CONTENTS COLOMBIA 2013:

10 16 18 19 21 22 23 28 37 40 41 43 44 46 Snapshot: Colombia in figures COUNTRY PROFILE On the rise: Major strides in economic and political progress as security improves Interview: President Juan Manuel Santos Interview: María Ángela Holguín Cuéllar, Minister of Foreign Affairs Playing it safe: Battling insurgency and crime Interview: Juan Carlos Pinzón Bueno, Minister of Defence Viewpoint: José Manuel García-Margallo, Spanish Minister of Foreign Affairs and Cooperation Variety of influences: The country is rich not only in natural resources, but also in culture ECONOMY Steady as she goes: Growth and greater stability point to a prosperous future Enduring appeal: A flexible framework for free trade zones has paid dividends Interview: Juan Pablo Rivera, President, Bogotá Free Trade Zone The fight for second chair: A glance at economic development in urban centres Interview: Sergio Díaz-Granados Guida, Minister of Commerce, Industry and Tourism Interview: Karel de Gucht, EU Trade Commissioner Interview: Gerardo Hernández Correa, Superintendent, Financial Superintendence of Colombia 47 49 50 51 55 56 58 65 67 70 71 73 74 75 80 87 88 89 91 Opening up: Free trade agreements steer the country toward a globalised economy Interview: Rubens V. Amaral Jr, CEO, Banco Latinoamericano de Comercio Exterior Interview: Jim O’Neill, Chairman, Goldman Sachs Asset Management A streamlined levy: Progressive fiscal reform passed in late 2012 restructured the tax code Paradise offshore: Growing BPO sector is becoming an integral part of the IT market Viewpoint: Douglas L Peterson, President, Standard & Poor’s Rating Services BANKING Resilient market: A strong regulatory environment has helped the sector’s maturity Solidifying regulations: Recent laws put the sector on track to meet international standards Taking the lead: Banks to expand regionally Interview: José Darío Uribe, Governor, Central Bank of Colombia Opening channels for access: Mobile banking and electronic accounts are set to boost a relatively low rate of penetration Interview: Luis Carlos Sarmiento, President, Grupo Aval Interview: Carlos Raúl Yepes Jiménez, President, Bancolombia Moving into new markets: An open legal environment and strong currency allow domestic banks to blossom CAPITAL MARKETS Solid ground: Pursuing regional integration and boosting equity are key focuses Interview: Juan Pablo Córdoba Garcés, President, Bolsa de Valores de Colombia Interview: Alejandro Santo Domingo, Board Member, Valorem Integrated solutions: The marriage of three markets offers new opportunities for the region Liquid dreams: Prudent macroeconomic policy set to improve access to financial tools 100 106 107 109 110 115 123 124 125 128 130 131 133 135 140 147 148 149 151 153 157 Stocks & bonds: Share analysis & data provided by Bancolombia Grupo Éxito: Retail Grupo Nutresa: Consumer goods Pacific Rubiales Energy Corp.: Oil & gas Ecopetrol: Oil & gas Cementos Argos: Cement Grupo SURA: Diversified INSURANCE Future opportunities: New policy changes promise to help sustain sector growth Interview: David Bojanini, President, Grupo SURA Expanding offerings: Microinsurance is providing new opportunities for growth Interview: Raúl Fernández Maseda, President, Mapfre Colombia A changing landscape: New reforms are expected to strengthen the sector ENERGY & UTILITIES In the black: Despite limited reserves, production of oil and gas has soared Interview: Federico Renjifo Vélez, Minister of Mines and Energy Interview: Juan Esteban Calle, General Manager, Empresas Públicas de Medellín A river runs through it: Hydroelectric resources provide a vast supply of clean energy Spreading the wealth: Reform reallocating royalty revenues from the mining and energy sectors enters into force Interview: Germán Arce Zapata, President, National Hydrocarbons Agency The unconventional: Development of previously inaccessible reserves could play a vital role in the long term A growing fuel source: The cultivation of palm oil and sugar cane drives the development of a nascent biofuels industry Up for shale: The unconventional gas market has introduced new supplies and challenges to the hydrocarbons industry MINING Digging in: A more stable environment and political support provide strong foundations Interview: Beatriz Uribe, President, Mineros Interview: Maria Constanza García, President, National Mining Agency Flowing free: Growing investor confidence has attracted significant funds New frontiers: As geological knowledge expands, so too could mineral reserves A formal dance: Efforts to crack down on informal operations are continuing INFRASTRUCTURE A new era: Connecting the country is a key priority for the current government 163 165 168 171 175 178 181 183 185 186 188 195 197 199 205 206 208 213 214 216 217 221 226 228 234 235 237 241 Interview: Luis Hernando Andrade Moreno, President, National Infrastructure Agency Renewed partnership: Private sector involvement is critical for many projects Central management: A new agency is guiding progress in the sector TRANSPORT & LOGISTICS The road ahead: Improved connections needed to capitalise on industrial growth A renewed gateway to the Atlantic: Works under way to open up Barranquilla Across the sea: Port activity gets a boost from regional development A window to the world: Customs reform to streamline shipping processes Jetstream dream: Rising incomes and geography favour air transport growth Interview: Fabio Villegas, CEO, Avianca Riding high: New mass transit systems planned CONSTRUCTION & REAL ESTATE Buoyant buildings: Major housing and infrastructure projects drive development Room for improvement: Cement industry displays potential Building a roof for all: Demand drives construction of massive social housing projects Pushing property development: Healthy macro indicators and credit system propel the market Properties on port: Barranquilla is growing Resilient rentals: Leasing introduces dynamic conditions to the residential market INDUSTRY Getting back on track: Aggressive government programmes stimulate activity From the farm to the table: More acreage and free trade agreements to boost cocoa industry Articulating approaches: Public-private entity enhances industrial output Interview: María Claudia Lacouture, President, Proexport Flexible and resistant: Petrochemicals show much potential with a growing plastics industry RETAIL Spending more freely: A young population is ready to consume Floor space: Efforts to boost gross leasable area drive development AGRICULTURE Realising its potential: Ironing out problems Interview: Juan Camilo Restrepo, Former Minister of Agriculture and Rural Development Peace in the countryside: Tracking armed conflict and the steps to accelerate land reform More diverse offerings: Multi-purpose usage adds to growth potential in palm oil cultivation Global stalwart: Branding high-quality coffee 245 249 250 254 256 261 263 266 272 273 276 280 282 288 291 296 299 302 305 310 312 314 319 320 ICT Staying connected: Mobile users continue to grow as the government carries out 4G auction A stronger market: Recent 4G spectrum tender is changing the mobile internet landscape The multiplier effect: Government support for infrastructure development and IT services Interview: Diego Molano Vega, Minister of Information and Communications Technology RESEARCH & INNOVATION Feeding an entrepreneurial appetite: Focus on small enterprises and education Creating a strong base: Medellín has a plan to boost science and technology Park life: Potential new development platforms TOURISM On the verge of change: Strong promotion and attractive policies increase sector potential Broad expansion: Convention centres in regional cities on the rise A natural market: Rich biodiversity and government incentives boost ecotourism SPORT Investment speeds up: Government’s commitment to sports opens up opportunities Sponsorship up: Large and growing sports teams are used as promotional platforms HEALTH From coverage to quality: Seeking transparent and efficient management of health resources A cure beyond borders: Looking to consolidate offerings in medical tourism EDUCATION Learning the ropes: Policies aim to enhance knowledge and produce trained professionals Pushing for even higher education: Opportunities for graduate studies TAX & ACCOUNTANCY PwC Accelerating reform: Targeting transparency Viewpoint: Eduardo Calero, Partner, PwC LEGAL FRAMEWORK prietocarrizosa Better mandate for growth: A commitment to foreign investment through legal upgrades Viewpoint: Martín Carrizosa, Partner, prietocarrizosa THE GUIDE Music for all: Traditional music and dance reflect the country’s cultural mix Hotel listings: Accommodation in major cities Listings: Numbers for embassies and agencies Facts for visitors: Useful tips for travellers