Digital Goods

Will Colombia become the Latin American Silicon Valley?

  • Ivan Duque, Colombia’s president, intends to turn the country into an even more attractive market for startups by reducing taxes
  • The creative sector already represents more in Gross Domestic Product (GDP) than traditional sectors such as coffee and mining in Colombia.

According to Colombian President Ivan Duque, the answer is yes. During the last Cannes Lions International Festival of Creativity, Duque spoke about the importance of investing in the creative industry and the policies that the country has embraced to develop young employment.

Currently in Colombia, the Orange Economy, which involves cultural and creative goods and services, represents more in Gross Domestic Product (GDP) than traditional sectors such as coffee and mining.

During an interview for Euronews.com, Duque talked about the growing role of sectors such as movies and music in the country’s economy. “Colombia has many sectors that are growing rapidly. I would say the movie sector has grown a lot in the last decade. Publicity or advertising represents almost 0.3% of GDP. And last, but not least, the music industry in Colombia is also growing very fast, especially when you connect it to traditional sectors such as tourism“.

As the Colombian president told Euronews.com, these sectors were heavily taxed when he assumed office, in August of 2018. In order to boost investments, his government reduced taxes on corporations.

We also wanted to have more startups in the creative and technology sectors and we embraced a policy of zero income tax for the first seven years with a minimum amount of investment and a minimum amount of jobs being created. I hope Colombia will become the Latin American Silicon Valley”, completed Duque.

Read more about it: “SaaS Business: Why you should care about Colombia’s VAT exemption for Cloud Services

C Emprende

Last May, the president announced the launching of the C Emprende Program and a $ 20 million investment in the capital Bogota, where a center focused on artificial intelligence will be built.

The program’s objective is to open innovation hubs in Monteria, Medellin, Cali, and other Colombian cities to provide spaces of collaboration for entrepreneurs and startup companies.

According to an article published by Colombia Reports, the program aims to impact 400 entrepreneurs in the first year and as many as 3.000 in the next three years.

The result we hope to achieve is that Colombia will be considered the country of entrepreneurial opportunities in Latin America”, said Duque.