Unlocking the Economic Potential of Indigenous Procurement in Manitoba

Public sector procurement represents a critical yet underutilized opportunity for economic reconciliation in Manitoba and across Canada. Governments at all levels – municipal, provincial, and federal – collectively spend approximately $300 billion annually on goods and services. However, systemic barriers continue to prevent Indigenous businesses from fully accessing these opportunities.

The federal government, the country’s largest public buyer, aims to spend $37 billion annually and has committed to allocating 5% of its procurement to Indigenous businesses. Yet, actual spending remains well below this target. In part, this discrepancy can be attributed to its non-binding nature, in addition to severely underdeveloped Indigenous procurement strategies.

Historically, government procurement policies have largely overlooked Indigenous businesses, which have faced systemic discrimination and legal restrictions, including the Indian Act and Residential Schools, that have hindered their ability to secure contracts.

Manitoba’s Indigenous Procurement Initiative (IPI), in place since the mid-2010s, has been largely ineffective due to built-in exclusions that limit Indigenous participation. For instance, its restriction to small-scale projects prevents many of the more capital-intensive initiatives from developing. Despite changes in government, these issues persist, resulting in minimal economic benefits for Indigenous businesses.

Many governments have adopted socially responsible procurement policies to support underrepresented groups. However, these initiatives often fail to recognize the distinct legal and constitutional rights of Indigenous businesses. Unlike broader social procurement initiatives, Indigenous procurement is grounded in the Truth and Reconciliation Commission’s Calls to Action, treaty obligations, and the legal frameworks of the Constitution Act.

To be effective, Indigenous procurement strategies must be independent and specifically designed to address the historical and structural challenges Indigenous entrepreneurs face.

The economic potential of Indigenous procurement is substantial. A widely cited study, Reconciliation: Growing Canada’s Economy by $27.7 Billion, estimates that achieving procurement parity could generate significant economic benefits. When adjusted for the price level, this could translate to an annual economic gain of approximately $4,400 per Manitoban — exceeding the impact of major projects like Manitoba Hydro or critical minerals development.

With Indigenous people comprising 12.4% of Winnipeg’s population and nearly one-fifth of Manitoba, the province has an unparalleled opportunity to drive economic reconciliation through Indigenous procurement. Stronger Indigenous procurement policies could unlock immense economic growth and prosperity for all Manitobans.  Indigenous procurement should be viewed as a strategic economic investment rather than a short-term expenditure.

Currently, Indigenous procurement efforts in Manitoba remain largely ineffective or nonexistent. However, municipal and provincial governments are beginning to explore best practices. The Indigenous Chamber of Commerce (ICC) is actively collaborating with public sector stakeholders to develop effective procurement frameworks that benefit both Indigenous businesses and the broader economy.

With its significant Indigenous population, Manitoba has the potential to lead the nation in economic reconciliation. Achieving this will require a commitment from governments, industry leaders, and the public to remove systemic barriers and support Indigenous businesses in reaching economic parity. Indigenous entrepreneurs are ready to seize this opportunity. Now is the time for meaningful action to unlock the full potential of Indigenous procurement in Manitoba.

[1] Reconciliation: Growing Canada’s Economy by $27.7 Billion Background and Methods Paper, The National Aboriginal Economic Development Board, Nov. 1, 20216, naedb_report_reconciliation_27_7_billion.pdf. And as above as Infographic: WEB-LAYOUT_FOR_BROCHURE_-_ENGLISH_-_RECONCILIATION.PDF. And as reported by CBC Canada's untapped Indigenous workforce worth $27.7B, new report says | CBC News

[1] Consumer Price Index
[1] For those seeking details of the updating contact the Indigenous Chamber of Commerce, info@indigenouschambermb.ca