New Zealand has everything a business could hope for in terms of political stability, an educated workforce and support for expansion. It also has a number of free trade agreements in place and a deep desire to expand its global footprint with the help of international investors.
By William Bell
Looking for a safe global location to set up new operations, or a country in need of imports from abroad, can be challenging today with so much volatility in governments and the environment. Selecting a global site to target for business expansion is one of the most important decisions a business can make today, so looking to New Zealand as a potential country for investing makes sense, especially when the goal is to minimize risks.
This lovely country has done everything possible to make it a place that business investors will find irresistible. They include a no. 1 ranking on the World Bank's list for "ease of doing business" and a host of other positive no. 1 rankings for corruption transparency and economies for prosperity. There are multiple ways to invest, and New Zealand's government invites investors and entrepreneurs to consider all of the regional investment opportunities.
Dynamic Country Reaching Out to Businesses AND INVESTORS
New Zealand is in the southwest Pacific and consists of two main islands, each with a unique environment, and a number of smaller ones. Wellington, on the North Island, is the capital city. The North Island has four of the country's seven international airports, but the largest airport is on the South Island. Most of the population lives on the North Island, and the most populated city is Auckland. However, there are many nice cities inviting investors to their locations, including Christchurch, the South Island's largest city.
New Zealand has a varied economy. Some of the largest sectors are advanced farming and agricultural technology, dairy, manufacturing, high-tech, tourism, winemaking, and film production. New Zealand is rapidly building an economy on advanced technology that spans industries. The technology sector is the fastest growing sector, and the country has connections with tech hubs in Asia and North America.
The economy is dependent on international trade, making it ripe for Foreign Direct Investments (FDI) and foreign exports to New Zealand. However, the government aggressively encourages investments in many forms. They include being an angel investor in innovative startup businesses; buying an established business, commercial property, stock in public companies and/or bonds; and starting a business.
The economy is one of the least regulated in the OECD because the governmental philosophy is based on free-market principles. This is likely the reason New Zealand did not suffer as much economically during the Great Recession like so many other countries and was able to recover quickly. Since 2010, the economy has consistently grown. Currently, 30 per cent of the economy consists of exports, so U.S. businesses can also invest in New Zealand's success by importing goods and services.
In terms of FDI in New Zealand, the U.S. was only second to Australia. U.S. companies invested $5.5 billion in 2017. The business investments were in a number of industries – finance, manufacturing, insurance, food, agricultural products, transportation, mining, energy, professional services and wholesale trade sectors. There are currently more than 300 U.S. business with subsidiary branches in New Zealand; they either work through local agents or have formed joint partnerships.
Attracting Innovators and Go-Getters
The active pursuit of investments is supported by a generous visa programme that includes investment and business visas that offer a smooth immigration process.
The investor visa requires a minimum of NZ$3 million over four years, and the Investor Plus Visa requires a minimum of NZ$10 million. The entrepreneur visa is for people who want to purchase or start a business and targets experienced business people who can make a minimum capital investment of NZ$100,000 to start a business.
The Global Impact Visa is a new-concept visa. Immigration New Zealand partnered with the Edmund Hillary Fellowship to create an innovative visa designed to attract visionary entrepreneurs, investors, and start-up teams that can help New Zealand make a bigger impact on a global basis.
There are a number of free trade agreements in place. They include the ASEAN-Australia New Zealand Free Trade Area (AANZFTA); the New Zealand-China Free Trade Agreement; the Trans-Pacific Strategic Economic Partnership; and others with Thailand, Singapore, Australia, Korea, and Malaysia (in force soon).
In 2017, the U.S. exported $3.92 billion to New Zealand and imported $4.16 billion. The primary exports were agricultural goods, aircraft, machinery, medical instruments, optic and vehicles. The main imports into the U.S. were frozen beef, milk protein concentrate, caseins, machinery and wine.
‘Haere Mai’ to Businesses
This is a remarkable country that has successfully blended its economic goals and its beautiful environment. It unabashedly boasts about its unique wildlife, varied terrain and one-of-a-kind friendly culture.
It is no surprise that tourism is a major industry. There are many regions in New Zealand that attract tourists, eco-travellers and businesses. For example, the Northland offers an international port, a boatbuilding hub, timber harvesting and aquaculture. Wellington has a high-tech hub. Southland is a region where high-value agriculture and food production is a major economic segment. New Zealand has developed useful economic profiles for the various regions.
New Zealand's Foreign Affairs & Trade operates an embassy in Washington, D.C., and can provide a lot of information concerning business and trade opportunities. Like most global expansions efforts, it is important to develop early connections to make the process as smooth as possible. Immigration New Zealand manages the visa programmes, but there are numerous government agencies, business networks, and regional organisations that can help any type of investor meet their particular needs (visit https://www.newzealandnow.govt.nz/investing-in-nz/key-contacts).
The Overseas Investment Office is responsible for all foreign investments as establishing a business or purchasing more than a 25 per cent equity share (visit https://oio.linz.govt.nz/). Investment New Zealand is a division of New Zealand Trade & Enterprise and is responsible for FDI processes which include joint ventures with New England companies, corporate relocations, and new investments (visit https://www.nzte.govt.nz/regional/north-america).
New Zealand is ready to say "haere mai" to investors, and the welcome is always friendly.