Accra (Greater Accra) 23 April

Vice-President John Evans Atta Mills on Friday urged local entrepreneurs to develop business programmes that would attract investment assistance from development finance institutions. Too often, micro enterprises lack technical and financial advice and most importantly, capital, which are vital for accelerated growth.

Opening the new offices for the Commonwealth Development Corporation (CDC), a British development finance institution, and its subsidiary, Venture Fund Management Company (VFMC) located within the premises of Regimanuel Gray at La, the Vice President said Ghana needs such institutions for accelerated growth.

Prof. Mills said government has gone to great lengths to attract foreign direct investment by informing the world of opportunities and expressed the hope that local entrepreneurs will come out with the right proposals to meet investors. "We have the men and women with ideas, skills, the ability to recognise the opportunities and the determination and creativity necessary to succeed."

Vice-President Mills said CDC's long history in Ghana is an indication of its confidence in the country's economic potential and "the momentum of positive change taking place in the climate of business and investment".

CDC, which was established in the United Kingdom in 1948, commenced business in Ghana in 1955. Its efforts were redoubled in the late 80s with loan advancement to some major companies in the energy and mining sectors. It has been lending support to agribusiness, financial service, property and the telecommunication sector. Mr Robin Blackburn, CDC Country manager, said between 1995 and 1998, the corporation's investment in Ghana averaged 11.8 million pounds (19 million dollars) yearly.

The Corporation played a leading role in establishing the first venture capital fund in Ghana that is yet to be inaugurated. It is also helping to pioneer the concept of leasing with the setting up of Ghana Leasing Company. Mr Blackburn said the Corporation now has a portfolio in excess of 81 million dollars supporting some 16 businesses.

The net surplus from its operations by 1998 would place it among the top 20 companies, he said. Mr Blakburn said the Corporation's target is to maintain a similar level of investment over the next three years, "but the challenge will be to move the balance of the portfolio from the safer haven of secured debt towards risk capital". He urged aspiring and established entrepreneurs to go forward with robust proposals to the Corporation for the necessary restructuring and subsequent growth.

Mr Roy Reynolds, CDC Chief Executive, said the worldwide portfolio of CDC was 1.5 billion pounds as at last December adding that Africa is its priority area. "We have a self-imposed target to place 50 per cent of new investment in Africa and Asia." Currently, he said, 29 per cent of the Corporation's total portfolio is spread over 170 investments and loans in Africa, and is administered from 12 offices in the region.

The CDC also manages 182 million dollars in nine countries in Africa.