Black cladding. For many First Nations entrepreneurs, it is a term that evokes frustration, anger, and disappointment. It represents the appropriation of Indigenous identity and belonging for profit, where businesses or organisations masquerade as Indigenous-led while failing to genuinely empower or benefit our communities.

What's more disheartening is that the very institutions and systems designed to protect us have, in some cases, become enablers of this practice. While these powerful institutions often originated from the visions of First Nations leaders committed to self-determination, their motives and objectives have not always been clear or consistent.

With the fast-approaching 2032 Olympic and Paralympic Games in Brisbane bringing an opportunity to foster, develop, and invest in Indigenous entrepreneurship—supported by a $5.4 billion commitment in Indigenous procurement as part of the Q2032 Procurement Strategy—it's a critical time to assess and audit the state of Indigenous business integrity and identify the structural changes needed to safeguard our collective future.

What Is Black Cladding?

Black cladding occurs when businesses exploit Indigenous identity to gain access to procurement opportunities, funding, or other benefits designated for the economic growth of First Nations people and businesses. This often involves companies falsely presenting themselves as Indigenous-owned or controlled by placing a token Indigenous director or employee at the forefront, while non-Indigenous individuals or entities reap the economic benefits and build on Indigenous reputation and social capital.

On paper, these organisations may appear to meet the requirements, but in practice, they create further exclusion, leaving genuine Indigenous businesses struggling to compete. Black cladding not only undermines fairness and equity but also erodes trust in systems meant to uplift First Nations enterprises.

Who Is Responsible?

Institutions tasked with ensuring the authenticity of Indigenous businesses—such as certification bodies, procurement agencies, and government departments—must shoulder some responsibility. While their intentions are often noble, their frameworks have been inadequate in preventing black cladding.

Loopholes persist, and accountability mechanisms are either weak or entirely absent. For example, certification processes frequently rely on surface-level assessments, such as ownership percentages, rather than thoroughly examining operational control, community impact, or a company's integration within the First Nations business economy. This allows opportunistic businesses to slip through the cracks, diverting resources away from legitimate Indigenous enterprises.

The Impact

The consequences of black cladding extend beyond economics. This practice perpetuates systemic inequities, denying Indigenous businesses the opportunity to grow and drive meaningful change in their communities. It damages the credibility of procurement systems and reinforces harmful stereotypes that Indigenous businesses cannot succeed without external interference. Most critically, it undermines the self-determination that is central to First Nations economic development.

A Call to Action

It is not enough to simply call out black cladding when it occurs. As a community, we must push for systemic reform to address the root causes of this issue. Here are three critical steps that institutions must take:

1. Strengthen Certification Processes: Certification bodies must go beyond ownership metrics to assess operational control, governance, and genuine community benefit. Verification systems must include regular audits and accountability mechanisms that evaluate a company's community representation and sense of belonging.

2. Enforce Procurement Standards: Government and corporate procurement programs must adopt stricter standards for verifying Indigenous ownership and operations. Organisations engaging in black cladding should face real consequences, including removal from preferred supplier lists and public reporting of violations.

3. Empower Indigenous Voices: Indigenous business leaders and communities must have a direct say in developing the policies and systems designed to support them. Only through genuine representation can these frameworks reflect lived realities and aspirations.

Protecting Our Legacy

Black cladding is more than a business issue—it is an affront to the hard work and resilience of Indigenous entrepreneurs who strive to build sustainable futures for their communities. As the Founder and Director of First Nation Start Up, I have witnessed the incredible potential of Indigenous businesses when they are given the opportunity to thrive without exploitation.

Addressing black cladding is not just about closing loopholes or regulating the Indigenous business landscape. It is about upholding the integrity and sovereignty of Indigenous enterprises.

As we move into 2025, we must foster an environment where Indigenous businesses are celebrated for their authenticity, strength, and contributions to Australia's economy and culture. With significant Indigenous procurement commitments on the horizon and an increasingly global audience, First Nations businesses have the opportunity to lead by example—showing how the business sector can grow with integrity, guided by cultural values that define good business practices.

Sinead Singh is the founder and Director of First Nation Start Up.