Financial Study Association Groningen
International Financial Program Research in Colombia
IFP April 2015 The Destination The Program What do we offer? www.riskifp.nl Main Partners Risk
Risk is affiliated with the Economics and Business student Faculty association
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.”
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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.
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About Financial Study Association Risk Risk is thĂŠ 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.
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About Colombia
Key facts 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
Capital: Bogota Language: Spanish (official) Population size: 48.32 million (2013)
more than two years, even as growth slowed in Peru,
GDP: $378.1 billion (2013)
Chile and Brazil. This macroeconomic performance in
GDP per capita: $7,825 (2013)
combination with improving fiscal and political stability
GDP per capita PPP: $9,125 (2013)
as well as peace negotiations are part of this success.
GDP real (annual) growth rate: 4.6% Source: The World Bank
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?
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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.
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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)
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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)
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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.
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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.
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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.
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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:
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microcredit
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business development
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risk analysis
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investment analysis
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market analysis
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conducting audits
Previous research:
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The banking climate in Panama
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The possibilities of the expansion of the Panama Canal
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The attractiveness of the Peruvian insurance and pension market
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Foreign direct investments
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Former Clients
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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 Professor at the University of Groningen
Andy Marchant Product Line Manager at TomTom
Prof. Dr. J.W. Velthuijsen Partner and chief Economist at PwC Economic Consulting Professor at the University of Groningen
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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’.
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Willem Velthuijsen Jan “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.
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Participating Students All 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 MSc Organisational Management Control
Boudewijn Leutscher MSc Finance
Eva Dieben MSc International Financial Management
Lara Kranendonk BSc Business Economics
Remko Gerbrandij MSc Controlling
Jan Jongsma MSc Finance
Ellen Koster BSc International Economics & Business
Joran Heeman MSc International Economics & Business
Lea Hamann Martijn Boeve BSc International MSc Finance Business
Rianne van Raaij MSc International Economics & Business
Rosalie Dekker MSc International Financial Management
Emma Kruijswijk MSc Finance
Justin Arnolli BSc Economics
Martijn Vruwink MSc Finance
Vincent Meulendijks BSc Economics & Business Economics
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IFP Board 2015 If 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 Meurs PR & Logistics MSc Finance Bas Kallenberg External Relations and Treasurer MSc Accountancy & Controlling Mathijs Lindemulder Chairman MSc Finance & MSc International Economics and Business Jorg Meier Vice-Chairman and External Relations MSc Finance & MSc International Financial Management Harm Schievink External Relations MSc Finance 18
Risk International Financial Program 2015
Colombia
Financial Study Association Risk
Tel:
+31 (0)50-363 73 06
Nettelbosje 2
E-mail:
ifp@verenigingrisk.nl
5414.0040
Website: www.riskifp.nl
9747 AE Groningen The Netherlands Main Partners Risk
Main Partners Risk
Risk is affiliated with the Economics and Business student Faculty association