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
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.
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.
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.
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.
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.
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.
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.
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.
Renewable Energy
The sub-sectors of focus within NZ's renewable energy sector for potential growth include green hydrogen, solar and geothermal.
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.
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.
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.
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.
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.
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.
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.
Tourism
The sub-sectors of focus within NZ's tourism sector for potential growth include hotels and tourism attractions.
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.
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.
Transportation
The sub-sectors of focus within NZ's transportation sector for potential growth include advanced transportation and space.
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.
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.
Forestry and Wood Processing
The sub-sector of focus within NZ's wood product sector for potential growth is wood processing.
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.
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.
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.
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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Latest Updates
Our team keep ahead of all the latest immigration developments and post updates regularly. Stay up to date by signing up to our newsletter and get these updates directly to your inbox.
Migrant Worker Residence
Today the government announced a pathway to residence for migrant workers who are living and working in New Zealand. Applications open on 1 December 2021 for the first wave who are eligible to apply. The second wave can apply from 1 March 2022. The deadline to lodge an application is 31 July 2022 or else they will miss out on this one off opportunity.
Skilled Migrants Opportunity
Today the government announced a pathway to residence for people living and working in New Zealand. Applications open on 1 December 2021 for the first wave eligible to apply. The second wave can apply from 1 March 2022. The deadline to lodge an application is 31 July 2022 or else you miss the boat.
New Employer Accreditation Process
The government has moved the introduction of the new employer accreditation process across to mid-2022. At the same time, the Minister of Immigration announced new work visa rules for migrant workers who are already in New Zealand and working full time.
Skilled Migrant Changes
The government has increased the median wage to $27 per hour from 19 July. Any Skilled Migrant residence application lodged after this date will need to include a skilled job offer that pays at least $27 per hour. For some lower-skilled occupations, the minimum pay rate increases to $40.50 per hour.
Work Visa Rules
From 19 July 2021
- The median wage used to assess Essential Skills Work Visa applications increases from $25.50 per hour to $27 per hour.
- Applicants paid below the median wage may be granted a work visa for up to 24 months. The usual 6-month visa validity restriction is suspended until mid-2022.
- In certain cases, the labour market test is waived and in some cases, it will still apply.
Work Visa Rules
From 30 June 2021
- Employer Accreditation and Approval in Principle applications are now closed.
- No new Employer Accreditation applications (including renewals) will be accepted until the new process goes live in mid-2022.
Employer Accreditation Becomes Mandatory
Employers of migrant workers must become accredited from 1 November 2021 before work visa applications can be processed. Most employers are not accredited. Those that are accredited will have to roll into the new system when it goes live in late September.
Work Visa Rules
From mid-2020 (delayed)
- Government to negotiate and introduce Industry Sector agreements setting minimum conditions for industries that heavily rely on overseas workers. Sectors include; residential care, meat processing, dairy, forestry, road freight transport, tourism, and hospitality. Construction, horticulture, and viticulture may also be included.
Skilled Migrant Changes
Skilled occupation "Dairy Cattle Farmer" spilt into three occupations. New occupations are: "Dairy Farm Manager", "Assistant Dairy Farm Manager" and "Dairy Herd Manager". Each sit at different skill levels, therefore, the award of points will depend on pay rates, job tasks and other requirements.
Work Visa Rules
From 15 February 2021
- Dairy Cattle Farmer job offers are now assessed by three new occupation descriptions: Dairy Farm Manager, Assistant Dairy Farm Manager and Dairy Herd Manager. Pay rates and job tasks will determine how long a work visa is valid. Take advice.
Skilled Migrant Changes
The government has deferred the fortnightly selection of Expressions of Interest from the Skilled Migrant pool for six months (to be reviewed in April 2021). Invitations to Apply for Residence remain suspended. The last selection from the Skilled Migrant pool took place on 18/03/2020.
Work Visa Rules
From 7 October 2020
- Introduction of "Oversupply" and "Undersupply" occupation lists used to assess Essential Skills Work Visa applications when a job offer pays less than the median wage.
- Employers offering jobs to migrant workers where an occupation is on the "Oversupply" list will not get Skill Match reports issued by Work & Income. Solid evidence of genuine attempts to find a local to fill the job will be critical for approval.
Skilled Migrant Changes
The government added four new occupations that are now regarded as skilled employment and may qualify for job offer points under the Skilled Migrant Category. These are:
Aged or disabled carer, Bicycle mechanic, Driller and Nursing Support worker.
Work Visa Rules
From 27 July 2020
- Essential Skills work visa applications are now assessed based on the current median wage (NZD $25.50 or more per hour.).
- Job offers paying below the median wage require employers to pass the labour market test* and secure a Skills Match Reports from WINZ (work visas granted for a maximum of 6 months).
Skilled Migrant Changes
Anyone invited by Immigration NZ to apply for residence under the Skilled Migrant Category where their invitation is dated between 1 November 2019 and 15 April 2020 (inclusive) has now been granted an additional six months to lodge their residence application.
Work Visa Rules
From 27 May 2020
- Regional Skill Shortage List goes live. 15 regions around New Zealand list occupations reflecting local skill shortages in each region. The labour market test is not mandatory provided the job offer matches the occupation and region plus the visa applicant has qualifications and/or work experience set out on the list.
Skilled Migrant Changes
The government has deferred the fortnightly selection of Expressions of Interest from the Skilled Migrant pool. This means Invitations to Apply for Residence are also suspended. Malcolm Pacific Immigration does not anticipate selections to resume until after the general election held on 17 October 2020.
Skilled Migrant Changes
Immigration NZ is now prioritising Skilled Migrant Residence applications where the main (principal) applicant meets the criteria:
- Has employment paying double the median wage which is currently NZD $51 per hour OR NZD $106,800 per annum; OR Has New Zealand occupational registration and is required to hold valid registration to lawfully carry out their job.
Work Visa Rules
From 24 February 2020
- Wage or salary thresholds increase for Essential Skills Work Visas applications lodged on or after 24/02/2020 (labour market tested; read more here).
- Higher Skilled employment increases to $38.25 or more per hour ($79,560 per annum*)
- Mid Skilled Employment increases to $21.68 or more per hour ($45,094 per annum*)
Work Visa Rules
From 7 October 2019
- Base salary to qualify for a Work to Residence Visa (WTR) supported by an accredited employer increases from $55,000 per annum to $79,560 per annum (or $38.25 per hour).
- Pay rates for WTR visas are now reviewed annually.
- Work visa applicants paid less than $79,560 per annum by accredited employers need to apply under other work visa categories.
Skilled Migrant Changes
The government recently added more occupations that are now to be regarded as skilled employment and may qualify for job offer points under the Skilled Migrant Category. In order to qualify for points, the job must be paying at least the current median wage (or higher for certain occupations) at the time the residence application is lodged.
Work Visa Rules
From 1 November 2021
- Work to Residence Visa (Accredited Employer and Long Term Skill Shortage) applications close.
- Applications lodged on or before 31 October 2021 will be processed under current visa settings.
Mandatory Vaccination Required for Travel
From 1 November 2021 anyone who is not a NZ citizen must be fully vaccinated (unless exempt) before travelling to New Zealand. Fully vaccinated means your last dose of vaccine was given at least 14 days before travelling and it was an approved vaccine.
Employer Accreditation
Applications for employer accreditation closed at the end of June 2021. Applications lodged before the closure date are still being processed. New applications for accreditation open on 9 May 2022. The process will be quite different to what employers have experienced in the past. Businesses will need to meet minimum standards.
2021 Resident Visa
Wednesday, 1 December is fast approaching and it is estimated that around 16,000 individuals and families can apply in the first wave for the 2021 Resident Visa opening next month. It is exciting for the thousands of people who have been waiting patiently to become residents that finally the finish line is in sight.
2021 Resident Visa
The first wave of applicants can apply from 1 December 2021. Around 16,000 applications are expected in this first wave. The second wave opens on 1 March 2022. In total, the government expects approximately 110,000 applications that will include about 165,000 people.
2021 Resident Visa
The second group of workers who can apply online for the 2021 Resident Visa that opens on 1 March 2022 are those who hold an eligible work visa and either meet "Settled", "Skilled" or "Scarce" as set out above. In total Immigration NZ estimate around 110,000 people will qualify to apply for this visa.
2021 Resident Visa
The first group of workers who can apply online for the 2021 Resident Visa that opens on 1 December 2021 are those that on 29/09/2021:
- Had lodged a residence application under the Skilled Migrant Category (SMC) or Residence from Work category; OR Had lodged an SMC Expression of Interest (EOI) in the SMC pool that included at least one dependent child aged 17 or above.
2021 Resident Visa
Is this the only requirement to qualify for residence? No. In addition to the eligible work visa criteria workers also need to be regarded as one of the following:
- Settled.
- Skilled.
- Scarce.
2021 Resident Visa
People who were lawfully in NZ (or in Australia when the travel bubble closed between April and July 2021) on 29/09/2021 need to meet the visa eligibility criteria:
- Workers in NZ who held an eligible work visa on or before 29/9/2021 and on the day they apply for residence; OR Applied for an eligible work visa on or before 29/9/2021 and the work visa application is subsequently approved and still hold an eligible work visa on the day they apply for residence.
2021 Resident Visa
The government has introduced a limited pathway to residence for people who are already living and working in New Zealand. Applications open on 1 December 2021 for the first wave of people eligible to apply. The second wave opens on 1 March 2022. The deadline to apply for the 2021 Resident Visa is 31 July 2022.
Critical Purpose Visitor Visas
A small number of critical health workers (taking up jobs for six months or longer) or specialist workers (taking up jobs that are for longer than six months) who were granted border exemptions may also have eligibility for the 2021 Resident Visa. They will need to have arrived in NZ and lodge a 2021 Resident Visa application.
Policy Decision Key Dates in 2022
- July 4. Applications open for the new Accredited Employer Work Visa.
- July 31. Applications for the 2021 Resident Visa close.
- August. Skilled Migrant Residence category scheduled to reopen.
- August. A new pathway to residence for people earning 200% or more of the median wage.
*Excludes high-risk countries.
Policy Decision Key Dates in 2022
- February 13. Fully vaccinated Kiwis plus certain other travellers entering NZ from the rest of the world* can skip MIQ.
- April 30. The border starts a phased reopen to fully vaccinated foreign nationals.
- April 30. The Productivity Commission reports back to the government on immigration settings.
- May 9. Applications open for mandatory Employer Accreditation.
*Excludes high-risk countries.
Work Visa Categories Closing
The work visa categories set to close are:
- Essential Skills Work Visa
- Essential Skills Work Visa – approval in principle
- Work to Residence (Talent – Accredited Employer)
- Work to Residence (Long Term Skills Shortage)
- Silver Fern Job Search Work Visa (closed October 2019)
- Silver Fern Practical Experience Work Visa.
The Green List
From September 2022 people holding job offers in a small number of occupations may apply for residence. Some occupations are a direct pathway to residence and others require a period of two years or longer before applying.
There are qualification and/or occupational registration requirements to meet. Establishing if an overseas qualification matches the NZ equivalent qualification before applying is paramount for success.