Africa Needs Solutions - Not Products!

1. Africa Needs Solutions - Not Products!

2. Tanzania, Uganda, Kenya GDP GROWTH 2012 • Kenya 4.7% • Tanzania 6.5% • Uganda 4.9% • Arusha ‘solutions’

3. ‘Syndicate’ for Successful Solutions Africa - Current Facts (McKinsey) – Worth Repeating • GDP = $1.6+ Trillion – Close to Brazil’s and Russia’s • $900 Billion = Combined consumer spending • 400 Million = New mobile phone subscribers since 2000 • 60% = Share of worlds total uncultivated, arable land • 52 = African cities with more than 1 million people • 20 = African companies with revenues of at least $3 Billion • The rate of return on foreign investment is higher in Africa than in any other developing region

4. ‘Syndicate’ for Successful Solutions Our Competitive Advantage / Value Proposition We can’t compete on ‘me too’ commodities but we have… • Location and access • Speed and convenience • Ease of communication • Logistics / supply-chain • After sales service • Attractiveness to buyers (to visit us) • Perceived quality / technology • Diversity of products and services Customer

5. ‘Syndicate’ for Successful Solutions A ‘Cultural Adjustment’ for South African Businesses • From prescriptive and paternalistic to… • Listening and developing empathy • The briefcase and brochure selling days are over • We have to start talking to each other…more • We’re not selling drills…we’re selling holes and what goes into them! • The need for full value-chain analysis – who are the players / who are the influencers? • An holistic view requiring an holistic response

6. Angola – Border Posts Example • 147 Border posts • Food supply problems • Morale issues • Corruption • ‘Leakage’ • No power • SA / Kenya / Angola team solution

7. ‘Syndicate’ for Successful Solutions It’s the ‘Power of Partnerships’ • Joint Ventures / Investment • Technology exchange • Royalty agreements • Franchising / Licensing • Joint use of production facilities (outsourcing) • Marketing each other’s products • Finding Complimentary Intermediaries / Facilitators It’s about providing blended solutions – not selling stand-alone products or services It’s International Trade…Not Exports!

8. Know Before You Go! – Pull / Push Market ‘Pull’ v’s Supply Side ‘Push’

9. The Hubs of Opportunity UK Trade & Investment – HVO Programme • Bringing £600 Billion of new business to the UK economy • Identifies major project opportunities at the feasibility stage • Identifies decision makers / stakeholders - public & private sector plus multinational corporations • Analyses the full requirements of the project/s • Matches suppliers to the opportunity as a consortia • Presents the total solution to the stakeholders including the involvement of foreign partners where gaps are identified • Involves small, medium and large enterprises in the supply chain

10. The Hubs of Opportunity Oil & Gas Example East & West AfricaExploration & Development • Exploration Activities • Logistical services • Supply boat services • Rig positioning • Telecommunications • Engineering & fabrication • Electrical engineering services • Lifting & rigging equipment • Inspection/NDT & certification • Supply of plant & equipment • Labourbrokers / recruitment agencies • Medical supplies • Equipment hire • Chemical supplies • Environmental services

11. The Hubs of Opportunity Oil & Gas Example • Uganda • Confirmed wells - 7 • Potential wells – 4 • Planned field development • Kenya • Confirmed wells - 9 • Potential wells – 10 • Planned field developments Follow the Money! • Ghana • Confirmed wells - 13 • Potential wells – 4 • Various field developments • Tanzania • Confirmed wells - 14 • Potential wells – 8 • Planned field development • LNG export terminal • Namibia • Confirmed wells - 7 • Potential wells - 11 • Mozambique • Confirmed wells - 10 • Potential wells – 14 • Planned field developments • LNG export terminals

12. Hunt as a disparate pack or… Join in the feast as a cohesive group!

13. Thank You!www.addedasset.competer@addedasset.com