Commonwealth Development Corporation takes new turn

Accra (Greater Accra), 23rd April ?99 -

The Commonwealth Development Corporation (CDC) is to become a private equity investor in emerging economies thereby shifting from its traditional role of being a development finance institution. It will, however, still be required to make 70 per cent of its investment in poor countries and take the lead in implementing ethical best practice, a statement issued on Thursday in Accra by the CDC said.

The statement was to announce the arrival of Dr Roy Reynolds, Chief Executive of CDC, in Ghana for a two-day visit. The statement said, "CDC's prospective shareholders would expect commercial returns for the risks taken", which means equity type investments. It said Dr Reynolds will open CDC's new office in Accra and meet senior government and business leaders and representatives of companies supported by CDC.

The statement said Dr Reynolds' visit, the first to the country since the CDC move towards a Public-Private Partnership, reinforces the recognition of "the need to balance development and profit if sustainable development is to be achieved".

"In what has been a difficult 12 months for emerging markets, the timing of Dr Reynolds' visit underscores CDC's confidence in the ability of the Ghanaian economy to keep moving forward and the investment opportunities that this presents"