EDC’s evolving support for Canada’s defence and security sector

Geopolitical instability and technological change are pushing countries to invest more in security and defence. In response, Export Development Canada (EDC) is stepping up to help Canadian companies grow in this rapidly changing environment, supporting Canada’s sovereignty and expanding our industrial capacity.

EDC’s expanded support for the Canadian defence and security (D&S) sector aligns with Canada's new Defence Industrial Strategy. We’re providing financial solutions, risk management and market knowledge to help Canadian companies scale, innovate and compete globally while maintaining responsible defence support standards.

Financial institutions and Crown corporations are shifting to play a more active role in the defence sector, which has historically had limited access to capital.

Canada’s new Defence Industrial Strategy, launched in February 2026, signals a major shift toward rebuilding, rearming and reinvesting in our capabilities. It outlines more than half a trillion dollars in defence-related opportunities over the next decade, including $180 billion in procurement and $290 billion in capital investments. It’s expected to contribute about $125 billion in economic benefits and create 125,000 new high-paying jobs by 2035.

This creates significant opportunities for Canadian exporters across advanced manufacturing, aerospace, cybersecurity, critical minerals and digital technologies.

The Government of Canada also created the Defence Investment Agency (DIA) to streamline and centralize military equipment procurement. This reinforces the sector’s priority status and the need for trusted financing partners.

This shift is essential to strengthening Canada’s role in global security. Canada needs a defence and security industrial base that can stand on its own and compete internationally. This means being able to scale, strengthen supply chains and work with partners who understand the sector’s risks and timelines.

High-potential defence and security subsectors:

• Cybersecurity
• Drones
• Munitions
• Critical minerals
• Space and aerospace
• Quantum computing
• Artificial intelligence
• Land vehicles

In addition to export-related transactions, EDC can now consider support for projects that increase Canada’s domestic defence and security capabilities, if they align with our mandate. This can include expanding or building manufacturing facilities when some of the production will be exported or used in exported products.

There are opportunities in Europe, particularly in countries that are members of the North Atlantic Treaty Organization (NATO) and parts of the Indo-Pacific.

“These are key areas for EDC, so that’s where companies should focus because it’s where we’re more likely to support,” says Mark Sullivan, EDC’s director of Advanced Manufacturing, Digital Technology & Defence sectors.

Defence spending has risen worldwide. Canada is on track to reach the NATO 2% target this fiscal year, with applications to join the Canadian Armed Forces up nearly 13%. Europe is accelerating rearmament under the European Union (UN) Readiness 2030 plan, and Indo-Pacific partners are increasing procurement to strengthen security and defence. This creates sustained demand for Canadian technologies, equipment and industrial expertise.

Key areas of opportunity

• Canada already has strong defence exports to Poland, which is making generational investments in defence and security.
• Canada joined Europe’s €150‑billion Security Action for Europe (SAFE) initiative in 2025, signalling a deeper collaboration with this region. Discover more Europe market intelligence for exporters.
• The United Kingdom (U.K.) is an important European market for Canadian exporters, supported by long‑standing defence co-operation and similar technical and regulatory approaches.

Shared procurement and certification practices between Canada and the U.K. help reduce barriers and speed up market entry.

The U.K.’s increased investment in defence modernization and supply chain resilience is creating additional opportunities for Canadian companies. To be competitive in these markets, companies need to be able to scale, meet accreditation requirements and integrate into international supply chains.

We’ve supported Canadian companies in this space for decades, but 2025 marked a turning point. As global defence and security needs evolve, EDC has expanded our support to include a broader range of defence and security-related opportunities, supported by rigorous, case-by-case, non-credit due diligence.

Want a quick overview of Canada’s evolving approach to defence and security? Check out our short video on Canada’s defence and security exports on YouTube.

How EDC assesses defence and security opportunities

We evaluate each opportunity individually, considering applicable international human rights commitments and relevant non-credit risks. For D&S-related controlled goods, additional assessments may apply to ensure responsible and compliant support.

“We’re open for business. We’ve expanded the scope of what we can support in the defence sector and we’re ready to help more Canadian companies compete in this space,” Sullivan says.

Real-life examples of expanded support for defence and security companies

Since expanding our approach to the defence and security sector in 2025, EDC has supported about $690 million in business across 28 companies. Here are four recent examples:

1. Maritime Launch Services received $10 million in EDC financing to advance Spaceport Nova Scotia, Canada’s first commercial launch site. Once operational, it will enable secure satellite launches for national security, weather monitoring and telecommunications.
2. Weatherhaven Global Resources, a British Columbia (BC) company specializing in rapidly deployable shelters for military, medical and humanitarian use, received $5 million in EDC loan guarantees to help manage cash flow for export sales.
3. Vosker, a Quebec-based technology company specializing in autonomous surveillance technologies, received $45 million in EDC financing to accelerate its growth in dual-use technology and support its acquisition of Reconeyez, a European-based leader in AI-powered autonomous intelligent surveillance solutions.
4. OSI Maritime Systems (Canada) Ltd, a Burnaby, BC, defence technology company specializing in integrated marine navigation and tactical solutions, received a $30-million Account Performance Security Guarantee (APSG) to secure and deliver contracts in Europe and the Indo-Pacific.

These examples showcase how we support transactions that reflect Canada’s policies, international commitments and responsible business practices.

EDC is taking a pragmatic, market-driven approach. Rather than creating new financial programs or products, we’re applying proven financial solutions and refining our internal processes to meet exporters’ needs.

This approach aligns with Canada’s broader goal of building a more resilient domestic industrial base. This means deploying proven financial solutions at scale, while partnering with financial institutions and other Crown corporations to help Canadian companies compete globally.

It draws on lessons learned from the COVID-19 pandemic, where adaptability—not new product creation—enabled a rapid response.

EDC solutions include:

• Direct lending to expand capacity, make strategic acquisitions, invest in new equipment or facilities, or bridge cash flow gaps tied to export contracts
• Trade credit insurance to protect against non‑payment and help exporters offer competitive terms to trusted foreign buyers, supporting certainty in international sales
• Working capital guarantees to increase access to operating lines, so companies can finance work in progress, purchase materials, ramp up production and manage cash flow on global contracts
• Market insights that provide current country risk information, global economic outlooks and guides covering nearly 200 markets

Whether you’re a cybersecurity firm scaling to meet NATO demand, an aerospace supplier expanding production for allied fleets, or a space systems company enabling encrypted communications, EDC may be able to support you, depending on the specifics of the opportunity.

As Canada rebuilds its defence and security capabilities, EDC is committed to helping Canadian companies deliver equipment, technology and innovation to strengthen Canada’s sovereignty and support trusted partners around the world.