Indigenous procurement contracts rise by 42 percent

First Nations procurement contracts

Procurement contracts between organisations with a Reconciliation Action Plan (RAP) and Aboriginal and/or Torres Strait Islander organisations are on the rise, with a 42 percent increase year-on-year, according to new data from Reconciliation Australia.

The leading body for reconciliation in Australia recently released its RAP Impact Report 2024, revealing 25,237 procurement contracts were established in the 2024 financial year (up from 17,795 in 2023), with each contract worth approximately $190,679.

The annual report, which explores the continuing and substantial impact of RAPs across all walks of Australian life, includes data from 2,283 RAP organisations collected between July 2023 and June 2024. It received the highest level of partner participation to date, with 70 percent of the overall RAP network responding to the RAP Impact Survey.

In total, $4.8 billion worth of goods and services were procured by RAP organisations from Aboriginal and Torres Strait Islander-owned businesses in FY24, up by 31 percent on the previous year ($3.6 billion).

Reconciliation Australia CEO Karen Mundine said she was pleased with these indicators of progress, but stressed they must be sustained and built upon.  

“There is always more work to be done. The continued economic and social relegation of First Nations people means it is essential that all Australians, particularly our RAP partners, commit to even greater efforts to achieve reconciliation, equity and justice for Aboriginal and Torres Strait Islander people,” she said.

“With the newly elected Albanese Government pledging its continued support for reconciliation and justice for First Nations peoples, this report better allows us to understand the real-life impact of reconciliation initiatives on the material and social well-being of our people.”

The report also revealed an increase in cultural learning, with 24,377 employees of RAP organisations participating in cultural immersion (up from 23,268 in 2023), while 123,493 took part in face-to-face cultural learning (up from 118,049 in 2023).

RAPs are playing an important part in influencing organisational outcomes, with 75 percent of RAP organisations changing core internal processes and/or policies because of their RAP, while a further 73 percent said they have changed their external facing services and/or practices.

Overall, relationships have strengthened between RAP organisations and Aboriginal and Torres Strait Islander organisations, with a 17 percent increase in formal and informal partnerships between 2023 and 2024.

“Through our RAP program, many more Australians are participating in cultural learning and are hearing from Aboriginal and Torres Strait Islander people themselves about the legacies of past government policies and actions,” added Mundine.

“Nearly a million employees of RAP organisations participated in cultural immersion, online or face-to-face cultural learning activities. 

“These experiences create stronger relationships built on shared knowledge and respect, and we know that such relationships are the basis for reconciliation and successful policies that improve the lives of Aboriginal and Torres Strait Islander peoples.”

Reconciliation Australia’s RAP program encompasses organisations in the corporate, cultural, educational and sporting sectors to drive better reconciliation outcomes. Now in its 19th year, the program has built an Australia-wide presence and provides organisations with a structured approach to advancing reconciliation.