The last decade has seen Colombia improving extensively on its business environment. It now offers great opportunities in diverse sectors
When United Phosphorus (UPL), a major player in the agro-chemicals market, acquired a Colombian company Evofarms, last year, a marketing major in the same domain, it reflected UPL’s strategy to look at opportunities in the Latin American market.
Taking the Colombian route was not a coincidence, because the country has indeed worked extensively over the past decade to improve the business environment. IT major Tata Consultancy Services (TCS) began operations in Colombia in 2006 and now caters to the banking, telecom and transport sector as well as the government.
|- IT & BPO
The coming year could see some more Indian companies entering Colombia. Representatives of nine Indian companies from diverse sectors such as biofuels, IT, mining, and others visited Colombia in June last year to explore opportunities for investments.
The World Bank Doing Business Report has ranked Colombia as the best country to do business in Latin America. Over the last five years, its economy has grown by four percent per year. The government is making huge investments in infrastructure to make it world-class. Besides that, the young population now speaks both Spanish and English to cater to the needs of the multinational companies operating out of Colombia.
|Ease of….||2010 Rank||2009 Rank||Change in Rank||India|
|Starting a Business||74||82||8||169|
|Dealing in Construction Permits||32||47||15||175|
|Trading Across Borders||97||96||-1||94|
|Closing a Business||32||32||0||138|
|Source: World Bank Doing Business 2009 Report|
The country has a number of free-trade zones that make it lucrative to do business in Colombia. Its permanent free-trade zones offer tax rebates and other benefits. “Colombia is an open economy. It promotes free trade agreements (FTAs). It has FTAs with Canada, Chile, Andean countries, and Central American countries. An FTA with the US is being negotiated. We are waiting for Congress approval.” informs Alejandro Pelaez, First Secretary (Commercial) Embassy of Colombia.
Alejandro Pelaez, First Secretary (Commercial) Embassy of Colombia
What makes Colombia a hot destination for investors?
Do you see the possibility of Colombia becoming a hub to reach out to other destinations in the region?
What are those sectors where Indian businesses can invest in Colombia?
The government of Colombia has developed very attractive incentives for investment. One is the Single Enterprise Free Trade Zone.
Could you throw some light on Colombia’s journey in the last decade?
Is your country pitching itself as a major tourist destination in Latin America?
How easy is it to start a company in Colombia?
What opportunities exist for Indian importers and exporters?
In the next six months to one year, can we hear of some announcements of Indian companies investing into Colombia?
What are the language-related issues that the investors face?
written by Helder Ferreira, February 05, 2010
|< Prev||Next >|