After Brazil, Mexico and Argentina, Colombia is the fourth largest economy in Latin America. It is one of the only countries in South America with two coasts: the Pacific and the Caribbean. This provides global investors with a huge shipping advantage. It has also had sustained economic growth and moderate inflation, which makes it a promising market to export to Colombia. There are also five different malls in the country.

With all these positive points, it stands as the newest and emerging market that gives global companies a great opportunity to venture out. Here, let’s discuss how to export to colombia – the challenges, opportunities and strategies:

challenges:

• The existing government framework requires open bidding and public bidding. There could be a lack of transparency and fairness in the bidding.
• Second, only firms registered under Colombian law were authorized to provide legal services. International law firms had to form a joint venture with a local law firm.
• To bid on Colombian government contracts, commercial presence was a requirement.
• For international banking, there is a requirement to maintain a commercial presence in the country. Insurance companies have restrictions on the provision of policies under certain conditions where insurance policies are not considered equivalent to bank guarantees.

Opportunities:

Despite all the challenges it faces, Colombia offers global businesses with a plethora of opportunities. Let’s discuss some here:

• Infrastructure projects planned in Colombia will require most or all of the following services. Project financing, subcontracting of public works, logistics, construction of equipment for public roads and airports.

Some other areas of interest to international investors could be water treatment, water supply, electric power generation, oil and gas exploration, and pollution control equipment. Transportation equipment, defense and security items and services are also in high demand here.

• Airport services and the improvement of existing infrastructure are seen here as a great opportunity for foreign investment.
• The key sectors that have always attracted the attention of trade in Colombia are: oil and gas, petrochemicals, renewable energy, telecommunications and refineries.
• Other export opportunities include cotton, wheat, corn, soy products, auto parts, food and beverage processing, etc.
• Here too there is a high demand for packaging equipment and medical equipment.

Entry Strategies:

Before going into the details of how to export to Colombia, it is equally important to analyze your market entry strategies. Here are some tips:

• An agent, representative or distributor in Colombia would be your best option. This requires an adequate contract to comply with the Colombian Commercial Code.
• Essential to negotiate trusted contacts and a professional relationship.
• You can offer excellent after-sales services as a strategy.
• Affordable financing and competitive prices could be the key to your entry compared to others competing for the same.
• Attending trade shows and advertising could be a perfect way to get noticed.
• Finally, it is very essential to be able to communicate in Spanish.