Corporate Magazine - 2013, June (PDF) - Invest Northern Ireland

12 June 2013 InvestinFocus on ExportRich opportunities tobe mined in ColombiaWhile Colombia is new to Invest NI’s international visit programme,several local companies are already doing worthwhile business inthis important South American marketplace. Dr Vicky Kell, Invest NI’sTrade Director, outlines business opportunities there.>> Dr Vicky KellInvest NI Trade Director.Colombia is a substantial marketplacewhich has enjoyed a long tradition ofeconomic and political stability. Fivetimes the geographic size of the UK andwith a population of 46 million, Colombiahas a diverse and relatively advancedeconomy.This means that the opportunitiesfor our companies are many andvaried. This breadth of opportunity isindicated by local companies currentlysuccessful there including AnacondaEquipment International in Cookstown, amanufacturer of machinery for materialshandling, and Acksen, a specialist indatalogging devices for monitoringpower systems.Furthermore, UKTI has recognisedColumbia as a market with immensepotential and has listed it among CIVETS– Colombia, Indonesia, Vietnam, Egypt,Turkey and South Africa – a group ofemerging nations. Colombia is theworld’s 26th largest nation and the thirdbiggest in South America, after Braziland Mexico.According to UKTI, Colombia offersa range of opportunities in a varietyof sectors. Historically, it has lookedprimarily to the United States fornew products and technology, butEurope is increasingly seen as anattractive alternative.Market research shows that the countryhas enjoyed stable economic growth andrelatively low inflation for the last decade.The government’s new economic planaims to achieve a 4.8 per cent growth inGDP this year and includes significantinvestment in infrastructure. Themortgage rate was cut substantially tostimulate house building.Major international companies areinvesting there, especially in oil and gasexploration and development, as wellas in mining. However, the economy isdiversifying to include financial servicesand hospitality.Business is mainly centred in and aroundBogota, the nation’s capital, which hasa population of seven million. Otherkey business centres include Medellin(population four million) and Barranquilla(two million).Traditional industries, which continue todominate the economy, include mineralssuch as coal – Colombia has the largestreserves of coal in South America – gold,silver and platinum. The country, inaddition, is the world’s leading sourceof emeralds. It is also a major producerof coffee and textiles for customers inthe US and Europe. There are manyopportunities for companies providingservices and products to these industriesas well as producers of the endproducts themselves.Invest NI’s first mission to Bogotatook place in December 2012 andour companies received a very warmwelcome. Colombians are aware ofthe perceptions of their country andrecognise that they have to work hardto overcome historic events. They feel agreat affinity with Northern Ireland andadmire how we have overcome the oldinternational perceptions of the region.Doing businessthe ColumbianDoing business in Columbia is relatively straightforward. Thestandard greeting is a handshake. Friends will embrace andslap each other’s backs – what is known as the abrazo. Businessmeetings tend to be prolonged and often involve discussionsabout family and friends, sports and wider business issues. Buildingrapport and trust with potential customers is important and rushingthe process is regarded by Colombians as disrespectful. Until invitedto do so, avoid addressing Colombians by their first name.Once a level of trust has been established, never change yourpersonnel as this will mean going back to square one and rebuildingthe relationship again. Visiting the market to meet customersregularly is also essential.Colombians like to engage in some physical contact. So, beprepared for a hand on your shoulder and don’t back away frompeople if they get too close. Yawning in public is consideredimpolite and if you see someone tapping their fingers on theirelbows this means they are calling someone miserly.wayEngaging the services of a local contactto act as a facilitator, guarantor andinterpreter is essential. While Spanishis the main language, many businesspeople are used to trading with the USand are fluent in English.