Canada is expanding the financial foundation behind its defence industrial ambitions, bringing together government, industry, export financing and institutional investors as Ottawa looks to accelerate domestic production and strengthen long-term industrial capacity.
National Defence Minister David J. McGuinty concluded a series of meetings in Toronto on July 28 with leaders from Canada’s defence sector, the Business Development Bank of Canada (BDC), Export Development Canada (EDC), and several of the country’s largest pension funds to advance Canada’s Defence Industrial Strategy.
The discussions focused on how public and private capital can help expand Canada’s defence industrial base while supporting innovation, commercialization and procurement reforms designed to provide more predictable demand for Canadian companies.
Early results from the strategy were a central theme. Six months after launching its $6 billion Defence Platform, BDC has supported 130 Canadian small and medium-sized enterprises, doubling the value of loans and investments on its books and approaching $1 billion in financing. EDC has also expanded its role in the sector, providing approximately $2 billion in financing and insurance-related support since increasing its defence focus in 2025, including $1.1 billion to more than 60 companies during 2026.
The Toronto meetings also highlighted collaboration between government agencies and industry as Canada seeks to strengthen domestic manufacturing capacity while improving access to capital for defence companies. Officials said these efforts complement broader economic priorities ahead of Canada’s first-ever Canada Investment Summit, where international investors and business leaders will explore opportunities tied to major nation-building projects.
Minister McGuinty also convened a separate roundtable with senior representatives from Canada’s largest pension funds and federal partners to examine opportunities to support strategic defence and dual-use projects, including major infrastructure initiatives. Participants discussed ways government and institutional investors can work together to help deliver the objectives of Canada’s Defence Industrial Strategy.
“As Canada rebuilds, rearms and reinvests in our national defence, we are also investing in the industries, workers and innovators who make that possible. Canada’s Defence Industrial Strategy is helping Canadian companies access the capital and partnerships they need to grow, compete globally and deliver the capabilities our Armed Forces require. A stronger defence industrial base means a stronger Canada—more secure, more resilient and better positioned to succeed in an increasingly uncertain world,” said Defence Minister David J. McGuinty.
Industry Minister Mélanie Joly emphasized the broader economic benefits of strengthening the sector:
“A strong defence industry helps keep Canadians safe while creating high-quality jobs and economic opportunities. Through engagement with pension funds and defence industry leaders, we are helping mobilize the investment needed to grow Canada’s defence industrial base and support long-term prosperity.”
International Trade Minister Maninder Sidhu said greater collaboration between investors and industry will help Canadian companies compete internationally:
“By bringing together institutional investors, industry leaders, and federal partners to advance Canada’s Defence Industrial Strategy, we are helping Canadian firms access the capital, expertise and markets they need to grow. This collaboration strengthens our economic resilience, supports high-quality jobs, and positions Canadian businesses to compete and succeed globally.”
Alison Nankivell, President and Chief Executive Officer of Export Development Canada, highlighted EDC’s role in helping Canadian firms expand internationally:
“As Canada’s export credit agency, EDC provides the financing, risk-sharing solutions and international market expertise that help Canadian defence and security companies diversify their exports and succeed in partner markets. Through collaboration with Canada’s venture capital community, pension funds and our government partners, we can leverage complementary strengths to help Canadian companies access the capital they need to scale, innovate and seize opportunities.”
Isabelle Hudon, President and CEO of BDC, said smaller companies remain central to Canada’s evolving defence ecosystem:
“Canada’s defence sector is entering a new strategic era, and SMEs are at the heart of this transformation. BDC put its ear to the ground, listened to businesses, investors, financial partners, and collaborated closely with key associations to inform how we built and refined our Defence Platform. This work continues today, because we know that entrepreneurs aligned to the sector still face unique challenges in accessing capital and navigating complex supply chains.”
