Cooperative Investment Fund Inaugurated in Canada

By an IPS Correspondent Reprint | | Print |

Quebec City, Nov 28 2012 (IPS) - A proposed new Co-operative Investment Fund has garnered support from three Canadian co-operative organisations. The Fund is expected to provide Canadian co-operatives with access to capital they need to expand and develop.

The Fund, which is to be launched in 2013, is being created under the leadership of the Canadian Co-operative Association (CCA) with the support of a dedicated task force representing co-ops and credit unions across the country. It will support the development and expansion of individual co-operatives with loans and subordinated debt sourced from within the co-operative sector.

The organisations represented on the task force have begun to announce their pledges to launch the Fund and create the basis for further sector investment. To date, financial support has been pledged by Vancity, The Co-operators and the Canadian Worker Co-operative Federation (CWCF).

Inspired by the 2012 International Year of Co-operatives, this Fund will provide an important vehicle that co-operatives can leverage to grow and expand their contributions to communities across Canada, strengthening the co-operative sector and the many communities and individuals whose needs co-operatives meet.

The Fund is expected to launch with between $20 million and $40 million in pledged sector support. Supporting co-operatives will receive a return on their investment. Once launched, it is intended that the Fund will operate as a co-operative with a Board of Directors that is representative of the groups that will be impacted by the fund.

“At Vancity we recognize the important contributions that are made by Canadian co-operatives, the vision of the Fund is aligned with our goal of sustainable community organizations,” said Derek Gent, executive director of the Vancity Community Foundation.

Barbara Turley-McIntyre, director of Sustainability and Corporate Citizenship at The Co-operators, said: “So many co-operatives have great ideas for expanding their services and developing their businesses. This Fund will assist in providing access to capital for co-operatives that might not otherwise get the support that they require.”

Peter Hough, financial officer at CWCF, said: “This Fund will become an important mechanism to support the development and expansion of co-operatives, including worker co-operatives, where there is a strong business case.”