Invest in Colombia: an export platform in the region
Latin America is a huge continent with more than 20 million km², composed of over 20 countries and a population exceeding 600 million people. This is a large market made up of strong and dynamic economies, which makes it very attractive for any investor.
However, many of the companies find it difficult to reach the entire Latin American territory from their own country, either because they are located on another continent or due to the logistical difficulties of transporting their goods across two dozen nations.
And it’s at this point that Colombia has become an opportunity for these businesses. Geographical conditions not only give the country an unparalleled beauty, thanks to being one of the most biodiverse places in the world, but its location on the map has also allowed it to consolidate within the region as an export platform.
What is an export platform?
If you are starting out in the international market, you will soon discover that there are certain geographical conditions that make the country of beauty an ideal export platform.
This means that you can base your operations in Colombia and then export your goods to other destinations in the region. But what is it that has allowed Colombia to position itself in this way among the other countries of the continent? You will find this and more in this article.
Colombia's geography
Located in the heart of the Americas, Colombia shares land borders with five neighboring nations: Brazil, Venezuela, Panama, Peru and Ecuador. Moreover, the distance to other countries in the region is not that long when compared to the distances products would have to travel from another continent or from a less central place.
For Colombia, its position on the map is an opportunity that you, as an investor, can take advantage of. From this, the country of beauty, you can more easily reach other countries in the region without having to worry about the long distances from other locations.
Colombia's commercial relations
In addition, Colombia has already developed a healthy and stable trade relationship with its neighbors. This is why some of them stand out as the country's main trading partners in terms of non-mining energy exports, both in the region and worldwide.
Among these, we can mention Ecuador. To this country, non-mining-energy exports reached USD 1700.5 million in 2023, which represented 8.5 % of all exports of this kind nationwide during that year, making it Colombia's top trading partner in the region and the second worldwide, only surpassed by the United States.
Mexico also stands out. To this country, non-mineral-energy exports reached USD 1185.1 million in 2023, with a share of 6.0 % of all this kind of exports from Colombia that year. This positions Mexico as Colombia's second largest trading partner in the region and the third largest worldwide.
This has also been achieved thanks to the trade agreements that Colombia maintains, not only in the region but throughout the world. With these agreements, products produced in the country have the potential to reach 1.5 billion consumers and position themselves with greater advantages in the international market.
Moreover, with countries like Mexico, Colombia maintains agreements such as the Pacific Alliance, or integrate organizations such as the Andean Community, as is the case of Ecuador. These two major regional integration initiatives are a sign of the healthy commercial relations that Colombia has built with other countries in the region.
Colombian infrastructure
Colombia has coasts on the Caribbean Sea and the Pacific Ocean, a feature that only this country has in South America. In addition, as mentioned earlier, it shares land borders with five countries and is geographically close to other destinations.
This has driven the country to develop a robust trade infrastructure, including ports on both coasts; land transportation with large tunnels and major highways like the Pan-American Highway, which connects the American continent from south to north; and airlines and international airports with ample capacity for trade.
This is why goods produced in Colombia can reach other countries by land, sea and air. Not to mention the country's connectivity to the digital universe, with more than ten submarine cables, enabling strong internet connections and the export of services offered by Colombian workers full of talent.
Companies that have already discovered these advantages
Several foreign companies in Colombia have recognized the country's potential as an export platform within the region. One of these is Hero Moto, which established a production plant in Colombia, the company's first plant outside India, with the intention of reaching other destinations in the region.
This has also been experienced by companies such as Nestlé. In our podcast Why Colombia, Felipe González, CEO of Nestlé Colombia, mentions that one of the great advantages of the country is its strategic geographical position, with ports on both the Pacific Ocean and the Caribbean Sea.
Do not miss the investment opportunities in Colombia as an export platform. Many international companies have already trusted the country of beauty and have made their businesses in Colombia profitable. Learn more about investing in Colombia here.
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