The Orange Law

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The Orange Law, otherwise known as Law 1834 of 2017, is a piece of legislation designed to support the growth and development of creative businesses.
What are the main aims and objectives?
The main aim of the Orange Law in Colombia is to support the growth and development of the country's creative industries, which include intellectual property-based sectors such as books, movies, software, and advertising. In particular the law intends to make it easier for creative businesses to access credit and tax exemptions. Ultimately, the Orange Law aims to diversify Colombia's economy, reduce dependence on natural resources, and create opportunities for artists and creative professionals throughout the country. 
How does the program work?

The Orange Law contains five main policy mechanisms designed to promote entrepreneurship including; access to finance, tax relief, cultural branding, startup support programs; training for entrepreneurs; and localised development areas.  

Creation of credit lines 

Creative ventures are able to access grant funding through the Development and Innovation Unit (iNNpulsa Colombia) and the Emprender Fund of the National Learning Service (Sena). Overall, the funding streama is worth more than $150 million dollars.  

Tax exemptions 

New entrepreneurs who invest in the orange economy and create employment can receive income tax for five years. The measures also include the full deduction of VAT paid on the importation, formation, construction or acquisition of fixed assets; and a gradual reduction in the presumptive rental rate from 3.5% to 3% in 2019, 1.5% in 2020 and 0% in 2021.  

Created in Colombia 

The law also establishes the “Created in Colombia” seal which exists as a brand to promote the cultural and scientific goods and services created in the country to promote.  

Startup Support 

The law also allows for the creation of programs to support the startup ecosystem. This includes accelerator programs and the “Intelligent Manufacturing” by iNNpulsa Colombia and MinComercio which encourages SMEs in the manufacturing sector to adopt new technologies such as big data, 3D printing, AI etc.  

Training programs 

The law increases the availability of scholarships and credits for entrepreneurs to receive training in disciplines considered cultural and creative. 

Orange Development Areas 

Orange Development Areas (ADN for its Spanish acronym) are zones within Colombia that are specifically designated to foster the growth and development of the creative and cultural industries under the Orange Economy Law. These areas aim to promote collaboration, innovation, and investment in creative industries, providing a supportive environment for artists, creators, and entrepreneurs to thrive. 

What is the overall cost?
There were no direct costs associated with the passing of the Orange Law, however, the law sets out provisions for support programs and funding streams that will require significant funding from the central government. The overall cost of this package is unknown, but $150 million has been provided to fund the creation of credit lines.  
How was it implemented?

The Orange Law was developed as a legislative initiative to support and promote the creative and cultural industries (CCIs) in Colombia. It was proposed by Iván Duque, who was a senator at the time, and aimed to establish the Orange Economy as an engine for development. 

The Orange Law approves the creation of the National Council of the Orange Economy (CNEN). The CNEN is a governing body in Colombia that provides horizontal governance for the creative economy. The council supports the government in implementing and overseeing policies across various government portfolios related to culture and creativity. Its main objective is to promote the growth and development of the creative industries as a key sector for the country's transformation, economic growth, job creation, and social impact. The CNEN works in conjunction with the Ministry of Culture and other relevant agencies to ensure the effective implementation of the Comprehensive Orange Economy Policy as outlined in Law 1834 of 2017. 

Likewise, the Orange Economy policy in Colombia is structured around seven strategic lines, also known as the Seven "I's", which aim to foster the growth and development of the creative and cultural industries. These strategic lines include: 

  1. Information: Gathering data and research on the creative industries to better understand their needs and potential. 

  1. Investment: Facilitating access to financial opportunities for creative entrepreneurs and businesses. 

  1. Infrastructure: Developing cultural infrastructure to support the growth of the creative economy. 

  1. Industry: Generating entrepreneurial policies that encourage innovation, collaboration, and competitiveness within the creative industries. 

  1. Integration: Supporting value chain integration to connect different segments of the creative economy and enhance their collective impact. 

  1. Inclusion: Promoting social and cultural inclusion to ensure that the benefits of the creative economy are accessible to all communities within Colombia. 

  1. Inspiration: Inspiring creativity through education, training, and awareness programs that foster a culture of innovation and artistic expression. 

What impact has been measured?

The orange economy was worth approximately $10.8 billion to Colombia’s economy in 2019 (accounting for roughly 3.5% of national GDP). President Duque had promised to grow this share from 3% to 5% in 2017. However, this percentage dropped to 2.5% in 2020 and was broadly stable in 2021. It is worth noting that the Covid-19 pandemic was likely to have played a role in this disappointing outcome.  

The Colombian government can point to the following levels of participation in programs associated with the Orange Law: 

  • Through the National Concentration Programme led by the Ministry of Culture, in 2019, 2,300 cultural projects and activities in 530 municipalities received financial support: 

  • 53 projects under the line of cultural entrepreneurship 

  • 72 under artists’ circulation on a national scale 

  • 205 under strengthening of cultural spaces 

  • 773 under artistic and cultural activities of limited duration 

  • The National Stimulus Program granted a total of 930 incentives in 2019 

  • Of this 25 calls and 121 incentives were granted through the orange stimulus package 

  • The 2020 call grew its budget by 3% and was launched in April of that year 

  • Through the National Concerted Venue Programme, 102 projects were supported in 2019 

Additional outcomes they have achieved include: 

  • The National Council of the Orange Economy has met five times and defined policy guidelines and strategies for the positioning of culture and creativity on the agendas of public and private sector organizations 

  • Progress has been made towards the design of a Comprehensive Policy for the Orange Economy across different sectors from civil society 

  • Regional mapping of creative ecosystems has been carried out in nine cities 

  • The Mujeres Tejedoras de Vida (Women Weavers of Life) program that provides technical assistance and business support for high-risk groups of women was implemented in eight municipalities, providing assistance to 290 women.  

There are currently no impact studies available for the Orange Law so it is not possible to assess the true extent of its influence.  

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom