Utoo Radio, April 12, 2024 - A report from eSupply Canada suggests that First Nations in Canada could add up to $1 billion to their collective economy if they focus on buying supplies from Indigenous companies.

The report found that 396 First Nations in Canada spent $504 million on materials and supplies in 2023, with the bulk of the spending going to non-Indigenous businesses, causing economic leakage.

The report suggests that a shift to "buy Indigenous" could add between $750 million and $1 billion to the First Nations economy due to a "multiplier effect."

By diverting spending away from external suppliers to First Nations suppliers, First Nations can increase their own-source revenue, strengthen their economies, and build internal capacity. However, many First Nations face barriers to wealth accumulation, such as the absence of business infrastructure and limited property rights.

To effectively reclaim lost revenue, First Nations must examine the areas and quantify the amount of leakage, identify specific goods and services contributing to the outflow, and implement local business strategies to provide those services within the First Nation.