5 Reasons why to Invest in Colombia – Great investment opportunities

Colombia is an attractive choice for companies and investors looking to do business in Latin America. The country has gained a level of peace unheard of during the 50 years of armed conflict with the FARC which provides further stability to its already well-diversified economy. Some sectors profit especially from these favorable conditions and offer great opportunities for foreign investors:

The call center and business process outsourcing (BPO) industry leads the country’s service exports. In recent years, the contact center and BPO sector have grown 15% annually, generating $8.3bn in revenues by 2017 which represents 2.6% of GDP (double from 2005). Colombia’s geographic location (ET time zone), its young and dynamic workforce with a neutral accent, availability of bilingual talent, moderate wage level, advanced infrastructure, political and legal stability, and attractive tax benefits in its free trade zones make the country an ideal regional hub to attend calls from clients in North, Central and South America.

The Colombian software & IT sector is one of the largest four in the region together with Brazil, Mexico and Argentina. According to IDC, the industry has doubled its sales over the past 7 years and, in 2017, reached US$ 9.5bn with hardware making up 56.5% of sales, IT services 32.2% and software 11.4%. Strong internal demand is being generated especially by the manufacturing, public, financial and agricultural sectors. Additionally, an increasing number of foreign companies are choosing Colombia for the development of their software services (nearshore / offshore concepts). As companies in the BPO sector, software / IT companies are being attracted by the advanced infrastructure, a large pool of young talent, moderate salary levels and a quality of life in cities such as Medellin that helps attract talent from other countries as well.

The above-mentioned peace-agreement, signed in 2017, has made large parts of Colombia’s countryside accessible for investors looking to tap the country’s huge potential for large-scale agricultural projects. The country offers ideal conditions: intense solar irradiation, warm temperatures, excellent soil, abundant water sources, large unpopulated swaths of land etc. This is leading to the emergence of industrial-scale production of palm oil, cacao, precious woods, etc. Cattle farming (for meat & dairy production) and pig breeding also occupy an important role in Colombia’s agricultural sector, attracting investors from neighboring countries and further abroad.

Colombia is the world’s 3rd largest producer of coffee after Brazil and Vietnam, famous for the high quality of its hand-picked coffee beans. Production is expected to grow to 14.5 million 60kg bags in 2019, with 90% destined for export. Providers of services and technologies that help improve the productivity of this sector will find attractive opportunities in Colombia, as do investors interested in the production o

Before expanding your business to a new country, you should be aware of its unique local customs and culture. Colombia is no exception. It is a vast country with a lot of cultural diversity where the business etiquette varies as we travel from one part of the country to another. In most of the big cities of Colombia, business is done more formally than in smaller cities or in the coastal regions. However, as in most countries in Latin America, business success relies a lot on personal relationships that build trust and provide a certain compensation for a weak legal system. Using the support of a reliable local partner can help you save time, resources and ensure your compliance.
If you require more information on how to expand your business to Colombia, contact Daniel Breitenmoser at contact@ongresso.com.