“A strong democracy where it is worth investing. The slow-down of the global commerce and the financial uncertainty following the UK ‘Brexit’, is prompting a wave of investment in Latin America coming from different countries around the world.
Colombia is the largest economy within the Andean region, with a national GDP of USD$378Bn (2013), and is the only country in South America with coastlines on both the Pacific Ocean and the Caribbean Sea. The country is an attractive market for establishing a legal entity, allowing 100% foreign ownership, limited capital controls, cheap operating costs and a relatively attractive company tax rate.
Colombia is considered as one of the rising stars of Latin America in terms of growth. Expected to grow its GDP by 2.7% in 2016, the country is consolidating its position as an obvious choice when looking for a friendly country in which to do business within the LATAM region. The United States with 32%, UK with 20%, Spain with 11% and Chile with 6%, represent nearly 70% of the current total foreign investment in Colombia.
Highly qualified workers and relatively low salaries compared to other Latin American countries, are other key advantages of investing in Colombia.
The Colombian Government is preparing to invest USD 12.2 Billion in the country’s infrastructure over the next 4 years. The main projects involve motorways, ports, airports and social housing. This will have a positive repercussion, both for the country’s competitiveness and the quality of life for its people.
A recent plebiscite in which Colombians rejected a draft peace agreement between the Colombian Government and the oldest armed group in the American Continent – FARC – will without doubt slow down the implementation of a final peace agreement. With this vote, the current Government will need to renegotiate some of the draft agreements in order to gain a wider buy in from voters and the main opposition party now has a seat at the table of negotiations. While this is likely to slow down a final peace accord, we judge it will lead to a better overall agreement.
Colombia has demonstrated that as a growing economy, it is willing to learn from the past and to receive the future with open arms, offering friendly and secure business conditions for foreigners willing to invest in the region.” – Fernando Merchán Ramos, CBS Country Manager & General Counsel.