Aga Khan Fund for Economic Development

1. Aga Khan Fund for Economic Development Integrating Central Asia into the World Economy: The Role of Energy and Transport Infrastructure October 21 - 23 2007

2. AKFED GLOBAL PRESENCE Canada West Africa Côte d’Ivoire Sénégal Mali Burkina Faso East Africa & Indian Ocean Kenya Uganda Tanzania Rwanda Mozambique Madagascar Central Africa Dem. Rep. of the Congo Middle East Syria South Asia Pakistan Bangladesh Central Asia Tajikistan Afghanistan Kyrgyzstan

3. About AKFED • For profit agency involved in long-term investment • Over 90 project companies in 5 sectors • More than 30,000 employees Industrial Promotion Services Tourism Promotion Services Media Services Financial Services Aviation Services

4. AKFED ‘s Approach to Development • Entrepreneurship promoted with economically sound enterprises in the developing world • Long-term investments with: • Strong equity positions • Provision of management expertise • Investments in fragile and complex environments: • Prospects of improving the lives of people • Profits entirely reinvested in further development initiatives

5. AKFED in Central Asia • Tourism: • Islamabad Serena Hotel + Swat/Gilgit • Kabul Serena Hotel • Dushanbe Serena Hotel • Khorog Serena Inn • Financial Services: • Habib Bank (Pakistan, Afghanistan) • First Microfinance Banks/Microfinance programs (Pakistan, Afghanistan, Tajikistan, Kyrgyzstan) • Kyrgyz Investment and Credit Bank (Kyrgyzstan) • Insurance companies (Pakistan) • Industry/Infrastructure • Pamir Energy (Tajikistan) • Indigo (Tajikistan) • Roshan (Afghanistan)

6. AKFED’s Regional Partners • TeliaSonera: • Publicly traded Scandinavian telecommunications company, with a large footprint in the Caucuses and Central Asia; • Co-shareholder at Roshan (Afghanistan) and Indigo (Tajikistan) • Monaco Telecom International/Cable&Wireless: • 37.25% investor in Roshan / Technical partner • Asian Development Bank (ADB): • Lead partner in senior debt financing in Roshan ($70 million) • Committed to finance private projects with AKFED • DEG, PROPARCO: • $30 million financing in Roshan • IFC and World Bank: • $>15 million Financing/grants in Pamir Energy • Norfund, FMO, IFC: • >$30 million financing to Serena Hotels in Afghanistan and Pakistan

7. Telecom Sector – Our Experience in Central Asia • The largest partnership in telecoms in the region • Roshan (Afghanistan): • 1.8 million customers • Largest coverage (200 cities, rural areas, border roads) • Largest private sector employer – over 20,000 direct & indirect employment • Largest taxpayer, representing 6% of the government’s budget • Largest private investor with over $350 million investment by end 2007 • Indigo (Tajikistan): • 600,000 customers • Largest coverage including remote areas • Some $70 million investment by end 2007

8. Telecoms in Central Asia

9. Market Overview • Roshan established mid 2003 after transparent license tender • Drove the industry from 80K subscribers to 3.5 mio subscribers in 4 years: • The fastest growing market today in terms of penetration • Entry barrier dropped from $400 to around $30 today • Today, there are 5 operators in the market, but how many can survive? • Predominantly pre-paid market • Growth in country and region requires better connectivity such as fibre: • Drives quality of service

10. Roshan – A Case Study • International shareholders with expertise in emerging markets and Central Asia: • AKFED – 51% • MTI – 36.75% • TeliaSonera – 12.25% • The name Roshan means “Light” and “Hope” in Pashto and Dari, Afghanistan’s two main languages • Social development is part of our DNA • Roshan strives to be the benchmark in terms of corporate governance “Roshan is not just a telecoms company, we are a catalyst for growth and an intrinsic part of the reconstruction of Afghanistan”

11. Roshan Coverage

12. Touching the Customer • Built the largest distribution network in Afghanistan: • 200 Points of Presence • >3,000 Scratch Card distribution points • Established >1,500 PCOs • First Western style Customer Care Center: • 200 CSRs • Customer Care Centers in 25 cities • Fluent in Dari, Pashto, English, Urdu and other languages • First Telemarketing organization

13. Touching the Customer One Smile Can Build A Relationship It’s all about dreams. Its about hopes. Its about the future. Its about Roshan Roshan – your connection to everyone. Whether you want to get in touch with your Friends, family or business partners, Roshan is there for you. Be a part of the Roshan family today. Because we help you progress One Relationship Can Lead to Progress • Established concept of Roshan Family • “Relationships & Progress” • Started the first tag-line: “Nazdik Shodan”

14. Leveraging Communications • Telemedicine project in Kabul: • In conjunction with Cisco, Aga Khan University Hospital Karachi, and the French Medical Institute for Children • Provide in country access to specialist diagnosis and training resources • Bringing Mobile Banking to Afghanistan in conjunction with Vodafone

15. International Recognition • Best GSM Marketing Campaign, GSM Conference (February 2005) • Best Telecom Brand in Middle East & Africa, COMMS MEA Awards (September 2006) • Best Operator in Developing Marketing, World Communications Awards (November 2006) • Special Recognition for Excellence in Corporate Philanthropy, CECP (February 2007) • Best Customer Service Award, COMMS MEA Awards (September 2007) “This is the first time I feel I am part of a country. I am proud to be an Afghan and proud to be a part of Roshan” Roshan Employee

16. Establishing the Right Enabling Environment • The right Enabling Environment is a necessity to spur private sector investment: • Stable regulatory environment: • Telecom Law • Independent and experienced Regulator • Appeal Process • Universal Fund to be managed transparently • Establish interconnection rates • Stable fiscal environment : • Customs & Tariffs • A known tax regime • Encourage investment • Level playing field

17. Key Benefits of working with AKFED • Transparency • Best practice • Commitment to the region • Financial strength • World class partners • Universal service • Speed of implementation • Collaboration with the Government • Fiscal discipline • Social development • Job creation • AKFED’s commitment - high level promotion of the region

18. SOCIAL DVD to be played at the end (length 4 mins)