1. BXR in Africa
March 2013

2. BXR Group Mining Oil & Gas Transport Agriculture Real Estate Other
BXR Group Introduction
BXR – Existing Operations
BXR Group, headquartered in Amsterdam, Netherlands, is an international private investment group with a 15 year track record of superior investment performance across a variety of industry sectors
Today the group has a diverse range of global interests and an established track record of accessing the international debt and equity capital markets for large and high profile transactions
Selected investments:
Mining
Oil & Gas
Transport
Agriculture
Real Estate
Other
Viking Int’l

3. BXR Agro BXR Agro – Existing Operations BXR Agro Introduction
BXR Agro looks to acquire and develop agricultural properties as part of an expanding worldwide portfolio of land
BXR Agro seeks to address the increasing demands of a growing global population through:
Introduction of modern farming techniques
Land development and soil correction
Creation of efficient operations of scale
The approach looks to be always sustainable and sensitive to the needs of local communities
On-going Development
BXR Agro continues to grow its portfolio over:
Diverse regions: Latin America, Southern & Eastern Africa, and Eastern Europe
A range of commodities: soybean, corn, sunflower, cotton and wheat as well as fruits and livestock
BXR Agro partners with local and international farmers and investors in its efforts to establish an effective, considered and well-integrated supply chain to feed both growing and established markets
Current Investments
Description
12,000 Ha cotton, corn and soybean operation in Western Bahia, Brazil
60,000 Ha agricultural land transformation company in Argentina
A fruit producer in Malawi developing pulp processing  capacity
28,000 Ha of oilseed and grain concessions in Mozambique.

4. Malawi Mangoes: Agro-Processing Investment
Case Study

5. Malawi Mangoes – Introduction
Company Background
Malawi Mangoes is a fruit producer growing mangoes and bananas which has:
Developed a 130 Ha plantation and nursery 7km from Lake Malawi
Planted 50,000 mango and 100,000 banana plants
In the nursery – 150,000 mango saplings, 60,000 banana plants
Installed a hi-tech drip Jain irrigation system (the first of its kind in Malawi)
Established a network of thousands of smallholders to supply high-value fruit
Recent Investment
BXR became the majority shareholder in 2013
Its investment will be used to:
Irrigate and cultivate a further 1,000 Has of farmland
Develop a substantial processing facility near Salima
Hopes for the Future
Once complete, Malawi Mangoes hopes to sell long-life fruit pulp to international markets
Potential customers include Pepsi, Coca Cola, and Innocent Smoothies
Great potential to create a large number of jobs, boost the local economy and demonstrate the benefits of investment in Malawi

6. Malawi Mangoes – Why Mangoes?
Strongly growing global demand for certain mango strains
Demand is being driven by growing popularity of :
Smoothies and other fruit flavoured soft drinks
Baby food products (often have fruit as a base)
India, the world’s largest producer of mangoes, is forecast to become a net importer in the near future
And Bananas…
Banana is a key component of most smoothies and common in baby food
Whilst mango has only a 3-4 month harvest season, banana crops year round
Combining both:
Demand increasing for both fruits in:
Health-conscious developed markets
Developing markets with emerging consumer class
Growing both will enable Malawi Mangoes to run its processing facility and farm at optimum capacity year round
Being able to supply customers with a diversified product offering is preferable

7. Malawi Mangoes – Why Malawi?
A country with great potential:
BXR Group is optimistic for the future of Malawi: once visited, never forgotten
Excellent engagement by Malawi Mangoes with the Malawi Government and local businesses
Malawi Mangoes represents another step in the development of BXR Group’s agricultural portfolio and African strategy
Foreign Direct Investment in Malawi currently limited, but realisation of successful projects should encourage others and build up necessary momentum
Major foreign exchange generation possible with more projects targeting foreign trade
Important for Government to provide attractive fiscal environment for foreign investors and to make land available
Substantial improvements possible from investment:
Large unemployed rural population eager for jobs
Lake Malawi an exceptional fresh water resource, but needs investment in irrigation to establish certain agricultural operations
Climate:
Mangoes are naturally well suited to the climate around Lake Malawi : ~4m mango trees
High fruit wastage currently:
~85% of the fruit is wasted each year

8. Malawi Mangoes – Taking the Project Forward
Processing capacity:
Increased in-country processing facilities will be the answer
Once processed and sealed in asceptic bags, fruit pulp can be kept for months at ambient temperatures
Opens up the opportunity to sell to international African, European and further overseas markets
Malawi Mangoes is constructing a substantial processing facility near Salima
Grafting higher value mango strains:
Local Malawian mango varieties are not much in demand for international markets
Malawi has had success in grafting higher value strains such as Tommy Atkins onto local root stock
Malawi Mangoes is now not only grafting its own new plantation, but mature trees belonging to local smallholders
Smallholder engagement:
The grafted trees will fruit sooner thanks to their developed root systems
Local smallholders have the opportunity to work with Malawi Mangoes to convert trees producing fruit with very limited value, to high value trees that can sell their fruit for processing
Malawi Mangoes is working with thousands of local farmers to create real future income generating opportunities
New farm:
To reach sufficient scale, Malawi Mangoes will need to develop a further 1,000 Ha
The company continues to search for a suitable area then looks forward to taking the project through this next step

9. Malawi Mangoes – Vision for the Future
Top class supplier:
A key problem for fruit pulp consumers has been securing reliable supply
Malawi Mangoes aims to excel in all aspects to attract customers
By having its own farm to supply the processor, Malawi Mangoes will establish a reliable ethical supply chain
The company already employs farming practices approved by the Rainforest Alliance
It will source 20% of fruits from local smallholders
Great development possibilities:
Malawi Mangoes is investigating the potential to introduce premium variety pineapples
Other products could include dried banana chips, and mango strips (highly in demand in the local African markets as well as the Middle East and China)
A significant fruit pulp producer serving international markets and benefitting local communities:
There are few to no precedents for such an operation in Malawi
Malawi Mangoes will have to overcome infrastructure, transport and logistical difficulties
Appropriate financing for working capital and further capex is less accessible
Alongside foreign investment, it will take continuing local support from local smallholders to government bodies for Malawi Mangoes to succeed
Malawi Mangoes is ready to face the challenges confident in the goals shared with Malawi

10. The Fruits of Effective Investment
Irrigation project costing $2,500
Transforming the lives of 700 families in Malawi
A $2,500 irrigation project
Transforming the lives of 700 families in Malawi