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Government increases progressive procurement target following policy success

The cross-government progressive procurement target is increasing from 5% to 8% of government contracts to be awarded to Māori businesses.

The kaupapa has delivered positive results since the policy was introduced in 2020. Agencies exceeded the initial cross-government 5% target by reaching 6% in the first full year of reporting. Over 3,200 contracts were awarded to Māori businesses for the year ending 30 June 2022, with a total worth of around $930 million.

We’re aiming to achieve the new target by 2024 when the policy is next reviewed. Agencies will continue to report against the target twice a year. Other policy features largely remain in place.

The new target builds on the work to increase supplier diversity across government by continuous capability development and by creating more opportunities for Māori businesses to contract with agencies.

Government target increased to keep powering up the Māori economy – Beehive.govt.nz