Colombia

Business Opportunities in Colombia for UK Exporters
1. Introduction & Snapshot
Colombia is Latin America’s fourth-largest economy and one of the region’s most dynamic markets. With a population of over 52 million, steady GDP growth, and a strategic location bridging North and South America, Colombia has become an increasingly attractive destination for international trade and investment.
For UK exporters, Colombia presents a blend of established demand and emerging opportunities. The UK–Andean Countries Trade Agreement provides preferential market access, while Colombia’s membership in the Pacific Alliance enhances its role as a gateway to the wider Latin American market.
Although challenges remain—particularly bureaucracy and logistics—the country has built a reputation for resilience, openness to foreign partnerships, and a strong push toward modernisation. For exporters who can align with local priorities and build long-term relationships, Colombia offers significant growth potential.
2. Economic Overview
Colombia’s GDP stood at approximately USD 343 billion in 2023, with forecasts predicting medium-term growth of around 3–4% per year. This resilience has been supported by:
Natural resources: Oil, coal, gold, and coffee remain pillars of the economy.
Diversification: Growth in services, IT, and renewable energy.
Demographics: A young population, with over 60% under the age of 35, fuels consumer demand.
Bogotá, Medellín, and Cali are Colombia’s main business hubs. Bogotá serves as the financial and political centre; Medellín has positioned itself as a leader in innovation and digital transformation; and Cali is an agro-industrial powerhouse.
The government has prioritised infrastructure investment, renewable energy, and digital transformation, signalling a move away from overreliance on extractive industries.
3. Trade Relations with the UK
The UK and Colombia have a strong and growing trade relationship, underpinned by the UK–Andean Countries Trade Agreement. This deal largely mirrors the previous EU arrangement and provides tariff-free access for most goods, legal certainty for investors, and protection for intellectual property.
UK exports to Colombia (2023): Machinery, chemicals, pharmaceuticals, and beverages (notably Scotch whisky).
UK imports from Colombia: Coffee, bananas, flowers, and minerals.
Total bilateral trade: Over £1.6 billion annually.
The UK government’s Export Strategy identifies Colombia as a priority market, particularly in energy, infrastructure, education, and technology. The ongoing work of the British–Colombian Chamber of Commerce and UK Department for Business and Trade (DBT) further strengthens bilateral links.
4. Market Opportunities
Energy & Renewables
Colombia is investing heavily in its energy transition. Currently reliant on fossil fuels, the government aims to diversify with solar, wind, and hydroelectric projects. UK companies with expertise in clean energy technologies, grid management, and consultancy are well positioned.
Infrastructure & Transport
The ambitious 4G and 5G infrastructure programmes represent billions in investment in highways, airports, and ports. Opportunities exist for UK firms in engineering services, project finance, smart infrastructure, and urban planning.
Healthcare & Life Sciences
Colombia’s healthcare sector is modernising rapidly, driven by demand for medical devices, biotech, and hospital management systems. UK companies can contribute in digital health, telemedicine, and pharmaceutical innovation.
Education & Training
The government’s focus on human capital development creates space for UK universities, vocational training providers, and EdTech companies. Demand for English-language training remains particularly strong.
Technology & Fintech
Medellín has been recognised as a global innovation hub. Colombia’s fintech sector is booming, with strong government support for digital inclusion. UK firms in cybersecurity, payments, and digital platforms can enter a receptive market.
Food & Drink
An expanding middle class is fuelling demand for premium imports. UK exporters of whisky, gin, craft beer, and speciality foods are finding success in Bogotá, Medellín, and Cartagena.
5. Regulatory & Business Environment
Colombia has improved its business environment, but exporters must navigate complexities:
Ease of Doing Business: Colombia ranks mid-range globally. Strengths include investor protection and credit access; weaknesses include tax complexity and permits.
Customs & Compliance: Import regulations can be bureaucratic, especially for food, drink, and medical goods. INVIMA (the national health authority) is the main regulator.
Taxation: Corporate tax rates are relatively high; local advice is essential.
IPR: Intellectual property protection exists but enforcement varies.
Most exporters enter via local distributors or agents, who can handle regulatory and logistics challenges.
6. Cultural & Consumer Insights
Colombian business culture is relationship-driven. Personal trust, reputation, and face-to-face interactions are crucial. Spanish is the dominant business language; English is spoken in multinational settings but less widely in SMEs.
Consumer insights:
Middle-class consumers in urban areas value foreign brands and quality products.
Social media plays a growing role in influencing buying behaviour.
Price sensitivity exists, but premium goods are aspirational.
Etiquette matters: punctuality, courtesy, and building rapport are critical to establishing trust.
7. Challenges & Risks
Key risks include:
Bureaucracy: Lengthy approval processes.
Security: While improved, rural areas may still present risks.
Infrastructure: Transport bottlenecks remain, increasing logistics costs.
Currency: The peso is volatile, impacting pricing.
Competition: Strong presence from the US, EU, and China.
UK firms can mitigate risks by partnering with reliable local agents, diversifying supply chains, and pricing flexibly.
8. Case Study: UK Success in Colombia
Diageo has successfully grown Scotch whisky sales by tapping into Colombia’s rising demand for premium beverages, adapting marketing strategies to local preferences.
Meanwhile, British education providers have built partnerships with Colombian universities, offering English training and exchange programmes. In energy, UK consultancy firms have contributed expertise to renewable projects, positioning themselves as trusted advisors in Colombia’s transition.
These examples highlight that success often comes from aligning UK strengths with Colombia’s specific needs.
9. Practical Entry Tips for UK Exporters
Engage early with DBT and the British–Colombian Chamber of Commerce.
Use the UK–Andean Trade Agreement to secure preferential tariffs.
Invest in Spanish-language marketing and hire bilingual staff if possible.
Choose distribution carefully: Bogotá, Medellín, and Cali are key entry hubs.
Plan logistics well: Inland transport costs can erode margins.
Nurture long-term relationships: Trust and credibility are essential.
10. Conclusion
Colombia is a strategic growth market for UK exporters, combining a large consumer base, openness to trade, and ambitious modernisation programmes.
Opportunities exist across renewable energy, infrastructure, healthcare, education, fintech, and premium consumer goods. While challenges in regulation, logistics, and competition persist, careful planning and strong local partnerships can unlock significant rewards.
For UK businesses ready to diversify beyond traditional export markets, Colombia offers a compelling mix of demand, stability, and opportunity.