Sustainable Investments in Colombia: Energy Transition, Food Security, and Social Development Drive High Returns
Colombia invites foreign investment, emphasizing sustainability, democracy, strategic location, and a thriving economy. Fertile lands, renewable energy focus, and skilled labor make Colombia an ideal destination for innovation and growth. (Photo: Business Wire)
BOGOTÁ, COLOMBIA--(Business Wire / Korea Newswire) July 25, 2023 -- Colombia consolidates its strategy of non-extractive foreign direct investment to convince the world that investing in this country always means more. As one of the most committed countries to achieving the United Nations Sustainable Development Goals, the Government, led by President Gustavo Petro, invites investors to place their trust and capital in the nation with the most robust democracy in Latin America.
According to Germán Umaña, Minister of Commerce, Industry, and Tourism, the country positions itself as a territory with a strong and flourishing economy, offering an ideal and unique environment for business opportunities. “Colombia seeks investments that contribute to economic growth, reducing inequality, promoting gender equity, and ultimately, building comprehensive peace, as well as positioning Colombia as a global power of life.”
One of the pillars supporting the notion that Colombia is a unique investment destination is its geostrategic location, which makes it an excellent export platform. Excellent air and maritime connections provide competitive delivery times, with access to the United States in just 5 days and access to the Netherlands and other European ports in 12 days. Additionally, Colombia has a network of 17 trade agreements that provide preferential access to 97% of the markets in the region, making it an ideal destination for reaching third markets.
Thanks to its location in the equatorial zone and diverse climatic conditions, the Colombian agricultural frontier possesses a significant percentage of highly fertile soils, along with abundant and high-quality water resources. Noteworthy are the presence of volcanic soils, andisols, and molisols, ideal for agriculture, with over 9 million hectares of available land in the country. These favorable conditions make Colombia an attractive option for agro-industrial investment.
Furthermore, Colombia enjoys year-round sunlight, two oceans, and strong winds in deserts and high peaks. Consequently, the country has implemented a modern regulatory, institutional, and market framework to diversify its energy matrix. This aims to reduce dependence on water sources for energy generation and aligns with its commitment to become a global sustainability powerhouse. According to the 2050 Energy Plan published by UPME, it is expected that 25% of the energy matrix will come from non-conventional renewable energy sources to meet climate goals and achieve carbon neutrality by 2050.
The energy transition is a priority for the Government. Carmen Caballero, President of ProColombia, has stated, “We want to promote international projects that contribute to offsetting emissions and foster investment opportunities in energy transition, circular economy, sustainable tourism, and bioeconomy.” To this end, comprehensive and robust new legislation is being developed, currently undergoing the legislative process in Congress, which will establish Colombia as one of the most important champions of the bioeconomy.
Colombia also stands out as a significant business center in the region due to its diversified and consistently growing economy, with key sectors such as technology and financial services. This is just a glimpse of what the South American nation offers foreign investors to protect and enhance their investments.
In 2023, 310,000 companies were created in Colombia, supported by the Ministry of Commerce, Industry, and Tourism's intention to facilitate foreign investment that promotes innovation and technology transfer, generates value-added exports, fosters human capacity development, creates quality jobs, and contributes to integrating micro, small, and medium-sized business in the country into global value chains.
Experience has already been gained in developing specialized IT solutions in verticals such as fintech, healthcare, agribusiness, oil and gas, energy and telecommunications, logistics, government, digital marketing, virtual and augmented reality, business, and big data. Over 20 data processing centers have also been established, including companies like IBM. Additionally, it has a competitive Shared Services Center industry with expertise in human resources, finance, procurement, logistics, technology, general and administrative services, and digital transformation, ensuring high levels of efficiency and strategic support.
Colombia also stands out as an exporter of high-quality audiovisual content, including series, novels, reality shows, documentaries, and cultural programs. The film industry has received recognition at prestigious international events such as the Oscars, Golden Globes, and Cannes Film Festival. Moreover, the country offers high-quality production services with state-of-the-art equipment and demanding standards. Combined with significant incentives for production companies choosing Colombia and its diverse geography as a location.
The country relies on its workforce as its most valuable resource. Colombia ranks third in the region in terms of the availability of skilled labor and has three universities in the top 500 worldwide and 13 in the top 100 in Latin America.
In Colombia, investors can find an ideal business environment, favorable government policies, strategic location, and consistent economic growth in the country. According to the World Bank, this year's projected growth is 5.4%, while the IMF estimates a growth rate of 6.3%, and the ODCE calculates a growth rate of 6.1%.
The President of ProColombia expressed, “We are more than ready to be the extended arm of entrepreneurs and their companies. We know that together we can achieve great things, and we have much more to offer.”
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