Leveraging KiwiSaver Capital to Fund NZ Infrastructure

New Zealand's public infrastructure is facing significant challenges due to aging hospitals and a stagnant economy. With limited tax revenue, politicians are looking for alternative sources of capital to fund much-needed projects.

A potential solution lies in leveraging New Zealand's growing pool of domestic capital, particularly through the KiwiSaver scheme. Launched in 2007, KiwiSaver has attracted 3.4 million members with savings totaling over $140 billion across nearly 40 providers.

The government could consider listing public assets, such as hospitals and infrastructure, on the public equity market to tap into this pool of capital. This approach was successfully demonstrated by Napier Port, which raised capital from public markets to finance its expansion in 2020. The port is now operating successfully, supporting export growth in the region.