Yesterday, in his state of the nation address, Prime Minister Christopher Luxon announced the establishment of “Invest New Zealand” (Invest NZ), a foreign investment agency aimed at promoting foreign direct investment (FDI) into New Zealand. This announcement was made on the back of a series of recent Government reforms directed towards economic growth, particularly through a liberalisation of New Zealand’s overseas investment regulation (see our earlier article here). Prime Minister Luxon described the new agency as a “one-stop-shop” for overseas investment.
Invest NZ will initially be introduced as part of New Zealand Trade and Enterprise (NZTE), with the intention to transition it into an autonomous Crown entity in future. The Government has appointed Trade Minister Todd McClay to oversee the new agency. Minister McClay said the initiative “will help unlock tens of billions of dollars in global investment opportunities”.
The agency is modelled off the success of Ireland’s Industrial Development Agency (the IDA) and Singapore’s Economic Development Board (the EDB). Foreign investors can expect “tailored support” from the agency, with the aim of increasing capital investment. The Government has indicated that Invest NZ will focus on:
- high-potential sectors: attracting FDI for high-potential sectors to boost efficiency and innovation;
- streamlining processes: consolidating investment processes to increase available capital to invest in new and existing projects and enterprises, including:
- banking and financial technology;
- infrastructure, including transport and energy projects;
- manufacturing and private sector growth;
- increasing research and development (R&D): attracting R&D investment in New Zealand.
- attracting skilled professionals: encouraging skilled professionals to enhance domestic capabilities and global connections.
The establishment of Invest NZ follows recent reform of New Zealand’s overseas investment regime, which has reduced the compliance requirements placed on investors and decreased consent timeframes (see here). Since those changes, investors into New Zealand have enjoyed a streamlined consent process and vastly shorter timeframes (with many consents being obtained within four weeks from application).
Yesterday’s announcements did not include any specific updates on expected changes to the Overseas Investment Act (OIA), although it is understood that officials have commenced work on these reforms (see our earlier article here). It is yet to be seen whether these reforms include specific pathways for investments into targeted sectors, such as financial technology and infrastructure.
The establishment of Invest NZ follows a broader trend of simplifying the FDI process and reducing barriers to invest in New Zealand. Investors can expect to see further changes to the overseas investment regime and the immigration rules to coincide with the purposes of Invest NZ in attracting capital investment from overseas.
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