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BUSINESS OPPORTUNITIES IN COLOMBIA

INVESTMENT ENVIROMENT AND

2 0 1 8

C O L O M B I AOFFERS: A dynamic and stable

economy.

A growing market located strategically to facilitate business transactions with the region.

A trade platform with over 16 Trade Agreements enabling investors to

reach third markets with preferential access.

Multiple development centers and regions coupledwith a growing middle class securing a greater demand in products and services.

A growing pool of qualified Colombian companies able to

partner with internationalinvestors to reach out to regional

markets.

Diverse investment opportunities in a wide variety of sectors

450

461

477

482

541

547

555

667

706

716

750

752

795

955

960

1,002

1,313

2,572

3,389

Peru

Austria

Chile

Hong Kong SAR

Switzerland

Sweden

Singapore

Algeria

Vietnam

United Arab Emirates

Colombia

Bangladesh

South Africa

Philippines

Argentina

Malaysia

Australia

Mexico

Brazil

COLOMBIA

GDP PPP 2018*(USD billion)

Latin American Economies

Is the 32th largest economy in the world and the 4th in Latin America

*Projections. Source: IMF, WEO, April 2018

3.4%

4.4% 4.5%

2.6%

0.6%

2.0%1.6%

-0.8%

-7.0%

2.0%

-1.0%

3.8%

-0.7%

1.2%

-0.1%

3.4%

4.9%

1.1%

-3.6%

1.8%

Manufacturing industries Financial services Construction Commerce, restaurants

and hotels

Transport, warehousing

and telecommunications

Social services Agriculture Electricity, gas and water

supply

Mining and Quarrying Total GDP

2016 2017

Dynamic growth driven by its agriculture and financial services

Source: DANE – Ministry of Finance.

3.2

3.7

2.4

1.9

3.7

6.8

5.8

4.1

3.43.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Inflation Rate (%)

In 2018 y 2019, inflationis expected to reach the target

rate set by the national bank

(2% - 4%).

Inflation

continues an

uninterrupted

decelerating

trend since

2015.

Source: Colombian National Bank (Banco de la República). Projections: IMF, WEO, April 2018.

2010 – 2019 est.

Since 2013unemployment rate has remained at a single-digit level.

11.8

10.810.4

9.69.1 8.9 9.2 9.4 9.2 9.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Unemployment rate (%)2010 – 2019 est.

It is expected that, in 2018 and 2019,

unemployment rate will continue to

be at a one - digit level; with a slight

decrease from 2017.

Source: Source: Colombian National Bank (Banco de la República). Projections: IMF, WEO, April 2018

Doing Business* 2018 ranking

According to Doing Business,

within the Latin American and

Caribbean region, Colombia is:

#1 In getting credit,

in protecting minority investors.

#3 In registering property, in resolving insolvency

Macroeconomic

Stability indexWorld ranking 2017-2018

43

91

95

124

37

62

Source: World Bank. Doing Business 2018. Source: Global competitiveness Index , 2017.

With a constant gross fixed capital

formation,

companies are the

most willing to

invest in fixed

capital.

Gross fixed capital formation Investment sources 2017

(Investment as GDP %)

19,7%

21,8%

23,3%

24,7%

24,0%

24,2%

27,…27,2%

27,7%

29,1% 29,0%

27…

27.0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(%)*

58.2%26.2%

14.5%

1.0%0.1%

Companies Households

Government Banks

Non-profit organizations

Gross fixed capital formation 2017

USD $71 billion

Source: DANE, Most recent data available.*Procolombia´s estimates

Investment as a

percentage of

GDP has a share

of about a

quarter of the

colombian

economy.

20.2

22.423.0

23.5

22.4 22.1

23.9 23.924.3

26.326.7

24.7

23.4 23.6 23.7

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Total Investment* (% of GDP)

2010 – 2019 est.

In 2018 and 2019, It is expected to be higher

than 2017

Source: IMF, WEO 2018, April. Estimates from 2017 to 2019.* Includes gross fixed capital formation and inventory variation.

GROSS DOMESTIC PRODUCTEstimated growth 2018

Colombia, one of the top growing economies

in 2018 among the largest Latin American countries

3,7% 3,4% 2,7% 2,3% 2,0% 1,8% 1,6%

Ch

ile

-15,0%

Co

lom

bia

Ve

ne

zue

la

Arg

en

tin

a

LATA

M

Bra

zil

Pe

ru

Me

xic

o

Source: IMF, 2018. In April 2018.

4.0%

6.6%

4.0%

4.9%

4.4%

3.1%

2.0%1.8%

2.7%

3.3%

0%

1%

2%

3%

4%

5%

6%

7%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

GDP constant prices

(percent change, %)The Colombian

economy is on

the path of

recovery and will

expand by

about 3-3.3% in

2018-2019

Source: IMF, WEO 2018, April.

COLOMBIA IS THE 28thmost populated country in the world

and the 3rd in Latin America

209.2

124.7

65.2 60.851.7 49.8 46.3 44.6

32.5 32.2 31.825.1

18.6 17.0 11.4 11.2 10.8 10.4 10.3 10.3 8.9 8.9 5.8 5.4 3.5

Population 2018* (millon)


*Estimated,.Source: IMF, 2018

49,7%

30,6%

26.9%

16,3%

29,9%

32.0%

2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Percentage of people in poverty 2002 – 2017

Poverty

Middle Class

Colombia has continuously decreased its poverty levels.

Remarkable

reduction in

poverty rates

and a rapidly

growing

Middle class

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 2016: Estimates calculated by ProColombia

COLOMBIA

Ra

nk

ing

Term

Long Term –

Foreign

currency

BBB- BBB

Long Term –

Foreign

currency

FitchRatings MOODY S,STANDARD

& POOR S,

Baa2

Long Term –

Foreign

currency

In March 2017, Fitch Ratings* improved Colombia´s

rating outlook: from Negative to Stable

In July 2014, Moody´s was the last rating agency in

improving Colombia´s rating due to two key drivers:

Positive growth forecast

thanks to 4G

infrastructure.

1.A sound fiscal

management that will

continue in the future.

2.

an investment grade country

Source: S&P Ratings; Dinero magazine, Colombian Treasury.* Portafolio 2018

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45High barriers

Low barriers


Closed = 1 - Open = 0

Restrictiveness Index 2017

COLOMBIALow barriers to FDI

Source: OECD, 2017.

FDI Regulatory

“The OECD 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

AUSTRALIA

NEW ZELANDA

JAPAN

KOREA

CANADA

UNITED STATES

MEXICO

CHILE

COLOMBIA

AUSTRIA

BELGIUM

CZECH REPUBLIC

DENMARK

ESTONIA

FINLAND

FRANCE

GERMANY

GREECE

HUNGARY

ICELAND

IRELAND

ISRAËL

ITALY

LATVIA

LUXEMBOURG

NETHERLANDS

NORWAY

POLAND

PORTUGAL

SLOVAK REPUBLIC

SLOVENIA

SPAIN

SWEDEN

SWITZERLAND

TURKEY

UNITED KINGDOM

BEING PART OF THE OECD COUNTRIES MEANS THAT PUBLIC INSTITUTIONS IN COLOMBIA

WILL MEET STANDARDS OF THE DEVELOPED WORLDMORE CONFIDENCE FOR INVESTORS

COLOMBIAIS THE 37TH

MEMBER OF

THE OECD

COLOMBIA IN THE

Being part of an organization such as the

OECD is a sign of economic stability,

transparency and government discipline

OECD gives guidelines to improve trade

and investment barriers, allowing

Colombia to be in a process of continuous

improvement, peer evaluation and

institutional strengthening

Thanks to the recommendations made by

the OECD, the national government has

promoted concrete reforms for the

facilitation of trade.

The OECD provides a seal of quality for

direct foreign investment: by having to

meet public policy standards to become a

member, these improve. This results in

increased confidence of foreign investors

275

136

104

63 62 58 50 46 40 35 30 30 29 25 24 19 19 17 17 15 15 15 14 11 10 10 7 7 6

-2

Developed economies

(USD billion)

Top 30 host economies in 2017

Developing and transition economies

COLOMBIA

Colombia is part of the top 30 destinations for FDI

Source: UNCTAD – World Investment Report 2017

COLOMBIA

-9%

-7%

-5%

-3%

-1%

1%

3%

5%

-2.50% -0.50% 1.50% 3.50%

Tota

l In

ve

stm

en

tG

row

th

(6 y

ea

rs,

%)

GDP GROWTH (6 years, %)

Brazil

Argentina

Chile

Mexico

Peru

Colombia

-3%

-2%

-1%

1%

2%

3%

4%

5%

-2.5% -0.5% 1.5% 3.5%Co

nsu

mp

tio

nG

row

th

(6 y

ea

rs,

%)

GDP GROWTH (6 years, %)

Brazil

Argentina

Mexico

ChileColombia

Peru

GDP GROWTH VS. CONSUMPTION2012-2017 - (%)

GDP GROWTH VS. INVESTMENT2012-2017 - (%)

is leading a sustainable growth in the region

Source: ProColombia based on World Bank data and Canadean Travel and Tourism. Bubble sizing corresponds to the size of the economy.

FDI has been

largely driven

by non-miningsectors over

the last 2 years

FDI Inflows

(USD millon)2010 – 2017

Top Investing countries in Colombia

2000-2017

1,512

7,468 7,0958,121

9,8548,584

11,5899,951

1,1642,083

4,918

7,180 7,9458,089

6,314

3,139

2,2614,062

1,3621,578

2010 2011 2012 2013 2014 2015 2016 2017 2017

(Q2)

2018

(Q2)

Oil & Mining

Other sectorsSource: 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 sectorNote: the list of the top countries investing in Colombia does not include Panama.

United States

USD 34,745 million

16,3%

Panama

USD 20,531 million

15,0%

Spain

USD 15,821 million

9,6%

Switzerland

USD 9,841 million

8,7%

MAIN GLOBALINVESTMENTPROJECTS

Investment Projects from the world

to Colombia by Industry Sector

2007 - 2017

262

137

10882

54

49

43

35

32

31

177

Software and IT Services Business Services

Financial Services Machinery and equipment

Logistics and Transportation Mining Industry

Chemicals Automotive Industry

Real estate Tourism

Others

SectorJobs

generated

Real estate* 23.812

Software and IT Services 22.999

Mining industry 12.115

Logistics and transportation 11.231

Tourism 9.024

Agroindustry 8.714

Financial services 8.108

Construction materials 7.740

Automotive industry 5.242

Energy 470

Others 53.027

Total 162.482 Total projects : 1.010

Fuente: fDi Markets. *Incluye construcción y servicios profesionales. Grupo casino y Parque Arauco registran el mayor número de empleos.

in Colombia

In the first quarter 2018, Colombian outward investment flows

grew 55% over the same period of 2017.

FDI Outward FlowMain countries

2000 – 2017

856.8

937.7

192.4

4,7

95

.5

1,2

67.8

1,2

78.8

3,0

85.1

3,5

04.7

5,4

82

.7

8,4

19

.8

-606.2

7,6

52

.1

3,8

99

.0

4,2

17

.7

4,5

17

.4

3,6

89.6

1,2

74.8

448.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017

(Q2)

2018

(Q2)

Stock of outward FDI (USD millions)2002 – 2017

Top Latin American investors

to the world, 2017(USD billions)

Colombia

USD 3,6

Mexico

USD 5,1

Chile

USD 5,1

Argentina

USD 1,1

Fuente: Balanza de Pagos – Banco de la República

Source: Balance of Payments - Banco de la República. UNCTAD, 2017.

United States

USD 7.745 million

13%

Panama

USD 46.408 million

17%

Spain

USD 5.886 million

10%

Chile

USD 4.752 millones

9%

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.

Total number Free Trade:

105Number of permanent

Free Trade Zones:

39

Number of Special StandingSingle enterprise:

66

Reduced income

tax and VAT

Exemptions

allowing access

to local market

Source: Directorio de Zonas Francas 2017-2018 DANE

1

2

3

5

11

12

11

13

17

19

20

39

50

65

105

Brazil

Paraguay

Puerto Rico

Peru

Costa Rica

Argentina

Haiti

Uruguay

El Salvador

Guatemala

Panama

Honduras

Nicaragua

Dominican Republic

Colombia

COLOMBIA

The new world trade dynamic

allows Colombia to take

advantage of different

opportunities, such as:

Access to demanding and

sophisticated markets, Increase

the quantity and diversity of

exports, Transfer of technology,

Improve the quality of

production.

Number of FTZ in 2018

Source: DANE y AZFA.

is the Latin American country with the most Free Trade Zones

Free Trade Zones represent an important opportunity for third countries to take advantage of the country's Trade Agreements

- Plastic packaging for the beverage and

the cosmetics industry

- Automotive assembly

- Home appliances

- Clothing

- Processed foods

- Aeronautics

- Medical devices

Input supply

Investment opportunities in Colombia in value-added production chains

Supply with value-added intermediate products

Free Trade Zones have a high potential for

generating productive chains

JapanAromatic products -

Glasses -

Flats laminated with steel or iron -

Vehicle parts & accessories -

PerúCotton yarns-

MexicoCables and wires -

Batteries and accumulators -

Electrical Parts -

Flats laminated with steel or iron-

United StatesAccessories and Auto Parts -

Electrical equipment -

Cotton Yarn -

Plastic Resins -

C O L O M B I A

Source: High impact Free Trade Zone–2016, CLG

Canada

United States

Mexico

GuatemalaHonduras

El Salvador

Ecuador

BrazilPeru

Argentina

Paraguay

Uruguay

AELC

European Union

Israel

Japan

Panama

Chile

Bolivia

Costa RicaVenezuela

South Korea

Cuba*

Nicaragua*

Caricom*

AustraliaNew

Zealand

Singapore

Turkey

has access to 60 countries and more than 1.5 billion consumers through its network of trade agreements

Pacific Alliance

In force

Signed

In negotiation

C O L O M B I A

* Partial scope agreements (PSA)- - - Blue line shows Pacific Alliance´s member countries others than Colombia –(Chile, Peru and Mexico).- Source: Chamber of Commerce, Industry and Tourism, Colombia,2017

C O L O M B I AMember state of the Pacific Alliance

Canada

MexicoColombia

Chile

PeruSingapore

AustraliaNueva Zealand

At the XII Summit of the Pacific Alliance (October 2017)

the creation of the Associate members category was

announced and negotiations were started to grant this

status to Australia, Canada, New Zealand and

Singapore

This figure seeks to strengthen trade, regional and free trade integration, as well as benefit from regional platforms and promote trade agreement negotiations.

C O L O M B I ALess than 6 hours away by airplane from the maincities in the americas

international

direct

frequencies per

week.

domestic

frequencies per

week.

1.109

5.600More than

New York(5hr 35min)Los Angeles

(7hr 40min)

Mexico city (4hr 55min)

Paris(10hr 55min)

Madrid(9hr 40min)

London(10hr 26min) Tokyo

(25hr 05min)

Beijing(22hr 45min)

Dubai(20hr 45min)

Moscow (15hr 58min)

Miami (4hr 00 min)

Santiago de Chile

(5hr 55 min)

Berlin (13hr 45min)

Hong Kong(22hr 45min)

Toronto(6hr 10min)

Mumbai (20hr 50min) Seoul

(23hr 35min)Sao Paulo(6hr 10min)

Istambul(15hr 16min)

Lima (3hr 05min)

* 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.

C O L O M B I Acounts with more than 4,500 maritime export routes and has access to 680 ports around the world.

ACCESS TO CHINA IN JUST 29 DAYS (SHANGHAI)

ACCESS TO USA IN JUST 3 DAYS (PORT EVERGLADES)

ACCESS TO PERU IN JUST 2 DAYS

(CALLAO)

ACCESS TO THE NETHERLANDS IN JUST 13 DAYS (ROTTERDAM)

SANTOS

(11 DAYS)

BUENOS AIRES

(17 DAYS)

CAPETOWN

(34 DAYS)

NUEVA YORK

(6 DAYS)

BARCELONA

(15 DAYS)

LONDON

(17 DAYS)

KOLKATA

(43 DAYS)

MONTREAL

(9 DAYS)

SHANGHAI

(29 DAYS)

HONG KONG

(33 DAYS)

SIDNEY

(21 DAYS)

BUSAN

(25 DAYS)TOKYO

(22 DAYS)

AUCKLAND

(17 DAYS)

VANCOUVER

(17 DAYS)

LOS ANGELES

(10 DAYS)

CALLAO

(2 DAYS)

VALPARAÍSO

(5 DAYS)

SAINT

PETERSBURG

(21 DAYS)

MIAMI

(4 DAYS)

VERACRUZ

(5 DAYS)

KARACHI

(37 DAYS)

Source: Routes and Tariffs - Tools for the Colombian Exporter, processed by ProColombia.

The Airport located in Bogota is among the top airports in the world

#1 IN LATINAMERICA

#11

WORLDWIDE

According to Airhelp scores 2017, El Dorado International Airport is:

Source: Airhelp Scores , Airport Worldwide Rankings 2017

Evolution of Colombian Exports, 2007 – 2017January-June 2018 (USD millons)

13,756 19,708 18,461

25,922 40,863 44,024 42,468 38,494

20,954 17,576 22,938

16,235

17,918 14,385

13,791

16,052 16,101 16,359

16,363

15,063 14,193

14,942

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

54.85758.82660.125

36.01839.71

332.846

37.62

629.991 31.76

8

37.88

0

56.915

10,63

4

12,62

1

7,227 7,867

Jan-Jun 2017 Jan-Jun 2018

14,7%

Agroindustry and Metalworking sectors performed the most

dynamism in their exports during 2017.

MiningNon - Mining

Colombian

exports

increased 19%

in 2017

compared to

the previous

year

Source: DANE.DIAN, 2018.

Llegada de viajeros a Colombia2013 – 2017

Between

January and

July of 2018, receptive tourism

grew 32,9% over

the same period

of 2017

Enero – Junio 2018 (USD millones)

… 314,207 272,206 305,820 344,624 561,791 583,967 689,280 724,302 793,775

1,153,247 1,313,199 1,528,331 1,734,239 2,159,894

1,726,300 1,967,814

2,288,342 2,593,057

3,233,162

2013 2014 2015 2016 2017

4,179,1884.446.446

5.357.418

6.531.226

3,748,033

203,849 224,157 405,7

22

420,368

1,149,007 1,595,

702

1,719,

846

2,383,

232

2017 Jan - July 2018 Jan - July

3,478,424

4,623,459

Cruisers Colombians who are foreing residents Cross- border Non- resident foreigners

Source: Migration Colombia. Elaborated by ProColombia

The upward trend

in tourism figures

has had an

important effect on

the national

generation of

foreign income

Foreign income generated by sector 2010-2017 (USD Millions)

3,4403,801

4,364

4,758 4,8875,236

5,712

4,084

1,884

2,608

1,910 1,884

2,473 2,527 2,418

15911,229 1,240 1,256 1,324 1,362 1,285 1,301

1020748 815 822 764 836 803 915

696

0

1,000

2,000

3,000

4,000

5,000

6,000

2010 2011 2012 2013 2014 2015 2016 2017

Tourism Coffe Flowers Bananas

According to figures from the

Colombian National Bank, tourism

was the second foreign income

generator in 2017, surpassing

traditional products such as coffee,

flowers and bananas.

In 2017, foreign income generated by

tourism was USD 5,788, which

represented an increase of 5.4%

compared to the same period of the

previous year.Source: BanRep-DANE. * Includes passengers transport and travel accounts. Preliminary data

C O L O M B I Ais one of the countries with the greatest potential for expansion in agricultural land

• Colombia, with multiple thermal floors, is able to offer differentagricultural products throughout the year.

• Colombia ranked 13th worldwide and 1st in Latin America inthe food sustainability index.

• “Plan Colombia Siembra” seeks to increase the agriculturalproduction with 1,000,000 new hectares.

• The availability of water resources in Colombia is one ofthe highest in the world (FAO*). The country ranked fourthworldwide in sustainable agriculture.

Source: FAO, Food Sustainability Index, 2017

COLOMBIAcompared to…

COLOMBIAfirst destination for safe investment

Argentina

Brazil

Chile

Colombia

Costa Rica

Ecuador

El SalvadorGuatemala

Honduras

Jamaica

Mexico

Nicaragua

Paraguay

Peru

Panama

Dominican

Republic

Trinodad and Tobago

Uruguay

Venezuela

0

2

4

6

8

10

12

0 2 4 6 8 10

STR

EN

GTH

OF L

EG

AL

RIG

HTS

IN

DEX

(0

-12 B

EST)

STRENGTH OF INVESTOR PROTECTION (0-10 BEST)

First in the Legal rights index (Worldwide)

First in the strength of investor protection Index (LAC region)

COLOMBIA RANKS:

Source: Global competitiveness Index , 2017.

COLOMBIAA destination with outstanding local

suppliers in the LAC region

Panama

Colombia

GuatemalaBrazil

Dominican Republic

El SalvadorPerú

Chile

Argentina

UruguayJamaicaHonduras

Trinidad and Tobago

Nicaragua

Ecuador

Mexico

Costa Rica

Paraguay

Venezuela

1

2

3

4

5

6

7

1 2 3 4 5 6 7

LOC

AL

SU

PP

LIER

QU

ALI

TY (

1-7

BEST)

LOCAL SUPPLIER QUANTITY (1-7 BEST)

Investor protection index (0-10) 2007 - 2017

Local Supplier Quantity

Local supplier quality

#1

#3

COLOMBIA:

Source: Global competitiveness Index , 2017.

Committed to invest in human capital

COLOMBIA

World Talent Ranking 2017 (0-100 Best)

39.09

39.4

40.09

42

43.49

50.37

Peru

Mexico

Colombia

Brazil

Argentina

Chile

Colombia was ranked fourth

in Latin America by

the Human Talent Report

Source: IMD

ranks 3rd in Latin America in the Services location indicator by A.T. Kearney

COLOMBIA

Global Services Location Index- 2017

"Colombia registered a significant improvement in this year’s position, rising 10 places to the 10th position.

2.27

2.55

2.37

2.73

2.97

2.72

2.85

2.54

2.65

0.97

0.8

1.53

0.91

1.19

1.61

1.45

1.33

2.02

1.65

1.67

1.25

1.63

1.25

1.35

1.43

1.88

1.27

46 - Uruguay

41 - Panama

36 - Argentina

31 - Costa Rica

20 - Peru

13 - Mexico

10 - Colombia

9 - Chile

5 - Brazil

Financial atractiveness

Talent and availability of

human capital

Business environment

Between 2011 and 2015, Colombia contributed with the 12% of the new

BPO centers and Shared Service Centers in Latin America and the

Caribbean.”

Source: A.T. Kearney, 2017

79 INVESTMENTPROJECTSin creative industries

1615

6

4

9

3

6

2012 2013 2014 2015 2016 2017 2018

Number of investment projects in creative industries

2012 – 2018 (June)

Jobs created(2006 – 2018)

7.656

Capital invested(2003 – 2018)

USD 869 millon

CREATIVE INDUSTRIESin Colombia

SOME SUCCESS STORIES OF INVESTMENT

Capital invested:USD 250 millionJobs created:

3.000Venezuela

Capital invested:USD 146,5 million

Jobs created:129

United States

Capital invested:USD 130 millionJobs created:

505Mexico

OVERVIEW OF THE INVESTMENT PROJECTS IN CREATIVE INDUSTRIES, COLOMBIA

2003 – 2018 (JUNE)

Number of projects 87

Jobs created 8.079

Average of Jobs created per

project92

Capital invested(USD million USD 895,1

Average capital invested per

project(USD million)USD 10,3

46.0%

31.0%

19.5%

2.3% 1.2%

Business services

Software and TI services

Comumunications

Leisure and entertainment

INVESTMENT PROJECTS IN CREATIVE INDUSTRIES, SECTORS2003 – 2018 (JUNE)

Source: fDi Intelligence from The Financial Times Ltd

COLOMBIA

Working age

population rate

(15-64) years)

Enrolment

secondary

education

Enrollment

tertiary

education

68,8% 66,3%

98,1% 97,3%

58,7% 36,9%

69,6%

99,7%*

50,6%*

65,4%

98,0%

34,3%**

Highest enrolments rates in education

Source: World Bank, latest update available: 2016. * Last update 2015. Last update 2006.

Major

multinational

corporations

have chosen

Colombia as an

investment

project

destination

INFRASTRUCTUREA major driver for growth

Some niches with opportunities:

AIRPORTS PORTS ROADS

FLUVIALNATIONAL PLAN

STEP RAILWAYS

USD $5.6 billion in rehabilitation, expansion and modernization of 31 airports (2015 – 2018).

The Fluvial National Plan consists of 13 river proyects with an investment of USD $2.9 billion.

Until 2035, USD $17 billion will be invested to increase road infrastructure:

7,000 kms of new highways1,370 kms of double lane highways141 tunnels1,300 viaducts

USD $3.3 million investment to recover more than 1,769 kms of railways network.

Source: Intermodal Transport Master Plan 2015-2035 (PMTI , Ministry of

Transport - Exchange rate: USD = COP$3,000

In 2014, Iridium awarded two roadconcession projects in thegovernment’s “highwayconcession program (4G)”.Those projects accounts 78Km.

SUCCESS STORIES -INFRASTRUCTURE:A major driver for growth

S P A I N

Strabag will be in charge of 75 Km new highways, and themodernization of a 65 km section.

A U S T R I A

Shikun & Binui awarded the project “Corredor Perimetral de Oriente de Cundinamarca = 153 km length ”

I S R A E L

HEC will build “The Mar 2 highway”that will improve northeast logistics development. Total project length: 246 km.

C H I N A

Source: ProColombia con base en prensa nacional

SECTORS OFOPPORTUNITY - ENERGY:A diversified resource base and a strategic location in the Americas

546 power generation projects registered in different stages:Installed capacity up to 15,940*

22 Open public bids for power transmission projects in Colombia**

High potential in Biofuels and alternative energies.

Projects focused on renewable energy will have special VATexemptions, deduction from taxable income and customsexemptions – Law 1715

Source: World Economic Forum 2016 and UPME / * UPME (Colombian

Planning Unit of Mines and Energy). MW approx.. **Bids open by UPME

Colombia ranked first in Latin America and eighth inthe world according to the “Energy ArchitecturePerformance Index 2017”. WEF, 2017.

THERMAL PCH SOLAR

WIND BIOMASS TRANSMISSION NETWORK

The Global Energy Architecture Performance Index 2017

Some niche opportunities

0.74

0.75

0.75

0.75

0.76

0.77

0.77

0.78

0.79

0.8

Uruguay

New Zealand

Colombia

Spain

Austria

Denmark

France

Sweden

Norway

Switzerland

Endesa, the subsidiary of the Italian group Enel, acquired participation in Emgesa and Betania power generation companies with 2,895 MW of installed capacity.

SUCCESSSTORIES - ENERGY:A diversified resource base and a strategic location in the Americas

S P A I N

Between 2017 and 2019, the Italian multinational Enel will invest about USD 561 million in energy projects in Colombia.

I T A L Y

Colombian subsidiary of AES Corporation (Applied EnergyServices). Chivor is one of the country's largest power generator with a total effective installedcapacity of 1,000 MW.

U N I T E DS T A T E S

The low-grade thermal coal plant, Termopaipa located in Paipa,was the first power plant planned overseas, financed and built by Steag.

G E R M A N Y

Source: Procolombia based on national press

SECTORS OFOPPORTUNITY –AGRIBUSINESS

AQUACULTURE COCOA CEREALS

FRUITS AND VEGETABLES

MEATPROCESSED

FOOD

RUBBER BIOFUELS FORESTRY

Expansion of cultivated areas with a high global demand of

agricultural products, construction of collection centers and

assembly of processing plants (IQF, pulps, jams).

Construction of cocoa processing plants for cocoa butter, cocoa

liquor and chocolate products.

Colombia has the fourth dairy herd and largest dairy production in

the region, which guarantees easy access to raw materials for the

subsequent transformation of dairy products.

Build specialized industrial facilities to transform natural rubber into

value-added elements.

Investment opportunities


The American investment fundspecialized in the agribusiness sector, invested in the company, “Cacao de Colombia”, by setting up a second production plant in Popayán.

Brazilian company dedicated to theproduction and commercialization of beef, leather, live animals and itsbyproducts. The company acquired freezersfrom Red Carnica S.A.S located in Cordoba.

C H I L E

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.

B R A Z I LU N I T E DS T A T E S


SUCCESS STORIES -AGRIBUSINESS

Colombia, a sustainable

destination.

AUTOMOTIVE AND AUTO PARTS

METALWORKINGCONSTRUCTION

MATE

Setting up factories that transform iron and steel productswith the aim of meeting other industries demand.

Setting up assembly lines to produce commercial vehicles(buses), cargo vehicles and motorcycles to serve bothlocal and international markets using Colombia as anexport platform.

Establishment of cement, ceramic and prefabricatedproduction plants to supply local and internationalmarkets.

Some niches of opportunity:

SECTORS OF OPPORTUNITY –METALWORKING ANDOTHER INDUSTRIES

Colombia has specialized in the production of vehicles and motorcycles to meet local and

international demand as well in the auto parts market that allow it to respond to the needs

of assemblers and the aftermarket.

The development of sectors such as construction, automotive, shipyards and metallurgy

opens a huge investment potential in the manufacture of metal structures, tools and

machinery.

Colombia has a portfolio of projects for the construction of housing, road infrastructure

and air transport, which makes it an attractive destination for companies in the sector.

The company invested in a float glass production plant to supply the national market and export to countries in the Andean region.

SUCCESS STORIES –METALWORKINGAND OTHERINDUSTRIES

F R A N C E

The Japanese company of continuous casting and production of high precision parts, decided to open a plant to serve the American market.

J A P O N

Foton invested more than US $ 12 million in a new assembly plant for SUV and 4x4 models.

C H I N A

Whirlpool and the Colombian company Haceb, signed an alliance to produce washing machines in a plant of US $ 70 million.



Colombia,a sustainabledestination

SECTORS OF OPPORTUNITY - CHEMICALS ANDLIFE SCIENCES

FERTILIZERS NATURAL INGREDIENTS

FOR COSMETICS

PLASTIC PACKAGING


Colombia, a sustainable destination

Setting up research centers on development of cosmeticsbased on natural ingredients. Taking advantage of theColombian biological and floristic diversity; and the taxincentives provided by the National Government for R&Dprojects.

Setting up agrochemicals formulation and productionplants to serve the growing local market.

Assembly of plastic packaging production plants to meetthe needs of the LAC region.

Colombia is the second country in the region with the highest fertilizer consumption per

hectare. In Latin America, Colombia is 5.5 times above the average.

The country has positioned itself as a hub for the production of cosmetics and toiletries at a

regional level. It is the fourth manufacturing industry with the highest exports in the country

Colombia counts with high quality raw materials for packaging with highly technical control

equipment.

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.

T H E N E T H E R L A N D SA N D U N I T E D K I N G D O M

Started its production operations in 2013, after the acquisition of Abocol, the most important agrochemical company in Colombia.

N O R W A Y

The Indian group inaugurated a new production plant in Villa Rica (Cauca), from which it manufactures 180 million laminated plastic tubes for consumer products.

I N D I A

The Indian group inaugurated anew production plant in Villa Rica (Cauca), from which it manufactures 180 million laminated plastic tubes for consumer products.

U N I T E D S T A T E S


SUCCESS STORIES -CHEMICALS ANDLIFE SCIENCES

SECTORS OFOPPORTUNITY – SERVICES: :IT, BPO, ITO, SharedServices, Apps

BPO BACKOFFICE –FINANCE

BPO -TELEMEDICINE

BIG DATA ANALYTICS

DATA CENTERS FINTECH SMART CITIES

SHAREDSERVICECENTERS

Colombia is one the three major

providers of IT services in the region.

Between 2001 and 2015, 3,405,211 graduates indifferent levels of education,

Source: MinTic and IDC

1.3 million bilingual people in Colombia in 2016.

1st place in Suramericana in labor qualifies, accordingto IMD (2015)

6th place in the region in level of companies bilingualismin 2016.

Colombia has 10 submarine cables, with eight exits throughthe Caribbean Sea and one through the Pacific Ocean.

Some sectors with opportunities:

IBM opened its third Data Centerin Colombia offering a processing power of 5 petabytes.It´s one of the most advanced centers for Cloud Computing andBig Data Analytics companies inthe country.

SUCCESS STORIES –SERVICES It has two operations centers in

Bogota where it manages a diversified portfolio of blue ribbon clients, with the capacity for up toa thousand positions.

E S P A I N

AT&T acquired DirecTV Colombiaand it´ll increase the telecoms offer Colombia through new services and packages.

Its BPO operation currently has more than 1,400 credit processes, customer service, and document management active positions.

J A P O N




IT, BPO, ITO, SharedServices, Apps

SECTORS OFOPPORTUNITY – FASHIONINDUSTRY:

TEXTILES GARMENTS

Local industry currently supplying with imported inputs.Textile imports have increased in the last 10 years, it isnecessary to supply the increasing demand of inputs bythe local production of garments.

Colombia as an export platform, the country counts with a strategic location, high industrial capacity and more than 16 free trade agreements.

Strategic alliances. There are qualified Colombiancompanies able to associate with foreign investors inorder to reach regional and international markets.

Some niche opportunities:

Industry with a diversified basket of products

This company has operated in Colombia for more than fifty yearsas a Coats chain in the city of Pereira, Risaralda.

SUCCESSSTORIES –FASHIONINDUSTRY:

Operates with the company Colombiana de Hilados, with a manufacturing plant in the Free Trade Zone of Rionegro, Antioquia. The plant has the capacity to produce carded open-end and combed ring-spun.

Polymer Group: It has a manufacturing plant in the Pacific Free Trade Zone in Cali, Valle del Cauca.

Acquired shareholding in the Colombian company Coltejer.

I T A L I A

U N I T E D K I N G D O M




Industry with a diversified basketof products

SECTORS OFOPPORTUNITY– TOURISMInfrastructure,real estateand retail

NATURE & ADVENTURE

WELLNESS

ENTERTAINMENT CITY HOTELS

Investment Opportunities in:

2013 2014 2015 2016 2017

3,74,2

4,4

5,1

Inbound tourists*2012 – 2015

(million of people)

*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 (InternationalCongress and Convention Association)

Luxury and wellness hotels can take advantage of theColombian biodiversity to offer high quality services.

Corporate Tax Exemption for hotels with more than 61% of their building by December 2017

VAT exemption for health tourism services

6,5


This American chain has 15 hotels in Colombia with more than 1,850 rooms

SUCCESSSTORIES TOURISM INFRASTRUCTURE,

Holiday Inn hotels opened in Bogota and Cartagena, totaling 331 rooms.

NH Hotels has 15 hotels in Colombia, with more than 1,600 rooms

This luxury chain has 2 hotels in Bogota with 126 rooms in the more exclusive locations in the city

C A N A D A

U N I T E D K I N G D O M



real estate and retail

E S P A I N

SECTORS OFOPPORTUNITY-SERVICES,CAPITAL FUNDS

REAL ESTATE HEALTH BANKING

TIC BIOTECHNOLOGY ENERGY

AGRIBUSINESS INFRASTRUCTURE

Colombia offers several benefitsto invest in capital funds.

Colombia was ranked fourth in Latin American andthe 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 niches with opportunity

Colombia, a sustainable destination

Source: MinTic and I

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.

Latin American fund that invested more than US $ 20 million for the development of three cancer treatment centers of the medical society Oncologists of the West, in the Coffee Cultural Landscape and Valle del Cauca.

Mainly infrastructure investments.In Colombia itsinvestments have been focused in companies such as Intertug and Ocensa

C A N A D AU N I T E D S T A T E S



SECTORS OFOPPORTUNITY-SERVICES,CAPITAL FUNDSColombia, aSustainabledestination

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