information brochure ifp colombia 2015

Research in Colombia

IFP April 2015

The Destination

The Program

What do we offer?

www.riskifp.nl

Financial Study Association Groningen

Risk is af�liated with the Economics and Business studentFaculty association

Main Partners Risk

International Financial Program

2Risk International Financial Program 2015

Content

- Preface

- Risk and the International Financial Program

- About Colombia

- Transition Country Colombia

- Interesting Industries

- Unique Selling Points

- IFP Outline

- What we offer

- Former Clients

- Board of Recommendations

- Supervising Professors

- Participants

- Board

Bloomberg: “South America’s fastest-growing economy”

KPMG: “Colombia has become an attractive country for investors, and there are many reasons for this: robust growth, a qualified workforce and a business-friendly environment.”

Bloomberg: “The economy expanded 6.4 percent in the first quarter of 2014, its fastest pace in more than two years, even as growth slowed in Peru, Chile and Brazil.”


Preface

Colombia, with its 48 million inhabitants, is one of the

most important emerging economies in Latin America.

Its growth over the last decade has been above average:

last year, it was 4.3%, while Latin America’s growth was

3.2%. With a diverse economy, including strong sectors

such as oil and mining, finance and banking, construction, energy and retail, Colombia has

become one of the region’s main FDI destinations. Colombia’s growth is expected to reach

5% by 2015. In the past few years, Colombia went from being a development aid recipient,

to becoming an important trade partner for the Netherlands. This new mutually beneficial

climate was demonstrated by the opening of the Holland House in Bogotá, the first of its kind,

inaugurated by the King and Queen on their official visit to Colombia in November 2013.

In 2013 Colombian exports to the Netherlands was USD 2,265 million FOB, equivalent to 16.6

million tons, the biggest volume of cargo was mobilized by maritime lines. Water management,

fluvial navigation, port management, sustainable agriculture, biomass and biofuels, are areas

in which Colombia has great interest and needs for progress. Thus, we not only have strong

economic and trade links, but also increasingly close relations in the scientific and technical

fields. A recent example is an agreement between the STC Group and the “Universidad del

Norte” in the city of Barranquilla, on Colombia’s Caribbean coast, we will start developing a

top-level Centre of Excellence on Ports, Transport and Logistics to serve all of Latin America.

Why is Colombia a country where the investors want to go? Among several factors,

I would like to highlight: our location, with coastlines on both the Pacific and Atlantic Oceans,

the mega diversity which is in the top 17 counties of the world; the 1st rank in protecting

investors in Latin America and for its Free Trade Zone and Free Trade agreements signed during

the last years.

I encourage Dutch companies to explore the Colombian market through this dedicated group of

students and we wish all the participants the best in their trip to our country.


About Financial Study Association Risk

Risk is thé study association for Accountancy, Controlling, Finance, and the financially

interested student at the University of Groningen. Risk has set itself the goal to close the gap

that exists between theory and practise in the areas of Finance, Accountancy & Controlling,

Organizational & Management Control, and International Financial Management. Risk

organises activities for students at the Faculty of Economics and Business of the University of

Groningen. Besides, Risk is one of the associations that is part of the Financial Association of

the Netherlands (FAN).

International Financial Program (IFP)

The International Financial Program (IFP) is an initiative of financial study association Risk.

The IFP is a research trip for financially interested students whom would like to broaden

their horizon. It is a multidimensional project in which students will enhance themselves

professionally by conducting research for (Dutch) companies. The program has been

established in 2006 and has proven to be a great experience for students and a great success

for companies. Previous destinations of the IFP include Argentina, Brazil, Malaysia, Mexico,

Panama & Costa Rica and Peru. In 2015, the next destination of the IFP will be Colombia.

Destination Colombia

In April 2015, the IFP participants will travel to Colombia to conduct two and a half weeks of

field research for (Dutch) companies. Colombia is an emerging and fast growing economy,

offering many opportunities for internationally oriented companies. The IFP offers your

company the opportunity to explore business opportunities in one of the fastest growing

countries of the world.


About Colombia

According to Bloomberg, Colombia is “South America’s

fastest-growing economy”. The economy expanded 6.4

percent in the first quarter of 2014, its fastest pace in

more than two years, even as growth slowed in Peru,

Chile and Brazil. This macroeconomic performance in

combination with improving fiscal and political stability

as well as peace negotiations are part of this success.

Colombia, the third economy of Latin America, has

transformed into one of the most important economies of Latin America in the last ten years. With

its ideal location between Middle- and South-America, Colombia is the international gateway

to the entire continent. It was named as one of the CIVETS countries, as only country of Latin

America, because of its steady growth in GDP. The CIVETS countries are the fastest growing

economies in the world with the most promising investment opportunities for companies. Over

the last two years, international investments in Colombia have grown significantly and the

Netherlands are the most important investor (except of the oil and mining industry).

The economic policies and promotion of free trade agreements by the Colombian government

has led to a 30 percent increase in international trade within the last three years and a generally

transparent investment climate. Colombia is known for several economic centers. Whereas the

capital Bogotá is the political, financial and professional center, cities like Medellin, Cali and

Cartagena house many corporate headquarters as well (2012, the Wall Street Journal).

Numerous new opportunities for foreign investments rise as a result of the transformational

development, economic growth and the stimulating government policies for international trade.

Because of these developments, Dutch companies should seek their value in this upcoming

market within the numerous possibilities for research. Forty Dutch companies already operate

in the Colombian market, are you the next one who will profit from this outstanding opportunity?

Key facts ColombiaCapital: Bogota

Language: Spanish (official)

Population size: 48.32 million (2013)

GDP: $378.1 billion (2013)

GDP per capita: $7,825 (2013)

GDP per capita PPP: $9,125 (2013)

GDP real (annual) growth rate: 4.6%

Source: The World Bank


Transition Country Colombia

Transition is about the process of moving forward from one phase to the next. This certainly

applies to Colombia, which previously received development aid from the Netherlands and now

has been declared as a ‘transition country’. The Dutch government does not provide Colombia

with development aid anymore but instead invests in trade, the investment climate and other

investments opportunities with Colombia, making the relationship become mutually beneficial.

Colombia has a relatively good investment climate, a developed financial sector and an

adequate economic policy. Additionally, the country has a relatively young population, a

rapidly expanding middle class and a stable political environment. These factors are important

fundamentals for sustainable economic growth and therefore Colombia is seen as a promising

country.

To help the SMEs in creating a healthy trade relationship with countries such as Colombia,

Agentschap NL offers the Transition facility. The aim of the Transition facility is to encourage

the Dutch business sector to provide extra support in transition countries in order to create

a promising market in those countries. For example, the Dutch Ministry of Foreign Affairs

planned an economic mission for the second half of 2014.


Interesting industries

Agribusiness

Due to its location and the tropic weather conditions, Colombia has many opportunities for

broad agricultural and farming investments. Fruits, vegetables, floriculture, horticulture,

food and coffee are all very important products in this sector and offer high potentials for

international investors. Especially floriculture is of great importance; Colombia is the biggest

producer of flowers in the world, making the Netherlands a very important trading partner.

The large amount of land available for agricultural purposes also creates the possibility for

cultivating biofuels. In addition, the government stimulates this sector through tax cuts and

many international trade agreements. Finally, the Dutch demand for Fair trade products has

increased the last couple of years and Colombia’s objective is to become the world market

leader in Fair trade products. (Source: Agentschap NL)

Oil and Gas

Oil and coals have always been an important industry in the economy of Colombia. From 2007

to 2012, Colombia increased its daily oil production by 77% and became the 4th largest oil

producer in Latin America. In the upcoming years there will be an investment of $2,600 billion

dollars to conduct explorations. In Colombia over 30% of explored wells are successful and

more than 50% of the total territory is yet unexplored. Recently, the gas industry has become

an important industry as well due to the discovery of reserves. Besides oil and gas, Colombia

has broadened its view to biofuels and other renewable energies. (Source: Flanderstrade.com

and Investincolombia.com)

Infrastructure and Construction

Over the last five years the size of the construction sector grew at an average rate of 16.8%

per year, well above the average growth in the region, which was 10.2%. The construction

industry in Colombia is the third largest in Latin America. In 2014, the government almost

doubled the investment budget for infrastructure projects, reaching a budget of over $6,500

million dollar. Moreover the government has also started a project to build 1 million new homes

in 2014 to address the national housing shortage. (Source: Toplatinexport.nl)


Cocoa and Chocolate

Colombia has a strategic geographical position. The constant temperature throughout the

whole year is advantageous for growing cocoa. As an equatorial tropical country, Colombia

enjoys strong sunlight all year round. In addition, Colombia boasts a variety of climates and

abundant water resources. Besides, a study showed that Colombia has a potential for 2 million

hectares for growing cocoa crops. (Source: Investincolombia)

Maritime industry

Harbors and terminals in Colombia: Barranquilla, Buenaventura, Cartagena, Puerto Bolivar,

Santa Marta and Turbo. Several Colombian harbors have investment plans for the coming

years. There are opportunities in modernizing the harbors along the coastline and deepening

the access channels. Because Colombia is situated between both the Atlantic Ocean and the

Pacific Ocean, it has a favorable strategic position in Latin America. The efficiency of the

main harbors has increased over the last years, however, there is still room for improvement.

(Source: Flanderstrade.com)

Water management

Due to the rich hydrography in Colombia there are many opportunities for Dutch companies

in the delta technology. Next to that, there are also investment opportunities in the waste

water technology, drinking water supply and water management infrastructure. The Dutch

expertise on water management provides us with a reliable image. The Colombian president

Santos asked the Netherlands to help the Colombian authorities with the water management

after the large floods in 2011. This resulted in a public-private cooperation agreement between

the Netherlands and Colombia. Furthermore, the Colombian government will invest €6 billion

in water management in the next four years. Dredge companies and dikes are required to

make the country’s largest river, the Magdalena, more navigable and less sensitive to floods.

In 2010 large floods led to the establishment of the Colombia-Netherlands Water Partnership

(CNWP). This partnership reflects multiannual and constructive cooperation between both

countries. Next to the fact that this cooperation stimulates networking and joint-ventures, it

also supports the tendering processes. The aim of the partnership is to increase the capacity

and expertise of the local authorities.

(Source: government.nl)


Unique selling points

High quality

Research will be conducted by 21 top quality selected senior students with diverse financial

academic backgrounds. These students will be guided by two professors of the University of

Groningen during the research period. The professors have plentiful experience in conducting

research at academic and corporate level. Therefore the IFP offers a high quality research that

is ensured by the experienced professors.

Specific knowledge

For the International Financial Program, students are selected from the Faculty of Economics

and Business. Therefore, we have specific, academic knowledge about business and finance.

Through this knowledge, we could conduct qualitative research in these areas. Since students

with different study backgrounds are involved in this project, the quality of the research is

strengthened by the complementary knowledge of the students.

Experience

Since its start in 2006, the International Financial Program has performed many successful

studies in several Latin American countries.

Tailor-made research at cost price

The IFP will conduct tailor-made, professional research at cost price. This program is primarily

focused on gaining experience and therefore you will only pay for the costs made during the

preparation phase and the field research phase.

Independent

The IFP is conducted by students who are not affiliated to any company. Therefore our research

is independent and objective and all findings will be treated confidentially.


Recruitment

The International Financial Program gives your company the opportunity to make valuable

contacts with our participating students. Among our participating students we selected four

Bachelor students and seventeen Master students.

Next to our research we can also offer an inhouse day at your company. If desired, one of our

external relations managers will be delighted to elaborate the possibilities for research or an

inhouse day. Please do not hesitate to contact one of our external relations managers.


IFP Outline

The International Financial Program has a unique setup in which students conduct research but

also participate in the preparation of the trip. Therefore students are recruited in an early stage

and are part of research groups as well as subcommittees. This setup of the IFP is visualized

in the organizational chart below.

Preparation phase September 2014 – January 2015

The preparation phase starts in September. From this moment on the students are actively

involved in the project. During this period the students are trained in order to attain the

necessary skills and knowledge which will enable them to successfully perform the field

research. This will be done during lectures, workshops given by guest speakers and an

interview training given by a consultancy firm.

Desk phase January 2015 - April 2015

In January the research groups will start with their individual research assignment. From

this phase on the students cooperate with two professors from the University of Groningen

in order to safeguard the quality of the research. For over three months the students are

now intensively engaged in the research and will, in cooperation with the companies, setup a

research framework and determine the contents of the research.

Field research phase April 2015 - May 2015

In the second week of April we will leave for our destination: Colombia. This phase of two

and a half weeks will be marked by conducting research, which will mainly consist of visiting

companies, taking interviews and gathering information. During the two and a half weeks of

field research the two supervising professors will support the students.

Reporting phase May 2015 - June 2015

After returning from Colombia the research groups will process the information gathered so

far and write a report covering the research question. In June the students will present the

final version of the research to the assigned company.


What we offer

The International Financial Program selects 21 top students who have made substantial

progress in their studies. They have been selected by strict criteria after which only the

most motivated students remain. These motivated students form the basis of the research

project. Two academic professors will guide the students throughout the entire process to

ensure academic standards and function as a cornerstone to assure high quality research.

The IFP provides the company a unique opportunity to work together with selected students,

have many contact moments with them and obtain a high quality research that broadens the

horizon of the organization. Since we conduct the research at cost price, all these beneficial

aspects will be obtained for only €6.000,- (excl. VAT).

The students participating in the program are students that have affinity in the field of finance

and accounting. Areas for research are numerous and largely depend on the needs and wishes

expressed by the company. In the initial phase participants will come up with suggestions

for research or amplify ideas proposed by the company. Examples of subjects examined in

previous years are:

• microcredit

• business development

• risk analysis

• investment analysis

• market analysis

• conducting audits

Previous research:

• The banking climate in Panama

• The possibilities of the expansion of the Panama Canal

• The attractiveness of the Peruvian insurance and pension market

• Foreign direct investments


Former Clients


Board of Recommendation

Dhr. P. Zwetsloot

Unitmanager Emerging and Distant Market of the Department for International Business at

Ministry of Economic Affairs

Dhr. M. Elamparuthi

Business Developer at VTTI

Prof. Dr. D.M. Swagerman

Former Partner at Deloitte

Professor at the University of Groningen

Dhr. W. de Boer

Ambassador of Panama

Prof. Dr. D. De Waard

Former Partner at Ernst & Young Accountants


Andy Marchant

Product Line Manager at TomTom

Prof. Dr. J.W. Velthuijsen

Partner and chief Economist at PwC Economic Consulting



Supervising Professors Dick de Waard“The IFP 2015 will be my fifth journey with the financial association Risk. In

1995 I joined the International Financial Program for the first time to New

York. However, the project was completely different than it is nowadays.

The set-up of the project has become more professional since then. In

2010 I guided the students in Brazil, in 2012 we left for Costa Rica/Panama

and last year I joined the IFP to Peru. It is very inspiring to conduct

research in its current form with highly motivated students in a beautiful

and interesting Latin American country far away.”

Prof. de Waard was a partner at Ernst & Young accountants from 1997

until the 1st of January of 2013, where he worked since 1977. In 1998 he

became Chair of Director of Ernst & Young Cleantech and Sustainability

Services of Belgium and The Netherlands. Since 1992 he has been

connected to the University of Groningen in the field of Accountancy, where

he currently works as the Chair of Director of Accountancy and the section

Auditing. Next to his function at the university in the field of sustainability

and the reporting of sustainability he is currently an independent advisor.

Furthermore, Prof. de Waard participates in a consultation platform about

‘integrated reporting’.


Jan Willem Velthuijsen“In 2013 I joined the Risk International Financial Program (IFP) to Brazil.

This year I will guide the students that are going to conduct research in

Colombia. I believe that Colombia is one of the most promising countries

currently, since it made substantial progress in economic development by

implementing economic reforms several years ago. I would recommend

the IFP to all interested. Allowing 21 highly motivated students to explore

business opportunities for your company in a country such as Colombia at

cost price is a unique opportunity”

After graduating his Msc. Econometrics at the UvA, Jan Willem Velthuijsen

moved to the contract research unit of the economics department of

the UvA. Better known as SEO Economic Research. During the fifteen

years prof. Dr. Velthuijsen worked for SEO Economic research he gained

experienced in a wide spectrum of fields. He specialized in applied

economic research on policy research. In 1999 prof. Dr. Velthuijsen

started at PricewaterhouseCoopers where he was responsible for setting

up a Competition and Regulation team. During this period he worked on

assignments on several economic issues, such as regulatory and other

economic disputes, competition clearance, dominance, state aid and

cartels and economic modelling of policy effectiveness or economic impact.

Recently (2014) prof. Dr. Velthuijsen was appointed as Chief Economist.

Next to his work at PwC, he is connected to the University of Groningen

as professor of Economics. Furthermore, he is Programme director of the

Executive Master of Finance & Control for the energy industry.


Participating StudentsAll participants are students of the Faculty of Economics and Business and subjected to strict

selection criteria. Only students that have made substantial progress in their studies are

eligible for this program. They primarily are in the final phase of their Bachelor studies, or are

Master students. Preferably, all students follow a financially oriented study.

Babet Hogetoorn Boudewijn Leutscher Ellen Koster Emma Kruijswijk MSc Organisational MSc Finance BSc International MSc Finance Management Control Economics & Business

Eva Dieben Jan Jongsma Joran Heeman Justin Arnolli MSc International MSc Finance MSc International BSc EconomicsFinancial Management Economics & Business

Lara Kranendonk Lea Hamann Martijn Boeve Martijn Vruwink BSc Business BSc International MSc Finance MSc Finance Economics Business

Remko Gerbrandij Rianne van Raaij Rosalie Dekker Vincent Meulendijks MSc Controlling MSc International MSc International BSc Economics & Economics & Business Financial Management Business Economics


IFP Board 2015If you are interested, we would like to make an appointment to discuss the research possibilities

for your company. Do not hesitate to contact us if you have any questions.

The IFP Board 2014-2015 (from left to right):

Koen MeursPR & LogisticsMSc Finance

Bas KallenbergExternal Relations and TreasurerMSc Accountancy & Controlling

Mathijs LindemulderChairmanMSc Finance & MSc International Economics and Business

Jorg MeierVice-Chairman and External RelationsMSc Finance & MSc International Financial Management

Harm SchievinkExternal RelationsMSc Finance

Main Partners Risk

Tel: +31 (0)50-363 73 06

E-mail: [email protected]

Website: www.riskifp.nl

Financial Study Association Risk

Nettelbosje 2

5414.0040

9747 AE Groningen

The Netherlands

Colombia

Risk is af�liated with the Economics and Business studentFaculty association

Main Partners Risk

information brochure ifp colombia 2015

Documents

latin americas growth

colombias growth

robust growth

trade links

attractive country

free trade agreements

free trade zone

important trade partner