C O R P O R A T E
I N C O M E T A X R A T E
F O R D I S T R I B U T I O N
C E N T E R S
INCOME TAX
EXEMPTIONS
F O R D I F F E R E N T
S E C T O R S O F T H E
E C O N O M Y

33
Tax burden COLOMBIA CHILE PERU MEXICO ARGENTINA BRAZIL
Income tax
32% - 2020
30% - 2022
25% a 27% 29.5% 30% 25% 34%
Special
benefits
Mega-investment -
27% +
FTZ - 20%
Exempt in Iquique FTZ
and Punta Arenas
Exempt in 4
operative FTZ
20% in Frontera
Norte FTZ
No
- 75% in Manaos
FTZ
VAT Exempt in FTZ Exempt in FTZ Exempt in FTZ
8% in Frontera
Norte FTZ
Exempt in FTZ
Reduction from
55% to 100%
Custom Duties Exempt in FTZ Exempt in FTZ Exempt in FTZ No (IMMEX only) Exempt in FTZ - 75% on inputs
Accelerated
Depreciation
2 years for
megainvestments
50% instant until 2021 No No No No
Dividend Tax
10% (DTA)
0%(Mega-investment)
5% to 10 % 5% 10% 13% No
Legal Stability
Contract
For mega-investment
projects
Yes Yes No Yes No
Source: Araujo Ibarra (2020).
Combined investment incentives place Colombia as the country
with the best tax regime for investors

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T h e c o u n t r y h a s a
t e c h n o l o g i c a l e c o s y s t e m
d e v e l o p e d a n d p r e p a r e d f o r
t h e " n e w " n o r m a l i t y

35
Colombia provides the necessary technological
infrastructure for operations in the new economic reality
submarine cables in
operation, being the
second country in the
region with better
connectivity,
transmission and stability.
4°
3°
most entrepreneurial
country in Latin America.
Source: MinTIC. Fitch Connection. Global Entrepreneurship Index.
of Colombia's
municipalities are
connected to the
world through
optical fiber.
Colombia offers one of the
lowest operating costs in the
world for the provision of IT
services.
1198%
largest IT
market in
Latin America.
of internet penetration in
the country, with 32.7
million users.
66%

36
In 2019, Colombia opened Latin America’s
first Center for the Fourth Industrial Revolution
Center for the Fourth
Industrial Revolution
R R
BLOCKCHAIN INTERNET OF THINGSARTIFICIAL INTELLIGENCE

37
This is complemented by a high number of enterprise incubators,
accelerators and innovation centers that motivate high-value
innovation and entrepreneurship

38
New policies
CONPES Digital
transformation
with AI focus
CONPES of digital
security
National Development
Plan 2018-2022
‘Pact for Colombia, pact
for equity’
II. Pact for
entrepreneurship and
productivity
V. Pact for science,
technology and innovation
VII. Pact for the digital
transformation of
Colombia
Directives
and Decrees
Presidential directive
Gov.Co
Digital Citizens Services
Act
Cooperation
agreements
Ratification of the
Budapest Convention
Convention B80 on
Cybersecurity
Colombia thinks about the future and has adopted special
measures for the country's digital transformation
Source: Presidential Counseling for innovation and digital transformation. Transformación digital de la mano del sector privado..

39
The TIC Modernization Law creates the
conditions to encourage private investment,
generate legal certainty and facilitate the
deployment of high-cost infrastructure. It also
simplifies and brings to international
standards the institutional and regulatory
framework for the sector, and strengthens
public television and radio
Furthermore, it has implemented laws and mechanisms that seek the
modernization of the ICT sector and to reduce the digital gap
Source: MinTIC, Portafolio.
ICT MODERNIZATION LAW
Through Decree 1974 of 2019, Colombia
offers the opportunity to build ICT projects,
through public-private partnerships (PPP).
PPPs involves the concession of mega-
projects, so that they can be carried out
with private resources and, in some cases,
reimbursed them with future terms or other
resources.
PUBLIC – PRIVATE
PARTNERSHIPS (PPP)

40
Colombia has the third most qualified workforce
in Latin America and the first in terms of growth and training
IMD World Talent Ranking
2019
46
48
54
56
60
61
Chile
Argentina
Colombia
Peru
Mexico
Brazil
Source: Ministry of Education, 2018
International Standard Classification of Education ISCED 2011 -DANE
IMD World Talent Ranking 2019
Graduates by level of higher
education
2010 – 2018
31,6%
46,5%
21,8%
0,1%
ISCED 5 (Short-cycle
tertiary education)
ISCED 6 (Bachelor’s or
equivalent level)
ISCED 7 (Master’s or
equivalent level)
ISCED 8 (Doctoral or
equivalent level)
Total: 3,325,880

41
The arrival of Amazon is not just a vote of confidence, but
has also made an anchor effect of attraction to other
companies, dynamizing the offer of digital services in Colombia
In 2017, the company expanded to
Colombia with Amazon Web
Services, so the company could
offer cloud computing services to
'startups’ and large companies in
different sectors of the economy
and public entities.
In 2018, the company announced
the launch of its first customer
service center in Colombia. The site
supports Amazon’s customers
around the world in Spanish, English
and Portuguese; and provide 24/7
world class customer service.

42
A l l t h e s e
c o n d i t i o n s place
the country as a
regional leader in
receiv ing FDI

43
Colombia ranks 9th among developing countries in
receiving FDI
Source: UNCTAD, 2020.
*Cayman Islands and British Virgin Islands are not included.
Top 10 developing economies
in receiving FDI in 2019
(USD billion)
141,2
92,1
72,0 68,4
50,6
32,9
23,4
16,1 14,5 13,8
China Singapour Brazil Hong Kong India Mexico Indonesia Vietnam Colombia United Arab
Emirates
I n a d d i t i o n , i t r a n k s
2 3 rd i n r e c e i v i n g F D I
g l o b a l l y .

44
Since 2014 non-mining sectors have registered a major
participation in Colombia’s FDI
Source: Balance of Payments – Banco de la República.
*First trimester
**Panama and Switzerland are not included
7.555 7.085 7.991 9.272 8.550
11.649
9.576
7.594
10.024
2.026 2.486
7.092 7.955
8.220 6.897
3.174
2.199
4.261
3.941
4.548
1.359 1.103
2011 2012 2013 2014 2015 2016 2017 2018 2019 2019* 2020*
11.535
13.83713.848
11.724
16.16916.210
15.04014.647
3.589
14.572
FDI inflows in Colombia
(USD million)
2010 – 2020*
Oil and mining
Other sectors
In 2019, investment flows grew by 25.6% compared to 2018,
meanwhile investment in non-mining sectors grew by 30%
Top investors in
Colombia, by country**
2015-2019
United States
USD 11.62 billion
17.7%
Spain
USD 9.53 billion
14.6%
Canada
USD 3.85 billion
5.9%
United Kingdom
USD 5.19 billion
7.9%
3.385

45
Investment in Colombia reaches various sectors of
the economy
Source: Banrep.
*Mining-energy investments are excluded.
FDI by economic activity*
2015 – 2019
26%
20%
17%
14%
10%
6%
4% 3% Financial and Business Services
Manufactures
Transportation, Distribution
and Communications
Commerce, Restaurants and
Hotels
Electricity, Gas and Water
Construction
Community Services
Agriculture, Hunting, Forestry
and Fishing
B e t w e e n 2 0 1 5 a n d
2 0 1 9 , a t o t a l o f
U S $ 4 7 . 2 4 b i l l i o n i n
n o n - m i n i n g F D I
a r r i v e d i n t h e
c o u n t r y

46
T h e r e a r e m a n y
r e a s o n s wh y
Colombia is
the best
inv estment
destination

47
AGRIBUSINESS
Some niche opportunities:
AQUACULTURE COCOA FRUITS AND
VEGETABLES
MEAT
PROCESSED
FOOD
FORESTALDAIRY
Colombia is set to
become a global
food pantry and has
the potential for
agricultural and
agro-industrial
growth to serve the
local and
international markets.
1.
The agri-food sector is
one of the pillars of the
national economy and
is recognized
internationally.
This is strengthened by
the growth of foreign
direct investment in this
sector.
2.
Colombia is a significant
food consumer in the
region and an important
export platform to satisfy
the Americas, with an
expanded market
equivalent to 30% of the
world's processed food
and beverage market.
3.
The national government
is committed to boosting
the sector and taking
measures to consolidate
production and
opportunities at the
international level, such
as: diplomacy strategy ,
investment promotion
and mega-projects.
4. 5.
The Colombian
business network
offers possibilities of
strategic alliances or
supplying companies
to develop value-
added products in
Colombia.
Colombia has legal incentives that impact the agro-industrial sector and
facilitate the establishment of crops and companies in the country.

48
SUCCESS STORIES
AGRIBUSINESS
Cargill is expanding its global
poultry business with the
acquisition of Campollo S.A., a
Colombia-based producer of
chicken and protein products.
The acquisition of Campollo
marks Cargill’s second recent
investment in Colombia. The
company acquired before
Pollos Bucanero, reaching more
than 7,500 employees
generated in Colombia.
PepsiCo has managed to
acquire local companies such
as Cronch and Papas Margarita,
generating daily contact with
more than 8 million consumers of
all generations. In Colombia
they have 3 production plants,
17 distribution centers and
presence in more than 400,000
points of sale.
CHILE
Alliance between CCU and
Postobon: Construction of a
production plant with the
aim of boosting the beer
market sector through
production,
commercialization and
distribution of beer and non-
alcoholic beverages based
on malt.
UNITED
STATES
Source: Procolombia based on national press
UNITED
STATES

49
Colombia offers easy access to raw
materials at competitive costs, both
imported and produced locally.
Decree 272 of 2018 allows imports with
0% tariff for more than 3,600 products
that are not locally produced.
Wages within the industrial sector in
Colombia are among the most
competitive in the region, lower than
countries like Argentina, Peru, Brazil
and Chile. Additionally, the country
has a growing, efficient, and qualified
workforce. We were positioned in the
2019 Global Competitiveness Ranking
as the country with the most efficient
labor market in Latin America.
Diversified and growing manufacturing industry.
Colombia has more than 121.000 active
manufacturing, and each year around 8.000
thousand new ones are created, which represents
an annual growth of 2%.
1. 2. 3.
4. 5.
Some sectors with investment opportunities:
MANUFACTURING
INDUSTRIES
Colombia serves as an export
platform to an extensive market
in the region The Colombian manufacturing sector has facilitators to invest in the
country and take advantage of the opportunities it offers.
AUTOMOTIVE METAL MECHANIC
BUILDING
MATERIALES
COSMETICS AND
PERSONAL CARE
PACKAGING
The country has income tax
exemptions to promote local
manufacturing, such as the free trade
zone regime and large-investment
incentives. Colombia is the second
country in Latin America with the
highest number of free zones.
Colombia’s 16 FTA's provide excellent trade conditions,
and access to 1,5 billion consumers for example, the
FTA with the United States has very flexible rules of
origin, 0% tax on many products, and no minimum
wage requirements in the manufacturing process.

50
The Japanese continuous
casting and high precision
parts production company
decided to open a plant
to serve the American
market.
Source: National and international press
JAPAN
UNITED
STATES
Minnesota Mining and
Manufacturing Company,
opened a distribution
center in Funza, to sell
2,800 references, focusing
on personal safety items
for the Colombian market.
They currently have 2,500
direct jobs in the cities
where they have
operations: Medellin, Cali,
Barranquilla, and Bogotá.
In early 2020, the
company announced a
USD 36 million
reinvestment in Palmira,
Valle del Cauca, to
expand its paper bag
operation.
IRELAND
SUCESS STORIES
MANUFACTURING
INDUSTRIES
LUXEMBURGO
Ternium has had an industrial
presence in Colombia since
2010 when it acquired more
than 50% of the Ferrasa
Group. In the first semester of
2020, they have advanced in
the construction of their new
operations plant in Palmar de
Varela, with an investment of
USD 270 billion and a
generation of 800 direct jobs.

51
The new factory set up in
Colombia is one of its
three most modern
factories in the world,
thanks to its cutting-edge
technology and
ecofriendly facilities.
NETHERLANDS
UNITED
STATES
The company has been
investing in technological
reconversion projects to
increase its production
capacity, reduce its
energy consumption, and
raise its quality standards,
with investments of
approximately USD 7.2
million.
In 2015, the company
reinvested close to USD 18
million for the upgrade of its
plant. Their goal is to export
about 50% of its production
to Central America and the
Andean region. They
opened a new plant on the
outskirts of Bogotá
(USD 30 million investment),
which will be in charge of
producing mainly Vogue
products.
FRANCE
SUCESS STORIES
MANUFACTURING
INDUSTRIES
Source: National and international press
Isuzu Motors Limited's alliance
with actors installed in
Colombia has allowed them to
become automotive
technology leaders for ten
years. Recently, they made a
new investment of USD 2.5
million to expand their
operations.
JAPAN

52
TECHNOLOGY BASED
SERVICES
Colombia promotes
the digital
transformation.
The National
Government has
established digital
transformation as
the driving force for
the coming years.
1.
Colombian IT services
exports grew 3%
between 2015 and
2019, positioning as an
export platform to
different markets, such
as the United States
and Mexico.
3.
Global connectivity with
world class
Infrastructure, Colombia
is the second country in
the region in number of
cables (11). In addition,
it went from registering
2.8 million broadband
internet connections
in 2010 to a total of 32.7
million in 2018
4.
Colombia is the
fourth largest IT
market in the
region after Brazil,
Mexico and
Argentina.
2. 5.
Highly qualified
human capital and
low operating costs,
the country has the
largest workforce in
the region, and the
first in terms of growth
and training,
surpassing countries
such as Peru, Mexico
and Brazil. IMD World
Talent 2019.
Software, BPO, CSC, Data Center and
telecommunications.
4G 5G ICT
INFRASTRUCTURE
MODERNIZATION
BPO
SHARED SERVICES
CENTER
BLOCKCHAIN, INTERNET
OF THINGS, ARTIFIAL
INTELLIGENCE
DATA CENTERS
FINTECH
Source: MinTIC, Fitch, Statista.

53
SUCCESS STORIES –
ITC SERVICES
IBM opened its third Data
Center in Colombia
offering a processing
power of 5 petabytes.
It´s one of the most
advanced centers for
Cloud Computing and
Big Data Analytics
companies in
the country.
The renewal in the
company continues. After
announcing the
modifications on its logo,
the company announced
that they will start
managing the operation
of Bolivia, Ecuador,
Guyana, Suriname, Peru
and Venezuela from
Colombia.
UNITED
KINGDOM
UNITED
STATES
Thanks to the success of its
operations in Colombia,
Endava, a British IT
company, announced its
expansion with a projected
investment of at least 10
million dollars and offering
500 jobs in the next five
years. The company
decided to expand its
operation in the country,
opening a new office in the
city of Medellín.
JAPAN
Its BPO operation
currently has more than
1,400 credit processes,
customer service, and
document management
active positions.
UNITED
STATES

54
TOURISM
ECOLODGE AND
GLAMPING
WELLNESS URBAN
HOTELS
Colombia is an international tourist
destination. USTOA* chose Colombia as
the first destination of interest in 2020 and
Financial Times** highlighted Colombia as
one of the global markets with the best
investment attraction strategy in the
world.
1.
Colombia´s growth is almost twice compared to the
global average rate. The average annual growth of
non-resident visitors into the country was 9%
between 2012 and 2019, while world’s growth was
5.3% and the Americas’ growth was 4.4%. Tourism is
the second exporting sector with USD 6,7 million,
after energy and mining activities.
2.
Colombia is connected to 27
countries and 26 airlines
through more than 1,000
direct weekly frequencies,
offering 194 thousand seats
weekly.
3.
Colombia offers attractive incentives for investing in hotel and tourism
infrastructure. The 2019 tax reform offers a preferential income tax rate
for new hotels, themed parks, agritourism, ecotourism and docks. In
municipalities with less than 200 thousand inhabitants, rate will be 9% for
20 years; for cities with more than 200 thousand inhabitants, the same
rate applies for 10 years.
4. 5.
Colombia has 14 cities with more than 500 thousand
inhabitants and 31 with more than 200 thousand
inhabitants. These are attractive regions for the
development of: urban hotels, mixed uses, sun and
beach resorts, ecotourism, wellness, entertainment
(themed parks), tourism infrastructure and investment
in heritage towns.
Colombia is considered a unique destination thanks to its mega diversity, international air
connectivity, different climates and touristic attractions
Colombia, a high-quality
sustainable destination SUN AND BEACH
- RESORTS
THEMED
PARKS
Source: MinCIT, DANE, OAG Aviation, United States Operators Association.
**Research Center fDi Intelligence report

55
SUCCESS STORIES
TOURISM
Hyatt is present in Bogotá
(the Grand Hyatt Bogotá
and the Hyatt Place Bogotá
/ Convention Center) and
in Cartagena with the Hyatt
Regency, which is also
among the 25 best in the
country. The expansion of
the Hyatt Regency
Cartagena hotel in 2020 will
add 285 rooms and 90
rooms.
The Selina hotel chain was
established in 2017 in Colombia
and in the last two years it has
expanded with a restaurant in
Bogotá and subsequently 2
lodging locations. In its growth
plan, it already has a hotel in
Medellín, one in Cartagena and
the most recent one in Quindío.
The firm plans to add 15 hotels in
2021 in places like Santa Marta,
Palomino and Cali, among other
cities.
FRANCE
Source: ProColombia con base en prensa nacional
PANAMA
The Accor hotel chain
invested in 6 projects,
generating more than 550
jobs. The projects are
concentrated in Bogotá,
Montería, Apartadó and
Chía. Coming soon will be
the development of a
new hotel located in
Ituango (IBIS BUDGET).
The chain, in alliance with
a local developer,
invested in the
construction of a new
hotel under the Ramada
brand, which will be
located in the Bogotá Free
Zone, it will have 87 rooms
and its opening is planned
for May 2020.
UNITED
STATES
Real estate and retail
UNITED
STATES

56
INFRASTRUCTURE
AIRPORTS PORTS ROADS
Infrastructure is the main
development sector stated by the
Government to enhance the
economy. Public investment grew
from 0.6% in 2003 to 3% of GDP in
2018 and represented 8.6% of
total FDI in 2019.
1.
Due to the Health emergency, the
government prioritized
investments of USD 5,288 million in
PPP's as a reactivation strategy of
the economy, generating more
than 90,000 jobs between 2020 –
2022.
2.
Colombia is the third country in the world
according to the Procuring Infrastructure
PPP 20181, given the efficiency of the PPP
model for the development of
infrastructure projects.
3.
Colombia has a dynamic infrastructure
secondary market2, which allows the entry
of Foreign Investment Capital Funds into
ongoing projects, with stable and safe
profitability.
4.
5.
Colombia has a diverse portfolio of
infrastructure projects by 2035
•Road: USD 60,000 million
•Airports: USD $ 5.700 Million
•Rail: USD 3.400 Million
•Fluvial: USD 1,600 Million
•Ports: USD 433 Million
•Social: More than USD 1,500 Million
A major driver for growth
STEP RAILWAYS FLUVIAL
NATIONAL PLAN
R
1 Word Bank Ranking
2 Marketing of PPP projects already awarded Source: Intermodal Transport Master Plan 2015-2035 (PMTI) Exchange
rate: US$ = COP$3.282

57
SUCCESS STORIES -
INFRASTRUCTURE
InfraRED is a global
investment fund focused on
the infrastructure and
energy sectors. The
company acquired a local
concession, a roadway
project of the 4G
infrastructure program.
Strabag will be in charge of 75
Km new highways, and the
modernization of a 65 km
section.
ISRAEL
AUSTRIA
Shikun & Binui awarded
the project “Corredor
Perimetral de Oriente de
Cundinamarca = 153 km
length”.
The investment of around
USD600M of PSA in
Aquadulce Port turns this
Pacific Sea port into the
most modern in the
country.
UNITED
KINDOM
A major driver for growth
SINGAPORE

58
ENERGY
THERMAL PCH SOLAR
WIND TRANSMISSION
NETWORK
BIOMASS
After a successful energy auction, Colombia
will increase its installed capacity in the
generation of NCRE1 50 times, going from less
than 50 MW in 2018 to 2,500 MW in 2022. This
important fact will allow to achieve the goal of
diversifying the Colombian energy matrix.
1.
Colombia is the second largest economy in the
Americas and ranks 25th out of 115 globally in
the Energy Transition Index 20202 ranking, in
capacity to supply energy in a self-sustaining
and quality manner.
2.
The development of renewable energy in
Colombia has incentives, such as the deduction
of 50% of the income tax for 15 years for
investments in alternative sources.
3.
Colombia has one of the highest availability of energy
resources worldwide:
•Solar: average daily radiation 25% higher than the world
average.
•Wind: wind speed is twice the world average.
•Biomass: sufficient potential to supply 46% of national
energy demand.
4.
5.
In 2019, 19 transmission projects for more than USD 291
million came into operation. In 2020, 11 calls for investment
projects will be opened, which will increase reliability and
allow flexibility in the operation of the system. Additionally,
Government launched the first project of energy storage.
By 2050, 25% of the energy matrix will be
from NCRE1
1 Energies with unconventional sources
2 Ranking of the World Economic Forum
3 UPME public calls

59
SUCCESS STORIES -
ENERGY
Between 2017 - 2019, the
Italian multinational Enel will
invest close to
USD 561 million in energy
projects in Colombia.
Trina solar energy supports the
transformation of the Colombian
energy matrix with the
investment in a solar energy park
(Llanos 1) supported by the FDN.
UNITED
STATES
CHINA
Colombian subsidiary of
AES Corporation (Applied
Energy
Services). Chivor is one of
the country's largest power
generator with a total
effective installed
capacity of 1,000 MW.
Sloane is a United
Kingdom company with
presence in Colombia
through the operation of a
coal mine located in the
Department of Cesar.
Currently, it is in the
development phase of a
1,125 MW coal thermal
power generation plant
with super ultra-critical
technology.
UNITED
KINGDOM
A diversified resource base and a
strategic location in the Americas
ITALY

60
CAPITAL
FUNDS
REAL ESTATE HEALTH ITCBANKING
BIOTECH AGRIBUSINESSENERGY
Colombia was ranked fourth in Latin
American and
the Caribbean due to its favorable
conditions for development of the
PEF industry.
1.
19 International General
Partners in Colombia.
2.
Capital funds such as Advent
International and Victoria Capital
have chosen the country as a hub
to service other countries in the
region.
3.
Colombia offers several benefits
to invest in capital funds.
INFRASTRUCTURE

61
SUCCESS STORIES –
CAPITAL FUNDS
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.
Colombia's Rappi unicorn, a
home and e-commerce
company, received a $1 billion
investment from Japan's
SoftBank Group and SoftBank
Vision Fund. This was the largest
investment of its kind for a Latin
American technology company.
Caisse de Depot et Placement
du Quebec created an
infrastructure co-investment
fund with the Colombian
government and four pension
funds in the South American
country that's expected to
reach $1 billion. Infrastructure
investments will target
renewable and other forms of
energy, transportation, social
infrastructure,
telecommunications, water and
basic sanitation.
CANADA
JAPAN CANADA

62
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