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DOING BUSINESS IN AFRICA

DOING BUSINESS IN AFRICA. Michael-Bruno, LLC (A/E/C) - Working in Africa since 2006 - First U.S. Company to Open Affiliate in Djibouti - Currently Support 15 Government Contracts in Africa - Michael Sedge developing American Business Council of

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DOING BUSINESS IN AFRICA

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  1. DOING BUSINESS IN AFRICA

  2. Michael-Bruno, LLC (A/E/C) - Working in Africa since 2006 - First U.S. Company to Open Affiliate in Djibouti - Currently Support 15 Government Contracts in Africa - Michael Sedge developing American Business Council of Djibouti to become American Chamber of Commerce in 2016)

  3. Near Future in Africa - Estimated $3 billion through FY 15 - DoS, NAVFAC, USACE, MCC and USAID - USAID soliciting local construction firms (Kenya) - DoS has 3-5 new Embassies in Africa (OBO) - USACE to issue 12 Africa MATOCs (USACE-EUD) - Djibouti: Camp Lemonnier (NAVFAC Atlantic/EURAFSWA)

  4. The Afghanistan Influence - Contingency Construction - Camp Lemonnier, Djibouti, LEED Certification - Third Country Nationals (TCNs) * Limited to 20% of Workforce (Djibouti) * Non-VISA personnel will be jailed and deported at contractor’s expense

  5. Materials & Logistics - Available: Sand & Water - Construction Materials: Europe, Dubai, Turkey - Customs Challenges (US-Djibouti SOFA) - Installation Access Issues – Delays/Escorts - Lodging: 3-4 b/r villa in Djibouti ($10,000 - $12,000 w/utilities) - Vehicles: $1,200 - $1,500 rental per month

  6. Subcontractors - Contracts and Concepts - African Firms do not Understand U.S. Procedures - Lack of Skilled Labor and Safety - Material Delays & Tracking - Local Taxes (Djibouti 7% VAT on Subcontractors) - Best Firms Today, Worst Tomorrow (exceeding capacity)

  7. Cultural and Enviornmental Issues - Work Methodologies - Cultural Aspects: - Religion - Ethics - Safety: - Extreme Heat - Animal / Insects * Recent Change in Malaria for HoA

  8. Critical Personnel Challenges - Turn-Over: US Military & Key Contractor Personnel - Loss of History - Challenge for Govt as well as A/E/C Contractors - Key Personnel Abandonment - Private Quality of Life: - MWR, SAT TV, High-Speed Internet

  9. Corporations, Banking and Taxes - Setting up an Africa Company? - Long-Term Goals - MB pursuing commercial business ($12 billion) - Local Labor - Local Taxes

  10. Politics and Corruption - Friend to All, Ally of None - Avoid Political Allies - Who are Your Subcontractors? - Corruption: A Way of Life - Soil Test Example

  11. American Business Coucel of Djibouti - Establish in 2013 - Become AMCHAM by 2016 - Why? - Central Focal Point for US Business - Interface between US / Djibouti Governments - Conduit of Information fo US Military Leaders

  12. Presentation by: Michael Sedge, President Michael-Bruno, LLC • Michael-Bruno, LLC • USA – Bahrain – Djibouti - Italy • Email: michaelb@mb-global.com • Tel. (+39) 081.578.5281 • Web: www.mb-global.com • Download a copy of Sedge’s article, Doing Business in Africa at: • http://www.mb-global.com/public/files/Doing_Business_in_Africa.pdf

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