AGRODOR AFRICA Africa Agro Development Corridor Executive Presentation Sept 2012

1. AGRODOR AFRICAAfrica Agro Development CorridorExecutive PresentationSept 2012

2. Acknowledgement • Ethraa is a real estate, infrastructure and energy (REIE) investment development & management firm specialized in concession • design for REIE projects. The approach is hybrid combination of investment structuring coupled with development management • expertise. Ethraa operates through offices in London, Buenos Aires and Dubai. • Our Due Diligence review and Critical Success Factors (CSF) audit had been concluded in producing the self financed Agro Development • Corridor(AGRODOR )model; which comprehensively constitute an added value solution for agriculture downstream and upstream sectors. • Ethraa has the expertise to manage both burdens and ambitions associated with AGRODOR initiative, the approach is briefly defined as: • Developing an asset based sustainable investment concession structure in partnership with the government; which will reduce the contribution of Sovereign Client while enable the subscriptions of broader institutional investors and without Sovereign financial guarantee. • Structuring the Master Plan to generate viable economic cluster product, in synergy with both infrastructure requirement and urban planning. • Creating a governance platform of sustain feasibility, mitigate risks; and increase the added values, while initiating a synergy with the national development goals. • Building Human capacity with economically and socially balanced investment model. • AGRODOR model provides solutions for most of the obstacles identified by the world bank for efficient agriculture development.. • Ethraa will deploy credible expertise to design the AGRODOR investment concession structure based on the forthcoming presentation of AGRODOR Pilot and that will be tailored made for each country. AGRODOR is flexible model and can be implemented on fast track basis .

3. Rationale Approximately 80% of all African depend directly or indirectly on agriculture for their livelihood. Agriculture provides 70% of Africa’s full time employment, one third of total GDP, and 40% of total export earning. Thus Africa’s overall economic performance is inextricably linked to the performance of its agriculture sector.. Africa ranks the lowest in the world in terms of yields-enhancing practice, mechanization, use of agro chemical and irrigated land. Also average only 125 grams of fertilizer per hectare compared to world average of 1020 gram per hectare, mechanization in reported figures equally dismal at 13 tractor per 100km square or arable land compared to world average 200 tractor per the same area.. There is enormous potential for agriculture growth in Africa, it has twelve times the land of India, which is self-sufficient in food production with twice as many people to feed... It has been shown that each 1% increase in agriculture productivity in Africa reduces poverty by 0.6%.. Source: WB

4. Some of Africa Agriculture Challenges & Characteristics • Over-reliance on primary agriculture . • Barriers to access market due to poor infrastructure, market standards, limited products .. • Limited public and private investment in R &D , rural infrastructure , healthcare and education.. • Domestic agriculture policy constraint.. • Very limited access to commodity market chain or global value chain.. • Lack of know how to reconcile conservation, production and sustainable management.. • Financing agriculture and rural development(Transportation & utilities infrastructure).. • Commercialization via Cash cropping • Community development and building capacity • Develop agriculture based industries to create an added value • Limited up to date yield-enhancing technologies and practices • Lack of sustainable development and ecosystem Source: WB

5. Pillars of Agriculture Transformation in Africa The challenges are know for some time, pillars of agriculture transformation in Africa: Investment in rural infrastructure… Promotion of the use of yield-enhancing technologies… Privatization to enhance the competitiveness in agriculture input markets… Creating an enabling environment… These pillars are the basic parameters in developing GRODOR AFRICA Investment concession structure. Source: WB

6. Stat of Agro-World Agriculture Land Water Availability Dense Forestry Railways & Transit

7. The Land Grab

8. AGRODOR Why Development: The rising cost of Millennium Global Targets hinder the standards of wellbeing, whereas worldly the social financial measures are declining rather than climbing Employment: The sharp rise of unemployment due to technology, economic contraction and austerity requires developing the manpowered Agro sectors and industries Sustainability: The imbalance between development and urbanism creates shear stresses on governments to sustain the Urban Rural optimum equilibrium Security: The Food Security and Agro Production is the worry of 21st century, with more than 15 mln hectares are currently utilized in global land grab, and increasing fast

9. Urban Overheating and Deterioration Deterioration of Agro Production By 2050; 70% of World Population are City Dwellers The Case Urban Migration Solutions to Upgrade Rural Areas Problems of Increased Urbanism Opportunities Infrastructure Urbanism Congestion Aspiration Inflation AGRODOR GOV Incubation CSR Programs Innovation

10. Farmers AGRODOR How Products Funds Market Baselines: State Owned Arable Land Owners Agro Development Corporations (Holding & Operational) Transit Oriented Development (TOD) Comprehensive Socioeconomic Development Incentives and Facilities for Investments (FDIs & Local) Components: Farming Models Agro Light Industries Agro Businesses Molecules Public Transit Systems Communications & Technology Grid Educational & Health Facilities Affordable Housing Models; if any Urban Businesses Incubation

11. Rural Development (Concerns of Governments) Improving Competitiveness Improving Environment Improving Wellness Economy Diversification Developing Leadership Enterprising AGRODOR Agro Hub Opportunities Consolidation Regulatory Incentives Sector Openness Industry Evolution Economical Sustainability Agro Infrastructure Farming & Production Packing & Sort Processing Local Transport & Delivery Consumers Or Exchange Agro Business Value Chain (Opportunities for Investments)

12. AGRODOR: “pro et contra” Pros: Political Will that are interpreted in Executive Procedures Legislation Hospitality for Direct Foreign Investments Progressive and Upgradable Concession Structuring Public Awareness Plans and Programs Availability of Domestic Resources and Manpower Cons: Complicated Legal Restrictions on Investments and Enterprising Complex Sociopolitical Fabrics and Unrest Acute Irrigation Resources Troubled Capacity Building Schemes

13. Transit • Industrial • Retail • Academic • Healthcare • Governmental • Business • Financial • Logistics • etc..! AGRODOR Standard Hub Freight Hub Medium Business Railways Station Railways Workshop Business Park & Catalyst Plots Small Business • Planning, Activities and Design of the hubs vary and correlate to both business and socioeconomic needs of farming productions and facilities Mixed Use Small Retail Business

14. Arable Land Farm Land Farm Land Farm Land Farm Land 100,000 Acres 40,000 Hectares Farm Land AGRODOR Standard Model AGRODOR Hub AGRODOR Hub AGRODOR Hub AGRODOR Hub AGRODOR Hub Railways 20 km Tolled Roads ICT Network Farm Land Farm Land Farm Land 40,000 Hectares 100,000 Acres Farm Land Farm Land 50 km 100 km 100 km 100 km 100 km 50 km 500 km

15. Transit Development Corridor (10,000 km2 County) 500 km Railways; Alignment, Signaling & Rolling US$ TBA AGRODOR Packages Roads & ICT Grid US$ TBA Suburban AGRODOR Hubs – 5 nos. US$ 250,000,000 Existing 40 villages (Each 6,000 Capita) 250,000 Capita Agro Biz 400,000 Hectares (1,000,000 Acres) Public or Private Cost of Green Land (Excluding Irrigation) US$ 5,000,000 Annual Framing Production US$ 25,000,000,000 Annual Agro CAPEX & OPEX US$ 10,000,000,000 These are general assumptions based on int’l rates

16. Concession Design Mgmt Ethraa Investment Development & Management Award Mgmt PPP Initiative Operations Special Purpose Vehicles (SPVs) Award The Concession Enabling Environment Agro Development AGRODOR The Concession Company Farming Operations Negotiate Agro Utilities Operations Regulatory Product Transit Operations Railways Supply & Operations AGRODOR Holding Company Targets Roads & ICT Network Operations Real Estate Development Land Bank AGRODOR Capital Partners RE Developer Sector Investors Minority Investors (Syndicates, SIGs, Unions,..) Development Agency (Government Partner) X1, X2, X3, .. (Strategic Seed Investors) Infrastructure & Habitat Infrastructure Delivery FM &Town Management

17. Post Concession Stage 5 Assets Management End-Users Property & Commercial Concessions Management Investment & Development Management 4 Assets Development Landlords & Plot Investors Infrastructure Technical & Procurement Management Pre Concession Stage 3 Product Validation Concession Company Stakeholders & Regulatory Management 2 Project Initiation Initial Statuary Consent Shareholders & Investors Management Investment & Development Management Plan 1 Project Realization Award IDMA Executive Proposal and General Orientation

18. AGRODOR Examples:1. AGRODOR SS Railways , Roads & ICT 1300 km 14 AGRODOR Hubs & 3 River Hubs Farming 4,000,000 Acres Rail Alignment with 5 Destinations CSRs for National Coherence Rural & Nomad Development AGRODOR Hub Transit Connection Marin Transit Hub River Transport Arable Land for cash Crops Road Transport Transit Corridor Water Consuming Crops

19. 2. AGRODOR Ivory Railways & ICT 2,000 km New Deep-Sea Port 12 AGRODOR Hubs Farming 600,000 Hectares Rail Alignment with 4 Neighbors CSRs for National Coherence Spearhead National Development

20. 3.AGRODOR SUDAN Phase 1 Phase 3 Phase 2 Phase 5 Phase 4 Agriculture Livestock Mining

21. KRM TZB FSR 4.AGRODOR DARFUR GEN JablMarrah Railways 400 km Paved Roads & ICT 700 km FOR 7 AGRODOR Hubs NYL Facilities for 50 Farming Villages RHD Cash Crops Farming 1 mln Acres Livestock Farming 2 mln Acres Integrated CSRs Facilities Rural & Nomad Development AGRODOR Hub Transit Connection Marin Transit Hub Road Transport Arable Land for cash Crops Railways Transport Transit Corridor Livestock Farming

22. 5.AGRODOR Tanzania New Strategic Northern Ring New Railways Tracks & Roads Refurbished Existing Tracks Refurbished Existing Roads New Traffic Control System Refurbished End Ports End Ports Connecting Ports AGRODOR HUBs

23. 6.AGRODOR Ethiopia New Strategic Central Link New Railways Tracks Refurbished Existing Tracks Refurbished Existing Highways Enhanced Traffic Control System New Tolled Speed Highway These are carefully adapted and coordinated concepts to be developed as per standards and practices under Ethraa’s Coordination & Advisory