Crossing the Andes
Colombia’s cement producers are poised to benefit from the government’s ongoing investment in housing and road networks. The country’s geography and favourable demographics also hold the promise of further development and to meet these demand requirements leading domestic producers have been increasing capacity with further projects potentially in the pipeline. By Jairo Julián Agudelo Restrepo & Martin Posada, Grupo Bancolombia, Colombia.
Colombia has undergone a dramatic transformation over the past decade. GDP has grown at an average annual rate of 4.5 per cent since 2004, FDI has recovered significantly (reaching US$16.5bn in 2013, from US$2.4bn in 2000) and unemployment fell to nine per cent in 2013.
Moody’s Investor Service and Fitch Ratings both upgraded Colombia’s credit rating to investment grade (BBB-) in 2011, supporting the solid economic results witnessed over the last couple of years. The country also forms part of CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa)11, a group of six favoured emerging markets that present attractive investment opportunities given their dynamic economies and solid macroeconomic fundamentals.