The Māori economy reached a value of nearly $70 billion back in 2018 and is playing a significant role in New Zealand's gross domestic product and growth – not just in earnings but also in sustainability and long-term relationships.
"The opportunities for all kinds of businesses to get involved are immense," says Anthony Ririnui, head of ASB's Te Waka Whaihua, ASB's Māori Business Team.
Māori have traditionally invested in the primary sectors of farming, fishing, and forestry, but have also diversified into commercial and residential property, high-value horticulture such as kiwifruit and blueberries, and other food production – even getting involved in the film and fashion sectors.
Ririnui says there's been a real gear change in increased capital and capability in the Māori sector. More capital is coming from iwi completing Treaty of Waitangi settlements and from the major banks following a capital review by the Reserve Bank.
"The banks haven't taken the full holistic view of supporting everyone within the Māori community," says Ririnui. "It's been preferred to fund iwi and other groups that have a corporate structure, but there are other structures within Māori land ownership.
"The Reserve Bank engaged with the banks to look at ways of releasing more capital for Māori organisations, particularly financing on Māori freehold land. It has been led by consultation to make things easier and to provide funding."
Ririnui says Māori have invested, cultivated and nurtured a pool of talented people and "we have a generation of governors coming into Māori organisations who are very skilled. This has put the Māori economy in good stead."
Over the past decade, the Māori asset base has been growing at 10 per cent a year, much faster than the overall economy. The Māori economy was valued at $42.6b in 2013 and is on track to reach $100b by 2030.
Of the near $70bn Māori economy (2018 figures are the latest available), $40bn is held by more than 10,000 firms with Māori owners, nearly $9bn with 18,600 self-employed Māori, and $21bn in trusts, incorporations and iwi organisations - $14bn of which is invested in the primary sector.
A third or $7.1bn in assets is held by top 10 iwi organisations such as Ngāi Tahu, Waikato Tainui, Ngāti Whatua Ōrākei, Tūhoe and Ngāti Porou.
South Island-based Ngāi Tahu received $170 million in 1996 from the Treaty settlement and over 25 years has grown its asset base to $2bn by establishing its commercial arm Ngāi Tahu Holdings and investing in property, tourism, agriculture, fishing and forestry. To date, Ngāi Tahu has distributed $600m into tribal development and settlement (housing and cultural such as Te Reo).
Ririnui says: "What we have seen is iwi and Māori organisations taking a majority shareholding in well-established, (usually) family businesses who are looking to exit in a few years but want their legacy to live on.
"The businesses will support the upskilling of Māori organisations, so they are in a position to take full control and ownership in due course."
Ririnui says non-Māori businesses can get involved in the Māori economy by showing genuine intent to support and to partner with Māori organisations and iwi based on aligned values.
"Those businesses that embrace sustainability, value enduring relationships and prioritise supporting their people and communities, have a good foundation to start the conversation."
Values such as manaakitanga (respect and generosity), kaitiakitanga (guardianship) and whanaungatanga (relationships) have shaped Māori economic partnerships for generations and are being reflected in business. These values are also reflected in the move to incorporate environmental, social and governance factors into investment decisions – standard practice in capital markets over the past 10 years.
"Māori organisations can provide a lot of shared knowledge to non-Māori businesses, such as the environment and climate change. They have a real focus on the planet and people and then profit," says Ririnui.
"A number of Māori organisations are empowered to deliver social impacts such as housing projects for their own people. There has been a real upswing in activity. Iwi Māori are partnering with Crown agencies to provide solutions across the whole housing continuum for whānau - social and affordable housing.
Ririnui says the Māori economy will continue to grow with a focus on high-value horticulture and other activities. There has been further investment in kiwifruit in the Bay of Plenty, avocados in the far north and blueberries nationally.
"Māori collectives have made great strides, for example Miro Berries, Whakatohea Mussels, and (Nelson-based) Whakatū with its Kono food and premium wine exports. Māori has invested in Rocket apples.
"The Māori economy is in a good position despite the macro headwinds. I've never seen the situation in the last 10 years where things are so lined up for success - the capability and the alignment of values with groups abroad and in Aotearoa New Zealand. It's all about picking the right opportunities."
Ririnui says ASB's dedicated Māori Business Unit can play a role in connecting businesses with Māori entities and, in the end, an understanding of Te Ao Māori must be a core competency for all New Zealand directors and companies as they shape the economic environment of Aotearoa New Zealand for years to come.
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