Published by Senator Robert Peterson on 14 May 2009
In March, a new initiative was launched to assist Aboriginal people in Canada in becoming more independent and to help start, build, promote and develop Aboriginal businesses. CAPE Fund Management Inc. is an initiative launched by former Prime Minister Paul Martin. CAPE (Capital for Aboriginal Prosperity and Entrepreneurship) is intended to focus on projects linked through ownership, employment or geographic proximity to an Aboriginal group or community in order to promote Aboriginal businesses.
The $50-million investment fund is backed by the five major banks, as well as several corporate partners. According to the fund’s managing director, Peter Forton, “the objective of the fund is to not only earn returns for investors, but to also help develop aboriginal enterprises. We are looking at every single deal to leverage it on the financial and social side.”
CAPE is working to make a change for the better. A key part of the fund’s mission is in recognizing that young Aboriginals are the fastest growing segment of our population, and that the current system serves to perpetuate the issues and problems that have unfortunately become commonplace in Aboriginal society. The CAPE initiative is designed to help Aboriginal communities create or expand businesses that will not only be profitable, but also to train managers and owners in those businesses, and help them become active partners in the economy. It’s yet another example of a “hand up” instead of a “handout” for First Nations.
In order to qualify for investment Aboriginal businesses must be seen to have a long term vision, economic sustainability, and a clear and concise business plan. These businesses must also be able to show an appropriate return on investment to the CAPE fund. Not only will the investees receive financial assistance, but CAPE will provide guidance and mentorship that will ensure growth takes place in concert with proper management, governance and capital.
I applaud Mr. Martin and the whole CAPE Fund organization for their efforts in working with the Aboriginal People of our country and hope that initiatives like CAPE and One Earth Farms help show Canadian businesses, investors and government that the Aboriginal Peoples are worthy partners in business.