vRoyal Bank of Scotland recently reported that, “Colombia’s story is equally impressive but
perhaps understated, and we believe it will remain one of Latin America’s most attractive
investment opportunities over the next 5 years. We believe that in a new world of scarcer
capital and credit, Colombia stands relatively better positioned to be a winner among
Emerging Markets.”
vIntroduced in 2005, Colombia offers Legal Stability Contracts. These contracts offer
investors the opportunity to enter into a contract with the government guaranteeing that the
laws applicable to the investment at the time the investment is entered will remain in effect
for up to 20 yrs.
vPrudent economic policy, government investment in infrastructure, progress on
privatization, an attractive tax regime, liberalized capitol flow and investment rules have
resulted in an unprecedented investment in Colombia by foreign firms.
vColombia has become an FDI magnet, with annual FDI intake reaching +10.6bn in 2008
and averaging +5.6bn per year in the 2000’s. Much of this recent investment has been
generated by the mining and energy sectors.
Source: Central Bank (Banco de Republica), calculations: UPME
* Excluding the sale of Bavaria
Foreign Direct Investment
in Colombia by sector-
2005*
Transportation
Warehousing
& Communications
17.7%
Oil & Gas
21.8%
Other Sectors
7.7%
Mining & Quarrying 38.3% (includes
coal)
Manufacturing
14.5%
Agriculture, Hunting,
Fishing & Fish
Farming
0.1%
Colombia's emerging market report.
8