1. Southern African Private Equity Round Table October 19 -20, 2010

2. Emerging Markets Private Equity Growth 2 Source: EMPEA Over US$200bn raised over past 5 years US$bn

3. Emerging Markets Fundraising Landscape YearUS$m 2005791 20062,092 20072,034 20082,241 2009964 US$m Sub-Saharan Africa Source: EMPEA

4. Investor interest in Africa Growing 4 Limited Partners Investing in Africa % of respondents Source: EMPEA

5. The Current Environment Smaller Fund Sizes Longer fundraising cycles Momentum towards more favorable terms for LPs Challenging Fundraising Climate Significant impact on African GP options Focus on domestic markets Clarity required Increased Regulation Hurdles increasing Requiring more compelling investment strategy Emerging markets present growth Changing Investor appetite Source: EMPEA/ AVCA

6. The Players (a sample) Fund Name Fund Size/ Target Size (US$m) Close as at June 30 th, 2010 Pan-AfricaAureos Africa Fund400381 ECP III800613 Kingdom Zephyr II500492 Helios II650400 (fundraising) Actis EM II3,0002,300 DPI I416600 8 Miles I750Fundraising Satya I250 TRG (Africa Catalyst Fund)300Fundraising RegionalCapital Alliance II350200 Sector/ Product TypePAIDF625Closed Greylock20078 (fundraising) Phatisa Agribusiness500Fundraising Summit Dev Group12525 (fundraising)

7. 7 Source: IMF World Economic Outlook April 2010 % GDP One of the fastest growing economies The African Growth Story

8. The Opportunity SSA: Contribution to Growth

9.  Population: 14% of the world population  Agribusiness: Irrigated areas only 14%  Infrastructure: US$80bn required for competitiveness  Banking: Only 10-20% people have access to banking  Electricity: Only 24% population have access to electricity 900 million consumers The Opportunity: a consumer story

10.  Markets too small and illiquid  Corporate Governance  Too high risk  Limited investment opportunities  How do we access? Perceived Issues in Investing in Africa

11.  Extensive due diligence  Interrogate management business plan/ forecasts  Significant influence on management and strategy  Interests aligned – partnership  Optimization of gearing  Across all sizes – growth strategy put in place  Real and interrogated values The Private Equity Advantage  No insider due diligence  Forecasts based on analyst assumptions  Investors have limited or no influence on management or strategy  Owner/ manager misalignment  Management sole decision  Companies with a substantial asset base involved  Share values not always based on fundamentals PUBLIC MARKETPRIVATE MARKET

12.  Only you can develop your local capital markets and private sector  Private equity development critical to capital markets development  Accessing international development finance institutions not a sustainable growth model for private equity Conclusion