Colombia: The New Tech Hub of Latin America Drives Economic Growth Through Software and IT Sector Expansion presented by ProColombia

Colombia, the country of beauty, known for its natural and cultural wealth, is also emerging as a technological leader in Latin America. Colombia has solidified its position as a digital hub, leading the region thanks to its vibrant Software and Information Technology (IT) ecosystem.

“In 2023, the Software and IT sector accounted for 3.0%¹ of the national GDP, while sector sales reached USD 2.17 billion, positioning Colombia as the third-largest software and IT market in Latin America, after Brazil and Mexico. Additionally, sector exports grew at an average annual rate of 23% between 2016 and 2023². This dynamism is the result of a favorable economic environment, incentive policies, and a skilled workforce,” highlighted Carmen Caballero, President of ProColombia.

Key Factors Behind the Success

• Dynamic Digital Economy: Colombia’s tech startup ecosystem has experienced accelerated growth, with an annual rate of 28%³ between 2019 and 2023, according to the Colombia-tech-2022-2023 report. Sectors such as e-commerce, fintech, and digital health are driving this transformation.
• Connectivity and Digitalization: According to the Digital 2024 Global Overview⁴, Colombia has made significant progress in connectivity, with 75.7% internet penetration and 77 million active mobile cellular connections, equivalent to 147.5% of the total population. The government has invested in digital infrastructure, expanding internet access across the country. One of the Ministry’s key achievements in 2024 was increasing national connectivity by around three million people, mainly in remote regions.
• Qualified Human Talent: The country boasts a growing and highly skilled workforce in the IT sector. The number of graduates in related fields has doubled since 2010, and the government has launched training programs to further develop this talent. The Colombia Potencia Digital program, which aims to provide free training to one million students across all age groups, is now in motion. Between 2010 and 2023, 381,563 people graduated in areas related to the sector, with 37,000 graduates in 2023⁵ alone. This number is expected to continue rising, supported by training programs from the Ministry of Information Technologies.
• Expanding Startup Ecosystem: Colombia has become one of the top destinations for tech entrepreneurship. According to the Global Innovation Index 2023⁶, Colombia ranks Fifth in Latin America, holding the same position in the Venture Capital and Private Equity Attraction Index.
• Government Support: The Colombian government has established favorable policies for the sector, such as free trade zones, tax incentives, mentorship, and funding programs.

“With a constantly evolving digital economy, highly qualified human talent, and a favorable business environment, Colombia stands out as a benchmark for technological innovation in the region. The country is ready to continue growing and positioning itself as a key player in the global knowledge economy,” concluded Caballero.

¹ Source: Software: https://www.statista.com/outlook/tmo/software/worldwide?currency=USD&locale=en

TI (Sin incluir BPO, ni other IT services): https://www.statista.com/outlook/tmo/it-services/worldwide?currency=USD&locale=en#revenue

² Source: Balance of payments, Banco de la República (Banrep).

Note: It includes items 1.A.b.9.2 Computer services and 1.A.b.8 Use of intellectual property n.e.

³ Source: https://bibliotecadigital.ccb.org.co/items/a9469699-82cc-48eb-839c-c3d3891cb242, Slide presentation No.#5

⁴ Source: https://indd.adobe.com/view/8892459e-f0f4-4cfd-bf47-f5da5728a5b5, Slide presentation No. #39.

⁵ Source: Ministry of National Education

Includes ISCED (International Standard Classification of Education): Information and Communication Technologies (ICT), Electronics, and Automation.

⁶ Source: https://cnc.gob.do/wp-content/uploads/2023/12/Indice-Global-de-Innovacion.pdf, Slide presentation No. #4

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