Colombia: Investing

FDI in Figures

The improvement of  the security conditions during these recent years has contributed to re-establish investor's confidence.  FDI inflows have attained a record level in 2008.  Despite a slowdown of FDI flows in 2009 due to the global economic crisis, foreign investors remain present in Colombia.  The two main destinations of FDI are the hydrocarbon and mining sectors, but a diversification of FDI has been observed in the last recent years. 
The negotiations that Colombia has done by signing free-trade agreements and the establishment of special regulations in the free zones have contributed to improve the country's appeal.  Moreover, the richness of its natural resources, a significant domestic market, an open and stable legal frame and its reputation as an exemplary debtor are some of Colombia's major assets.

Why You Should Choose to Invest in Colombia

Strong Points

The country's main strong points are:
- Its economic stability: Despite the crisis, the government was able to maintain its growth at 2.5%;
- Its political stability: Contrary to what is believed, Colombia's democracy is the oldest and most stable on the South American continent;
- Recovered foreign investor confidence: Foreign investment increased significantly and reaches USD 6,295 million. More than 700 multinational companies launched investment programs in Colombia;
- Qualified and competitive human resources: Colombian workers are amongst the best qualified in Latin America. In effect, the country has a very good education system and the literacy rate is around 95%;
- A Strategic Geographic Location: 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 facilitates trade with European countries, the United States, or Asian countries;
- Its status as an export platform: Through various free trade agreements it has made, Colombia has access to a market of almost 1,200 billion people;
- Numerous development centers;
- Infrastructures which are both numerous and modern.

Weak Points

Although a sharp improvement was noted regarding security matters, violence remains the country's principle weak point. Colombia is also the primary producer of coca in the world. According to the Ducroire company, commercial risk is ranked at C, which is a very high level.

Government Measures to Motivate or Restrict FDI

Today the Colombian government is reaping the fruits of the policy it implemented to secure democracy, whose objective is to create favourable economic conditions in order to once again, give investors confidence, especially foreign investors. The government has put efforts into concluding free trade agreements, namely through an association agreement as well as a series of agreements in the area of investments in the European Union, aimed at developping a stable and transparent economic environment in which contributions in capital can prosper.

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.

Investment Opportunities

Investment Aid Agency

Invest in Colombia

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Colombia
Inter-American Development Bank, Tenders in South America
Globaltenders, Tenders & Projects from Colombia
DgMarket, Tenders Worldwide

Other Useful Resources

The Proexport website concentrates on investment in Colombia.
Colombia Commercial Guide - Buy USA

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