OTTAWA — Prime Minister Mark Carney announced on Monday morning, the creation of the first Canada Sovereign wealth fund, aimed at financing major projects. The new Canada Strong Fund will act as a state-backed investment fund, partnering with private sector capital to support projects in energy, critical minerals, infrastructure and agriculture.Through an initial federal tax-payer funded contribution of $25 billion, the fund will invest in Canadian companies and large-scale projects. Carney advertised the announcement as a “national savings and investment account” designed to give Canadians the opportunity to have a stake in Canada’s economic growth, driven by investment. “This will be a Government of Canada fund, but more importantly, it will be a people’s fund,” Carney said.The government also plans to introduce a retail investment product that would allow Canadians to invest directly in the fund, though details are yet to come..Finance Minister François-Philippe Champagne is expected to provide further details on the announcement when he tables the spring economic update in the House of Commons on Tuesday evening. Fiscal questions remain about how the federal government will finance the initial $25 billion contribution, particularly as Ottawa had previously projected a $78.3 billion deficit for the last year. Carney said soon to be released figures in the economic statement will show an improved fiscal position.Franco Terrazzano, federal director of the Canadian Taxpayers Federation, criticized the plan, arguing it differs fundamentally from traditional sovereign wealth models.“Norway uses its sovereign wealth fund to save money and only spends the interest, but Carney’s fund is built on borrowed money and will gamble taxpayers’ money on corporate handouts,” Terrazzano said.He added that “Carney’s debt-fuelled corporate slush fund is nothing like Norway’s sovereign wealth fund,” warning the government is “borrowing tens of billions of dollars to put taxpayers on the hook for risky corporate welfare.”Terrazzano also pointed to rising debt servicing costs, noting interest charges on the federal debt already exceed $1 billion per week.The announcement is tied to the government’s broader push of “nation-building” projects, including natural resource development.Carney has also been actively seeking foreign capital to support large-scale investments. Earlier this month, Carney announced plans to host a Canada Investment Summit in Toronto on September 14–15, bringing together more than 100 global investors as part of a broader effort to attract up to $1 trillion in investment over five years.Dr. Sylvain Charlebois said on X the move “could be a game changer for agri-food,” but added it will depend on whether the sector is treated as a national priority.
