Opportunities in Colombia
As mentioned in our first blog, Colombia has a lot of opportunities that we would love to share with you in order to get a better understanding of the country, and perhaps ideas to start doing business!
There are mainly 3 sectors that we think are interesting to start doing business in, and Nvest is active in those 3 sectors (surprise surprise). However, there are many more interesting sectors such as ICT, the health sector, tourism and water management.
But lets take a look at the 3 main sectors we mainly work in.
Opportunities of Colombia in the Agriculture sector
Colombia has the 2nd highest biodiversity in the world, which means that basically every type of climate or specie can be found in the country. This provides great opportunities for the cultivation of fruit and vegetables, but also the production of derivates close to the production source.
At the moment, Colombia is only using 20% of its agricultural capacity, which means that there is a lot of potential growth in terms of usage of land. However, most of the cultivation is done by small and medium farmers in a relatively traditional manner.
This means that there is room for improvement in terms of lowering production prices, increasing yields and improving product quality by implementing technology and applying knowledge and experience.
In addition, there is a great opportunity in creating production networks by clustering farmers, and share resources before, during and after the cultivation.
Opportunities of Colombia in the Manufacturing sector
Colombia is not a manufacturing orientated country historically seen. Most of the products are produced/cultivated and exported as raw material, and finished products are imported again. In addition, lots of companies and resources are foreign owned, which is not a healthy situation on the long-term.
At the moment, companies start to be aware of this and therefore want to start producing finished products themselves, which is perfectly possible due to the interesting climate in terms of investment and operational costs, skills of workers, access to export markets and obtaining finance.This is an interesting development for countries such as the Netherlands, since the Netherlands is not a production country, but is a country that is focused on the development of (innovative) technologies in order to produce products.
Opportunities of Colombia in the Bicycle sector
It is fairly well-known that the Netherlands is the bicycle country of the world, but there is a new competitor in town. The major of Bogota has stated that he would like to be the no.1 bicycle city in the world and therefore eliminate Amsterdam from this position. A not so realistic objective in our opinion but a good goal to strive for.
Fact is that Bogota currently is the no.1 city in South-America in terms of bicycle development. The city has over 500 kilometres of dedicated bicycle roads, and more than a million people are commuting by bicycle on a daily basis.
In addition, most bicycles are being imported from the United States and are mountain bikes, which leaves a very big gap for commuter (e)-bikes that the Netherlands is so famous for.
In addition, many opportunities are interesting regarding the development of infrastructure, bicycle education through virtual reality and bicycle parts such as internal gears.
Please get in contact with us if you have questions, comments or even better, interest in entering the Colombian market.
Stay tuned for more!