This discussion paper offers solutions to enhance indigenous communities’ access to investment capital. The report highlighted the funding requirements and capital needs of Indigenous groups, which include the need for early-stage capital, venture capital, and asset-backed capital. However, Indigenous peoples often face significant barriers when it comes to accessing capital for investment. The lack of an investment-ready business or project and a proven track record in business operations are two common roadblocks.

To address the barriers, the report recommends providing access to business/project development information, access to the right advisors, and facilitating positive strategic partnerships. Indigenous projects and businesses need to be sufficiently developed and in a strong position to meet the relevant investor’s requirements. Additionally, granting Indigenous groups access to expert advisory services, building culturally competent investor sectors with an Indigenous investment lens, and developing a pool of vetted socially aligned sector experts and advisors could be linked with Indigenous people.

The paper also emphasises that there is a growing segment for impact investments that seek to make investments that do not necessarily require market-based financial returns but accept lower returns coupled with social and/or environmental impacts. The potential for Indigenous enterprises to align themselves with this emerging investment class is significant.

The paper highlights the critical importance of establishing governance, ensuring sustainability, and obtaining appropriate partners in crafting viable project ideas. It also discusses the necessity of focusing on sectors with Indigenous advantages or greatest needs, such as carbon projects, agriculture, horticulture, and renewables. To encourage and assist with this, the ILSC can fund the projects that other market players are unwilling to undertake. The ILSC should play a facilitative role by building mutually beneficial and respectful partnerships and should adopt an approach of Step in – Fill the gap – Plan an exit.

ESG issues discussed include governance concerns regarding decision-making authority, culture and social concerns, and environmental effects. The report recommends fostering positive partnerships that respect cultural authority and decision-making and observe protocol. The ILSC should provide flexible and innovative grant funding to make the most effective use of its funds and lower transaction costs.