COMMODITIES EXCHANGE PROJECT IN CÔTE D’IVOIRE &. How do we move farmers from here - 28 …… TO HERE - Lugano Commodities Forum, Jun 4-5th, 2014

1.Presentation of BNI GESTION 2.Presentation of PANEX and his Stakeholders 3.Africa the Ultimate Fontier Market 4.What is a derivative market ? 5.What we have done? 6.EWR : Electronic Warehouse Receipt 7.Products 8.Agro-Products

BNI GESTION (BNIG) was set up in May 2008 by the Ivorian state-owned Banque Nationale d’Investissment (BNI) to foster private and institutional savings in Côte d’Ivoire and in West-African Economic and Monetary Union (WAEMU), by offering innovating products (Mutual Funds, Pension funds, Retirement plans, etc.) and services to private customers, enterprises, and state entities. Its shareholders include a number of financial institutions, including BNI, EBID ( ebid.org/en/index.php), CICARE ( re.com/index.php/cicareEn/), the CNCE Bank and LOYAL-VIE (an insurance company) ebid.org/en/index.phphttp:// re.com/index.php/cicareEn/ OVERVIEW

PORTFOLIO IN AM FUNDSCARACTERISTICS FCP CAPITAL CROISSANCE Net Asset as of March 2014, FXOF 25billion (Euros 38 millions) with more than Clients. FCP SODEFOR Retirment fund for employers from Société de Développement des Forêts (SODEFOR). Net Asset as of 31 December 2013, Euros 2.3 millions. FCP KARIMA ETHIQUE Revenues from that fund are injected in in activities /projects with high component of social affairs. FCP INITIATIVE SOLIDARITE Revenues from that fund are injected in in activities /projects with high component of social affairs. BANK & INSURANCE Multisupport insurrance product : PERFORMA (with LOYALE VIE, an insurrance company) et EPARGNE ACTIVE (with LMAI VIE, an insurrance company) Many other retirement funds for employers from many companies.  CNRA (Centre National de Recherche Agronomique)  MADGI (Mutuelle des Agents de la Direction Générales des Impôts)  MADGT (Mutuelle des Agents de la Direction Générale du Travail)  PN CI (Police Nationale de Côte d’Ivoire)  CNCE (Caisse Nationale des Caisse d’Epargne)  BNI (Banque Nationale d’Investissement)  CNPS (Caisse Nationale de Prévoyance Sociale)  CGECI (Confédération Générale des Entreprises de Côte d’Ivoire)  Others (Douane, Trésor Public, etc…)

PORTFOLIO IN PE FUNDSCARACTERISTICS CGECI (Confédération Générale des entreprises de Côte d’Ivoire) As of 31 January 2014, net asset Euros 8.1 millions. An set up an FCPR fund for financing need of their 1000 members (companies) INIE (Institut Ivoirien de l’Entreprise) for setting up of 165 SME located in 33 regional councils in Côte d’Ivoire Program aimed to rise FXOF 22 billion (Euros 33 million) through an FCPR vehicle ONDR (Office National de Développement du Riz) the Rice program supervisor in Côte d’Ivoire Program aimed to rise FXOF 50 billion (Euros 76 million) through an FCPR vehicle BNI GESTION has been mandated by several public or private companies to provide them with innovative financing solutions for Public Private Partnership projects.

PANEX 6 First true West Africa Commodities Exchange. It is a derivatives market i.e. offering Futures and options swap or forwards. It will offer Animal Repo-Financing and ACFEX EWR (Electronic Warehouse Receipt). The exchange will be fully demutualised; eliminating conflict of interest. It is a SRO (Self Regulated Organization).

Who are the other players collateral and warehouse manager DeaoGracias, RESAO, COCOVICO… OCPV (Office de Commercialisation des Produits Vivriers) in Abidjan, a government body in charge of cooperatives organisation, crops quality standardization, Negotiations are ongoing with the WAMU (West Africa Monetary Union) Commission of commerce in Ouagadougou, Burkina Faso; that will lead to a PPP with governments. Banque Regional de Solidarite (Now Orabank Côte d’Ivoire) in Abidjan as one of the settlement and payment bank,

Africa – The Ultimate Frontier Market 14

What is a Derivatives Market? The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets. 15

1900s CBOT

IN ETHIOPIA

Written Regulations (over 500 pages) to make sure trade occurs fairly and transparently Technology – 100% fully electronic – trade from anywhere in the world. – Exchange platform-Fix 5.0 compliant – Trading Platform:- The demo is downloading at – Clearing House – Electronic warehouse Receipt What we have done 30

EWR: The Process 38 Warehouse 1. Farmer deposits commodity in the warehouse 2.Warehouse issues EWR to farmer Farmers Broker PANEX Banks / Investors 3.Warehouse registers EWR with the exchange for trading 4.Farmer transfers registered EWR to broker or warehouse can transfer the EWR on behalf of the farmer. 5.Broker sells a contract and EWR moves to the exchange Clearing & Settlement 6.Trade goes to clearing 7.Trade is settled and money is transferred to custodial bank. 8.Financing goes to farmer.

Agriculture Futures Metal futures Energy Futures Currency Futures Trading Single-Stock Futures (SSF) Equity Index Futures Trading Exotic Currency o.t.c Derivatives Products 40

Agro-Products Cotton Cashew nuts Wheat Coffee Cocoa Rubber Cattle Cow Milk Rice Yams Maize Sorghum Palm oil Groundnuts Cassava 41 Futures and Options on 15 agro-pastoral produces

Institutional Clearing firms – They only do clearing Clearing and trading – They clear trade for themselves and their trading clients Trading Firms – They trade for themselves or their clients Financing of Warehouse Receipt – i.e. Banks How can you participate 42

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