Indigenous procurement in Canada and Manitoba: Opportunities, barriers and paths to meaningful partnership

This article appeared in the Spring 2026 issue of Build Manitoba magazine.

Indigenous procurement is a crucial part of economic reconciliation in Canada. It is a practical way for governments and companies to meaningfully advance the interests of Indigenous communities, strengthen local economies and build long-term relationships grounded in mutual respect and collaboration. For Manitoba in particular, Indigenous procurement carries significant potential. Manitoba has the largest Indigenous per capita populations in Canada, and Indigenous businesses are woven into the province’s natural resource, commercial and financial service sectors. Despite these successes, companies have reported unique and nuanced barriers when procuring goods and services from Indigenous suppliers. These challenges include difficulty identifying Indigenous ownership, complex procurement procedures and deep-rooted systemic issues.

This article outlines key issues that private and public organizations should understand and offers guidance to improve the accessibility and effectiveness of Indigenous procurement.

The importance of Indigenous procurement

Indigenous entrepreneurs contribute significantly to the Canadian economy, with tens of thousands of Indigenous-owned businesses operating across the country. The federal government has set a mandatory requirement that a minimum of 5% of the total value of federal contracts must be awarded to Indigenous businesses. This target is being phased in between 2022 and 2025.

The Government of Manitoba is also taking steps to promote Indigenous procurement. The province’s Indigenous Procurement Initiative (the “IPI”) aims to increase the participation of Indigenous suppliers by integrating Indigenous procurement options into tenders and promoting community economic development. The IPI highlights benefits such as stimulating Indigenous business development, creating employment opportunities and strengthening relationships between Indigenous suppliers and government buyers.

Despite these initiatives, both federal and provincial research shows that actual procurement outcomes remain far below targeted levels. Indigenous suppliers and service providers across the country are working with industry and governments to identify barriers that prevent them from fully capitalizing on government and corporate procurement opportunities. The Indigenous Chamber of Commerce (the “ICC”) reports that systemic discrimination, historical restrictions and procurement policies that do not align with Indigenous needs continue to hinder meaningful progress for both Indigenous proponents and private and public organizations that aim to participate in procurement processes built on trust, relationship building and shared prosperity.

Key barriers in Indigenous procurement

Difficulty identifying Indigenous ownership

A frequent challenge for companies is confirming which businesses are genuinely Indigenous-owned. In Manitoba, the IPI requires that an Indigenous business be at least 51% owned and controlled by an Indigenous person and, subject to the number of employees, at least one-third must be Indigenous individuals. However, public and private organizations may lack a transparent, user-friendly verification process (or have no verification process at all), and this can lead to hesitation around awarding contracts. The Canadian Council for Indigenous Business (the “CCIB”) reports that some Indigenous entrepreneurs have expressed difficulties proving Indigeneity, along with concerns that verification criteria sometimes work against them.

Without culturally responsive and distinctions-based mechanisms to identify Indigenous ownership, procurement criteria risk unintentionally excluding legitimate Indigenous suppliers, engaging in overly cautious procurement practices or unintentionally supporting organizations that are not truly Indigenous-owned.

Procurement processes that are too complicated

Complex procurement systems remain one of the most persistent obstacles for Indigenous procurement. Research by CCIB shows that many Indigenous businesses face a significant administrative burden when engaging in procurement. Barriers include having to be familiar with multiple complex platforms, have enough of a capital float to survive extended payment periods, manage unclear returns on investment (i.e. will the bid award be worth the costs of bid submission) and meet application prerequisites that disproportionately disadvantage small or remote Indigenous businesses.

Manitoba’s own system is not immune to this issue. The IPI is intended to simplify and support access, but it still sits within broader procurement structures that the ICC describes as challenging for many smaller businesses to navigate. Some Indigenous entrepreneurs also note that procurement opportunities are often too small or fragmented, which limits growth and restricts participation in capital-intensive projects.

Systemic and historical barriers

Procurement barriers exist within overarching structural systems that are slow to adapt to Indigenous procurement initiatives. As identified by the ICC, many Indigenous businesses still face structural hurdles rooted in a long history of colonial policies, including legal restrictions under the Indian Act and the ongoing impacts of residential and day schools. These historic barriers have affected access to capital, capacity development and the ability to scale operations.

In addition to these systemic issues, discrimination can still be present in procurement processes. Some Indigenous businesses report specific discriminatory challenges during the evaluation and contract stages. This includes risk aversion from buyers, lowest-price criteria that benefit larger non-Indigenous firms and Indigenous engagement points in evaluation criteria that sometimes offer a greater opportunity to non-Indigenous businesses than Indigenous businesses.

Capacity constraints and short-term contracts

Some Indigenous firms may face capacity constraints, especially when large or long-term projects are involved; however, in contrast, short duration contracts may be more achievable for certain Indigenous proponents, but short engagements may offer only brief benefits and do not enable the Indigenous businesses to invest in staff or equipment.

Pathways to stronger Indigenous procurement practices

Strengthen supplier identification and verification

Procuring entities should access available resources such as Manitoba’s Indigenous Business registration process, which outlines criteria for verifying Indigenous ownership. At the same time, public and private sector companies should design verification steps that align with their organization’s goals and operations, but also that respect cultural realities and do not create barriers of their own.

Simplify procurement requirements

To encourage participation, organizations can:

• Use clear, concise tender documents;
• Reduce administrative burdens, especially for smaller contracts;
• Offer pre-bid sessions and conversations to explain requirements;
• Award work on a milestone basis to support capacity building where appropriate; and
• Provide templates, guides and examples for bid submissions.

Research shows that administrative burden and unclear processes are major deterrents for Indigenous entrepreneurs. Simplifying these systems is one of the most effective ways to increase Indigenous participation.

Build relationships through early engagement

Companies in Manitoba should engage Indigenous businesses and communities early in the procurement cycle. Early discussions help align expectations, build trust and ensure that projects and procurements meet the needs of the organization procuring the goods and services, but also the needs and capacity of local Indigenous businesses and communities.

Support capacity development

Companies can invest in supplier development by offering mentorship, training, subcontracting pathways and guidance and support with understanding tender and competitive bid processes.

Supporting capacity development is not only beneficial for non-Indigenous private and public organizations, it is also part of a broader commitment to economic reconciliation that recognizes the historic barriers Indigenous entrepreneurs have faced in Canada.

Key takeaways

Indigenous procurement represents a meaningful opportunity for companies and governments in Manitoba. The economic impact has been significant to date, but the pathway to achieving it requires dedicated effort from both non-Indigenous and Indigenous organizations. Challenges such as identifying Indigenous ownership, navigating complex procurement systems and confronting systemic barriers remain substantial; however, by strengthening verification processes, simplifying procurement requirements, engaging early with Indigenous suppliers and investing in Indigenous capacity, those in the public and private sectors can contribute to genuine economic reconciliation.

Indigenous procurement is not simply a purchasing decision. It is a commitment to partnership, shared prosperity and a more inclusive future for Manitoba and Canada as a whole.

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