In honour of Indigenous Business Month, the Federal Government is celebrating a successful year for the Indigenous Procurement Policy (IPP).

The outcomes of the IPP for the 2020-21 Financial Year have been released and showcase the power of the initiative.

A reported 10,920 Commonwealth contracts were awarded to 934 Indigenous businesses in the last financial year.

The contracts have a total value of more than $1billion.

The outcomes exceed the 2019-20 Financial year IPP report which saw 918 Indigenous businesses be awarded 7,749 Commonwealth contracts.

The total value of the 918 contracts sat at $857million.

“The Indigenous Procurement Policy is one of the most successful government levers for driving economic development and creating more opportunities for the Indigenous business sector,” said Minister for Indigenous Australians Ken Wyatt.

“The IPP continues to have incredible results year on year and Indigenous Business Month is the perfect time for everyone to look at their supply chains and see where they can invest in Indigenous businesses”

The Minister emphasised the Federal government’s commitment to bringing the number and value of the contracts awarded to Indigenous-owned and operated companies “up to three per cent”.

This commitment would ensure that “Aboriginal and Torres Strait Islander people are an integral part of the Commonwealth’s supply chain”.

The IPP, which was introduced in 2015, has supported the exponential development and expansion of the Indigenous Business sector.

“This is the first year we’ve seen more than 10,000 contracts under the IPP, and in total, since 1 July 2015, 2,603 Indigenous businesses have now secured 35,763 contracts worth $5.3 billion,” said Minister Wyatt.

“This sort of investment means more Indigenous employment and more opportunities for Aboriginal and Torres Strait Islander people to contribute to growing Australia’s economy.”

The Minister noted that the IPP is a demonstration of the government’s “commitment to powering the Indigenous economy” and encouraged the private sector to contribute to the cause.

“I encourage the private sector to join us by doing all they can to lift their purchasing from and support to Indigenous businesses,” he said.

Read the full Commonwealth IPP 2020-21 report here.