Pan-African Infrastructure Development Fund

1. Pan-African InfrastructureDevelopment Fund Presentation to the Portfolio Committee on Finance - 21 August 2007

2. 2 Contents • Rationale for the Fund • Investment Thesis • Progress Report • Deal Flow • 2nd Close

3. 3 Rationale for the Fund • The need for infrastructure in Africa • Competitiveness of the Continent • Promotion of Socio-economic development • “Africans doing it for themselves” • Enhancement of economic growth

4. 4 Investment Thesis • Investment Returns, 15% in US terms • Invest in: Energy, Telecommunications, Water and Sanitation, Transport • Regional investment approach • Catalyst and co-promotion role • 15 Year closed- end Fund

5. 5 Progress Report • PAIDF Facilitation Trust Established April 2006 • Trustees (Brian Molefe & Prof. Wiseman Nkuhlu) • Launch Team established April 2006 • Roadshows June/December 2006 • Legislative challenges in other countries need to be • addressed before investing in a fund of this nature

6. 6 Progress Report … continued • Road shows commenced in July 2006 • 1st Close Investors signed on 8 June 2007 with US$625 million commitments • The Fund launched on 1 July 2007 in Ghana • Private Placement Memorandum compilation for second closing to be finalised end of August 2007

7. 7 Deal Flow • Generated deal pipeline comprising 21 deals amounting to approximately US$10,2 billion • Pipeline comprises the various sectors of infrastructure • Maximum limits set within the Fund as to exposure to the various sectors • The capital has to be invested within seven years

8. 8 2nd Close • Team preparing 2nd Close Roadshows • 2nd Closing anticipated at US$1 billion • Both African Countries and International Institutions will be targeted for 2nd Close

9. 9 Vision “ To create a sustainable infrastructure platform for the African continent. ”