MANSA Repository Platform: Revolutionizing Due Diligence in Africa

1. Afreximbank presents MANSA & AFTRAF to Angolan Banks Presented by Victor Mashoko : Trade Finance Fungai Nyamahowa : Compliance Abdalla Rehab : Client Relations

2. Section 1 Overview of Afreximbank

3. Who are we ?

4. Shareholding Structure Afreximbank has four classes of Shareholders: • Class A: African Governments, African Central Banks, African Regional and Sub-Regional Financial Institutions. • Class B:African National Financial Institutions and African Private Investors • Class C:International Financial Institutions, Export Credit Agencies, and Non-African Private Firms • Class D:Open to subscription by any investor.

5. Financial & Credit Strength Strong Capital Adequacy of 25% Low Non-Performing Loans of 2.36% Low Cost to Income of 18.89%

6. Section 2 MANSARepository Platform Presented by Fungai Nyamahowa: Compliance Manager

7. MANSA • MANSA is a central repository for gathering and storing information required to conduct due diligence checks: • The aim of MANSA is to provide a single source of primary data required to conduct customer due diligence checks on counterparties in Africa. • The repository will facilitate availability of Know Your Customer (KYC) information on African entities and will facilitate the conduct of due diligence checks on African counterparties, in accordance to international best practices. • The repository also seeks to promote good governance practices amongst African entities. MANSA Repository

8. A case for Mansa Repository Platform • These factors negatively impact African entities through: • De-risking and withdrawal of correspondent banking relationships. • High cost of trade finance, project finance and export finance • High cost of doing business in Africa • Limited access to financing thus limiting competitiveness in global markets Judging from the above, MANSA Repository Platform was launched. MANSA, derived its name from the history of African trade - a central digital repository for gathering and storing information required to conduct due diligence checks on financial institutions and corporate entities in Africa. The purpose is to provide a single source of primary data required to provide more insight on African counterparties. MANSA Repository

9. Regulations and the Trade Finance Gap • KYC concerns constitute the highest percentage of rejected trade finance transactions. • Capital risk holding requirements are now factored into banks’ risk models, as are KYC and AML requirements. • There are hugely disproportionate rejection rates for small and medium enterprises. • A trade finance gap limits trade, economic growth and job creation. Source: ADB, September 2017, 2017 Trade Finance Gaps, Growth, and Jobs Survey MANSA Repository

10. Challenges with Existing Customer Due Diligence (CDD) Repositories • Existing CDD repositories do not effectively address the problem: • The CDD Repositories created so far have largely focused on entities in developed and some other developing markets with little to no focus on African entities. • Many are industry specific. For instance, most KYC repositories focus on commercial banks and not corporates and SMEs. • High cost of subscription discourages African financial institutions and other corporates from subscribing to these platforms. MANSA Repository

11. MANSA Platform : Features MANSA Repository

12. MANSA Repository Pillars • The repository has three key pillars: • Customer Due Diligence Section: Will contain Know Your Customer (KYC) information for African financial institutions, corporates and SMEs. • Invest in Africa Section: Will contain relevant information for investors and business partners seeking investment and business opportunities in Africa, such as trade information, links to investment promotion centers in Africa, etc. • News and Events Section: Will host news, events and publications which contain relevant information on customer due diligence and investing in Africa.. MANSA Repository

13. MANSA – AFRICA’S NEW GOLD: BENEFITS • Content: Most existing repositories have KYC information about the contributors. MANSA Repository Platform will contain additional information that the submitting organization voluntarily provide such as regulators, credit ratings from the leading agencies, details on ultimate beneficial owners, financial reports. • One-Stop-Shop: MANSA Repository Platform offers investment information and compliance events in Africa, the CIN Benefit (Customer Due Diligence, Invest in Africa and News and events). This benefit, ensures that all the relevant information about banks and corporates, as well as intelligence on Africa’s product offerings, metrics, and statistics are accessible through one portal, hence, improving visibility on Africa. • Target Players: MANSA stores information for all non-individual entities i.e. corporates, SMEs, financial institutions, regulatory bodies, etc. MANSA Repository

14. MANSA Repository Demo: Customer Due Diligence MANSA Repository

15. MANSA Repository Demo: Customer Due Diligence MANSA Repository

16. MANSA Repository Demo: Invest in Africa MANSA Repository

17. MANSA Repository Demo: Invest in Africa (Countries) MANSA Repository

18. MANSA Repository Demo: Invest in Africa (Products) MANSA Repository

19. MANSA Repository Demo: News, Events, Publications MANSA Repository

20. Section 3 AFREXIMBANK TRADE FACILITATION (AFTRAF) PROGRAMME

21. Rationale Behind AFTRAF • The trade finance gap continues to grow predominantly due to the increasing reduction or withdrawal of trade lines by international banks as a result of the high cost of compliance and regulatory requirements in Africa. • As Afreximbank is a Pan-African Bank supporting African Entities ,therefore, investing in African transactions is in its mandate and part of its Strategy 2021 plan to achieve Trade Finance Leadership. • Therefore, Afreximbank is looking at leveraging on its credit rating and the supranational status to bridge the gap created by the above circumstances, and unlock capital to support trade finance business in Africa

22. Overview of AFTRAF • In this context and under the Bank’s Trade Finance Leadership pillar, the Bank has launched the Afreximbank Trade Facilitation Programme (AFTRAF) in August 2018. • Purpose : To Enhance Confidence of Counterparties in the Settlement of International Trade Transactions for Intra and Extra African Trade. • AFTRAF Covers Five Essential Facilities: • LC Confirmation Facility with optional discounting • Bank to Bank Reimbursement Undertaking Facility • Promissory Notes & Bills of Exchange Aval Facility • Bonds, Guarantees & Indemnities (BGI) Facility • Trade Confirmation Guarantee Facility

23. African Issuing Bank Benefits • Expand Correspondent Banking Relationships with Banks that do not have the sufficient risk appetite • Increase the Capacity of their Current Trade Lines • Increasing Trade Business for their Customers. • Manage Credit Lines and Risk with Importer • Reducing Cash Collateral Needs • Low Cost

24. Non-African / International Banks Benefits • Take More Risk on African Banks • How ? Afreximbank’s Trade Confirmation Guarantee Facility ,we will expand the capacity/limits of your trade lines in Africa • Mitigate non-payment risks in Africa • How ? Afreximbank is an Investment Grade Multilateral Institution with a strong shareholding structure and a preferred creditor status in all its Member Countries • Diversify and expand their trade business portfolio with African Banks that are not their customers. • How? Through Afreximbank’s relationship with Most African Banks, we can facilitate transactions between both entities.

25. Thank You