Relations between Australia and Colombia have been growing stronger over recent years. Overall, the connection and mutual interest between the two countries is rising in regard to political and economic matters. From an outsider’s point of view, the two countries seem to be half a world away, beyond just geographical matters.
No matter the difference in culture, language, or economic size or practices, Colombia and Australia complement each other quite well. The two have proven this time and again with trade agreements, the creation of alliance organizations, and the vast success of businesses exchanging places in the countries’ respective economies. The StartupVC gives an overview of the economic climate and current events surrounding Australian companies doing business in Colombia.
What prompted Australian companies to do business in Colombia?
Australia and Colombia established an official diplomatic relationship back in 1976. Since then, much has transpired in both countries, and within the capacity of their relationship. Outside of their immediate relationship, Australia and Colombia are both important parties in the United Nations, the World Trade Organization, the Organization for Economic Cooperation and Development. Beyond these organizations, Colombia is also a founding member of many important economic trade agreements and councils. Of which, Australia is also a member. Noteworthy arrangements like the Pacific Alliance, the Forum for East Asia Latin America Cooperation, Cairns Group, and the Inaugural Dialogue are just a few examples of the strong ties Australia and Colombia share.
Increasingly global engagement and activity through worldwide agreements and organizations inspired Australia and Colombia’s independent, economic relationship. Australia’s key engagement with Colombia focuses around mining, energy, education, and agriculture trading. The largest export to Colombia from Australia in recent years was education. Meanwhile, Australia has mostly imported and invested in Colombia’s mining sector.
Now, with so many other industries emerging as front runners in both countries, companies are trading places. To tap into new markets, take advantage of the ease of expansion to an economic ally, and secure of attractive multinational benefits, Australian companies are increasingly expanding or starting their business in Colombia. Doing business in Colombia has many perks for Australian companies. Already, many businesses have taken advantage of them and found great success in the Andean country’s markets.
Opportunities for Australian companies in Colombia
Opportunities for Australian companies doing business in Colombia aren’t hard to come by. Thanks to the aforementioned trade agreements and mutual support, Australian companies have the pick of the litter when it comes to pursuing business in lucrative industries in Colombia. Depending on the strengths, mission and product/service, choosing which industry to get involved in is where the work begins. Below are some of the best Colombian sectors for Australian companies.
Agriculture
Agriculture is an attractive industry for both Australia and Colombia. Both countries work on organizations whose mission it is to improve global conditions and regulations for the agriculture industry. For Australian companies looking to do business in Colombia, agriculture presents itself as a probable sector for success. Specifically, Australian companies whose efforts focus on technological developments and agritech will be particularly successful here. Coffee, one of Colombia’s largest exports, dominates the agriculture sector. However, declining levels of production have industry experts questioning the stability of supply. With greater access to agritech tools and new, innovative ideas, Colombian farmers of all types will produce more. Australian companies have the opportunity to be at the forefront of this great success.
Environmental Sustainability & Energy
Environmental sustainability and consciousness are deeply positioned as one of Australia’s greatest strengths. The country has already dedicated vast amounts of money to research and development of new practices and sustainability measures. While it has a growing economy and a promising future ahead, Colombia is still technically a developing country. This means it does not yet have public access to elaborate, expensive measures for sustainability. Here, Australian companies and qualified individuals have great opportunity. Intelligence, experience, and tangible tools and resources for water treatment, renewable energy, waste management, and clean development projects are in high demand. All of which Australia has extensive experience and expertise.
Mining
Finally, mining is one of the biggest and most important industries for both Australia and Colombia. Colombia already has a wealth of natural resources and mining opportunities, so where does Australia fit in? Once again, Australian companies and entrepreneurs can play a crucial role in bringing their expertise, experience, and physical tools to the industry in Colombia. Essentially, Colombia has all the necessary, natural resources to have a successful mining industry. The world has already seen this successful Colombian industry take flight. However, Australian companies have the opportunity to innovate the industry. The future entails making the industry bigger, more efficient, effective, and more successful than ever before.
Biz Latin Hub: A success story doing business in Colombia
Biz Latin Hub is one of the finest examples of a successful Australian company doing business in Colombia. While it does not fall under any of the previously mentioned industries, it has found success in being the supportive framework in the construction and development of many companies. Founded in 2014, Biz Latin Hub is the leading back-office services and commercial representation company in Latin America. Of its two founders, Craig Dempsey is a former military man. He served as a commissioned officer in Australia’s army, whereby he completed tours in both the Middle East and Central Asia. After life in the military, he became involved in the mining sectors in both Australia and Colombia.
Recognizing the growing demand and interest between these two countries, and in the mining sector in particular, he formed Biz Latin Hub as a startup. The mission of this company is to facilitate any efforts and processes related to domestic or foreign company expansion. While it primarily focused on helping companies moving to and from Colombia and Australia, Biz Latin Hub now has operations in eighteen different countries and services companies from all over the world. Strong ties and market opportunity between Australia and Colombia were just the starting block that set BLH up for multinational success.
Biz Latin Hub and the Australia-Colombia Business Council
With so much recognized success in Colombia, Biz Latin Hub was invited to join the Australia-Colombia Business Council. The Australia-Colombia Business Council is a board which unites efforts between the two countries in hopes to promote developing economic ties and business communities. Supported by the Australian Embassy, the ACBC is a culmination of successful businesspeople in the private sector in Colombia with ties to Australia and/or its economic interests. This council, and Biz Latin Hub’s involvement, is another strong example of ties between successful Colombian and Australian entities growing. Moreover, it serves as a testament to the level of success and innovation BLH has employed thus far in its business in Colombia.
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With a growing economy, political stability, and massively innovative industries, Colombia is attracting the attention and interest of countries and companies all around the world. On the horizon is exciting news for the country pertaining to its economic partnerships, blocs, and talk of its most recent agreements. For an insider’s peek into Colombia’s economy, startup environment, and updates on international economic relations, follow The StartupVC. With platforms on LinkedIn, Facebook, Instagram, and Twitter, The StartupVC gives 360-degree access to tips, updates, and overviews on Colombia’s biggest industries.