Colombia is ready to double its exporting capacity

If only 1% of the registered companies in Colombia internationalized their products or services, the country’s exporting capacity would double. Such breakthrough is attainable in the long term as Colombian companies have what it takes to succeed.

“There are 2,117 Colombian companies not yet exporting their products, but with the potential to do so. These companies account for 68.2% of the total companies in the country we have visited since June 2013 to boost exporting among companies, of which 903 are about to complete their preparations to begin exporting”, stated the President of PROCOLOMBIA, Maria Claudia Lacouture.

Colombia must increase its corporate exporting capacity through more complex and specialized value-added options that can fit within global chains in order to achieve an efficient production that can leverage the markets’ competitive advantages and reach consumers, which are becoming more and more specific and demanding.

According to Confecamaras, there are 1.3 million companies registered in Colombia and barely 3,170 of them export their products on a regular basis, and less than 10,000 do so sporadically, “which means that we have extraordinary potential and a lot of work to do”.

“Colombia needs exporters, and promoting an export-oriented mindset is key, which is why we are broadening the scope through specialized information across regions, creating opportunities and spreading information about market access, and adapting available products because it is not just about exporting for the sake of it, but it is about considering the needs of international consumers, which are becoming more and more specific and demanding.”

“It is important that companies adapt to international trends and consumers’ preferences and needs, changing their raw materials as well as their production procedures and conditions (both sanitary and phytosanitary, for the agricultural sector) according to international standards. If we don’t fit in, we are out of the market,” added Lacouture.

Similarly, Lacouture said that it is necessary to raise awareness regarding social responsibility, good practices, and certifications: all these provide added value and, in certain markets, they are minimum requirements from buyers.
“We are working so that companies understand internationalization as their route towards expansion. Exporting means growth and development”, stated Lacouture.
Knowing the market is critical, which means a full understanding of competitors, rates, export logistics, local partners, regulations in force in destination countries, trends, and niches available.

Transforming the entrepreneurial force into an export-driven platform requires technological and human resources, as well as partnerships and institutional support, to be able to compete, stand out, and become a global player, as well as to become part of the global value chains.

“I wish we had a million exporters to leverage trade integration and Colombia’s global reach. The preferential access to 45 countries and 1,500 million potential consumers is the result of trade agreements”, said the President of PROCOLOMBIA.

An Opportunity for Everyone

Handicrafts made by the Wayuu people in La Guajira could be commercialized in France and Germany; spices from Putumayo like Chilacuan and Sacha Inchi have opportunities in Spain; and buyers in Japan are interested in powdered panela from Yolombo, Antioquia.

These examples were taken from one-on-one visits by PROCOLOMBIA, completed last year in order to increase the country’s exporting capacity, to 3,103 companies that have not yet exported regularly or have exported only sporadically.

According to Lacouture, the new companies will increase the country’s exporting capacity, as they will support the 3,170 Colombian companies that, based on information by the Entrepreneurial and Social Unique Registry (Registro Unico Empresarial y Social, RUES), have conducted regular exports worth over $10,000 USD between 2010 and 2013 from sectors other than mining-energy and coffee.

Value-Added Companies
There are other value-added companies, like TI Automotive Bundy Colombia, which started exporting towards Georgia (United States) under the free trade agreement regulations. This company has experience in Ecuador and Venezuela, and now sells brakes and hydraulic lines to a tractor manufacturer in Georgia, thanks to the research and approach efforts by PROCOLOMBIA.

Also, Fundicom started to consider the United States as a priority destination back in 2011. Nowadays it sells brakes to a car manufacturer that makes farm supply transport vehicles; or Enka de Colombia, a synthetic fibers manufacturer that exports nylon fibers towards Brazil to produce public school uniforms and also sells nylon for fishing poles to India.