Research Shows Investment Potential Of Expat Kiwis

Monday 7th November 2011

Kea New Zealand’s Ground-Breaking Research Shows Investment Potential Of Expat Kiwis

Ground-breaking research announced today by Sir Stephen Tindall, Chair and co-founder of Kea New Zealand, provides a way to address New Zealand’s lack of investment capital.

The Kea New Zealand research, which surveyed over 500 New Zealanders living overseas, reveals there is opportunity for a considerable injection of investment from tens of thousands of well educated, investment savvy offshore New Zealanders.

Since 2006 foreign direct investment in New Zealand has declined by over $3 billion, one of the biggest deteriorations in the world.1

“Most New Zealanders see economic growth as our best chance of achieving improved prosperity, but growth requires capital and connections,” Sir Stephen said.

“This research demonstrates that significant increases in investment, and improved connections with global networks, can be achieved from Kiwis living overseas who remain committed to New Zealand despite their temporary or even permanent residence in another country.

“Kea New Zealand’s research highlights the fact that there is considerable untapped potential of both time and financial resources from Kiwi expats who are able and willing to invest in New Zealand’s productive economy,” said Sir Stephen.

Entitled ‘Foreign Investment from Kiwis: The potential for New Zealand’s diaspora to invest in our productive economy’, the research was conducted between June and August this year and included interviews and insights from more than 500 people in New Zealand and offshore – including 469 Kiwi expats who identified themselves as prospective investors.2

The survey found that many overseas-based Kiwis are willing to commit both time and money to the cause of New Zealand business. At least 15% of those surveyed are strongly motivated to invest in New Zealand companies, and almost three-quarters (72.8%) say they would be willing to help mentor or manage a New Zealand small to medium enterprise.

“These findings prove there is a great opportunity for New Zealand’s public and private sectors to mobilise the Kiwi expat investment force. The study confirms the vital role that Kea New Zealand can play globally by helping connect these groups in an engaging and effective way,” Sir Stephen said.

Kea New Zealand’s research reveals there are two types of prospective investors who are most likely to invest in New Zealand: these groups are defined by their commercial know-how and their ‘Kiwi orientation’ – or the level of extra leeway the investor will allow for New Zealand investments.

The research also provides extensive insight into how both the New Zealand public and private sectors can inform, influence and engage with Kiwi expat potential investors, according to their appetite for specific investment mechanisms: angel, small to medium enterprises, and funds investments.

Highlights from Kea New Zealand’s research include findings that it is generally agreed that New Zealand has a strong innovation base from which growing companies emerge; this was seen by those surveyed as the most outstanding positive factor of the New Zealand economic environment, with 77% of respondents rating it positively.

“These findings underline the commitment that New Zealand inspires among our global expat community, while highlighting the importance of New Zealand’s reputation for innovative thinking and practice,” Sir Stephen said.

Auckland Tourism, Events and Economic Development's (ATEED) General Manager of Business and Sector Development, Clyde Rogers believes the research findings provide exciting insight for developing Auckland's economy.

"The results confirm there is a network of Kiwis offshore keen to engage and invest in New Zealand businesses. ATEED will work with local businesses to build capability to ensure they are ready to accept investment offers, while proactively engaging with the Kea NZ network to attract investment for Auckland businesses," says Mr. Rogers.

BNZ Head of Wealth and Private Bank Tracey Berry says the bank is proud to have assisted with this research and looks forward to helping grow New Zealand’s global network.

“At BNZ we’re excited to hear that Kiwi business leaders plying their trade offshore are keen to invest back into New Zealand. This kind of passion for local business is something we can relate to at BNZ and the stimulus it provides our economy is invaluable,” says Ms. Berry.

Kea New Zealand acknowledged the contribution made by Auckland Tourism, Events & Economic Development and the Bank of New Zealand, which both provided financial support for the research.

ENDS

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