Page 99 - Procurement guidelines for smart sustainable cities - A U4SSC deliverable

Case study – How New Zealand is using procurement to benefit indigenous businesses

New Zealand Government

Figure 31: Innovative procurement approach

The New Zealand government has used an innovative procurement approach to include indigenous
businesses in public sector projects.

Summary

• It is possible to help indigenous people using inclusive procurement
• Early community engagement is essential

• Verification of indigenous businesses needs careful consideration

The problem

Despite its reputation for positive relations with its indigenous Māori and Pasifika (Pacific Islands)
communities, New Zealand still sees significant inequality between these groups and the majority
Pakeha (white) population. In the digital and technology sector, the disparity is even starker. Just
2.5 per cent of the Māori workforce are employed in the IT and communications industry and only
1 per cent of Māori are studying technology subjects in college.

Government procurement projects, although open to all, are often seen as out of reach for SMEs
that make up much of the indigenous economy. This is made worse by:

• complex procedures, including lots of form filling, which can favour larger and more experienced
suppliers;

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