Time to tap expat investment potential

Recent research suggests there is “considerable untapped potential” for investment in the New Zealand economy by expat Kiwis.

From June-August 2011 500 people in New Zealand and overseas were surveyed,  including 469 Kiwi expats who identified themselves as prospective investors, with findings illustrated in the recently released report: Foreign Investment from Kiwis: The potential for New Zealand’s diaspora to invest in our productive economy.

The research was compiled by Kea New Zealand, a not-for-profit organisation focused on reaching and motivating expatriate Kiwis to increase their contribution to New Zealand, with the financial support of Auckland Tourism - Events and Economic Development, and the Bank of New Zealand.

New Zealand Trade and Enterprise Acting General Manager, Capital, Richard Laverty welcomed the report.

“It confirms many things we understood anecdotally about the investment potential of New Zealand’s diaspora, and confirms the role of Kea NZ to work on connections between interested Kea investors and funds, angel, private equity and venture capital groups,” said Mr Laverty.

The report shows at least 15% of those surveyed are strongly motivated to invest in New Zealand companies, and almost three-quarters (72.8%) are willing to help mentor or manage a New Zealand small to medium enterprise.

According to OECD (Organisation for Economic Co-operation and Development) figures, since 2006, foreign direct investment in New Zealand has decreased by over $3 billion - one of the largest deteriorations in the world.

Chair and co-founder of Kea New Zealand, Sir Stephen Tindall, said investment by expats will help address New Zealand’s lack of investment capital.

“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.