Colombia – Market Opportunity Overview

During the session, we will explore opportunities across Infrastructure, Energy, Healthcare and Urban Security. In addition, we will explore the FCDO development priorities for Colombia

Colombia’s economy has recovered vibrantly from the COVID-19 crisis supported by a bout of consumption that had been repressed during the pandemic. GDP rebounded 10.7 percent in 2021 and it is projected to grow 7.1 percent in 2022. This exceptional dynamic has brought the economy to operate above its potential and, growth is projected to slow gradually to 2.8 percent by 2025.

Exports from the UK to Colombia are valued at £700m. In terms of specific opportunities, Infrastructure is expected to become Colombia’s main engine for sustainable development. In the next 8 years, the Colombian government will invest over £5 billion in rail, water, road and airport infrastructure projects. The Colombian government is investing in its National Transport Master Plan to upgrade the country’s roads, railways, waterways, maritime and air transport. The public-private partnership framework in Colombia has created opportunities for UK businesses to take part in infrastructure projects in areas such as construction, consulting, and supplying materials.

Colombia has a regulatory scheme to ensure reliable long-term power supply. This guarantees that generated resources can meet demand during energy shortages at efficient prices. With almost half a million people without access to electricity in rural areas, there are many opportunities for UK companies to provide off-grid solutions. In addition, there are significant opportunities in healthcare and life sciences  

Form a development perspective, with some 1.4 million people exiting poverty in 2021, the national poverty rate has dropped to 39.3 percent, still above pre-pandemic levels. The middle class has also rebounded, and income inequality has declined. Nonetheless, 2.1 million of those who had fallen into poverty in 2020 are estimated to have remained poor in 2021. Moreover, the decline in poverty has been uneven and has not benefited afro-Colombians and indigenous people.