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Canada, Ethiopia starting talks towards investment agreement: Trudeau – National Post

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ADDIS ABABA, Ethiopia — Prime Minister Justin Trudeau says Canada and Ethiopia are preparing to start negotiations towards a foreign investment protection agreement.

Trudeau is in Addis Ababa to meet with Prime Minister Abiy Ahmed and President Sahle-Work Zewde.

He spent more than two hours with Abiy, including more than an hour in a private tour of a new public park and zoo on the grounds of the prime minister’s residence.

He also had a working lunch with Zewde at Jubilee Palace.

Both meetings are part of Canada’s agenda to secure support from many African nations as it vies for a seat on the powerful United Nations Security Council in June.

However, Trudeau says this trip is about more than just the UN and told both Abiy and Zewde he sees immense potential for Canada and Ethiopia to help each other grow.

He says that’s why the two nations are about to start working towards an investment agreement.

“This visit is a chance for us to take our partnership and our friendship to the next level,” Trudeau said Saturday.

“We have an incredible opportunity before us.”

We have an incredible opportunity before us

FIPAs, as they are often referred to in official circles, encourage investment between two nations. Canada already has at least two dozen FIPAs in place.

Ethiopia is not a big economic partner for Canada currently, with just $170 million in two-way trade in 2018, more than three-quarters of it Canadian exports.

However, Ethiopia is the fastest growing economy in Africa and one the five fastest in the world.

Trudeau also revealed a $10-million contribution to the African Union Commission for gender equality and women’s empowerment. He gave a speech at a breakfast hosted by the African Union and the funds were well-received by the mostly female audience. Trudeau is the first Canadian prime minister to attend an African Union event.

The breakfast was a side event to the African Union’s 33rd session in Addis Ababa on Saturday, but many African scholars in Canada say Canada’s efforts to advance its relationships in Africa comes very late in the game.

That was a feeling echoed by the head of one of Canada’s biggest challengers for two seats available in the group of countries Canada is in. Norwegian Prime Minister Erna Solberg said Norway and Canada are pursuing African support in similar ways but that Norway has been a steadier partner over the years.

“I think one of the differences, of course, is we have been on the steady same path for a very long time, so they know us,” Solberg said.

Canada’s economy is larger but Norway proportionately spends more on foreign aid and international efforts, she added.

Cabinet ministers accompanying Trudeau insist the relationship with Africa is not last-minute, nor is it solely because Canada needs many of Africa’s 54 votes at the UN to win the seat. There are two seats up for grabs and Canada is vying for them against Norway and Ireland.

“It’s not like we were absent and now we are showing up,” said Families Minister Ahmed Hussen. “Nothing could be further from the truth.”

Solberg also met with Abiy and Zewde on Saturday. She also was in Ethiopia a year ago when she had talks with Abiy. This is Trudeau’s first visit to Ethiopia.

Irish Taoiseach Leo Varadkar visited Ethiopia and met with Abiy in January.

Where Abiy’s vote will go at the UN is unknown but he was warm to Trudeau. They spent more than two hours together at a private meeting, an expanded bilateral meeting with officials and ministers from both countries, and the tour at Unity Park.

The public park and museum was previously private space and is one of Abiy’s pet projects. At the end of the tour, Abiy and Trudeau had coffee and shared some Ethiopian food, and continued talking for more than 20 minutes.

Abiy told Trudeau that Ethiopia is grateful for the diplomatic relationship between the two countries

Abiy told Trudeau that Ethiopia is grateful for the diplomatic relationship between the two countries, which began more than 50 years ago. But he added that Canada’s influence actually began much earlier than that with missionaries and Canadian aid dollars.

“We are very much grateful about it,” he said.

Trudeau told Abiy he is “much more interested” in building economic partnerships going forward.

Trudeau also met with African Union Commission chair Moussa Faki Mahamat, Rwandan President Paul Kagame and Ulisses Correia e Silva, the prime minister of Cape Verde.

Later on Saturday, he was to attend an African Union panel discussion about the “blue economy” which refers to the use of water bodies for sustainable economic prosperity.

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Short Term vs Long Term Investments: Gauging the saving spectrum – Economic Times

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Quick wealth creation is what financial markets consider; however, investing as a practice is a long-term process. While an investor’s capital can be invested in the short-term and long-term, both forms of investment have their merits and demerits.

Typically, short-term investments involve less risk than long-term investments. Long-term investments give the investor’s money a substantial period to grow and recover from major dips in the market.

Having clear and crisp financial goals can help the investor decide whether to choose short or long-term investments and which vehicles within those categories aim towards personalized investment gains.

Before choosing any investment strategy, the investor ideally needs to do proper research on which asset types suits their need.

What is suitable for one investor might not be in sync with another’s financial objectives, so one must consider their overall goals along with the risks one is willing to take.

Short-term investments have a validity period typically up to three years – high liquidity instruments, generally involving lesser market risks.

Also, these temporary investments are mostly used for parking excess funds for a short period. Short-term investments are highly liquid and hence are used by investors to meet expected near-future expenses.

Less risky in nature, these short-term investment products have a short tenure and give predictable returns as compared to long-term investments be it –

Treasury bills which can be redeemed within 91 days and is a high liquidity instrument.

● Gilt Funds which invest only in government securities and owing to zero credit risk, are safe investment funds.

● Ultra-short-term debt funds wherein the maturity period ranges between three to six months and provides comparatively higher returns.

● Low duration debt funds whose maturity period ranges between six and 12 months, these funds invest in debt and money market instruments.

● Money market funds that invest in money market instruments and have a redemption period of up to one year.

● Bank fixed deposits that can be renewed on maturity and their tenure can range from 14 days to 10 years. Also, liquidity can be a concern here as some banks don’t allow premature withdrawals.

● Company fixed deposits can have a tenure of more than one year

● Post office time deposits have tenures ranging from one to five years and similarly Recurring deposits can open an RD for a duration as low as six months. Sweep-in-Fixed Deposits as against low returns on savings accounts, these offer comparatively higher returns, with a minimum tenure of around 12 months.

On the other hand, long-term investments are investments that can offer high returns after several years, typically five years or more – involving more market risks.

Be it via stocks, ETFs, mutual funds, etc. Investments in stocks earn quite high returns if patience is kept high (Of course, this cannot be guaranteed but you should assess your risk-taking capacity before thinking of investing in stocks).

Having a deeper understanding of the market movements so that the investor makes wiser financial decisions and when to sell the stocks, investing in stocks and securities requires a trusted financial partner, who can provide hassle-free features to open an online Demat and Trading Account.

Another long-term investment avenue for receiving higher returns is Equity Mutual Funds where the investor gets to pick from small, mid-cap, and large-cap equity mutual funds for the long term to achieve greater financial goals.

Ultimately, the short-term investment gives levy to the investor to achieve their financial goals within a short span and with lower risk (depending on which asset you pick), if the investor has a greater risk appetite, and wants higher returns, they can select a long-term investment avenue.

To further simplify, if the investor wants to preserve their capital and is happy with moderate returns then they may choose short-term investments but, with the expectation of a higher return, the investor may invest in long-term investment avenues.

(The author is Senior Vice President, at mastertrust)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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Hong Kong Investment Bank’s 2,325% Surge Baffles Local Investors – BNN

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(Bloomberg) — Another little-known Hong Kong-based financial services firm is mystifying investors with a dramatic price surge following its US listing. 

Magic Empire Global Ltd., which provides underwriting and advisory services and has helped just one company go public since 2020, surged 2,325% in its debut session Friday in New York to a market capitalization larger than football club Manchester United Plc. Magic Empire is the seventh firm this year from Hong Kong or China to experience similarly surprising moves. 

“This price level has clearly shown it is not sustainable,” said Ken Shih, head of wealth management in Greater China at Saxo Capital Markets HK Ltd., adding that without knowing who is doing the buying, it is hard to be definitive. “At this point, downside risk for investors clearly outweighs upside.”  

Last week, Hong Kong financial services provider AMTD Digital Inc. briefly became bigger than Goldman Sachs Group Inc. after a 14,000% gain in less than a month. The moves are particularly notable at a time of otherwise muted IPO activity and with Chinese companies Alibaba Group Holding Ltd. and JD.com Inc. threatened with delisting if they fail to comply with American auditing standards.

Magic Empire reported revenue of $2.2 million in 2021, a 17% drop from a year earlier. The company’s operating entity, Giraffe Capital Ltd., completed just one IPO in 2020 and none last year “due to COVID-19 and volatile outlook of the Hong Kong capital market,” according to the prospectus. Friday’s price surge brought Magic Empire’s market capitalization to $1.9 billion.

“The wild swings are likely due to the concentrated ownership, which certainly raises red flags,” said Kakei Lam, fund investment officer at Metaverse Securities Ltd. “I don’t see a resemblance to the meme-stock mania, given the thin trading volume.”

Magic Empire’s chairman Gilbert Chan Wai-ho and chief executive officer Johnson Chen Sze-hon co-lead Giraffe Capital, which obtained a license to provide corporate finance services in 2017. The firm mostly works on IPOs on GEM, the small-cap exchange, and often engages other small local brokerages as underwriters, including KOALA Securities Ltd., HKMonkey.com and Yellow River Securities Ltd. Chan and Chen own most of Magic Empire, with a combined stake of about 63%. The firm had just nine employees as of December 2021, according to its prospectus.

Hong Kong’s Scandal-Plagued Small-Cap Exchange Left for Dead

About half of the companies Giraffe Capital has taken public jumped on the first day, some by as much as 125%. Seven are now trading 30% to 92% lower than IPO price and another has been delisted.

Magic Empire didn’t respond to an email request for comment and calls to the phone number listed on its website weren’t answered.

In the first half of this year, fundraising in the Hong Kong IPO market dropped 92%. With the tiny companies that make up their customer base under close regulatory watch, small- and mid-sized financial advisory firms like Giraffe Capital have had a particularly tough time.

In 2017 and 2021, the Securities and Futures Commission and the Hong Kong stock exchange issued two rounds of warnings about so-called ramp-and-dump schemes tied to small-cap IPOs. These schemes manipulate very thin trading volume to inflate prices, luring unwary investors before shares collapse. 

The SFC declined to comment for this article, but has previously identified four typical features of problematic IPOs: 

  • Market capitalization barely meets the minimum threshold
  • Price-to-earnings (P/E) ratio is very high given the firm’s fundamentals and the valuations of its peers
  • Underwriting commissions or other listing expenses are unusually high
  • Shareholding is highly concentrated in a limited number of shareholders

Magic Empire’s relatively modest revenue means it qualifies as an “emerging growth company” under American legislation, according to its prospectus. These firms enjoy reduced reporting requirements compared to larger US-listed public companies, with only two years of audited financial statements required and disclosure obligations regarding executive compensation pared back. 

(Updates with Kakei Lam’s comments.)

©2022 Bloomberg L.P.

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Investment in Alberta's tech sector soars – CBC.ca

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Several Calgary-based tech companies are planning to hire more people and expand their office space as hundreds of millions of dollars flow into the sector.

Through the first half of the year, Alberta has attracted nearly $500 million in investment, according to briefed.in.

“We’re growing very, very quickly,” said Nic Beique, the founder of Calgary-based Helcim, which offers online payment services for small businesses across Canada and the United States.

The company recently received $16 million in venture capital funding from investors in Toronto and New York.

“We’ve doubled our business in the past six months alone, so our investors are already quite happy with that progress,” Beique said from the company’s headquarters in Eau Claire. 

Nic Beique is the founder and CEO of Helcim, a Calgary-based fintech company that offers payment solutions for businesses. The company recently received $16 million in venture capital funding. (Bryan Labby/CBC)

Beique says the company has grown by 400 per cent in the past year. It’s gone from 80 employees late last year to 145 today. He plans to hire 100 more people by the end of next year.

“My long-term goal is to build an anchor tenant in the Calgary tech scene. So when people think about Calgary, they think about Helcim … the way Shopify was able to do that with Ottawa, where they really kind of put them on the map for tech. I want to do that in Calgary as well.”

According to briefed.in, Alberta’s tech sector recorded $268.6 million in venture funding in the second quarter alone — in the same quarter a year ago, only $16 million was raised. 

Hirings, office expansion

Another rising star in the city’s tech scene is Virtual Gurus, which provides companies with virtual assistants to carry out a range of administrative duties for businesses in Canada and the States. 

Two years ago, the company had five employees. It now has 40 and plans to double that number by the end of the year, which will require more office space.

“We’re looking at expanding upstairs in order to facilitate that growth,” said Margaret Glover-Campbell, the company’s chief operating officer.

Margaret Glover-Campbell, chief operating officer of Virtual Gurus, is looking to more than double its number of employees in downtown Calgary by the end of the year. (Bryan Labby/CBC)

Virtual Gurus, which aims to hire more people from minority groups, including people with disabilities and members of the LGBTQ community, recently received $10 million in funding from several venture funds. The money will be used to help the company grow and launch a new app in the coming months.

New funding sources

Calgary-based startup ZayZoon, which previously relied on individual, private investors, recently raised $25.5 million in funding to help it expand. ZayZoon offers people early access to their earned wages and has partnered with approximately 3,000 businesses in the U.S. The company has 70 employees but plans to hire 15 more by the end of the year. 

One of its investors is Alberta government-owned ATB Financial, which is providing a $13-million debt pool for the company to use when clients seek an advance on their earnings.

Darcy Tuer, left, Tate Hackert, middle, and Jamie Ha are the founders of Calgary-based startup ZayZoon, which provides clients with early access to their earned wages. (Tate Hackert/ZayZoon)

Tate Hackert, one of the company’s founders, says ATB’s support is a boost for his company and the city.

“It’s just such a great story for Calgary,” he said.

“It just shows that there is more to invest in here than oil and gas, and we’re really looking forward to being part of that success story, right?”

Finding employees a challenge

An ongoing challenge for most tech firms is finding employees to support their expansion plans.

“We’re absolutely hiring as many people as we can. It’s a really tough market in Calgary because we do have so many tech companies here that are trying to hire people,” said Glover-Campbell.

Helcim says it takes a unique approach to hiring and provides greater opportunities for recent graduates of post-secondary schools. It aims to hire young professionals right out of school and provide on-the-job training and mentorship. 

Employees of Helcim in downtown Calgary. The company plans to add 100 more employees by the end of 2023. (Bryan Labby/CBC)

“Our focus is on giving these young professionals the ability to start their career at Helcim instead of fighting for senior talent,” said Beique.

He also says recent cooling off in the sector could help level out the demand for talent and help his company attract and retain staff.

Calgary has a lot going for it, Beique says, including an affordable cost of living and a good quality of life. He says 20 per cent of the companies’ recent hires are coming from outside the city.


Bryan Labby is an enterprise reporter with CBC Calgary. If you have a good story idea or tip, you can reach him at bryan.labby@cbc.ca or on Twitter at @CBCBryan.

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