Madam Speaker, I first want to acknowledge that we are gathered on the unceded traditional territory of the Anishinabe and Algonquin people.
Indigenous procurement programs are in place because the Government of Canada is taking action to right past wrongs and move forward to advance, among other avenues, economic reconciliation. I will take a moment to explain how the program works and what it accomplishes. The procurement strategy for indigenous businesses limits bidding in federal procurement processes to registered indigenous businesses. By limiting bidding to businesses that are at least 51% indigenous owned and controlled, the government is creating more opportunities and access for these businesses.
There are huge opportunities for growth and economic development. The Indigenomics Institute estimates that the indigenous economy has the potential to grow from $32 billion to $100 billion in the next five years. The mandatory minimum 5% indigenous procurement target requires that at least 5% of the value of federal contracts is awarded to indigenous businesses. This ensures that procurement officers are considering indigenous businesses when procuring goods and services like office equipment, engineering services, technology and transportation, and the list goes on. These programs help indigenous businesses win contracts, generate revenue, gain experience and build networks, and all of this can be leveraged to win larger contracts with both public and private industry.
Indigenous procurement programs are a step toward making sure that indigenous people have equitable access to economic success and self-generated wealth. Simply put, these programs move the needle. In 2022-23, which is the most recent year we have data for, more than 300 indigenous businesses won contracts with a value of at least $10,000 through the procurement strategy for indigenous businesses.
As a government, we understand that listening to indigenous people and acting on their advice leads to optimal outcomes. As we have heard from so many indigenous partners, these programs create opportunities and they are an essential part of economic reconciliation. Indigenous leaders have also been clear that these kinds of procurement programs should stay. Unfortunately, Conservatives have refused to say if they support that 5% minimum procurement target.
In 2021, the Liberals began a five-year process to engage partners and co-develop a transformative indigenous procurement strategy to improve existing indigenous procurement policies and programs. As part of this work, partners around the table, including the Assembly of First Nations, ITK, the National Aboriginal Capital Corporations Association and the Canadian Council for Indigenous Business, have all been clear that indigenous people must be the ones determining who qualifies as an indigenous business.
The government wholly agrees and we are focused on collaboratively determining a path forward to transfer the administration of the indigenous business directory to indigenous partners. While we work toward this transfer and the co-development of a transformative indigenous procurement strategy, we will continue to diligently manage the directory, and support these vital and meaningful programs.