Industrial Cooperation Program (CIDA-INC)

The Industrial Cooperation Program (CIDA-INC) is a cost-sharing program that provides a financial incentive (a cash contribution between $100 000 and $600 000) to Canadian companies to start a business or provide training in developing countries or countries in transition to a market economy.

Eligibility Criteria

Eligible firms are those that:

• are subject to corporate income tax in Canada;
• have been in business in Canada at least three years and are financially sound;
• have had annual sales of more than $700 000 for at least two consecutive years;
• have a proven track record in their product or service;
• are committed to establishing long-term business relationships in a developing or in-transition country;
• can show that their proposed project has a connection to their corporate business plan;
• have established contact with a partner in a host country;
• have a potential source of funding; and
• are ready to invest in training, promote gender equality, and promote environmental responsibility as part of the project.

Firms that are not eligible include:

• federal and provincial government agencies;
• not-for-profit* organizations;
• public educational institutions;
• research institutes; and
• individual consultants.

Projects that are not eligible include:

• product testing and marketing;
• selling or exporting activities;
• establishing business agency services;
• speculative activities such as mining exploration;
• management plans or studies not directly related to the proposed project;
• projects that might create negative economic consequences in Canada; and
• nuclear technology projects.

Eligible Activities

CIDA-INC's financial contribution is provided mainly for studies and training activities. Eligible projects are funded under one of two mechanisms:

• Investment Mechanism—CIDA-INC will fund viability studies and start-up activities by Canadian firms that produce goods or services in an eligible developing country; or
• Professional Services Mechanism—CIDA-INC will fund feasibility studies and implementation by Canadian consulting firms that wish to provide professional advice, or implement and transfer technology for a national or regional infrastructure project. These projects must have funding from the host country government or an international funding agency other than CIDA.

Assessment criteria include:

• the viability of the project on a technical and commercial basis;
• the specific, measurable, benefits and developmental impacts for the host country;
• the level of risk in terms of access to funding, the local partner’s capacities, the project’s potential for success, and the country’s political situation; and
• the technical approach, level of experience, the proposed team, and the firm’s work methods.

Summary

CIDA-INC aims to stimulate private sector development and investment in developing countries in order to promote sustainable development and poverty reduction. CIDA-INC is linked to a key CIDA goal, which is to support private sector development in developing or in-transition countries by creating jobs, increasing local capacity, and strengthening local economies.

When to apply

Applications to CIDA-INC are accepted throughout the year.

Funding

Average CIDA-INC contributions to Canadian firms range from $100 000 to $600 000, which generally represents a contribution of up to 75% of eligible costs.

*Note: "non-profit" also known as nonprofit organizations, non profit organizations, not-for-profit organizations, voluntary organizations and volunteer organizations.

Ontario Contact(s):
See National Contact.

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National Contact(s):
Canadian International Development Agency
Suite 505
200 Promenade du Portage
Gatineau, Quebec  K1A 0G4
Telephone: 819-997-5006
Fax: 819-953-6088
Toll-free (information): 1-800-230-6349
TTY Toll-free (hearing impaired): 1-800-331-5018
TTY (hearing impaired): 819-953-5023
E-mail: info@acdi-cida.gc.ca
Web site: http://www.acdi-cida.gc.ca/index-e.htm