CLUFF TRADE AND INVESTMENTS

AFRICA’S NEW ECONOMIC DAWN !

Africa stands in contrast to much of the rest of the world. While many countries are still recovering from the financial cris is and economic uncertainty persists, Africa is becoming an increasing focus for the world’s financial institutions, corporates and investors. At the same time, Africa’s trade flows have undergone a profound change over the past decade. According to the OECD Factbook, trade between Africa and non-OECD countries – most notably China, India, and Brazil – has risen from 26% in 2000 to 39% in 2009. Nevertheless, the US and Europe remain key trading partners for the continent and trade volume between them and Africa countries is continually growing.

As Africa moves into 2020, great excitement will remain over the continent’s emerging opportunities for investment and trade

Outlook 2020

Disparate economic growth, shifting infrastructure financing trends, and the prospect of fresh privatisations are key indicators for Africa’s investment outlook in 2020. Multilateral financial institutions will take a leading role in supporting many African governments to deal with slowing growth and state asset selloffs. The US and UK, along with many European countries, will take fresh interest in African investments, while China scales down some of its most high-profile involvements on the continent. Enhanced certainty over Brexit, softening trade tensions, and a less volatile commodity outlook would further enhance Africa’s investment outlook in 2020. However, key challenges remain prevalent, including risk of debt distress in some countries, disastrous drought across southern Africa, and militancy and insurgency across the Sahel region.

A proposed solution to realise the mission and vision for economic emancipation of Africa, requires bold imaginative politica l and corporate governance. These, combined with entrepreneurial acumen and genuine commitment geared toward sustained economic and infrastructure development, will usher in a new global partnership based upon shared responsibility and mutual benefit for all Africans

FACT FILE

Africa’s place in the mainstream of the Global Market must be defined by the fact that the continent is inundated with globally sough after natural resources that historically and presently provide the western world. Amazingly the continents’ natural resou rces are inconceivably inexhaustible to the extreme that centuries of colonial legacy could not deplete its natural resources.

Infrastructure

Rapid urbanisation on the continent demands that governments and cities become globally competitive in the Global Cities space. The biggest need for infrastructure exists in power, transportation (roads, rail, ports, etc), hospitals and schools. The current spend on infrastructure in Africa is about US$45 billion a year. About US$90 to US$100 billion a year is needed, which is a huge funding challenge. This means there are substantial opportunities for the private sector to either invest on their own or in partnership with government

Resources

Africa’s resources are in demand! This is not only restricted to the extractive industries such as mining, and oil and gas. Agriculture is a dominant economic sector in Africa, and concerns around global food security make the continent’s fertile, uncultivated land an enormously important resource.

Consumer Demand

Through the phenomenal rate of urbanisation, Africa has a growing population of very young, ambitious, often well-educated, globally minded people who are increasingly moving into middleincome brackets.

Internet users have increased, while the telecommunications sector has seen the number of cell phone users on the continent grow from 11 million in 2000 to almost 500 million today. Undersea data cables are currently being laid at an unprecedented rate, providing exponential bandwidth growth which will drive communications and internet access, particularly through mobile devices.

Since the 1990s, financial sector reforms in many sub-Saharan African countries have contributed significantly to the development and efficiency of their financial – and particularly banking systems. Consequently, commercial banks’ capital bases have strengthened and their risk management practices have improved; credit to the private sector has risen, albeit from a low base; and most of the sub-Saharan African banking systems have proved resilient to the recent events of global financial stress.

At the same time, there is potential for a significant change in the landscape for banking in many sub-Saharan African countries, such as the expansion of mobile banking and regional banking groups. This bodes well for enhanced competition in national banking sectors and facilitates the spread of new technologies. It should be noted, however, that these developments have brought about also challenges for regulators and supervisors in the region.

To demonstrate that successful projects can be undertaken in African countries, the AfDB has increased its capacity to finance private enterprises and Public-Private Partnerships (PPPs).

The abundance of explored and unexplored resources can be categorized as follow:

VISION

To become a major role player in the economic transformation process of Africa, and to be a participating vehicle to mobilize the African economy towards the mainstream of global competition.

MISSION

To eradicate the bondage of economic disenfranchisement in Africa and to collectively assist in the realization of the NEPAD vision in promoting and transformation of economic development and sustainable growth.

INTRODUCTION

CLUFF TRADE AND INVESTMENTS is an International Investment Facilitation and Advisory Business Development Company, with its core business to serve as a Special Purpose Vehicle and conduit between Africa and foreign companies. For strategic reasons, we are situated in Johannesburg, South Africa, to facilitate our international and local clients through easy access to our offices by means of effective communication and convenient travel to the rest of the African Continent.

Company Expertise

Our range of expertise boas at team of multi-disciplined Professionals, and Technical Partnerships including specialized consulting firms to successfully execute any business and/or project venture.

As an identifier for investment opportunities in the Sub-Sahara Africa. Our areas of expertise are:

FOREIGN DIRECT INVESTMENTS (FDI)

MERGERS AND ACQUISITIONS (M&A)

JOINT VENTURES STRUCTURING

BUSINESS/INDUSTRIAL DEVELOPMENT

INFRASTRUCTURE FUNDING CONSULTING COMMODITY TRADING RESEARCH

Strengths

Given the realities of today’s demand for international companies to expand by, focusing toward Africa as a new frontier. Companies need to prepare well in advance with proactive and strategic long term vision for capital growth. This requires considerable active outreach to both the political players and corporate companies in the target country of investment. There is no substitute for wellexecuted investment planning, coupled with unquestioned entrepreneurial savvy, to execute any business transaction for high return on investment. Planning is vital to overcome some of the potential challenges which companies may face.

We pay meticulous attention by providing quality results.

 Identify, researches and explores unique business investment opportunities in the Sub-Sahara

 Provides comprehensive knowledge to foreign investors toward emerging investment opportunities by establishing long-term relationships with key players/investors in the global markets.

 Saves foreign investors the costly and time-consuming process of pursuing unqualified and unsuccessful business ventures in the African Continent. We monitor and advise according to investor’s needs.

INVESTMENT FACILITATION

In today’s global economy, the long-term growth strategies of successful businesses in emerging market countries often include plans for expansion into international markets. Those businesses look to grow by entering into strategic alliances, opening plants and facilities, and planning acquisitions and other investment transactions.

CLUFF TRADE AND INVESTMENTS believe that our extensive knowledge and experience, coupled with our understanding of global geo-economic issues, offer us the best facilitating machinery to lead any serious minded investor to genuine and sincere business deals.

We primarily perform as a facilitating link between the investor and the business opportunity in the private sector and government level in any African country.

Our facilitatory services are:

Evaluating Market Entry Options (FDI)

Sourcing and Matching of companies (M&A)

Identifying & screening Potential Foreign Investors

Strategic Planning for Mergers & Acquisitions

Conducting Contract Negotiations and Agreement Closing

Research and analysis of Venture Acquisitions for FDI in mining

agriculture and Industrial Development projects

Monitoring state owned privatization and Economic Legislation

Emerging Markets Analysis

Business Development

Competitive/Market Intelligence

Private Public Partnership (PPP) advise and structuring

FDI STRATEGIES

According to various reputable forecasters and economic analysts, Foreign Direct Investment (FDI) in Africa has reached the highest level in a decade and is set to reach an estimated USD$80B to USD$120B. With ten of the world’s fifteen fastest growing economies, it is no wonder that Africa continues to attract considerable FDI inflows and this positive trend is expected to continue, while its total Gross Domestic Product (GDP) is expected to reach US$2.6 trillion by the year 2020.

Although investors have typically favoured natural resource assets, there has been a substantial shift away from the extractive industries and the continent is seeing growing investment in sectors such as transport and port development. The top three sectors are technology, media and telecoms, accounting for over 50% of FDI projects.

We assist companies entering African markets by using effective business tools and techniques through research in advance of any potential transaction. We ensure that the dynamics of a company and industry sector are mutually understood and that the

broader economic and business culture is captured by would be investors. The result is to cultivate understanding to the investor community in areas or countries of interest.

By this, we support corporations in making global deployment decisions while helping governments enhance their attractiveness for FDI.

Political Risk Assessment

Country Economic Factor and Risk Analysis

Industrial Development Strategies & Implementation

Investment Climate Analysis

Business Entry Analysis

Market Intelligence

PROJECT DEVELOPMENT FUNDING

We are regularly approached by large scale project developers who have been awarded contracts either privately or by governments to develop infrastructure such as housing, port development, power generation, oil and gas projects, rail construction etc. These enquiries often lead to Private Placement Programs/Platforms (PPP), which our company is readily capacitated to facilitate through our solid relationships with our trade counterparts in Zurich, London and Lichtenstein.

As investment facilitators and consultants we will structure an end-to-end investment funding model, through structuring of a seamless high level process right up to hand over of the completed project.

We are readily available to dialogue with private entities and governments to explain this risk free funding mechanism for a walk through presentation.

The diagram below is an overview map that illustrates the development funding process:

GOVERNMENT RELATIONS

A concerning factor that often deters western companies from exploring investment opportunities in developing African countries, is fear of unfamiliarity with economic policies and business culture.

Companies don’t always understand why they should thin k about government relations. The simple reason is that government is a significant player in industry, whether it is realize or not. Governments invest in communities and industries. They create policies that help business and support workers. But they’re not perfect. So they need business to tell them what it needs and what it doesn’t. That’s why it is important to engage in government relations.

CLUFF TRADE AND INVESTMENTS is in the position to successfully take care of these concerns by introducing investors for partnership in various business sectors and Government representatives and policy decision makers.

We therefore render the following services:

Access/introductions/influence to key Policy Makers

High-level government communications and lobbing

Strategic political positioning

Strategic alliances with Investment Promotion Agencies

Country Risk Analysis

COMMODITIES TRADING

CLUFF TRADE AND INVESTMENTS boasts a network of suppliers and associative partnership with global players in acquisitions and supplying of commodities.

Gold

Copper

Cobalt

Manganese

Coal

Timber

Scrap Metal

Crude Oil, Gas. Petroleum and Jet Fuel

Bitumen

Chemicals

Sugar

Rice

Coffee

Computer/Telecoms Technology

Mining Equipment

Colten

Chrome

Iron Ore

THE MARKETS

CLUFF TRADE AND INVESTMENTS has extensive knowledge and the entrepreneurial skills in the sectors listed in terms of identifying and facilitating the appropriate FDI ventures available in sub-Sahara Africa. Specifically, within the markets spread across the following countries and regions:

SOUTHERN AFRICA: ● SOUTH AFRICA • MOZAMBIQUE • BOTSWANA • SWAZILAND • ZAMBIA • ZIMBABWE • NAMIBIA

CENTRAL AFRICA:

● ANGOLA ● DRC ● CONGO ● CENTRAL AFRICAN REPUBLIC ● GABON ● EQUATORIAL GUINEA ● CAMEROON

WEST AFRICA:

● NIGERIA ● GHANA ● CÔTE D’IVOIRE ● MALI ● GUINEA CONAKRY/BISSAU ● SENEGAL ● LIBERIA ● SIERRA LEONE ● TOGO ● BENIN

EAST AFRICA:

• KENYA ● TANZANIA ● UGANDA • SOUTH SUDAN • ETHIOPIA ● CHAD

BUSINESS PHILOSOPHY

CLUFF TRADE AND INVESTMENTS believes that close interaction presents an opportunity to create a positive perspective in the mind of the International Investor Community and the countries where investment will flow. This we believe will cultivate comfort and give peace-of-mind to any potential investor.

Understanding

CLUFF TRADE AND Investments’ approach is to understand precisely what the investors’ needs are. We then determine how we can improvise to meet the necessary requirements. That is why we initiate each new relationship with in-depth discussion. We believe that only through dialogue can we learn what the investors’ needs are.

Interpret

Once we have a firm grasp of the needs, we can thereafter begin to effect solutions according to such needs. We firmly believe that each investor is unique and deserves a customized approach. CLUFF TRADE AND INVESTMENTS offers its client this.

Act

Designing and conceptualizing the needs for sound investment solutions is only the first step in our approach. We will be there –from conception to implementation, making sure that objectives are met. If adjustments are necessary, we will make them because we understand that improvement is a journey, not a destination. We are not and will not be in the business of selling offthe shelf solutions; therefore we will always offer fresh solutions to realize the needs of our clients.

LEADERSHIP PROFILE

Winston R. Cluff, Managing Director

Winston R. Cluff is a seasoned entrepreneur covering the African theatre. He has been involved with a number of business ventures in Foreign Direct Investments, Mergers and Acquisitions, Joint Ventures Facilitation activities, commodities trading, in Africa and internationally. Winston has gained vast exposure and experience in African Markets and Business Development in African emerging industries since the mid-nineties. He possesses a thorough understanding of these markets, the regional business cultures as well as global geo-political and economic trends, to position any business venture to realize long term success. He is well versed in utilizing various techniques and approaches that incorporate Emerging Market Intelligence gathering, research, and political risk, as well as Regional Economic Impact Trends. He has previously been the Managing Director of Russet Trade and Investment (Pty) Ltd; and in this position has dealt extensively with Banking/Financial Institutions and Development Agencies. In addition, Winston brings extensive experience in high-level relationship management at government level. His areas of speciality in Commodities, Mining, Petroleum Products, Power Generation, Agriculture, ICT, Industrial and Infrastructure Development has gained him recognition by international industry players.

Kevin Fynn, Director

Mr. Kevin Fynn is a formers Managing Director at Altech West Africa Limited and Unisys Africa. Mr. Fynn has strong leadership and strategy skills and proven ability to negotiate and close deals, and turnaround projects to maximise profitability. Kevin has extensive international exposure and expertise in business development, operational restructuring, improving operating efficiency, corporate development and developing growth strategies. He boasts a track record of significantly enhancing efficiency, revenue and profitability. He has a strong sales and marketing background and achievements in driving profitable growth plus significant commercial, contract management and business development skills and major achievements in leading the turnaround, repositioning and growth of services orientated business. He is highly energetic and has worked internationally in executive roles in the United Kingdom, India, France and the United Arab Emirates and has a deep understanding of the management and richness of various cultures and the building and development of team excellence having one vision. His career to-date has seen him gaining experience as the Chief Executive Officer Vice President and Managing Director at several multinational companies.