The national chief of the Assembly of First Nations, Cindy Woodhouse Nepinak, speaks at a press conference on the Hill of Parliament, in Ottawa, on June 3, 2024. Completing the infrastructure deficit of the First Nations could generate $635 billion in economic returns over the next seven years, according to a report from the Assembly of First Nations. The Canadian Press/Adrian Wyld.
Investing in First Nations Infrastructure Could Boost Canada's Economy by $635 Billion, Report Finds
A recent report commissioned by the Assembly of First Nations (AFN) reveals that addressing the infrastructure gap in First Nations communities could add $635 billion to Canada's economy over the next seven years. This gap, rooted in decades of neglect and underfunding, affects essential infrastructure such as housing, roads, internet access, water systems, schools, and ports.
An earlier report, co-authored by the AFN and Indigenous Services Canada in April, estimated that closing the gap by 2030—aligned with Prime Minister Justin Trudeau's commitment—would require $349 billion. This includes $135 billion for housing, $5 billion for digital connectivity, and $209 billion for other infrastructure needs across approximately 630 First Nations communities.
Without swift action, these costs are expected to climb, as highlighted by the federal auditor general, who noted worsening housing conditions earlier this year.
The latest analysis, conducted by the Conference Board of Canada, builds on these findings. It concludes that every dollar invested in First Nations infrastructure would generate $1.82 in economic output. Over seven years, this investment could contribute $308 billion to Canada's GDP and create an average of 338,300 full-time jobs annually. About 91% of these jobs would go to non-First Nations workers, while 31,400 positions would be filled by First Nations people.
The report emphasizes that nearly 40% of these jobs would be in the construction sector, given the urgent need to build or repair roads, schools, and community facilities. This construction activity would also stimulate employment in other industries, such as retail, hospitality, and food services.
Targeted immigration is identified as a critical strategy to address the labor shortage in construction. The report suggests that prioritizing skilled tradespeople through immigration policies could help bridge this gap.
Beyond economic benefits, the investments could significantly improve the quality of life in First Nations communities, leading to better education, healthcare, cultural preservation, and entrepreneurship opportunities. These outcomes, the report notes, would benefit the entire country by enhancing productivity and business growth.
Assembly of First Nations National Chief Cindy Woodhouse Nepinak described the initiative as both a moral responsibility and an economic opportunity. "For decades, First Nations have endured systemic underfunding of infrastructure, creating conditions that hinder economic growth and perpetuate inequality," she said. "Investing in First Nations infrastructure isn't just about equity; it's about unlocking Canada's potential."
Delays in addressing the infrastructure gap would not only escalate costs but also delay these economic and social benefits. The report warns that postponing the deadline to 2040 would increase the cost to $527 billion.
Woodhouse Nepinak urged the federal government to prioritize this investment in the upcoming fall economic statement and the 2025 federal budget. "The resources are available—$370 billion has already been allocated to the military. What's needed now is the political will to act," she said.
The report concludes by highlighting the long-term benefits of this investment, including enhanced access to critical minerals through all-season roads and broader economic growth across the country. "These are not just numbers. They represent real opportunities for families, communities, and businesses," Woodhouse Nepinak said.
