Access to Capital Plays a Critical Role in Supporting Economic Reconciliation with Indigenous Peoples in Canada

Indigenous communities and Indigenous-related organizations in Canada are increasingly accessing the capital markets to fulfill their financing needs as they seek to develop community infrastructure and pursue economic development. This includes increased equity participation in major projects spanning natural resources, transportation, telecommunications, and other sectors. This increasing trend has been driven by Indigenous peoples' (First Nations, Inuit, and Metis) efforts to participate in the economy along with past Supreme Court of Canada rulings requiring consultation with Indigenous peoples, the Truth and Reconciliation Commission's 2015 report, and, more recently, Canada's steps to implement the United Nations Declaration on the Rights of Indigenous Peoples.

In this commentary, we examine the current landscape of government financing programs established to support Indigenous communities as part of Canada's efforts to facilitate ongoing economic reconciliation with Indigenous peoples. Key highlights include:

-- Lack of access to capital at reasonable rates has been a key impediment to Indigenous peoples' ability to participate in the economy but government financing programs are starting to move the needle.
-- Indigenous-related capital markets activity is on a steady upward trend with considerable potential for more.
-- Improved access to capital for Indigenous peoples has the potential to boost economic growth, employment, and own-source revenues benefiting Indigenous communities and other levels of government alike, thus facilitating progress towards economic reconciliation.