The Investment Corporation of Papua New Guinea has played a central role in the economic development of the country for more than 20 years.
Founded in 1971 with the aim of making investments in various business and commercial projects in the country, it is a statutory body and entirely Government owned.
As part of its investment process it provides local equity capital to investment projects where sizeable local equity capital is not readily available. Shares in the Corporation are held by large institutional fundholders.
The Investment Corporation also manages a unit trust fund which is available for investment to members of the general public, whether individuals or groups. By purchasing units in this fund, an individual or group can earn dividends based on the performance of the Corporation’s portfolio of holdings. More than 23,000 different shareholders comprising individuals, small groups and large groups and associations own shares in this fund, representing tens of thousands of Papua New Guineans.
The Investment Corporation currently owns equity in a diverse array of PNG enterprises in sectors that range from agriculture, forestry, mining and petroleum through manufacturing and merchandizing to transport services and real estate. On the 20th anniversary of Independence, the total value of the holdings stands at K63,000,000.
The decisions that the Investment Corporation makes about investments are based on both financial and non-financial considerations. However it will only consider purchasing equity in business activities that are deemed to be economically and technically viable and financially profitable.
In keeping with the PNG’s emphasis on selfreliance, the Investment Corporation has been entirely self-financing since 1975. Starting with Government equity of approximately K5.5 million, it has grown to its present size in twenty years.
In 1994 the Investment Corporation Fund made a profit of K4.9 million and distributed profits of nearly K4.5 million. In the meantime it has supported, in the most practical way possible, the development of locally-owned and managed businesses in the Papua New Guinean economy.