Exporting to Colombia: challenges, opportunities and entry strategy

Website design By BotEap.comRight 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 great shipping advantage. It has also had sustained economic growth and moderate inflation that makes it a promising market to export to Colombia. There are also five different shopping centers in the country.

Website design By BotEap.comWith all these positive points, it stands as the most recent and emerging market that gives global companies a great opportunity to venture. Here, let’s discuss how to export to colombia – the challenges, opportunities and strategies:

Website design By BotEap.comChallenges:

Website design By BotEap.com• The existing governmental framework requires open tenders and public tenders. There could be a lack of transparency and fairness in tenders.

• 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 providing policies under certain conditions where insurance policies are not considered equivalent to bank guarantees.

Website design By BotEap.comOpportunities:

Website design By BotEap.comDespite all the challenges faced, Colombia offers global companies a wealth of opportunities. Let’s go through a few here:

Website design By BotEap.com• The planned infrastructure projects in Colombia will require most or all of the following services. Project financing, public works outsourcing, logistics, construction equipment for public roads and airports.

Website design By BotEap.comSome 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, security and defense items and services are also in high demand here.

Website design By BotEap.com• Airport services and upgrading of existing infrastructure are seen as a great opportunity for foreign investment here.

• The key sectors that have always attracted the attention of commerce 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, and more.

• Packaging equipment and medical equipment are also in high demand here.

Website design By BotEap.comEntry strategies:

Website design By BotEap.comBefore going into details on how to export to Colombia, it is equally important to analyze your market entry strategies. Here are some tips:

Website design By BotEap.com• An agent or representative or distributor in Colombia would be your best option. This requires a suitable contract to comply with the Colombian Commercial Code.

• It is essential to negotiate contacts with confidence and a professional relationship.

• You can offer excellent after-sales service 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 publicity could be a perfect way to get noticed.

• Lastly, it is very important to be able to communicate in Spanish.