The arrival of the new government with a tax reform processed in less than three months, and the phenomena of inflation and a rising dollar, have altered business climate.
(See: Petro’s messages that have generated nervousness in the markets).
And while there is uncertainty about a challenging environment, as several surveys show, consulted businessmen prefer to see the glass ‘half full’ They maintain their plans and project investments for 2023. Likewise, companies arrive in the country that today see the potential in the Colombian market.
The most recent Fedesarrollo Business Opinion Survey showed how confidence, both industrial and commercial, is in decline.
This results “respond to the growing uncertainty that hangs over the world economy and the Colombian economy”, said Hernán Avendaño, director of economic studies at Fedesarrollo, when analyzing the data.
In that order of ideas, he warned that “On the domestic front, the postponement of investment projects that will have repercussions on next year’s growth has been perceived for several months”.
(See: Analysis: this is how the country’s economy goes in 100 days of Petro president).
The latest Andi survey on investment stated that there is uncertainty. There it is evident that the development of productive investment projects has also been reduced, says the business association.
In June 73.5% of the companies stated that they had projects at that time, in July the figure dropped to 65.8% and in September it reached 49.7%. On the other hand, the number of companies that are not carrying out investment projects increased, as well as those that stated that they have postponed projects.
While the study centers and experts point out that the environment for doing business is not the best, companies focus on growing their businesses and making ‘the remove’ from the situation. To cite one case, the president of Falabella Colombia, Rodrigo Fajardo, has told this newspaper that confidence in the country is maintained and that it advances the construction of a logistics headquarters that will further strengthen the capacities for its department stores that are in an expansion plan in intermediate cities.
(See: Investment in tertiary roads and dialogues, the hallmark of the Petro government).
Juan Carlos Saldarriaga from Yanbal has another vision. He recently noted that “we are very focused on being very efficient in all our investments and being careful about what we invest and what we do not invest in, in managing cash. Risk aversion is slightly increased.”.
But there is no shortage of companies that see opportunities. The Handtman Company, specialized in manufacturing machines and production lines for the food industry, has plans to strengthen the operation in the country that began at the end of 2021.
From the government agencies that promote investment there is optimism. Carmen Caballero, president of ProColombia, commented that “we have our strategy underway to consolidate Colombia as a center for investment in sustainable development in Latin America and the Caribbean, taking advantage of the interest of international firms, both established and potential, that are seeing Colombia as an ideal location to expand”.
Gustavo Petro in the General Assembly of the Government
Presidency of the Republic
On the side of technology companies, the appetite for investment remains. For Camilo Forero Gómez, country manager for Colombia and Ecuador of HMD Global (Nokia Mobile), the country has great potential to attract investment from technology companies. In his turn, Santiago Holguín, general manager of Lenovo, added that this investment appetite is maintained due to the talent and geographical position that Colombia has.
(See: Government land purchase from Fedegán, between scope and viability).
In the Mining sector, the investment spirit is diminished. Juan Camilo Nariño, from the Colombian Mining Association, pointed out that one of the future challenges for the government it is “generate viability environments for the industry, which allow greater investment”.
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