Colombia: Latin America`s Hot Spot for Global Investment

Colombia: Latin America`s Hot Spot for Global Investment

June 8, 2015
Colombia: Latin America’s Hot Spot for Global Investment
Left: President Santos speaks at the opening of the new Daimler Mercedes-Benz
bus assembly plant in Colombia. Right: Mathias Held, President of Daimler
Colombia, Photo Credit: César Carrión In today’s global economy, companies from around the world are looking to diversify, expand and invest in
new, growing markets, and with strong sustained economic performance, Colombia has fast become an
investment darling in the region. Colombia’s significant economic growth in recent years across various
sectors of its economy has caused investors from around the globe to take notice.
On Tuesday, May 26, President Juan Manuel Santos celebrated the opening of a new Daimler MercedesBenz plant that will specialize in the assembly of buses in the Funza municipality of Cundinamarca. The
more than $5 million investment in the plant will generate more than 220 direct and indirect jobs. During
the opening event, President Santos delivered an address highlighting the importance of foreign
investment and soldified Colombia’s commitment to investors:
“First, it is a sign of confidence in Colombia that a company like Mercedes-Benz believes in our future and
acts on that confidence with specific investments.
“Secondly, because Daimler’s investment is creating jobs, decent jobs, skilled jobs that we want to
generate employment in this country.
“And thirdly, because every investor becomes a partner of the government and the Colombian people. And
we want to keep growing, to do well, because if investors do well, the country does well.”
The new plant is the second Daimler plant to open in Colombia in the past three years, and will have a
capacity of 4,000 units in its first phase.
A Look at Companies Investing in Colombia:
• Tenaris TuboCaribe, an Italian pipe products
manufacturer for the oil and gas industry,
invested $240 million to expand and
modernize their facility located in Cartagena,
Colombia.
•
Carl’s Jr., a U.S.-based premium buger
chain, opened its first restaurant in Bogotá,
Colombia in May.
•
Other major international brands are
choosing Colombia as a strategic location for
their international expansion, including
companies like GM, Unilever, Coca-Cola,
Femsa, CEMEX, Hilton, Starbucks, Marriott,
UPS, Delta Air Lines, Newell Rubbermaid Inc.,
and many more.
President Santos celebrates the Tenaris facility expansion and
highlights the company’s commitment to social responsibility.
Photo Credit: Juan David Tena
Just How Significant Is Foreign Direct Investment in Colombia? Here are the Facts.
In 2014, Colombia’s GDP reached $410 billion, and GDP per capita reached nearly $9,000, reflecting
an increase of more than 40 percent since 2010.
Additionally, since 2000, Colombia’s rate of investment as a percentage of GDP doubled, reaching
almost 30 percent in 2014. Between 2000 and 2014, foreign direct investment in the country
increased eightfold, reaching more than $16 billion last year.
•
On average, Colombia has received over $2.5 billion in foreign direct investment from the
United States in the three years since the U.S.-Colombia Free Trade Agreement (FTA) entered
into force (May 15, 2012) in sectors as varied as industry, services and hospitality, among others.
•
More than 50 private equity funds invested in Colombia between 2010 and 2015, worth $6 billion.
•
Several studies and reports, including the most recent World Economic Forum Global
Competitiveness Report, show Colombia as a country with one of the most dynamic economies
and most improved climate for investment.
•
The three leading rating agencies – Moody’s, Fitch and S&P – have granted Colombia
“Investment Grade” status because of the country’s ability to deal with internal and external
shocks, a long history of timely debt payments, increased macroeconomic policy credibility, and
diminishing security concerns
Foreign Direct Investment is a Two-Way Street
While investors from the United States and across the world continue to discover the reasons
to invest in Colombia, foreign direct investment by Colombian companies in the United States
is also growing:
•
Alpina Foods, the U.S. arm of Alpina, one of Colombia’s largest dairy products
companies, is producing a wide range of artisan dairy products including Greek yogurt,
granola yogurts and smoothies, from its manufacturing plant located in the Genesee
Valley in Batavia, N.Y.
•
Argos S.A, the U.S. subsidiary of Cementos Argos, has become the sixth largest
concrete producer in the United States.
Colombian companies like these have launched or expanded operations in the United States,
and provide a valuable contribution to state and local economic growth, and support jobs.
In C a se Y o u M issed It…
Colombia’s Montoya Takes First Place in Indy
500
On Sunday, May 24, Juan Pablo Montoya, a native of
Bogotá, Colombia, won his second Indianapolis 500-Mile
Race, defeating Will Power by less than a second.
Despite setbacks early on, including several caution flags
and one three-car crash, Montoya emerged unscathed
for a strong finish. Each year, crowds from across the
United States gather in Speedway, Indiana to watch the
Indy 500, a race widely recognized as one of the most
prestigious motorsport events in the world.
Photo Credit: Juan Pablo Montoya Website Montoya began racing at an early age, capturing four consecutive Colombian National Carting
Championships from 1981-1984. He spent several successful seasons racing in the Colombia Formula
Renault series before moving to compete at the Formula One level. In addition to his 2000 Indianapolis
500 win, he is the only driver to win a CART Series title and the 24 Hours of Daytona, all in his first
attempt.
Ambassador Villegas greets Nilko Andreas Guarin during
the concert at the Residence. The Ambassador’s guests enjoy the concert by Nilko
Andreas Guarin. Ambassador Hosts Classical Guitarist Nilko Andreas Guarin
On May 21, the Ambassador hosted a concert at the Residence featuring Colombian classical guitarist,
Nilko Andreas Guarin. Since his Carnegie Hall debut in 2009, Guarin has performed in three continents as
a soloist and chamber musician. He is the co-founder and the Artistic Director at AZLO productions and
the Latin-American Chamber Music Society of New York. During the concert, Guarin performed pieces by
a number famous Spanish and Latin American composers, including Colombia’s Gentil Montaña and
Adolfo Mejia.
Get to know Colombia.
Learn more at www.colombiaemb.org.