Foreign direct investment: a goal of the Colombian economy
Colombia moves forward
According to the Chandler Good Government Index 2023 Report data, Colombia is positioning itself as a leading country in the region in terms of investment attraction. This is thanks to the fact that it “has shot up nine spots to rank 46 th in the Attractive Marketplace pillar and ranks third for Attracting Investments in the Latin America and Caribbean region.”
The report takes into account aspects such as leadership, the laws' development, the institutions' strength and how attractive each country's market is to trade with, among others. Aspects in which Colombia, according to the study's analysis, has improved.
A country that works to be better
Julio Puentes, vice president of ProColombia, has participated in this report with an article titled “Creating a Colombian Oasis for Investors in Latin America”, in which he talks about Colombia's progress and the country's efforts to become one of the most attractive destinations for foreign direct investment (FDI).
In addition, Puentes highlights the fact that the FDI “tipped the scales at USD 17 billion in 2022, the highest figure ever recorded in the history of the Central Bank of Colombia, and represented an 81.7 % increase compared to 2021”, and mentions that the country is the fourth largest economy in Latin America, registering a 7.5% growth in 2022, which is another indicator of Colombia's progress.
According to Puentes, this is happening thanks to a domestic market driven by the third largest population in the region, our trade agreements, “and our rich diversity in sectoral opportunities and access to numerous business centers”.
A sustainable and responsible market
Puentes also highlights that an important axis of the current Colombian economy is the country's commitment to energy transition, which makes it an attractive market for forward-thinking investors.
The country is committed to the United Nations Sustainable Development Goals incorporating. Despite being one of the least polluting countries in the world, it's striving to become carbon neutral in the coming years. This makes clean energy an economy's sector driven by the national government that will grow in the near future.
Moreover, the country is a signatory of the World Trade Organization (WTO) and has adhered to its principles, thus committing itself to take care of the investors' interests in a responsible way and to develop laws to make it easier to trade in the country.
It's partly for this reason that, according to Puentes, the national government has set itself the task of “formulate a Reindustrialization Policy- a national blueprint that will develop the key pillars for the further transformation of the Colombian economy in areas such as finance, technology, education, technology and infrastructural connectivity”.
ProColombia's role in Colombia's progress
Another important aspect pointed out by Puentes is the role of ProColombia in attracting foreign direct investment in the country. According to the Vice President, ProColombia's role has been very important in supporting national companies to start exporting their goods and providing all the necessary information to investors to come to Colombia.
ProColombia, in coordination with the national government, has strengthened the country's brand thanks to its presence in several countries around the world and has promoted investments “to locations beyond our capital Bogota and the main cities”.
According to Puentes, “These have led to 108 new investments springing up in 36 municipalitites at the last count. ProColombia is currently also exploring investment opportunities with 350 new companies with sustainable businesses and operations for 60 new projects.”
An attractive market
Puentes's article closes by saying which are the most important aspects for a market to be attractive to an investor. Among these, he mentions: “the ability to design and manage complex contracts; attract and retain private sector partners; ensure transparency and accountability; manage risk effectively, and have a clear understanding of the value proposition for both public and private partners”.
These are all aspects in which Colombia has worked to improve, which will made the country a better destination for foreign investments or, as Puentes says, an oasis in Latin America for investors. Learn more about this Report here and learn more about investments in Colombia here.