Ma¯ori business have ‘appetite to invest’

Strong balance sheets, low debt levels and involvement in food production were among the factors that had helped many iwi and Ma¯ ori businesses emerge into the Covid world with an appetite to invest, according to the latest ANZ Iwi Investment Insights report.

The report looked at the cash holdings, liquid assets and debt capacity of 35 participating iwi, and estimated their collective investment capacity in the order of $1 billion.

“Despite the impacts of Covid, iwi are still poised and ready to invest,” ANZ’s head of Ma¯ ori relationships David Harrison said.

“While short-term confidence may have been tempered, the motivation and capacity remains.

“The low interest rate environment, expected to continue, provides motivation to find a home for surplus cash. It also makes borrowing attractive. This puts iwi in a strong position to capitalise on good opportunities when they arise.

“Having a long-term view helps many Ma¯ ori businesses see through short-term ups and downs, and remain focused on their intergenerational strategy. We’re still seeing Ma¯ ori investment interest in tourism and property despite both sectors facing challenges.”

Harrison said drivers of iwi investment were generally broader than financial returns, sometimes referred to as ‘quadruple bottom line’ outcomes.

“Examples that iwi have consistently highlighted to us include job creation, building tribal economies, mana enhancement and co-investment with other Ma¯ ori as a vehicle to rekindle whakapapa/ whanaunga relationships. We expect these drivers will continue to influence iwi investment decisions, and we will continue to work with iwi to unlock this $1 billion opportunity.”

An increase in the average risk appetite had been observed over recent years, with increased iwi investment in unlisted private New Zealand companies and start-up ventures. Sometimes classified as ‘direct investments’, those types of assets could offer quadruple bottom line outcomes, making them attractive to iwi investors, but they also carried additional risks, like market volatility, management transition and geographic concentration. Identifying, assessing and managing those risks in future investments would be critical for iwi to protect and grow their asset bases while delivering quadruple bottom line outcomes.

“In an uncertain Covid world that will require stimulus, the financial health and strength of iwi and Ma¯ ori investors is a real positive,” Harrison said. “When combined with the aspirations of Ma¯ ori land trusts and incorporations, and Ma¯ ori businesses, it is clear that Ma¯ ori are a powerful force in an economy that needs injection.” to reset our compass for ‘true North’ and build our own kaupapa Ma¯ ori system for Ma¯ ori, by Ma¯ ori, as Ma¯ ori.”

The Ma¯ ori Party would establish an independent Mokopuna Ma¯ ori entity that would be responsible for the care of all mokopuna Ma¯ ori, with $600 million of public funding. That entity would in turn also establish a partnership network across

Ma¯ ori organisations, hapu¯ and iwi to ensure mokopuna Ma¯ ori remained connected to their whakapapa.

“Ultimately, through this entity, the allocated funding and the partnership network, we will rightfully reclaim our tino rangatiratanga, as protected under Article 2 of Te Tiriti in respect of the greatest taonga of all, our mokopuna,” she said.