NZ High-Growth Investment Opportunities for the AIPV Category

On 19 September 2022, the new Active Invest Plus Visa (AIPV) was released as part of the NZ Government's Immigration Rebalance Strategy.

The Government's aim with this new strategy is to increase the involvement that investors have with NZ businesses and reduce the levels of passive investment from foreign nationals wanting to make New Zealand their home. 

In this article we review what’s happening within this category in the last four months and its investment opportunities 

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What Is the New Active Investor Plus Visa?

AIPV replaces the previous NZ investment visa categories to ensure higher levels of participation from investors in our economy. The change has come about to rebalance the types of investment prioritised, as the Government aims to bring more value to New Zealand's business growth and attract international expertise.

By attracting more active investors, the Government aims to deliver more value from overseas talent over an extended period. They hope that overseas investors migrating to New Zealand will play an active role in growing Kiwi companies. 

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AIPV Requirements

The Active Investor Plus Visa requires investor migrants to meet the following criteria:

• Invest between NZ$5 million and NZ$15 million, depending on the type of investment (the higher the risk the lower the dollar investment required). 
• Invest for three years and maintain the investment for the fourth year.
• Spend 117 days in New Zealand during the four-year visa period.
• Be competent in the English language.

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What Opportunities Does the AIPV Provide to Investor Migrants?

There will be soon a publicly available list of acceptable investments made up of either managed funds or direct investments. The investments are reviewed by a panel of experts engaged by New Zealand Trade and Enterprise. There are other investment types that don’t have to be approved by the panel such as philanthropy and equities.   

New Zealand's economy continues to introduce new innovative companies that have the potential to become global competitors. 

New Zealand Trade and Enterprise (NZTE) collaborates with many new and innovative companies and is a crucial link between investors and prospects for profitable investments.

In addition to investment growth and opportunities that New Zealand provides, the Active Investor Plus Visa further assists investor migrants in their move to NZ, as it offers a fast-tracked pathway to residence.

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The High-Growth Investment Sectors

A wide range of business sectors characterizes the NZ economy. Many have strengths and advantages found nowhere else in the world. 

Here are the top sectors with high-growth potential, including how they're significant opportunities for forward-thinking investors and entrepreneurs.

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Food & Beverage

New Zealand is one of the world's leading food exporters, supplying premium food and beverage products to millions of people in over 120 countries. In 2021, New Zealand made $31.2b from global food and beverage exports.*

New Zealand's temperate climate, fertile soil and clean ocean make it a world leader in food production. As one of the world's top food exporters, the country provides premium food and beverage products for millions of people across 120 countries.

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NZ is a known exporter of dairy products, lamb, venison, beef, kiwifruit, apples and seafood. Natural production advantages and the expertise of local producers and businesses combine to offer significant potential for investors.

81 countries worldwide import NZ's aquaculture products, which are considered some of the best seafood.***

The sub-sectors of focus within NZ's food and beverage sector for potential growth include aquaculture, pet food and value-added dairy products.

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NZ ranks 3rd out of 113 countries for food safety, nutritional standards and food safety net programmes.**

NZ's trusted reputation is outlined by strict food safety and biosecurity measures. A global reputation as a trusted supplier of quality products and ingredients to the world's primary food and beverage companies is due to food regulation based on evidence and designed with business in mind.

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A Kiwi Success Story

Zeffer is a premium cider company focused on domestic and international growth. They are positioning themselves as New Zealand leading Cider manufacturers. They anticipate 48% growth in FY23. Zeffer forecasts growth to $12.4m in revenue with $1m EBITDA in the next three years.

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Renewable Energy

The sub-sectors of focus within NZ's renewable energy sector for potential growth include green hydrogen, solar and geothermal.

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New Zealand ranks 2nd in the world for energy security.**** 

New Zealand's natural resources, world-class technology and national ethos of sustainability contribute to its potential for investment in renewable energy. It also ranks in the top two in the world for energy security. This is enhanced by the Government's targeted approach to continuous improvement and innovation within the renewable energy sectors.

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84% of New Zealand's electricity usage is renewable.*****

NZ has the fourth-highest share of renewable energy in the OECD, currently at 84% and rising. It is estimated to have around 14,700 MW of additional capacity, offering significant scope for high-growth investment opportunities across the clean-energy value chain.

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A Kiwi Success Story

Lodestone Energy is 100% New Zealand owned and operated. In June 2022, they succeeded in raising $300 million to build 5 wind farms, and they aim to be the leader in grid-scale solar in New Zealand. Lodestone projects their solar farms will increase New Zealand's solar production by eight times and feed electricity into local networks.

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Tech & Innovation

New Zealand is known for its unique solutions with technology and innovation. With its Tech Sector is the country’s 2nd largest export sector, equating to $13.9b in revenue in 2021. Its potential for growth has only scratched the surface as maturing New Zealand startups hit the global markets. 

With a 23% growth in digital exports from 2020 to 2021, the NZ tech companies continue to be recognised globally due to their fresh perspectives, creative energy, and unexpected answers to problems.

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In 2021, New Zealand experienced a 48% growth in early-stage investment tech.******

Being on the edge of the world fostered a new approach to challenges, driving the nation to become innovators. Creativity, practicality and a readiness to challenge convention became core facets of the New Zealand mindset. The world is now a great deal more connected. 

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111% increase in capital investment into NZ tech businesses over 2021. *******

New Zealanders due to their location, and ingenuity are generally seen as early-adopters to technological trends and software.

Our economy is often seen as the perfect testing ground for innovation, with a small, multi-cultural population and one of the highest rates of internet usage globally. This is all supported by advanced digital infrastructure and high speed cables. 

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A Kiwi Success Story

Unleashed is a cloud-based inventory management system built in New Zealand, which has seen global success in 75 countries. In 2020 the company was sold to Access Group, a UK-based company, for an undisclosed amount estimated to be over $100m. 

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Tourism

The sub-sectors of focus within NZ's tourism sector for potential growth include hotels and tourism attractions.

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In 2020, 73% of visitors to NZ were first-time visitors.********

The Māori culture, New Zealand's friendly hospitality and the nation's stunning landscapes make NZ a global tourist destination. NZ has a reputation worldwide for high-quality experiences, meaning there are significant opportunities for investment in tourism and its unique attractions.

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Domestic tourism market value of $23.7b.*********

New Zealand's domestic and international tourism sectors are moving from strength to strength as the country looks ahead to its bright future in the emerging post-Covid landscape. 

New Zealand's tourist attractions are experiencing record performance, with an increasing demand for high-value attractions to provide authentic experiences for visitors. Hotel demand is growing as well. NZ has the strongest average daily rate (ADR) growth in the Asia-Pacific market, so there is an ongoing demand for accommodations to meet future needs.

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Transportation

The sub-sectors of focus within NZ's transportation sector for potential growth include advanced transportation and space.

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NZ is working towards net-zero carbon emissions by 2050.**********

Due to its distance from world markets, New Zealand's isolation has helped the country breed a spirit of innovation, with transport technology no exception. The country's creative mindsets combined with NZ's innovation-friendly business environment have resulted in the ability to find unexpected solutions to complex problems whilst focusing on environmentally-friendly options.

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NZ has the world's 1st fully private orbital launch ranges.***********

The various natural advantages of New Zealand make the country an ideal place for developing and testing advanced transport solutions. As NZ is relatively isolated from other crowded parts of the world, the location provides the sector with larger areas of clear airspace, making it the ideal environment for earth observation and data calibration and a range of suitable sites for ground infrastructure.

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Forestry and Wood Processing

The sub-sector of focus within NZ's wood product sector for potential growth is wood processing.

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NZ ranks 1st globally for log exports, worth more than $3.8 billion.************

New Zealand's forestry products are in high demand globally, with over 75 per cent of the woof coming from NZ's production forests and being exported in many forms, like logs, wood chips, sawn timber, engineered wood products, pulp and paper, and manufactured wood products such as furniture. For example, NZ is the largest global roundwood log exporter in the world, delivering 21 million cubic metres of product per year. 

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How to Find Investment Opportunities

New Zealand's modern economy continues to introduce new companies that have the potential to become global competitors. 

New Zealand Trade and Enterprise (NZTE) collaborates with many new and innovative companies and is a crucial link between investors and prospects for profitable investments.

By registering your interest and connecting to the Live Deals portal you can access information on these New Zealand companies seeking investment opportunities.

As the category evolves there will be more developments to be released in the early part of this year on the specifics of acceptable investment opportunities for potential investor migrants. 

Keep up to date with these changes and other NZ immigration news by subscribing to our newsletter.

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Get an Investor Visa Today

The Investor Visa in NZ is worth pursuing and offers increasing opportunities for high-growth potential. However, with changes to the investment visa categories, getting all the assistance you need from experienced licensed immigration advisers is essential.

With one of the most skilled Investor Visa teams in the country, Malcolm Pacific Immigration can assist you with every step of the application process and beyond. Get in touch with our specialist Investor Visa team today to discuss your eligibility and investment options.

Contact us today!

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Sources

*Stats NZ Export Data YE June 2021.

**Global Food Security Index, 2021.

***Aquaculture New Zealand.

****International Index of Energy Security Risk (2020).

*****Ministry of Business, Innovation & Employment (2020), Energy in New Zealand.

******New Zealand Capital Growth Partners (NZGCP), TIN research.

*******NZ Private Capital Monitor (2021).

********Tourism NZ, March 2020.

*********TNZ, Domestic Tourism Insights May 2020.

**********New Zealand Ministry for the Environment, 2021.

***********Deloitte and New Zealand Ministry of Business, Innovation & Employment, 2020.

************Stats NZ, year end 2020.

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