Fostering Sustainable Investment in Colombia

In the eastern and mainly rural Colombian department of Casanare, petroleum extraction has become central to the local economy. Throughout the 44.640 squares kilometers of Casanare, over 60% of the departmental economic activity was derived from livestock activities back in 1990. Likewise, in 1990, crop agriculture represented some 9% of Casanare’s economy and oil represented 12%. However, by 2012, petroleum activities already accounted for more than 60% of the department’s economic activity, while livestock had decreased to approximately 7% and crop agriculture to 3%. Furthermore, by 2014, Casanare accounted for almost one fifth of Colombia’s aggregate oil extraction of about 980.000 barrels per day (bpd).

Fostering Sustainable Investment in Colombia

This dramatic economic shift, throughout some 25 years, is due to several factors including the international oil boom as well as the environmental deterioration of Casanare. Simultaneously, in 2010, the Chinese state-owned giant Sinopec started operating in Casanare through one of its local subsidiaries, New Granada Energy Colombia (NGEC). In total, Chinese owned companies in Colombia are estimated to have extracted approximately 25.400 bpd throughout 2014. That year, Mansarovar Energy (Sinopec) extracted about 38.900 bpd, of which 10.600 bpd went to the company’s Chinese interest, while the rest went to the Indian interests also invested in Mansarovar as well as Colombia’s national oil giant, Ecopetrol. Similarly, in 2014, Emerald Energy (Sinochem) extracted 6.600 bpd, while New Granada Energy Colombia (Sinopec) accounted for 8.200 bpd. Furthermore, in the case of the oil reserves exploited by New Granada Energy Colombia, approximately 90% of them are located in the department of Casanare.

The case of Chinese capital within Colombia’s petroleum sector is just one example in what has become a regional trend and policy. In 2016, China’s Ministry of Foreign Affairs put out an extended and comprehensive Policy Paper on Latin America and the Caribbean. This document highlights the region’s potential as a land of vitality and hope, while also calling for a new stage of comprehensive cooperation. In this regard, the document identifies thirteen points for increased cooperation within the economic field, namely trade, financial cooperation, industrial investment and capacity cooperation, infrastructure, manufacturing, energy and resources cooperation, scientific and technological innovation, and agriculture, amongst others.

Within this context, Farmfolio’s CEO J. Dax Cooke has conceptualized organic agriculture into an innovative and alternative asset for foreign investment by western interests. Farmfolio’s Farmshares contributes to the communities within which they operate, while yielding high returns for their foreign investors and stakeholders. An industry pioneer, Farmfolio’s CEO J. Dax Cooke has created a new investment model for sustainable economic development and renewed cooperation throughout Latin America and the hemisphere.

(Read more about Natural Resources and Investment in Colombia)