Māori economy – rnzngin Fifth Estate

Source: BNZ statements

Bank of New Zealand (BNZ) today released the findings of its inaugural Māori Business Sentiment Survey, aimed at providing insights into the current state and future prospects of Māori enterprises. The survey highlights the economic challenges being faced by Māori businesses, while also revealing their resilience and potential for growth.

Whetu Rangi, BNZ’s Head of Māori Business, says the survey aims to address the lack of comprehensive data on the experiences and perspectives of Māori businesses.

“The data gap around the sector has been a barrier to understanding and supporting the Māori economy. By launching this survey and committing to conducting it regularly, we are aiming to bridge this gap and foster ongoing collaboration and knowledge sharing. We believe that this survey will become a valuable tool to promote better understanding of the sector and help facilitate the flow of capital within the Māori economy.”

The survey, which received 125 responses from those involved with Māori businesses, revealed that economic conditions pose the most significant challenge for Māori enterprises, with 71% of respondents selecting it as their top concern. The findings also showed that nearly half (46%) of the respondents observed deteriorating business conditions over the past 12 months, while only a small fraction (15%) witnessed improvements.

Mike Jones, BNZ’s Chief Economist, says that the survey results broadly mirror weak business confidence across the economy.

“The sentiment expressed in these findings echoes what we’re witnessing in other parts of the economy as we navigate through the trough of the economic cycle. If anything, the confidence levels amongst survey respondents are on the weaker side of broader confidence indicators. This may reflect the Māori economy’s considerable investments in agriculture, forestry, and property – sectors that are currently under some strain,” he says.

Other findings include:

The majority (82%) of respondents expect costs to increase further over the coming 12 months.
Over the coming 12 months, more survey respondents expect profitability to deteriorate than to improve (27% increase vs. 33% decrease).
A similar proportion of respondents expect employment levels in their business to drop (29% increase vs. 34% decrease)

Opportunities amidst adversity

Despite the challenges, the survey also revealed signs of resilience and optimism among Māori businesses. While only 15% of respondents saw improvements in business conditions over the past year, a higher proportion (26%) anticipate better conditions in the coming 12 months.

Furthermore, more than 1 in 3 (37%) of those responding to the survey intend to boost investment in the coming year versus 24% that expect it to decrease. This may be signalling confidence in future growth potential.

“The investment plans reported in our survey are more robust compared to what we’ve seen in other business confidence surveys. As the economic cycle matures, we’ll be closely monitoring whether these intentions gain further momentum,” says Jones.

About the BNZ Māori Business Sentiment Survey

The launch of this survey is a continuation of BNZ’s commitment to Māori business and contributes to its wider strategy to facilitate financial solutions for Māori and enable whānau Māori and businesses to prosper.

More detailed findings and analysis are available here.

An infographic is available here.

The survey was in field May 2024 with base n = 125. Results are indicative, collected using a sample of convenience including BNZ Māori business customers. Results are intended only for discussion and should not be relied upon for decision-making or regarded as representative of the Māori business sector as a whole. For more information on how BNZ can support Māori businesses, visit Māori Business – BNZ.

The post BNZ’s new Māori Business Sentiment Survey reveals challenges and opportunities amid economic headwinds appeared first on BNZ Debrief.

Source: BNZ statements

24 new whānau homes are under construction on Hawaiki St, Ōrākei in Tāmaki Makaurau Auckland, thanks to a new funding framework which enables lending for housing on iwi land. Bank of New Zealand (BNZ) collaborated with the central Tāmaki tangata whenua, Ngāti Whātua Ōrākei, in the development of the framework.

Under the new model, hapū members who meet BNZ’s normal home lending criteria can secure a BNZ home loan for papakāinga housing on land owned by the Ngāti Whātua Ōrākei Trust at standard home loan interest rates.

“The framework has made home ownership more accessible for our whānau,” says Grant Kemble, CEO of Ngāti Whātua Ōrākei Whai Rawa. “BNZ’s commitment to work alongside us, understand our vision, and persevere through complex legal arrangements has been commendable.”

“For our people that will move into these new homes, it will be the realisation of a dream: the security of home ownership on their whenua.”

Historically, obtaining finance for housing on Māori owned land has been challenging. The unique ownership structure and restrictions on land transferability often meant that it couldn’t be used as security for loans, creating a significant barrier for Māori home ownership.

To address this, the new framework employs standard leasehold mortgage lending practices, underpinned by a confidential Deed of Understanding. This ensures that in the face of any challenges, the land integrity and control is preserved with the iwi or hapū, in this case Ngāti Whātua Ōrākei, who would take over in the event of a distressed mortgage. This approach balances the bank’s security requirements with the enduring land rights of the iwi.

Developing the model involved significant legal work, which was undertaken with advice and guidance from Buddle Findlay and Russell McVeagh, who provided pro bono legal support to help enable the solution.

BNZ believes the framework may hold promise for broader application among other iwi and the approach has been shared with other banks in the hopes that it will help expand access to finance for development on Māori land across New Zealand.

BNZ CEO Dan Huggins says the prosperity of Māori, and Māori businesses, is vital to the prosperity of Aotearoa.

“BNZ is committed to growing the social, cultural and financial wellbeing of all New Zealanders, and our collaboration with Ngāti Whātua Ōrākei is part of our wider strategy to facilitate financial solutions for Māori which enable Māori people and businesses to prosper.

“Considerable thought has been invested in designing this framework to be as flexible as possible, and it has been shared with other financial institutions in the hope of extending its benefits to more iwi across New Zealand.

“We are committed to helping New Zealand and New Zealanders to thrive and prosper. Our collaboration with Ngāti Whātua Ōrākei is another example of how we can achieve this. We hope this example will help more iwi to assist their people into warm, dry homes of their own.”

Further bolstering the collaboration with Ngāti Whātua Ōrākei, BNZ has provided a $20 million social loan, certified by EY New Zealand, to support the construction of the homes. Ground has broken on site, with roofing expected to be laid before the summer holidays. Completion of the homes is expected in 2024.

The post Unlocking home ownership aspirations for iwi housing – BNZ and Ngāti Whātua Ōrākei collaborate on papakāinga development appeared first on BNZ Debrief.