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This story was originally posted on RNZ.co.nz and is being republished with permission.
An immigration lawyer says New Zealand may lose foreign investors if the country’s border entry policies thwart its economic recovery.
Wealthy Americans are leading a surge in foreign investors seeking a safe haven in New Zealand from their coronavirus-ravaged countries and economies.
New Zealand Trade and Enterprise (NZTE), the government’s business development agency, last reported a ten-fold increase in inquiries.
North Americans accounted for more than half of those inquiries, followed by investors from Europe.
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Attorney Mark Williams said his company was flooded by an “incredible” number of US investors, including venture capitalists looking for companies to pump money into.
The true extent of the exodus from the United States will only become clear once the visa application numbers come out in the spring, he said.
Bevan Read / Stuff
An immigration attorney fears that New Zealand’s strict border policies could hurt the economy by keeping wealthy investors away.
“Hundreds and hundreds of millions of dollars are lining up to come in and be invested here, which is great for economic recovery, particularly if those people are looking to invest in more active types of investments than much of the US. The grassroots investors are, “he said.
“It’s international, but the US numbers are incredible. We have never been busier with [investor categories] ones and two. We are talking about $ 10 million for each application. But the other thing is also that it’s not just the money, it’s the quality of the people we’re talking to – venture capital fund operators, people looking to transition here, investing in startups – it’s just phenomenal. ” .
But the downside was that applications from offshore investors were not being processed, he said, and hundreds of millions of dollars were piling up as people waited for approval.
Others who had already invested were unable to obtain their permanent residency and apply for an exemption from border restrictions.
Williams estimated there was a one-year window of opportunity for New Zealand to capture the interest of big investors, but that needed government action before people lost patience, he said.
“We are not seeing any strategic planning around increasing the capacity of border sites for these people, the certainty of when they will actually be able to enter and invest. Of course, it is very nice to have hundreds of millions of dollars in proposed investment and stacked applications. for processing – in fact, you need to process them, and those people should be able to enter to get the benefit of those investments. “
This story was originally posted on RNZ.co.nz and is being republished with permission.
