Indigenous people in traditional dress stand with bankers in the top floor boardroom of the Toronto Dominion Bank in Toronto, following the announcement of a new aboriginal bank.Andy Clark/Reuters
Bill Lomax is president and chief executive of First Nations Bank of Canada.
As we mark the end of National Indigenous History Month, communities across the country are thinking about how to strengthen their economies for generations present and future, given the continuing disparities faced by First Nations populations.
One promising opportunity for Indigenous economic empowerment that deserves focus is the creation of more urban reserves. Distinct from traditional reserves in rural and remote regions, these are parcels of land within or adjacent to urban areas that are designated for the use and benefit of Indigenous peoples.
One of the primary economic benefits of urban reserves is the tax advantages they offer, like with traditional reserves. Businesses operating on urban reserves enjoy tax exemptions, such as not paying property taxes and reduced or exempted sales taxes. This creates a positive environment for Indigenous entrepreneurs, who can establish and scale their businesses closer to population centres than if they were to set them up in traditional reserves.
The tax benefits and closeness to population centres also make urban reserves attractive to non-Indigenous businesses seeking partnerships, leading to increased investment and job creation within Indigenous communities. These partnerships can lead to knowledge transfer, capacity building and increased economic activity, benefiting both Indigenous communities and the broader economy.
With many Indigenous people having left traditional reserves, urban reserves can also foster a sense of community and cultural identity, powerful motivators for Indigenous entrepreneurs. We know that when communities are prosperous, we see a better quality of life, investment in language revitalization and culture – goals we want to achieve for our children and grandchildren.
Success stories on urban reserves are emerging everywhere: From retail businesses to tech startups and professional services, Indigenous-owned businesses are expanding. These enterprises not only generate income for their owners but also create employment for community members, thereby reducing dependency on government assistance and building economic independence.
According to Indigenous Services Canada, there are more than 120 urban reserves across the country, a number that is increasing as more Indigenous communities recognize their economic potential. The establishment of urban reserves involves a rigorous process of negotiations, land acquisition, and federal and municipal approvals, but the benefits make the effort worthwhile.
The push for urban reserves is timely for several reasons. First, the growing urbanization of Canada means that economic opportunities are increasingly concentrated in cities. By establishing urban reserves, Indigenous communities can ensure they are part of this economic growth rather than being left behind.
Second, the socioeconomic gap between Indigenous and non-Indigenous Canadians remains a pressing issue. Urban reserves provide a practical solution to bridge this gap by creating wealth and employment within Indigenous communities.
Finally, the economic reconciliation movement in Canada has brought Indigenous issues to the forefront of national consciousness. There is a greater willingness among policy makers, businesses and the public to support initiatives that promote Indigenous prosperity. This supportive environment makes it an opportune time to expand the network of urban reserves.
Indigenous leaders who are spearheading the urban reserve movement and the policy makers who are working side by side to make these special jurisdictions a reality deserve applause. Together, we can bridge the economic gap and create a brighter future of greater prosperity for Indigenous and non-Indigenous communities.