Hundreds of major investors have gathered in Toronto this week for the first Canada Investment Summit, an event organized by the federal government to try to attract roughly $1 trillion in investment across the country over the next five years.
The summit opened with a reception on Sunday and is meant to connect global investors with Canadian business leaders at a time when the ongoing Canada-U.S. trade dispute has increased pressure on Ottawa to strengthen other economic relationships and present Canada as an attractive place to put money to work.
Prime Minister Mark Carney, a former central banker and past head of Brookfield Asset Management, reportedly invited 100 of the world’s largest investors to attend. The government has not released a full guest list, but attendees are said to include Larry Fink, chairman of BlackRock Inc., the world’s largest asset manager, and Dilhan Pillay, chief executive of Singapore’s Temasek. Representatives of major sovereign wealth funds, including Norway’s government pension fund and the Abu Dhabi National Oil Co., are also expected to be present, alongside numerous banks and money managers from Canada and abroad.
Who Else Is At The Table
A guest list for Sunday’s reception included executives from Canadian companies such as Air Canada, artificial intelligence firm Cohere, Enbridge, and Alto, the company behind a proposed high-speed rail line connecting Toronto and Quebec City. Several Canadian premiers and other politicians were also in attendance.
According to a 66-page prospectus obtained by CBC News, 167 projects are being presented as investment opportunities at the summit. These span eight categories: conventional energy, clean energy, mining and metals, marine and port infrastructure, power and utilities, digital technology, advanced manufacturing, and transportation. More than half of the listed projects fall under energy and mining.
Among the largest and most prominent projects listed are a proposed $35-billion pipeline carrying oil from Alberta to the British Columbia coast, a roughly $79-billion expansion of the Port of Churchill in northern Manitoba, and the proposed $28.5-billion Ksi Lisims liquefied natural gas terminal on the B.C. coast.
Overcoming Past Investor Hesitation
Jeremy Kronick, president and CEO of the C.D. Howe Institute, said the summit represents a shift in tone from the federal government, noting that long approval timelines and uncertainty over project approvals have discouraged some international investors from Canadian projects in the past.
A report from the CPP Investment Insights Institute, the research arm of the organization helping lead the summit, surveyed 65 global institutional investors on their views of several developed countries. Canada ranked highest among them for stability and regulatory predictability, and investors identified opportunities in the country’s critical minerals, energy, and other resource sectors. However, the same report found that regulatory complexity and permitting timelines remain significant concerns, particularly for those interested in mining and energy investments.
Kronick said that because Canada is a relatively small economy, more needs to be done to make it competitive against other developed nations seeking similar investment. He said hosting the summit signals that the country is serious about moving forward on large-scale projects, but added that Canadian business leaders need to demonstrate they have the workforce and equipment ready to build quickly. A report from TD Bank cited in coverage of the summit projected that, if the government’s approach succeeds, Canada could see a decade-long or longer investment “supercycle” that creates jobs and raises real output per capita by $12,000.
Concerns Over Foreign Control
Not everyone is on board with the summit’s approach. Federal NDP Leader Avi Lewis criticized the initiative, describing it as an effort to address the country’s economic challenges by selling off national assets. A protest counter-summit has also been organized to coincide with the event, with organizers arguing that the government risks auctioning off public resources through its dealings with outside firms.
Walid Hejazi, an economics professor at the University of Toronto’s Rotman School of Management who studies foreign investment, said not all foreign capital carries the same risk profile. He noted that outside investors are often perceived as seeking significant control over the production and strategic direction of the projects they fund, and that public concern tends to grow when those investments touch on infrastructure or resources considered strategically important to the country.
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