Strictly Confidential

Presentation by: Samuel Dzotefe

Manager - Agribusiness Group (Sub-Saharan Africa)

January 15, 2018

DFA African Network Presentation

IFC Introduction

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World Bank Group Overview and IFC

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IBRD International Bank for Reconstruction and

Development

IDA International Development Association

MIGA Multilateral Investment

and Guarantee Agency

Political Risk Insurance

1945 1960

Investment through Loan, Equity, and Quasi-Equity

Resource Mobilization Advisory Services

1956 1988

Role

Clients

Products

To promote institutional, legal and regulatory reform

Shared Mission: To Promote Economic Development and Reduce Poverty

IFC International

Finance Corporation

Technical assistance Loans Policy Advice

Governments of member countries with per capita income between $1,025 and $6,055.

Technical assistance Interest Free Loans Policy Advice

Governments of poorest countries with per capita income of less than $1,025

To promote institutional, legal and regulatory reform

Private companies in member countries

To promote private sector development

Foreign investors in member countries

To reduce political investment risk

Year Established

IFC is the largest multilateral source of financing for the emerging markets’ private sector

IFC at a Snapshot

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IFC is the private sector investment arm of the World Bank Group

AAA rated by S&P and Moody’s and has been profitable every year since inception in 1956

Provides both investment and advisory services

Debt / equity exposure in 128 countries and over 2,000 companies

In 2017, IFC’s private sector clients provided: 2.4 million jobs / power to more than 79 million people / gas to more than 60 million people / water to more than 14 million people / more than $411 billion in loans to micro, small, and medium enterprises / medical treatment to 32 million patients / education to 4.6 million students

Advice on environmental and social issues. IFC E&S Performance Standards adopted by over 50 global institutions

In-house syndications department working with over 200 banks

Commentary IFC Fiscal Year June 2017 Highlights

Committed Portfolio (own acct.): $55 billion # of Portfolio Projects: 2,005 Long-term Investment Commitment in FY2017: $11.9 billion Mobilization* in FY2017: $7.5 billion

Committed Portfolio by Industry Committed Portfolio by Region

* Syndicated loans, IFC Asset Management Company, etc.

IFC’s Global Footprint

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Dakar

Nairobi

Johannesburg

Cairo

Washington

Mexico City

Bogota

Buenos Aires

São Paulo

Moscow

Hong Kong

New Dehli

Almaty

Istanbul

Santo Domingo

IFC HQ IFC Hub Offices IFC Country Offices

IFC is present in every region with 100+ offices with 4,000 staffs globally

IFC’s Product Offering

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IFC provides a full-suite of financial and strategic products

Subordinated loans

Income participating loans

Convertibles

Other hybrid products

Up to 20% shareholding

Long term investment horizon

Corporate loans

Project finance – expansion, greenfield (when sponsors have strong financial capability and relevant experience)

Senior Debt

Mezzanine / Quasi-Equity

Equity

Direct Investments Structured Finance Advisory Services

Risk sharing facility (guarantee on portfolio)

Partial credit guarantee

Investment in private equity funds

Investment climate

Access to finance

Business advisory (environment, linkages, IFC against AIDS, corporate governance)

Public-Private Partnerships

Working capital financing Short-term Finance

Resource Mobilization

Syndication with commercial banks, DFIs and other financial Institutions

IFC Asset Management Company

Concessional fundings to allow IFC to take on additional risk where applicable

Why Work with IFC?

Best-in-class “Environmental & Social (E&S)” standards to analyze and assess potential E&S implications of the investment project; particularly bodes well in a greenfield agribusiness context

Deep sector / country expertise across the agri value chain to provide in-depth suggestions and analyses with regards to business plan and exit strategies

Advisory Services to support value chain partners for capacity building and training (i.e. farmer training, access to finance, capacity building)

IFC’s “Stamp-of-Approval” can catalyze other private sector funders to support long-term capital structure where necessary

IFC, as a member of the World Bank Group, positioned to facilitate macro-level dialogues with host government officials

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How can IFC Help with Investments in Agriculture in Africa?

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IFC’s Intervention Across the Food Value Chain

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IFC Investment/Advisory Services Involve in the Agribusiness Value Chain “From Farm to Fork”

Investment Climate (Business environment)

Advisory / Technical Assistance

Infrastructure / Logistics, Public-Private Partnerships

Farmers / Plantations Infrastructure

Traders / Supply Chain

Management

Food Processors

(and Wholesaling)

Retailers

Input Producers

and Distributors

Environmental and Social Ecosystem Services

Water Global Irrigation Program Inputs (e.g. seeds)

Land Princ. of Responsible Agri Investment Africa Hybrid Investments

Animal Protein Mitigate impacts of full value chain (e.g., feed efficiency)

Small Farmers Inclusive supply chains Global Food Security Program (GAFSP)

Urbanization Safe food processing & efficient supply chains Food affordability

Nutrition & Innovation Food ingredients Fortified foods and drinks

Three-fourths of the world’s poor live in rural areas. IFC’s private sector investments are part of the World Bank Group’s efforts to boost shared prosperity and end poverty. IFC invests to:

ENHANCE FOOD SECURITY by increasing production, reducing losses, and raising incomes PROMOTE INCLUSIVE DEVELOPMENT by focusing on opportunities for small farmers, women, and risk management SUPPORT ENVIRONMENTAL & SOCIAL SUSTAINABILITY by helping the sector reduce its footprint

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Strategic Pillars IFC’s Interventions and Goals

IFC’s Advisory Engagement

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IFC advisory services comes ahead of, alongside, or post investment

Theme 3: Food Safety Supporting agro-processors and retailers to unlock new markets, reduce costs, mitigate risks, and integrate into value chains

Example: SIPRA – poultry sector in Cote d’Ivoire – adoption of standards in slaughtering process

Theme 4: Animal Protein Strengthening client operations in poultry, dairy, meat production and processing

Example: LUNA – livestock sector in Ethiopia – outgrowers scheme for increased supply of goats for added value cuts in the export market

Theme 2: Irrigation & Water Efficiency Promoting the adoption of water efficient technologies and practices in agribusiness supply chains

Example: Sofitex – cotton sector in Burkina Faso – improved soil and water conservation practices to improve crop productivity amongst smallholders

Theme 1: Smallholder Supply Chains Increasing efficiency and sustainability of smallholder supply chains and agro-input distribution systems

Example: Cargill – cocoa sector in Cote d’Ivoire – strengthening farmer coops as aggregation unit

Focused Themes Engagement Stages

Early Stage

Post IFC Investment

Client and IFC discuss early stage challenges in order to reinforce areas identified, with a near-term target to become bankable and an ultimate target to become a successful and sustainable business

BOVIMA (Madagascar) – advice to sponsor in establishing modern beef finishing and slaughterhouse.

Concurrent with IFC’s investment, client and IFC agree on areas identified to ensure the client can achieve the agreed business plan

WFP (Rwanda & Tanzania) – training farmer and cooperatives on improved agronomic and financial skills for access to financing.

With IFC Investment

Further advisory services to support IFC’s portfolio monitoring and carry out a number of evaluation work

SIPRA (Cote d’Ivoire) – advising client on improved growing conditions to meet productivity standards in order to meet EBITDA targets.

IFC’s Global Agribusiness Portfolio

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A well-balanced portfolio (regionally / sectorally) totaling $5.6 billion

Agri Finance 11%

Ag Equipment 1%

Fertilizers-AgriChems

16%

Food Retail 6%

Forestry-Wood Products

16% Animal Protein

14%

Dairy 2%

Beverages 3%

Grains-Oilseeds 8%

Fruits-Vegs 3%

Sugar 5%

Tropical Crops 1%

Other Food 3%

Traders 6%

Inputs 5% Sub-Saharan Africa

14%

Latin America 18%

Eastern & Central Europe

26%

Mid-East & North Africa 12%

South Asia 8%

East Asia 17%

Global 5%

Regional Breakdown Sectoral Breakdown

IFC Africa Agribusiness Investment Team

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A well-rounded team with 20 investment professionals across key hubs

Robert John Hatton Chief Industry Specialist (Livestock & Dairy)

Barry Lee Principal Industry Specialist (Food Processing)

Abdellatif Kabbaj Principal Investment Officer

Thomas Kouadio Investment Officer

Thomas Bauer Principal Industry Specialist (Dairy; Beverage; Farm Inputs)

Nelly Solange Mekempy Feze Senior Industry Specialist (Food Processing)

Washington DC / Europe / Asia

Christophe Ravry Senior Industry Specialist (Commodities / Horticulture)

Donald Nzorubara Senior Investment Officer

Abidjan

Yosuke Kotsuji Senior Investment Officer

Emi Kitasako Investment Officer

Carlos Castillo Senior Investment Officer

Tina Aikyo Investment Officer

Nairobi

Samuel Dzotefe Manager / Group Head

Zano Mataruka Senior Investment Officer

Yoshi Yanagimoto Senior Investment Officer

Johannesburg

Mark Lewis Senior Industry Specialist (Grain / Animal Protein)

Lagos

Vengai Chigudu Senior Investment Officer

Ali Shan Artani Investment Analyst

Celine El Hachem Assoc. Investment Officer

Cheikh Niang Investment Analyst

Robert De Groot Senior Industry Specialist (Grain)

Zeina Mouwawad Senior Investment Officer

Blue-chip Client Base across the Region

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HORTICULTURE / PRIMARY PRODUCTION

Kenya

2015

Syndicated loan for mini hydro power projects

Loan: $55 million

Ethiopia

2015

Syndicated loan to support a capacity

expansion of cut flower production

Loan: €90 million

Malawi

2014

Syndicated loan facility to support the expansion of a greenfield mango project

Loan: $15 million

Mozambique

2014

Senior loan facility to support a 200 ha

expansion of avocado farm

Loan: €3 million

South Africa

2013

Straight equity investment to support an avocado farm expansion

Equity: ZAR300 million

Ethiopia

2013

Equity (and mobilized equity) to support a passion fruit grower

Pref Equity: €10 million

Zambia

2014

Support supply chain optimization and

development of irrigated land

Equity: $20 million

COMMODITIES & PROCESSING

South Africa

2014

Long-term facility to support a flour milling capacity expansion

program

Loan: $33 million

Bakhresa

DRC

2014

Expansion of maize farming operations &

completion of maize mill

Loan: $18 million

Nigeria

2014

Support Nigerian flour mill expansion, set up of

sesame and cashew processing

Loan: $120 million

Tanzania

2013

Expansion of warehouses and processing plants

Loan: $70 million

Africa Region

2017

Financing of a new pulses processing

facility

Loan: $25 million

FARMER FINANCING

Tanzania

2017

Support financing for Tanzania’s small

farmers and cooperatives

Guarantee: $15 million

Cameroon

2017

Pre-export facility provided by Standard

Chartered Bank Cameroon to Sodecoton

Loan: €16 million

Burkina Faso

2017

Financing of the Sofitex cotton campaign for the

third time in the row

Loan: $21 million

Nigeria

2016

Support sugar mill, spice processing, sesame

hulling and Crown Flour Mill facilities

Loan: $175 million

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South Africa

2017

Senior credit facility to support the group’s expansion into Latin

America

Loan: $35 million

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Nigeria

2014

Support the expansion of juice concentrates and food production

facilities

Equity: $4 million

Boulos Food & Beverages

Kenya

2014

Syndicated loan to support the expansion of beverage and home

product production

Loan: $37 million

Uganda

2014

Greenfield dairy processing project

sponsored by Midland Group

Loan: $8 million

Senegal

2011

Expansion of food processing operations to

serve regional market and plant relocation

Equity: €3 million C-Loan: €9 million

South Africa

2017

Finance cross-border acquisitions in Central and Eastern Europe

Convertible Loan: $22 million

BEVERAGES / DAIRY / FMCG

Rwanda

2015

Support the expansion of a PET bottling line

and a wastewater treatment plant

Loan: $25 million

Nigeria

2016

Support the modernization, and

expansion of production lines

Loan: $25 million

Mauritania

2017

Support the modernization and

expansion of a dairy operator

Loan: $7 million

Rwanda

2015

Greenfield project of fortified blended food by

DSM Group

Loan & Equity: $16 million

Africa Region

2017

Co-investment with Helios to support the

expansion of GBfoods Africa

Equity: $15 million

Senegal

2017 / 2014

Senior credit facility to support the expansion

of the beverage production capacity

Loans: $8 million

Kenya

2017

Capacity expansion program and

development of cold storage facility

Debt: $5 million

Blue-chip Client Base across the Region

ANIMAL PROTEIN

South Africa

2012

Support the company’s expansion into the rest

of Africa

Conv Loan: $25 million

Zambia

2012

Support the cross-border expansion of

operations into Nigeria

Loan: $30 million

Zambia

2010

Expansion of livestock and retailing operations

in Zambia

Loan: $10 million

Madagascar

2016

Capital Expenditures for expansion of day old

chicks production capacity

Loan: $3 million

Cote d’Ivoire

2012

Support the expansion of a leading poultry

operator

Equity: €2 million

SIPRA

Nigeria

2017

Right issue for Country Bird Holding, following

IFC initial equity investment in 2013

Equity: $3 million

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Select Case Studies

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Company

Hans Merensky Holdings Proprietary Ltd is the largest grower and exporter of avocados out of Africa, and a leading player in South Africa’s timber industry

The company is a South African vertically integrated natural resource company with over 60 years operating history in forestry and sub-tropical fruit

The largest shareholder’s primary mandate is to promote science by driving the Company’s R&D strategies Second-largest shareholder is a government-owned development finance institution

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Transaction

IFC Investment: $35 million senior facility; $35 million equity; $4.5 million debt Commitments: December 2017; July 2014; December 2012 Objectives:

• Dec 2017: $35 million senior credit facility to support the group’s expansion into Latin America • July 2014: $5 million senior facility to support the greenfield avocado operations in Mozambique • December 2012: $35 million equity investment to finance the $120 million capex program to expand existing timber

and avocado operations in South Africa

2

IFC Role

Long-term capital: to help HMH expand in existing as well as new emerging markets in Africa and Latin America Demonstration Effect: attract further investment and development in Agribusiness in Africa Global expertise: forest management, certification and carbon issues E&S best practices: review by IFC and adherence to IFC Performance Standards 3

Development Impact

Economic development: of rural areas in South Africa and Peru Employment: The Company has about 4,300 employees. The expansion of its operations in South Africa and South

America is expected to lead to the creation of more jobs Gender Impact: a significant number of the Company's business units employ largely women Increased tax: and export revenue for government

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Hans Merensky / Westfalia (South Africa)

Company

Agrivision is a leading vertically integrated company focused on large scale commercial farming of wheat, soya beans and maize as well as milling. Established in Mauritius, Agrivision operates in Zambia through 3 operating subsidiaries.

The Company operates 2 farms producing c.20,000 tons of maize, c.12,000 tons of soya beans, and c.30,000 of wheat per annum and 1 mill processing c.40,000 tons of maize and c.20,000 tons of wheat per annum. Agrivision owns 18,000 hectares of land of which 5 568 hectares is suitable for grain cultivation currently 4,368 hectares of irrigation has been developed.

Agrivision is owned by Zeder Investments Ltd. (76.5%), a leading investment holding company in the agribusiness industry in Southern Africa; Norfund (22.7%); and co-founders Stuart Kerns and Phillip Nicole.

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Transaction

Commitment: May 2015

IFC investment: $20 million straight equity

Financing objectives: IFC’s financing to support the company’s $36 million farmland expansion program. 2

IFC Role

Long-term funding to finance the Company's expansion plans and to strengthen balance sheet. Financial structure is not currently available in local markets

Global industry knowledge in farming and milling E&S expertise Opportunity to foster long-term partnership with a strategic client

3

Development Impact

Improve food security

Support sustainable, climate smart agriculture

Transfer technical know-how on farming and milling best practices

Contribute to direct employment (e.g. over 670 employees)

Promote competition and agricultural supply chain development

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Agrivision (Zambia)

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Company

Afriflora Group, founded in the 1990s, is a family-run manufacturer and marketer of cut-rose products with a 325 hectare production farm based in Ethiopia

The group’s main growing facility is located in Ziway, Ethiopia and is one of the largest single rose growing facilities in the world

Founded by Mr. Gerrit Barnhoorn, the group continues to be managed by the Barhoorn Family

In June 2014 private equity firm KKR acquired a controlling stake in the group

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Transaction

Commitment: April 2015

IFC investment: Senior secured loan of €90 million, consisting of €52 million from IFC’s account and €38 million from IFC acting in its capacity as implementing entity for the Managed Co-Lending Portfolio Program

Financing Objective: (i) supporting farm expansion over newly leased land, including drip irrigation facilities, land leveling, greenhouse construction and processing and quality control centers; (ii) replacement of capital expenditures to maintain existing farmland; and (iii) refinancing certain investments made by the equity investors

2

IFC Role

IFC's investment showcases that debt solutions are available in challenging market environments for credible projects Confirmation and refinement of Afriflora’s existing governance and E&S standards through IFC’s expertise in these

areas Long-term partnership with a premier cut-flower producer and potential replication of investment in other difficult markets 3

Development Impact

Floriculture in Ethiopia is a significant value-added business that has a multiplier effect that plays a part in economic growth and poverty reduction

With its projected growth, Afriflora will be employing 13,800 employees by 2019, a net increase of close to 5,000 employees

Afriflora directly supports about 30,000-40,000 people in the region and more than 100,000 people benefit from its presence in the region

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Afriflora (Ethiopia)

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Zambeef (Zambia)

Company

Zambeef is one of the largest agri-business groups in Sub-Saharan Africa with a presence in Zambia, Nigeria, and Ghana and a focus on production, processing, distribution and retail of beef, chicken, pork, dairy products, and edible oils

Zambeef was established in 1994 and has been listed on Lusaka Stock Exchange since 2003 and AIM since 2011

1

Transaction

IFC $10 million loan in 2010 supported Zambeef’s expansion to Nigeria to establish primary production integrated livestock operations similar to those in Zambia

Additional $30 million IFC loan in 2012 supports Zambeef in expanding irrigation capacity and improving efficiencies across countries and divisions, especially dairy, poultry and pork

2

IFC Role

Support south-south investment

Provide long-term financing

Provide best practices in E&S and corporate governance

Operational efficiency and bio-security diagnosis and certification

3

Development Impact

Employment creation

Linkages to farmers and local SMEs

Tax payment

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2003 2004 2005 2006 2007 2008 2009 2010

Market Cap. (US$ mn)

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Cargill Risk Sharing Facility (Côte d’Ivoire)

Company / Bank

Cargill Inc. is a leading US-based global commodity trader. In Côte d’Ivoire, Cargill is one of the top two players, and sources 250k MT of cocoa. It has a processing factory, processing 120k MT annually, the second largest in Cote d’Ivoire

Société Ivoirienne de Banque (SIB), an existing IFC client, is the 4th largest bank in Côte d’Ivoire by loans and the 5th largest bank by assets and deposits

1

Transaction

3-partite Risk Sharing Facility between (a) Cargill ; (b) SIB and (c) IFC to provide leased trucks to Cargill’s supplier cocoa cooperatives (up to 100 coops)

IFC would share with SIB 50% of the credit risk in a portfolio of medium-term truck leases provided by SIB to the Coop Borrowers for a target size of CFA Francs 3.5 billion (approx.US$6.0 million)

Leases will be repaid from the proceeds of the coops’ cocoa sales to Cargill

2

IFC Role

Advisory: IFC is supporting Cargill's coops capacity building program (Coop Academy) by integrating Business Edge into the training component and incorporating the ScopeInsight tool which allows for coops benchmarking on various dimensions (financial management, governance, operational efficiency)

Resource mobilization: IFC is providing risk mitigation to SIB to extend, through the provision of leased trucks, medium term financing for coops, which was previously unavailable

E&S Advice: IFC E&S advised Cargill on enhancements of its E&S risk management system

3

Development Impact

Farmers Reach: Up to 70,000 farmers through up to 100 coops Coops Profitability: Cocoa collection by trucks is the largest component in coops cost structure (high maintenance

costs). Acquiring new collection trucks will help reduce the coops costs and improve their profitability Demonstration effect: Local banks are generally retrenched from farmer/coop lending. The Project could prompt other

financial institutions to start coops lending

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Originator (SIB)

Risk Sharing Facility

Coop A

Coop B

Coop C

Truck Lease

IFC

Coop C

Offtaker (Cargill)

Cocoa Offtake

Technical Assistance (Coop

Academy)

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Ethiopia Coffee Facility (Ethiopia)

Market overview

Coffee is Ethiopia’s main crop, and accounts for about 35% of export earnings

Many Ethiopian coffee farmers struggle to take full advantage of their crop

IFC has stepped in to provide farmers with access to finance, which will help them turn coffee farming into a sustainable

livelihood

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Transaction

IFC provides a 3-year, up to $10 million guarantee facility on bank loans to coffee farmer cooperatives in Ethiopia Bank loans will help cooperatives to process coffee and meet working capital needs Currently, IFC is working with Nib International Bank S.C. for the program

2

IFC Role

IFC’s participation allows the commercial banks to exceed exposure limits and reach more smallholder farmers IFC’s expertise guides participating banks on how to mitigate risks in the coffee sector Environmental and social best practices

3

Development Impact

Make Ethiopian coffee sector more competitive Establish credit worthiness of approx. 70 Ethiopian farmer cooperatives, expected to generate about $17 million export

revenues Develop a sustainable model of long-term and short-term financing for the Ethiopian coffee supply chain, with potential

for expansion to other countries/sectors 4

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Example of Working with a Danish Company AFISA / Arla Foods (Argentina)

Company

AFISA is owned by Arla Foods Ingredients (“AFI”) and SanCor on an equal basis (50% and 50%, respectively).

AFI is a wholly owned subsidiary of Arla Foods amba and is a global market leader within whey protein technology. Arla Foods, in turn, is a cooperative of more than 13,500 European farmers in UK, Sweden, Germany, Denmark, Belgium, the Netherlands and Luxembourg.

SanCor is one of the leading dairy producers and cooperatives in Argentina, based on the Argentine "central milk basin" around the border between the provinces of Santa Fe and Córdoba.

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Transaction

Commitment: June 2015

IFC investment: $56 million senior credit facility (includes syndication)

Financing objectives: The IFC investment will support expansions to the Company’s whey intake from ~900,000 to ~1,200,000 MT per year and permeate drying capacity from 24,000 to 45,000 MT per year

2

IFC Role

The transaction will be a cornerstone in forging a long-term partnership with a leading global dairy producer to work in other emerging market environments.

The transaction will showcase that foreign debt solutions in a challenging market environment are available for credible projects. The IFC-led financing package will have sufficient tenor (up to 7 years) to accommodate the cash flow requirements of the Company.

The IFC team will lead the structuring of a financing solution and will mobilize third party capital. IFC will support AFISA with the design of an action plan to address E&S issues which may pose a potential liability to the

Company and a hazard to the employees and the environment.

3

Development Impact

The whey processing industry is a significant value-added business that is in line with the overall agribusiness sector as having a multiplier effect that plays a part in supporting smallholders. AFISA's own operations indirectly reach ~1,550 farmers in rural Argentina, which is expected to rise by 350 farmers post Project implementation.

The Project promotes food security by supporting safe production in the dairy and whey industry, which plays an important role in the food and nutritional security of a relatively large proportion of infants in developing economies

The Project promotes E&S sustainability standards as whey is typically used as land fertilizer or added to calf and pig feed as nutritional supplements. By increasing the economic value of whey, a milk derivative previously considered to be waste, processors such as AFI help reduce such threats of environmental pollution

As ~90% of these revenues are derived from exports, the Government's strategy for higher foreign currency generation will also be supported

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