For the past two decades, oil has fuelled Colombia’s economic growth, one of the strongest in Latin America.
But the country’s reserves could run dry in six years. While there is much potential in unconventional reserves, the courts have imposed a moratorium on fracking in Colombia, which means that oil is currently off limits.
Colombia must look for other sources of revenue to recover from the economic fallout from the Covid-19 pandemic. But the government has other options for boosting the economy. It says it will bank its recovery on three “pillars” with the aim of pushing GDP to grow by 6 per cent next year (Capital Economics forecasts that GDP will fall 7.5 per cent in Colombia this year and bounce back by 5 per cent next year).
The first is renewable energy. Colombia is rich in renewable resources. It receives regular sunlight all year round. La Guajira, a