Kiriga Kunyiha

Aureos East Africa

22nd March 2006

Providing Private Equity Solutions

50% 50%

Aureos Inception

Aureos Capital is a 50:50 joint venture between Norfund and CDC

Aureos is a leading private equity fund manager investing in the SME sector in emerging markets around the world

The Aureos Global Network

COSTA RICA

EL SALVADOR

LONDON

SOUTH AFRICA

NIGERIA

MOZAMBIQUEZIMBABWE

ZAMBIA

TANZANIAKENYA

SRI LANKA

MAURITIUS

GHANA

PAPUA NEW GUINEA

Over US$ 500m under management globally, with US$ 72m in EA (AEAF, ACACIA and FEDHA)

DOMINICANREPUBLIC

THAILAND

INDIA CHINA

VIETNAM

PHILLIPINES

AUSTRALIA

(PACIFIC ISLANDS)

UGANDA

SENEGAL

Our African PresenceClose to half our committed capital has been allocated for investment opportunities across Sub-Saharan Africa

Aureos East Africa Fund (US$ 40 million)

Target countries: Kenya, Tanzania, Uganda

Other countries: Ethiopia, Rwanda.

Aureos Southern Africa Fund (US$ 60 million)

Target countries: RSA, Zambia, Mozambique, Zimbabwe.

Other countries: Botswana, Namibia, Angola, Mauritius.

Aureos West Africa Fund (US$ 50 million)

Target countries: Nigeria, Ghana, Côte d’Ivoire, Senegal.Other countries: Mali, Gambia,

Benin, Togo, and other ECOWAS

Representative InvestmentsAureos has made a number of investments across in different sectors across the region

What is Private Equity “PE”

• PE is medium to long-term risk capital provided in return for an equity stake in potentially high growth unquoted companies

Sponsors Equity

Institutional equity capital

Quasi- equity Subordinated debt

Secured bank debt

PE fills the gap between sponsors injection of their own cash and bank debt. Risk capital packages often tend to be a blend of equity and debt

PE Around the world

• PE industry well established in the US and Europe with funds under management in excess of US$ 250 billion

• In 2004 according to EVCA, PE firms in Europe invested over US$ 50 billion into 10,000 potential high growth companies. The current European portfolio stands at over US$ 200 billion (at cost)

• Studies have found that PE backed companies tend to outperform their counterparts

Advantages of PE Funding

• Provision of Capital– PE investors provide medium to long term capital to facilitate growth and/

or enabling Management participation through buy outs/ buy ins.

• Improved corporate governance– PE investors help their investee companies transition from informally run

businesses to professionally managed organisations with the commensurate benefits of better management control and focus

• Access to third party capital– PE investors have extensive contacts with financiers to mobilise external

sources of capital for their Investees. Companies with PE investors attain the appropriate credibility to access the financial markets (debt or equity).

Experienced management teams with track record of success

Regional growth ambitions

Adherence to Aureos’ corporate governance standards

Alignment with AEAF on exit rights and shareholder protections

AEAF risk capital package includes blend of equity and debt

AEAF will commit between US$0.5 million to US$4 million of risk capital per investment

AEAF partners with experienced, successful management teams to build strong regional companies in East Africa

Aureos Investment Criteria

Aureos tends to invest in businesses with the following characteristics

AEAF Target Transaction Type

Expansion of profitable businesses, often regional

Working with large family groups to hive off and institutionalise independent business units

Industry consolidations / mergers & acquisitions

Change of control transactions Management Buy Outs (MBOs) Management Buy Ins (MBIs)

Co-investment opportunities with strategic investors

Expansion / MBO transactions are most preferred deal types

Why Aureos?

Partnering philosophy

Strong track record of private equity transactions in East Africa

Focus on helping skilled managers build world-class companies

On ground local presence

Backed by a blue-chip investor base

Provide more than just Capital