Know and Get to Know the Overview about Foreign Direct Investment in Colombia
Colombia has a rich economy accounting for USD 300 billion and is ranked as the fourth largest economy of Latin America. Colombia has been an aged old safest investment option for coffee, oil and the tourism industry is also fast growing. New York Times have ranked Colombia as the second most attractive tourist spot across the globe. The foreign investment is increasing across the nation and the transformation that has occurred in recent years in Colombia is remarkable. The foreign direct investment in Colombia is increasing at a faster speed particularly in the areas of software development and agro-industrial sectors.
There is a huge increase in the number of incorporation of companies by the foreign investors and Colombia’s commercial jurisdiction is the main reason behind companies coming to this region.
Changes that came from FDI
Foreign Direct Investment had a huge impact on the workforce, domestic performance, development of economy and overall development of the Colombia.
The workforce of Colombia is educated and cheaper than the employees of North America. The economic growth of the country is contributed by the investment through industrial expertise, know-how of commercial activities. The growing foreign investment is thus enabling the workforce to become more specialized in their skills otherwise they will be left behind. Thus, the upcoming industries are willing to train the workforce to sharpen their skills and modernizing the potential of this region.
The boom in Colombia is because of the development in the e-commerce and agricultural technology. The growth of economy is developing all around Latin America and the opportunities for the commercial activities are remarkable.
Connectivity around Colombia
The economic growth of Colombia recently is due to the drastic improvement in the infrastructure of the communications and how Colombia has showed its efficiency in improving the speed of the internet thus digitalizing the economy. The Global System for Mobile Communication Association (GSMA) estimated a growth of 3.6% GDP in the year 2016, accounting for US$10.3 billion and they expect the telecommunication software industry to grow by US $13 billion by 2020 with a GDP growth of 4.2%.
GSMA has surveyed Colombia and it has concluded that 95% of the country’s population accesses 3G while the rural areas do not have regional averages. There is much scope for the telecom industry to grow in Colombia and the challenge here is that most of the residential areas are located at higher altitudes and thus there is a lack of resource for the development of telecommunications.
Where do establish business in Colombia?
There is a huge potential for the development of the business in various regions of Colombia which have been listed below:
This region is called the powerhouse of Colombia and contributes to 25% of the country’s GDP. The total population of this city is around 8 million.
This region is famous for its university and heritage culture. It has got the brightest talent of the entire country and establishing a business in Barranquilla is cost friendly alongside you can fun due to its rich culture.
Cali is very well connected to Pacific Ocean and thus it has port which is closely connected with Pacific and Buenaventura. Cali is famous for the production of goods and its location.
It has been voted as the most innovative city and is a hub for start-ups.
Colombia has a good networking structure along with attractive fair-trade agreement which gives it a potential market of USD 43 trillion. It is predicted that the economy of this country will keep growing in the finest way due to its excellent business opportunities, attractive location and rich culture.