Colombia continues to make progress

The most important foreign investment summit in the country for economic reactivation and sustainability begins.

• In its seventh version, the Colombia Investment Summit will present the institutional offer of support for foreign direct investment, as well as business bets on bioeconomy and biodiversity. From October 20 to 26, 2021, a new version of the summit will be held, considered the most important (hybrid) meeting of foreign investors in the country with more than 1,000 attendees and more than 300 companies from Europe, Asia, Latin America and North America.

• In this edition of the event, we want to convey to investors around the world a message of optimism and long-term confidence, as well as reaffirm that in our territory they have a strategic partner to establish and expand their operations in the region. During the summit there will be an academic agenda headed by President Iván Duque, international personalities and senior executives interested in establishing business in Colombia.

• Investor confidence. During the three years of President Iván Duque’s government, ProColombia has supported the arrival of 598 investment projects for US$25.4 billion, a figure that represents an increase of 196% compared to what was registered during the previous 3 years, and in which according to investors it is estimated the creation of more than 265,000 new jobs.

• ProColombia had projected the attraction of 4 investor anchors per year, in 2021 the goal was adjusted to 20 in the year and to date 55 have arrived, increasing the initial estimate. There are also fruits from the ally shoring strategy to take advantage of the reorganization needs of the supply chains of multinationals and the proximity to their consumption centres.

• These results show the confidence that Colombia generates in international markets and the success of the creation of facilitation tools for the establishment and expansion of investments, in addition to the adoption of strategic sectoral and regional policies to offer a consolidated package and ensure the arrival and choice of investors in Colombia.

• Similarly, on October 9, President Iván Duque during an event in the Coffee Axis, said that, thanks to the policies implemented by his government, foreign investment has almost doubled in the little more than 3 years of his administration, leading investors to decide to bring their resources to the country. “Colombia is going to achieve the highest economic growth so far this year. We will all work so that the economy grows above 7% in 2021 and is the force of the reactivation of employment,” he said.

Consumer confidence reaches highest level since January 2020 

• The highest level since January 2020 was reached by the Consumer Confidence Index (ICC) last September, showing that the recovery of the economy is in an accelerated phase in the second half of 2021, the economic studies centre Fedesarrollo said on October 7.

• Consumer confidence increased across all socioeconomic levels, as well as in four of the five cities analysed versus August 2021. In turn, the willingness to buy housing and movable property and appliances increased compared to the previous month. 

Moody’s maintains Colombia’s investment grade rating and improves outlook 

• Moody’s Investors Service maintained the rating of Colombia’s long-term foreign currency debt at Baa2 (equivalent to BBB on other international scales), one notch above investment grade. Likewise, the outlook of this credit rating improved from negative to stable.

• The investment grade rating is supported by the ability of institutions to build consensus, the prudent management of the economy in the face of the challenges of the pandemic, the commitment of the authorities to the stabilization of public debt and the favourable effects of the economic reactivation on public finances. The Baa2 rating with a stable outlook places Colombia at the same level as countries such as the Philippines, Hungary, Indonesia, Panama, Portugal and Uruguay. 

INTERNATIONAL RELATIONS 

Colombia strengthens its international strategic ties.  

The Vice-President and Chancellor calls on the OECD for a robust multilateral agenda to address global challenges.

• A vehement call was made by the Vice President and Foreign Minister, Marta Lucía Ramírez, to the OECD countries to consolidate a robust multilateral agenda, which allows protecting democracy, and advancing equity and sustainable development. This was expressed on October 5 at the Ministerial Council of the Organization for Economic Cooperation and Development (OECD) 2021: “Shared values: Building a green and inclusive future”, in Paris, France.

• “More than ever, governments need effective tools and solutions to address common challenges and improve the quality of life for citizens around the world. We need to act quickly and decisively on economic, social and environmental policies! Build a more ambitious and solid multilateral agenda, with concrete goals and results, on issues such as climate change, biodiversity, COVID, equality, and find global solutions,” he said.

• At the meeting, chaired by the U.S., under the vice presidency of Korea and Luxembourg, he stressed the need to intensify efforts to protect institutions. “Democracy is at risk and the only way to meet this challenge is to work together, as the team player the OECD has proven to be since 1961. We need a transatlantic debate that brings together all countries that share values: democracy, the rule of law, human rights, integrity and the right business climate.”

• Likewise, she raised her voice for a global commitment to gender equity, an issue that Colombia has led before various international instances and scenarios. “Women are key players in rebuilding the economy, and ambitious funding will be needed to empower them, within the framework of the Sustainable Development Goals Agenda. In our country, Colombia, we have consolidated a state policy that promotes the empowerment and economic autonomy of women, willing to achieve at least one million Colombian entrepreneurs.”

• He also alluded to the need to act on climate change and highlighted the role of the OECD in achieving results. “There are many environmental challenges and the urgent need to take collective action, to build a greener and more inclusive future. OECD member countries are central to the implementation of the Paris Agreement agenda,” he said.

• In this sense, he referred to the blue economy as a front-page issue, framed in sustainability. “The ocean economy is a key driver of this change, because its resources are increasingly seen as indispensable to addressing the challenges the planet will face,” he explained. Finally, he underlined the importance of fully recovering world trade, after the harsh effects of the pandemic: “the commitment to globalization and the construction of a stronger multilateral trading system remains one of our fundamental tasks.” 

 Colombia strengthens its international strategic ties. 

 U.S. Secretary of State to Visit Colombia

• Secretary Blinken accepted the invitation of the Vice President and Foreign Minister, Marta Lucía Ramírez, to visit our country. The confirmation of the visit comes after the meeting that senior officials held in Paris days ago, within the framework of the OECD ministerial meeting.

• In a meeting with the U.S. Ambassador to Colombia, Philip S. Goldberg, the Vice President and Foreign Minister, Marta Lucía Ramírez, began the coordination of the agenda that secretary of state Anthony Blinken will hold in Bogotá, where he will arrive at the end of October to participate in the High-Level Dialogue between Colombia and the United States.

• During the meeting, the Foreign Ministers will have the opportunity to strengthen cooperation between the two countries and address various issues on the bilateral agenda.
• MIGRATION POLICY 

 Colombia continues to move forward.

The reopening of the border crossing with Venezuela is a triumph of all citizens, it is not the triumph of any government or dictator. 

• The reopening of the border between Colombia and Venezuela is a triumph for citizens, President Iván Duque stressed on October 5 in Norte de Santander. “This triumph is not a triumph of any dictator, it is not the triumph of any government; it is the triumph of a people who cry out to have that living border open for the well-being of the people,” said the President at the Summit of Governors ‘Bicentennial of the Constitution’.

• He also assured that the Government has supported the dialogues of authorities of Norte de Santander with those of neighbouring Venezuelan states, since it recognizes the needs of the inhabitants. However, he indicated that these gestures “have a political intention.” “I want to make it clear that Colombians are not going to lend ourselves to being useful idiots of the electoral pretensions that the dictatorship may have in the face of local elections in Venezuela,” he warned.

• He also said that the reopening will be done gradually and with security regulations, adding that the structure of the border bridges will be reviewed, since they had been blocked with metal containers for more than two years. In the same way, he recalled on October 7 that it was the Venezuelan regime that abruptly closed it several years ago.

• “Let the dictator not intend to erase history, because in 2015 he expelled Colombians marking their homes, in the most vivid expression of what were the tragedies of fascism in Europe. That it was the dictator who expelled the consular service and who made the decision to abruptly close a border,” he added.

• Likewise, the president declared that Colombia is willing to reopen consular services in Venezuela if there are the necessary security conditions to guarantee the activity. “We are open to the fact that if there are the conditions and if there are the guarantees, that consular service can be restored, but on the premise that there are all the guarantees in terms of security.”

• He explained that, in the last two years, Colombia kept the services open “in light of the Vienna Convention because that is a service especially for the citizen who is in another country.” “We never shut down consular services. The consular services were closed because the consuls of Colombia in Venezuelan territory were expelled,” said the President.

• Identity cards for migrants. President Iván Duque showed the identity card that Venezuelan citizens who took advantage of the Temporary Protection Statute established by Colombia to regularize 1.8 million migrants who were forced to leave their country due to the situation will receive. The president explained that it is a smart card with five security seals. “This is one of the most novel elements of migration policy in the world.”

ENVIRONMENT AND SUSTAINABLE DEVELOPMENT 

 Climate change is a priority for the Government of Colombia. 

The BioEconomics Fund for the Amazon of the Green Climate Fund (GCF), key to the protection of the environment.

• President Iván Duque highlighted on October 8 the creation of the BioEconomics Fund for the Amazon of the Green Climate Fund (GCF), which has resources of USD 645 million, which will be invested in the seven countries that make up the Amazon biome.

• The recognition of this achievement was revealed at the closing of the Third Summit of the Leticia Pact, which was held in the Flor de Loto nature reserve of the capital of the Amazon. The President was accompanied by the Minister of State for the Pacific and Environment of the United Kingdom, Lord Zac Goldsmith, and virtually, the presidents of Ecuador, Guillermo Lasso; Guyana, Mohammed Irfaan Ali, and Suriname, Chan Santokhi, and the Vice President of Brazil, Hamilton Mourao, among others.

• In his speech, the Head of State said that with the resources of the Fund what “we are looking for is biobusinesses for low-carbon development, access to capital for projects, mitigation and adaptation,” in addition to “working hand in hand with indigenous communities and women entrepreneurs.”

• At the Leticia meeting, reference was made to the need to adopt measures to improve the security of the Amazon and the joint work of nations to face threats. “Very important is the protection of the Amazon and sharing information. Also, it has to be so that we strengthen the legislative measures that allow sanctioning environmental crimes,” said President Duque, emphasizing that there must be tools “to combat those criminal practices that are ecocidal.” 

EQUITY FOR WOMEN 

 Colombia makes visible to the world the importance of equity for women. We must harness technology and digitalization to close the gender gap. 

• An invitation to take advantage of technology and digitalization to close the gender gap was made by the Vice President and Foreign Minister, Marta Lucía Ramírez, at the meeting ‘Opportunities and challenges of digital transformation for women and girls’, which was held on October 5 within the framework of the Ministerial Meeting of the Organization for Economic Cooperation and Development (OECD), in Paris, France.

• It is essential that women are trained in new skills that allow them to adapt to the productive needs of today, and thus overcome the barriers of access. In addition, we must take advantage of the digital transformation to promote inclusion and access to opportunities, said the senior official.

• It is necessary to address the issue of digital appropriation, with a gender and an intersectional perspective that includes the relevance of programs focused on women, especially low-income rural women, but to achieve this we must work on two fronts: in the policies of access to new information technologies and policies for their correct use and appropriation. And in this sense, Colombia is working.

• Finally, she insisted that in order to move towards public policies aimed at closing the digital gender divide, it is necessary to have a good diagnosis of the particular situation of each country. “That is why we recently proposed to UN Women a measure of women’s economic freedom, within which the digital divide will be a fundamental reference as one of the elements to close the economic gap between men and women.”

PEACE WITH LEGALITY

With facts, the Government of Colombia complies with the policy of Peace with Legality. The Decree regulating peace seats for victims is signed.

• President Iván Duque announced on October 6 in Norte de Santander, during the commemoration of the Bicentennial of the Constitution of 1821, the signing of the decree through which the seats for the victims are regulated, with all the safeguards, with all the protections, so that they can have their presence in the Congress of Colombia and assert their rights.

• The issuance of Decree 1207, of October 5, 2021, which regulates the election of representatives to the Chamber by the 16 Special Transitional Constituencies of Peace for the periods 2022-2026 and 2026-2030.

• “The victims who have been lacerated and scourged by violence deserve to have a say in the deliberations of the Colombian Congress,” the president said. In addition, he added that “we must guarantee, among all, that enabling the seats to them is so that they are genuinely for the victims and not have a single crack through which the perpetrators intend to co-opt them.”
• The provisions contained in Decree 1207 are established in accordance with Legislative Act 02 of August 25, 2021, and seeking that these seats be effectively occupied by those who were victims of violence and not by the perpetrators. These elections of the representatives who will occupy the 16 peace seats will be held on March 13, 2022. According to the rule, the respective seat will be assigned to the candidate on the list with the highest number of votes. Lists should be drawn up taking into account the principle of gender equity and equality.

HIGHLIGHTS – ECONOMIC NEWS

• The policy of the coffee sector until 2030 was approved with the National Council for Social and Economic Policies (CONPES) document. The action plan has four strategic axes that will be developed in nine years with a minimum investment of $34,531 million.
• Moody’s maintained Colombia’s investment grade and raised the outlook to stable. Among the reasons for affirming the note is the Government’s track record on prudent macroeconomic management.
• Consumer confidence rose 5.2 points to -3% in September. Confidence rose in four of the five capitals surveyed compared to August. Medellín was the one that showed the largest increase.
• Asobancaria forecasts economic growth of 8% and unemployment below 12%. This percentage would exceed the global level estimated by the International Monetary Fund above 6% and that of Latin America.
• Gas production increased 4% to total 1,061 million cubic feet per day. The increase is compared to August 2020. However, compared to July 2021, a fall of 5.4% was registered due to the closure of Cupiagua.
• Hydrogen exports would reach $5 billion driven by Asia and the U.S. If the production targets are met, the country’s domestic consumption could be 1.85 million metric tons by 2050.
• Coffee production grew 22% in September exceeding 1.2 million bags. Exports grew 23% to almost 1.1 million bags of 60 kg compared to 887,000 bags exported in September 2020.
• According to DANE(National Administrative Department of Statistics), the PPI rose 1.30% monthly and presented a variation of 18.70% in the current year, which will make the CPI move away from the target range. Rise in the Producer Price Index would raise annual inflation in September to 4.5%.