Introduction to the MGF
The Metis Generation Fund represents significant opportunities for Metis economic development via business growth in Manitoba’s key resource sectors.
The Focus
The focus of the MGF is to enable Metis-owned businesses in Manitoba to invest in business growth and development within the resource and energy sectors of the province. Eligible sectors for investment include: oil and gas, renewable energy, mining, forestry, fisheries and supportive industries that are directly related to these sectors (e.g. transportation, servicing, etc.).
With the resources and energy sectors expanding in Manitoba, there are opportunities for businesses operating in these sectors and in the industries that provide support services to them. Support services offer a number of opportunities for Metis entrepreneurs to compete, as the barriers to entry are considerably less for these types of businesses. In addition, Metis entrepreneurs can be empowered to take advantage of the set-aside contracts in the resource and energy sectors.
Metis Business directory
At present, the Metis Business Directory contains information on over 300 businesses. 75% are directly or indirectly tied to Manitoba’s resource and energy sectors, representing significant investment potential for MGF. As development in the resource and energy sectors continues to expand (e.g. Manitoba Hydro and Bipole III), the potential return on investment is also considerable.
The Metis Opportunity
The Metis people – as Aboriginals in Manitoba – have the opportunity to participate in and contribute to the anticipated industry growth. The close location of communities with substantial Metis populations to major exploration and mining projects presents a window of opportunity for Metis people and these industries.
The MGF fund is an important step toward closing the capital/equity
gap for Metis businesses.
Based on the economic size and activity levels within the above sectors, business investment opportunities exist for Metis in the resource and energy sectors. Meanwhile, existing Metis businesses operating in these industries do not have the capacity to fulfill all of the demand for Aboriginal businesses.
There is a general lack of capital for small to medium sized businesses that do not have long histories of sustained profitability. The private equity and venture capital community in Manitoba focuses on investments greater than $1 million in size, which limits the capital available for smaller investments.
Both the federal government and the Conference Board of Canada recognize that lack of capital is one of the greatest impediments to Aboriginal business growth. The MGF fund is an important step toward closing the capital/equity gap for Metis businesses
Community Benefits
There are significant community benefits to the MGF as well. The close location of communities with Metis populations to major resource development projects presents windows of opportunity for Metis people and these industries. The MGF is designed to alleviate distance challenges to a certain degree, based on the equity available through the fund itself. Continued partnerships and work arrangements between resource sector companies and local communities can create a “win-win” solution for both stakeholder groups.
MEDO believes that the MGF’s goals align perfectly with government commitment to Aboriginal community development.
Conclusion
The Major Resource and Energy Development Fund represents a powerful opportunity to improve the lives of Metis people throughout the province and add economic strength to the communities in which they live. By increasing the capacity of MGF to invest in Metis businesses throughout Manitoba, MEDO will be better able to assist these businesses in becoming more active participants in these industry sectors and the provincial economy.