FDI in figures

Why you should choose to invest in Colombia

Strong points

1. Economic stability: The Colombian economy is one of the most stable in Latin America, which translates into sustained economic growth above the regional average, an increase of 6.8% in 2007. The macroeconomic indicators reflect the economic stability of the country, inflation has declined in recent years, being 4.5% in 2006. Foreign debt has declined by over 20% of GDP (from 51% of GDP in 2002 to 30.6% of GDP in 2006).

2. Political stability: Contrary to conventional wisdom, Colombia's democracy is the oldest and most stable on the South American continent.

3. Foreign investor confidence: Foreign investment has increased significantly and reached in 2006: US$6.295 million.
More than 700 multinational companies have investments in Colombia. The country offers investors a contract for legal stability, which guarantees the continuation of standards for a period ranging from 3 to 20 years.

4. Skilled human resources qualified and competitive.
Colombian workers are among the best qualified in Latin America, the country has a very good education (the literacy rate is 94.2%).
Wages in the services and handling sector are highly competitive with regards to those of other countries in the region.
 
5. Strategic Geographic Location: Located in the middle of the American continent, Colombia is a strategic point between the different markets of the region. The country has modern port facilities on both the Pacific and the Atlantic oceans, which considerably facilitates trade with European countries, the United States, or countries in Asia.
 
6. An export platform and access to global markets: Through various free trade agreements, Colombia has a  market reach extending to 1,200 million people.

7. Numerous poles of development: With 45,000,000 inhabitants, Colombia is the third most populous country in Latin America: The capital Bogota has more than 7 million inhabitants. The cities of Medellin, Cali and Barranquilla each have more than 2 million inhabitants.

8. Numerous modern infrastructures
6 Seaports on the Caribbean coast and 2 on the Pacific coast
- 5 International airports
- A road network under development
- Developed telecommunication networks

 

Weak points

Although a sharp increase was noted regarding security matters, violence remains the country's principle weak point.

Government measures to motivate or restrict FDI

The government reaps the fruits of its policy of securing democracy. The goal of this policy is to create the security conditions needed in order to continue the restoration of confidence in the economy. In turn, this economic confidence helps attract investment. In this context the government is trying to establish free trade agreements, notable with the European Union, through a trade agreement and a series of investment agreements.

Procedures relative to foreign investment

Freedom of establishment

Guarantee

 

Acquisition of holdings

Acquiring a majority interest in the shareholdings of a Colombian company is allowed, except for companies in the petroleum sector.

 

Obligation to declare

The agency for the promotion of foreign investment provides information about the authorizations required for setting-up a business.

 

Competent organization for the declaration

Ministry of Commerce

 

Requests for specific authorizations

The petroleum sector is controlled.

Finding assistance for further information

Investment aid agency

Agency for the promotion of investment in Colombia

Other useful resources

The Proexport website concentrates on investment in Colombia.