New Zealand is set to launch a streamlined agency to attract foreign direct investment as part of efforts to accelerate economic growth, Prime Minister Christopher Luxon announced Thursday in his State of the Nation address.
The new initiative, called Invest New Zealand, will serve as a one-stop shop for foreign investors and provide tailored support across key sectors. Initially housed within the existing New Zealand Trade and Enterprise (NZTE) agency, Invest New Zealand will eventually transition into a standalone Crown entity, Luxon said.
“Invest New Zealand will roll out the welcome mat,” Luxon stated during the address. “The objective is to increase capital investment across a range of critical sectors like banking and fintech, key infrastructure like transport and energy, manufacturing and innovation.”
The move comes as Luxon’s administration prioritises economic growth following a challenging year in 2024, marked by fiscal restraint and monetary tightening that plunged the nation into recession. A limited domestic capital base has heightened the need for foreign investment to fund large-scale infrastructure projects, including highways and renewable energy plants.
“I want a country with more start-ups, more IPOs, more investment, higher incomes, and whole ecosystems of growth and innovation,” Luxon said. “To make that growth happen, we need to kick on and deliver change.”
The agency will draw inspiration from successful models in Ireland and Singapore, and report directly to Minister for Trade and Investment Todd McClay. Once Invest New Zealand becomes a separate entity, NZTE will narrow its focus to helping exporters access international markets.
In addition to the new investment agency, Luxon announced a revamp of New Zealand’s science and technology research sector. The government plans to establish four public research organisations with a stronger emphasis on commercialising innovative ideas.
Do you have something to say about this story? Let us know in the comments below.