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Bridging this north-western region of Colombia to the rest of the world, while also connecting different parts of the region to each other, is a tall order.
Aside from development of better roads through mountains and between strategic destinations, for example, between capital city Medellin and Uraba Port on the Caribbean Sea, modernisation of regional airports and rail systems are on the itinerary. Another major project would extend the regional public channel’s broadcast network by 20%.
If these ambitions seem like too much for one region, consider this: Medellin, with a population of 2.2 million, is known as the entrepreneurial centre of Antioquia, while the region is Colombia’s top banana and coffee exporter and second for corn and rice. Exports to the UK, largely agricultural, agro-industrial products and flowers and live plants, account for 2% of its export market, totalling £57.5m in 2010.
The business community likes to think of this as a growth opportunity, but some government officials acknowledge that established companies need a push to expand further abroad and are optimistic about upcoming free trade agreements with the EU.
And just as Antioquian businesses are broadening their horizons, so too are overseas investors thinking about the region as an opportunity for expansion.
That is in no small way due to the fact that investors’ perceptions of security risks are falling, says Juan Guillermo Pérez, director of Proexport Colombia UK. The country ranked 6th of 183 countries in terms of protection of investors, beating the US and UK in the World Bank’s 2011 Doing Business report, and 39th overall of 183 countries for ease of doing business.
“For companies interested in investing in Colombia, the news is very good in terms of political stability,” Pérez says. Although it has the whole range of industry and manufacturing sectors, Antioquia is keen to attract foreign investment to business processing operations and outsourcing as well as software and graphic design services, says Pérez.
But infrastructure megaprojects in energy, technology and transport are sure to remain in the spotlight for some years to come.
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A diplomat’s view
A proposed free trade agreement with the EU, says Mauricio Rodríguez, Colombia’s ambassador to the UK, will link British entrepreneurs to an attractive Colombian market.
Colombia is set to invest £25.2 billion into infrastructure development in the next five years and, while trade with the UK is still quite low, the potential for growth is enormous, says Rodríguez.
In the financial sector, the Colombian middle class is growing and with it the demand for banking and insurance services.
In rural areas, agribusiness is flourishing. Still, the UKTI does warn against less populated areas. In its assessment of overseas business risk, it states that, while the conflict is still a fact, it is no longer a significant issue for businesses operating in Colombian cities. In general, the more remote the area, the greater the potential threat to safety and the Foreign & Commonwealth Office (FCO) continues to recommend against travelling to certain rural parts of the country.
Candidly, Rodríguez says: “I don’t want to exaggerate and say Colombia is paradise and is perfect. We still have problems, but they are the normal problems of a developing country.
“The priority now is to concentrate on taking advantage of the opportunities, it is no longer an unbearable risk…it is now a place you want to visit, to invest in, to trade with,” he adds.
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