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Investing in Greece: A strong challenge for people who want to take risks with high reward

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If you watch any news, you’ve probably informed that Greece has been going through a financial crisis for years. Greece is overextended and it risks defaulting on its loans. This fact shows that without some sort of bailout or extension, the country may not make good on its debts.

So investing in Greece at present is undoubtedly a high risk investing movement. Some persons might say “The country can’t pay their debts. Why invest my money there?” But history has taught us that when things look bleak, it’s usually the best time to invest. In general terms, when prices are depressed, that’s the time to invest and capitalize.

However it has to be understood that the Greek situation is not a temporary problematic situation that will balance out but an issue that runs much deeper. If we look at the history of the Greek index in order to see how healthy the stock market is, we will see things don’t look so hot. The economy is looking so bleak, that in 2013 MSCI (Morgan Stanley Capital International: an index that tracks markets around the world) dropped Greece from a developed country back to an emerging market. The reclassification means better potential returns but also significantly more risk.

Greece as a country is in dire financial straits. However, many companies that are incorporated are still producing, still selling, still earning money and generally they are still doing well. The problem is that the financial problems extend well beyond the Greek borders because the euro is slipping in value compared to the dollar. One of the biggest issues is that the euro is holding many countries back and not just Greece.

So you may ask: What does an investor do?

Undoubtedly, for persons who want to take risks, Greece is a great investment. In fact, investing directly into the Greek economy through an ETF (Exchange – Traded Fund) is the easiest way to do so. Τhree Greek ETFs currently exist: one from “Apha Asset Management” and two from “NBG Asset Management”. Another option is finding another mutual fund or index that closely tracks the Greek economy. If you are somebody who would take a big risk that could yield big gains, then you may invest in Greek bonds. On the other hand, people who are a little more risk averse can still capitalize on the depressed economy by investing in attractive Greek companies that are still poised to take off. Several larger companies will trade on a US exchange, so you don’t have to worry about losing money to the dollar/euro exchange. If you are one of the persons who need more of a sure thing, then investing in those companies on the US exchange might be the better choice.

Certainly there are ways to grow your portfolio by taking calculated risks. You can invest in the country, the index or the companies that are domiciled there. The decision where to invest is yours and it’s up to your age, the potential time to recover and the desire to risk.

Strong Points of Investing in Greece

Greece is a country, in the south east coast of Europe with a privileged, geographically strategic location, ideal for those seeking to supply the European market or expand their businesses to other parts of the world. Greece is a strategic link to the emerging markets of the Balkans, Black Sea, Eastern Europe and Eastern Mediterranean regions. Besides as a member of the European Union and the Eurozone, Greece is a significant gateway -without any trade barriers- to million consumers in Southeast Europe and the Eastern Mediterranean. Furthermore a strong point of investing in Greece is its competitiveness within the active population in terms of education, manpower costs and work productivity. Also its infrastructures are improving in a significant way, mainly due to the 3rd European Union community support framework.

Weak points of Investing in Greece

A significant weak point of investing in Greece it is the fact that Greek economy has always been and continues to be subject to intense governmental regulation. Moreover, growth has been financed by private sector loans and the public sector’s absorption of EU structural adjustment funds, which has caused a large public deficit. Furthermore according to Transparency International the country has to tackle high levels of corruption that affect several aspects of the economic and commercial life.

Key Sectors of Economy

Services are the largest and fastest growing sector of the Greek economy. Trade and financial services, real property management, tourism industry, health, education, transportation and communications are the largest service sectors. Greece has also a long shipping tradition.

Energy: Moreover, the country’s energy sector is evolving. Greece has a liberalized energy market and is evolving into an energy hub in this decade. Alliances with major foreign companies and oil and gas agreements have positioned Greece as the country to do business in energy.

Tourism: Greece ranks in the top 15 destinations worldwide. Annual arrivals are 20 million. Regional instability and especially in Turkey will contribute to the increase of tourist traffic in Greece.

Food & Beverage: is a high growth sector in Greek manufacturing. Twenty-five percent of the most profitable Greek companies are food & beverage companies. Production growth rate is almost double that of the entire manufacturing industry.

Technology: The ICT sector is one of the most significant in the Greek economy, driven significantly by the demand for automation and digitalization in the Greek public and private sector

Aid and Free Zones

Financial Aids are granted to companies that introduce new products and new technologies within the Greek market and to companies that modernize sites and production tools. Furthermore aids are granted to companies that protect the environment by making for example energy savings. In Greece, there is a variation of the amount of aids with the geographical regions. For further information on these aids, the organizations should be contacted ELKE and the Ministry Of Finance.

Furthermore Greece has three free-trade zones, located at Piraeus, Thessaloniki and Heraklion port areas. Greek and foreign-owned firms enjoy the same advantages in these areas. Goods of foreign origin may be brought into these zones without payment of customs duties or other taxes and remain free of all duties and taxes if subsequently transshipped or re-exported.

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Economy

CHETRA Eyes Africa for Expansion

Kester Kenn Klomegah

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CHETRA is a Russian company that sells industrial equipment and spare parts under the brand “CHETRA” produced by the Promtractor plant, as well as supplies spare parts and components from the company. It uses a unique technique in the construction of production sites, seaports, development of natural resources and pipelines in 30 countries and in all climatic zones.

The goal is to provide its partners and customers with modern high-performance equipment for successful projects, even in areas with complex climatic and geological backgrounds. More than 3,000 units of equipment under the brand “CHETRA” are now in operation in the Russian Federation and beyond.

Executive Director Vladimir Antonov has been working in engineering industry for 19 years. He has successful experience in product export to the CIS countries and Ukraine, the Baltic States, Europe, Argentina, Africa and Cuba. He has been leading company as its Executive Director since 2018. During his leadership, the share of the company’s machinery in the Russian market has doubled.

In this snapshot interview, Vladimir Antonov talks about his company’s plans in the direction of Africa. Here are the interview excerpts:

Q:First, tell us briefly about tPlants previous working connection with Africa? What are your products and services, what African regions or countries are keen using products?

A:Our company has a long experience of cooperation with African countries which began in the Soviet times and continues today. Traditionally we collaborate in the African continent with such partner countries of Russia as Egypt, Algeria, Zimbabwe. About 50 units of CHETRA machines have been supplied to these countries over the last ten years. Our goal is to enlarge our footprint in the African continent. Nowadays, we are negotiating cooperation with potential partners in West Africa and the SADC region (Southern African Development Community, South Africa).

Q:Compared to other foreign players, how competitive is the African market? From the previous experience in the African regions, what key problems and challenges the company faces in Africa?

A:Today the market of mining and construction equipment in Africa is characterized by high competition, all our competitors work in the region, both from the West and from the East. This has led to the fact that the market applies high requirements to new products. For that reason today we do not just sell our machines to customers: we offer a range of services, which includes commissioning of the machines, training of local staff, organization of after-sales maintenance service at the customer’s site. The main challenge for us today when working in Africa is the need to find a local partner who has qualified staff, equipment, maintenance facilities and not bound by contracts with other manufacturers of similar machines.

Q:What kind of business perceptions and approach could be considered as impediments or stumbling blocks to business between Russia and Africa?

A:Another challenge for us when working in Africa is that many consumers have no free funds to purchase new machines. This often diverts our partner from the renewal of the fleet or makes them buy used machines on the after-market. We are trying to solve this problem by attracting Russian government agencies of export support, such as the Russian Export Center, in order to finance transactions. 

Q:Business needs vital information, knowledge about the investment climate and so forth. Do you think that there has been an information vacuum or gap between the two regions?

A:Taking into account the level of development of information technology today there are no particular problems in obtaining information about the investment level of any country or about business situation of a particular company. Besides that, we are in constant contact with Trade missions at the Embassies of the Russian Federation in the countries of our interest, which are also a good source of information about the conditions of the market.

Q:And now how would you envisage the level of investment and business engagement with Africa? Is Sochi an opportunity for expanding business to Africa?

A:In my opinion the Economic Forum in Sochi was organized at the highest level. A lot of guests from Africa visited it. We held a number of meetings with companies that are new to us, and I hope that these will lead to long-term cooperation and geographic growth of supplies of CHETRA machines in Africa.

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Economy

The Bust: WeWork’s diminishing stature of the perfect “start-up”

Sisir Devkota

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Until recently, the globally acclaimed startup, WeWork was transforming the future of office spaces and staff hiring processes. Truly, it was transformational in the sense that the startup was providing a vital service point to many multinationals around the world. However, Mark Dixon, the cofounder of IWG, another workspace solutions company, was not getting the trick. Here was IWG, a decently profitable startup with consistent annual growth, still unable to compete with the superstar of the industry. Soon after SoftBank poured cash into the company, WeWork was valued for more than $40 bn. Then, it was making headlines for overwhelm; now, WeWork is in a state of awe. As market reports suggest, WeWork even lacks the cash to fire its existing employees.

As Adam Neumann, the chastened cofounder of the dwindling company once proclaimed, co-working was the future and that employees would prove to become more productive and efficient. In his own words, different cultures and organizational goals would inspire the entire floor. Much as the concept is about renting an office space, Mr. Neumann deliberately did not elaborate on the nuisances of dealing with office neighbors, as seen from a tenant’s perspective. The idea would have charmed many organizations; it was a great opportunity to redeem operating costs or dealing with unwarranted office culture problems. Or, as many renting executives thought, WeWork would define the ground rules, aptly in accordance with global standards. For many, it was also an experiment for the future. Also, nobody could take away the fact of losing varied insights from “not” participating in what at first seemed like a once in a time revolution.

SoftBank, a Japanese conglomerate investing fund is writing the most important plot in the story. Strangely, both the rise and fall of WeWork has been catalyzed by SoftBank. However, the fact that WeWork was blessed by an investing fund is not strange, or surprising. Amongst sovereign funders, there is competition to stay one foot ahead of another. The Europeans have long stressed on how very few startups from their region go onto becoming a global giant. SoftBank’s associations elsewhere is a testimony to its deliberate strategy of staying ahead in the future. Notwithstanding the fact that the Japanese investors would have loved the idea of co-working space more than others. In early 2017, WeWork’s market value, shot over $40 bn, even though the company was registering profits below what Mr. Dixon’s firm were accounting to. There was a strange gossip in the market around why other investors were not jumping to what the SoftBank deemed as highly profitable. For many like Mr. Dixon and other investors, answers were soon to be found. If it could only be timely, Japanese angels would have anticipated why Mr. Neumann would sell his rights of the name, “We” in WeWork. It was a five million dollar (plus) exit for the charismatic man, whose venture was taken over by those who thought of multiplying their fortunes. SoftBank will be sorry for its decision to trust the hierarchy in Mr. Neumann’s leadership. Nevertheless, post takeover, Mr. Dixon will not be contemplating any further on why it has decided to appoint two CEO’s. Nor will there be any sort of contemplation on why the new appointees have secured their severance package before paying out dues.

As it stands, IWG is not doing a bad business in comparison to WeWork’s downfall. The American start-up was destined for success from its early years. Co-working will still be a grand idea in our times but filthy abundance in a short period of time has brought a winning project to a standstill. There will be other co-working competitors for IWG, but it will learn from the mistakes of a competitor who was bigger than the entire industry. If anything, Mr. Dixon will be smelling opportunities ahead.

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Economy

Alibaba on Platform Economy

Naseem Javed

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Alibaba on national mobilization of entrepreneurialism on platform economy: today, Alibaba sold $38 Billion within 24 hours: Around the world, currently, there are 100 nations with less than $38 Billion dollars in annual GDP. Imagine if this single company performed at the same rate for next 365 days, it would equal to annual GDP of Japan, Germany, India, France, UK and Canada all combined.  Bravo Alibaba, well done, the world in shock is now fondling in own toolboxes. 

Are Nations Awake: Are there enough reasons to explore how national mobilization of entrepreneurialism on platform economies and how it will uplift local grassroots prosperity?  Are there enough trade-groups, Chambers of Commerce, Trade Associations with enough skills to play in these AI centric digitally advanced and globally friendly market-places? Outside a miniscule number most seriously out-dated trade-groups are in rapid transformation so they too would become shiny butterflies for the new global-age.

Old days of old ways are now new days of new ways.

Salvaging of exportability lost during last decade: Nation by nation, the grassroots medium-size economy was basically, ignored, abandoned and rejected, killing exportable goods and services. So long the trade groups around the 200 nations stuck in their old fashioned comfort zones spanning a century, outside handful organizations most nations are in deep trouble. Observe how nations with riots have the most disorganized, disconnected trade-groups, not due the lack of funding but due to lack of poor leadership with little or no global age skills.

Uplifting working-citizenry after a lost decade on skills: So long the national leadership assumes that MBA degrees are the saviors of their next economy and so long the corporations feels comfortable that all their management is being well trained on YouTube, no additional proof of this fallacy is necessary other than decimated economies and chaos on the streets.

Understanding The Third Economy: During the first economy; rules of engagement and rules of balancing the books were established, the second economy; where fancy jargon was invented to cook the books to balance with political agenda and now the upcoming third economy where real numbers will balance the real books with real columns all managed by artificial intelligence and block-chain delivering honest picture instantly to all and all the times.

Alibaba proves the direct benefits of a Third Economy; such prosperity can only assured by respecting the balancing of pennies and cents with mobilizing millions of abandoned small and medium enterprises and using free technologies as starting base.  Such deployments are only possible when leadership is skillfully equipped to understand global-age and able to serve the special transformation demands, by firing the first person for incompetence for saying they have no new funding to change and firing the next person for disorganization for saying they are too busy and have no time to change.

Public sector around the world had almost all these resources available to deploy since last decade. Nation by nation, outside the top business sectors rest of the small medium enterprise players systematically abandoned and crushed were replaced by too big to fail nonsensical hype. Now national races in the age of digital platform economy will demand clarification on their internal conflicts of “digital-divide and mental-divide” and explain dysfunctional imbalanced spending on trade expansion without “national mobilization of entrepreneurialism” …it is also a fact that majority nations need massive in-depth-training at all top leadership levels to understand the new language of the new days.

It’s time to choose; either build world-class export promotion agencies, vertical trade groups to foster trade by global-age showcasing on platform economies and bring home some grassroots prosperity or allow restless citizenry and rise of populism.  It time to balance, that where public sectors mostly all over the world failed on such progressive affairs, technology has now blossomed as salvage operation with dramatic tools and deployment options. Is your national leadership ready now?  Not to sidetrack, this is not an exclusive IT issues; this is global age expansion and entrepreneurial mobilization issues. Deeper studies and debates are essential.

The world is changing fast is no longer just a cliché, now growing into a warning

National Transformation: Futurism of ‘creating local grassroots economy’ demands two distinct national mobilizations.  Firstly, creating skilled citizenry capable to swing with global-age demands and secondly, creating massive digitization of midsize economy to enable global-speed-performance to match trading with 100-200 nations. Mostly not new funding dependent but execution starved. Nations with such mastery will thrive and lead; generational transformation at magical speed with full deployments of platform economy is a prerequisite. Sounds rocket science, it is, but very doable and easy.

Rules of National Mobilization of Entrepreneurialism: To deploy such blueprints, launch a nationwide business-uplifting lifelong learning agenda for the entire export promotion bodies, Chambers, trade associations and also the entire small-medium-exporters base. Review this process meticulously every 100 days. Under right situation, the export promotion of the nation can easily quadruple within a year. It is necessary to keep asking what is blocking this and who is stopping this?

How do you mobilize public and private sector leadership after a lost decade on global-age expansion? With some 100 elections in 2019 alone and million promises on podiums the realities are hidden in creating real grassroots prosperity, now pending Presidential Elections of 2020 USA the mother of all elections will provide massive debates amongst calls of Impeachments, while December 12th Election of UK amongst calls of Brexit and European Union with loud and restless citizenry, a new world is unfolding. The public is informed, and slowly realizing what’s working and what’s not… deep silence at the public sector is not good, a growing sign of lack of skills. Urgent debates needed as 2020 starts with some dramatic shifts of markets, ideas and visions. We are now in the age of national mobilization of entrepreneurialism and platform economies.

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