Reserve Bank report tots up $69b of assets in Māori economy

Thursday, 28 January 2021

Most Māori economic assets are invested in private businesses, with much of that in primary industries, but Māori interests are becoming more diverse.

Māori businesses and non-profit organisations owned almost $69 billion in assets as of 2018, according to a new report on the Māori economy released by the Reserve Bank.

The report, produced by economic consultancy Berl, said the economic interests of Māori were increasingly diverse but opportunities remained for those interests to reach their full potential.

Most of the assets of the Māori economy were in the private sector.

There were almost 10,000 companies owned by Māori which had combined assets of $39b, Berl found.

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Another $8.6b was invested in the businesses of 18,600 self-employed Māori, and Māori trusts and other entities controlled assets worth another $21b.

A high proportion – more than $23b of the total – was invested in agriculture, fishing and forestry ventures and almost another $17b in property.

However, Berl found that since 2013 Māori business activity had increased in a range of industries, including construction, retail trade and “information media”.

Te Puni Kōkiri deputy secretary Hamiora Bowkett fears Māori businesses may have been harder hit by Covid because of their relative exposure to tourism.

Access to capital was a barrier for Māori businesses, Berl said.

Reserve Bank assistant governor Christian Hawkesby said the report showed Māori contributions to the economy of Aotearoa were multi-faceted.

“Māori engage in economic activity both in and out of the labour force and there is more to learn and understand about the rich and many roles Māori play in our economy,” he said.

Berl reported there were 285,400 Māori households in 2018 with an average household income from all sources of $83,200.

Of the 300,000 Māori employees in Aotearoa, 74,000 were employed in high-skilled roles, and of those, 40 per cent were employed in two industries; health care and social assistance, and education and training, Berl found.

Te Puni Kōkiri deputy secretary Hamiora Bowkett said the number of Māori businesses identified was eight times higher than previous estimates, and noted those businesses employed an average of 14 staff.

But to achieve “equitable participation” and higher incomes and prosperity for whānau, the Māori

economy needed to grow at higher than overall rates, he said.

The report highlighted access to capital as a barrier for Māori businesses, exacerbated by

lower rates of home ownership and lower wages and skill levels, he said.

“The Māori household sector receives 35 per cent of its income from social security and assistance,

compared with 9 per cent for non-Māori households.

“Māori are far more exposed to the economic impacts of Covid-19, which is also driven by exposure to industries such as tourism, retail and accommodation,” he said.