1. Africa Leadership Academy Tamecia Jones Eric Westendorf Yvonne Da Silva Fred Swaniker

2. The Concept Key elements of our offering: Expertise in University Placement Talented, Pan-African Student Body Rigorous Academic and Extracurricular Preparation A Moral Foundation Entrepreneurial Training Extensive Use of Technology African Leadership Academy The African Leadership Academy (ALA) is a private, co-educational school located in the outskirts of Cape Town, South Africa. The school brings top students from around Africa to spend two years preparing for entry into the world’s top universities via a rigorous International Baccalaureate Diploma program (similar to the A’level.) In the process, ALA creates a community of African scholars that will support one another in becoming the next generation of African leaders.

3. ALA’s Offering ALA Expertise in University Placement cultivate strong relationships with the admissions offices of top universities provide students with expert guidance in navigating through the admissions process Talented, Pan-African Student Body Admissions based on ability and potential, not family wealth Students come away with appreciation for diverse cultures and powerful network of friends A Moral Foundation Emphasis on honesty, fairness, and integrity Students participate in public service projects Rigorous Academics and Extracurricular Program IB Program High Quality Teachers Extensive Use of Technology Technology enhanced classrooms with wireless connections Networked dormitories Entrepreneurial Training Opportunities to run student organizations (store, restaurants, performances) Annual business plan competition

4. Value Proposition Education is an Investment FINANCIAL NONFINANCIAL Choose ALA Greater Chance of Child Getting Into Top University with Scholarship Greater Job Prospects for Child Greater Financial Security in Old Age Greater Educational Experience for Child Greater Job Options/Satisfaction for Child

5. Market Environment Market Demand Competitive Landscape

6. Preliminary Bottom Up Estimate: Market Size At least 115 Schools across the African Continent serving the top end of the market Average School Size: 356 Students Average number of Secondary Students: 221 Students (of schools that reported) Initial Bottom-Up Estimate: 40,940 Students Legae Academy * Maru A Pula School * Westwood International School * The American School of Kinshasa * International Christian Academy * International Community School of Abidjan * American International School in Egypt * Cairo American College * El Alsson and the English Academy International School * International Arab Egyptian School * International School of Choueifat – Cairo * New Cairo British International School * Schutz American School * The British International School, Cairo * The Modern English School, Cairo * International Community School, Addis Ababa * Sandford International School * American International School Libreville * Ghana International School * Lincoln Community School * SOS-Hermann Gmeiner International College * Aga Khan Academy, Mombasa * Brookhouse School * Hillcrest Secondary School * Imani School * International School of Kenya * Nairobi Academy Secondary School * Pembroke House * Peponi School * Rosslyn Academy * Tigoni Academy * Machabeng College/International School of Lesotho * Bishop Mackenzie International Schools Kamuzu Academy * St Andrew's International High School * Le Bocage International School * American School of Tangier * Casablanca American School * Rabat American School * Maputo International School * St Paul's College * Windhoek International School * American School of Niamey * British International School, Victoria Island * Hillcrest School * Dakar Academy * International School Seychelles * American International School of Johannesburg International School of Cape Town * International School of South Africa * Khartoum American School * Sifundzani School * Waterford Kamhlaba UWC of Southern Africa * Aga Khan School * International School Moshi * International School of Tanganyika * International School of Zanzibar * The British School of Lomé * American Cooperative School of Tunis * Lincoln International School of Uganda * American International School, Lusaka * The International School of Lusaka * Falcon College * Harare International School * Peterhouse * Source: European Council of International Schools, http:/www.ecis.org, US State Department, Team Research

7. Growth Characteristics-Kenya Example Source: Private School Survey, August 1996. Business of Education in Kenya. Growth: 576%-Female 919%-Male

8. Wait List Data for a Sample of Kenyan Private Schools Source: Private School Survey, August 1996. Business of Education in Kenya.

9. Wait List as % of Enrollment: Kenyan Private Schools example Average % Waitlist: 57.8%

10. Transitions in the African Educational System Primary Age 5-11/12 Early Secondary Age 11/12-15/16 University Age 17/18-21/22 Late Secondary Age 15/16-17/18 Transition #1 After the Common Entrance Exam Transition #2 After the “O” Level for Anglo Schools; Breve for Franco Schools Transition #3 After the “A” Level (IB)

11. Switching Schools Is it common for students to switch schools between early and late secondary schools? While it is difficult to find macro statistics, our interviews suggest that many families do, or are willing, to switch. One example: the percentage of international students shifts dramatically at St. John’s School in South Africa… Total students Percent International Early Secondary Late Secondary …this suggests that families outside of South Africa are sending their children to boarding schools like St. John’s for only the last two years.

12. Demographics Who can afford to send their children away to school? Primary Early SecondaryUniversityLate Secondary Only the very wealthy Most wealthy and upper middle class

13. Competitor Offerings Source: ECIS, http:/www.ecis.org and individual school websites Note 1: Data collected from a sample of 80 private schools offering secondary education in Africa Note 2: All schools offer a full secondary education (US or IB 4 years, British 5years)

14. Competitive Landscape Source: ECIS, http:/www.ecis.org and individual school websites

15. Positioning within the Competitive Landscape

16. Customer Overview Market Research to Date Key Learnings from Market Research Additional Market Research Customer Acquisition Plan

17. Customer Overview oPrimarily Black African from countries outside of South Africa oHighly educated, usually with advanced degree from overseas oProfessional, often self employed or senior executive o‘Earned’ wealth (did not inherit it) o2-3 children, currently in private elementary/high schools oTotal Family Income >$80,000/year oFoundations interested in Education/in Africa oCompanies with interests in Africa (e.g Microsoft, Citigroup) oWealthy individuals who have an interest in Africa/development oEmployees of Multinational Companies oDiplomats oEmployees of Multilateral Organizations (IFC, UN, etc.) Wealthy African Parents Donors Expatriate Parents

18. Market Research: Progress To Date Customer InterviewsExpert InterviewsWeb Survey 23 Total 14 done by team 9 Outsourced 7 Total All done by team Sent to over 50 parents, 5 responses so far

19. Customer Interviews: Geographies Covered Nigeria Ghana Ivory Coast Senegal * Botswana South Africa Zambia DRC Kenya Ethiopia Malawi Burundi * Tunisia

20. Key Learnings Reputation of School (opinion of other parents matters b/c word of mouth is main marketing tool) College Placement record Extracurricular Activities Single Sex vs Co-ed Diversity of student body Moral/Religious Education “Rural” setting vs Urban setting Facilities: “Wow” factor Is this a “Finishing school” for rich kids vs “training school” for kids of professionals?

21. Non-Important Factors For-profit vs non-profit nature of school Cost….parents so far not very price sensitive (currently paying $25- 35,000/yr/child for schools in UK) Luxury of student accommodations

22. Parent Responses to ALA Exciting Points University Placement Bringing children from 52 African countries to one location Majority black student body Cape Town Location Concerns Sending their children far away before the age of 15 Co-ed nature of school (for kids <15) Our ability to teach leadership/emphasis on “creating” leaders Lack of African language instruction

23. Implications for Business Model Primary Early SecondaryUniversityLate Secondary Original FocusNew Focus Shifting to Later in the System Change in ALA Focus We now intend to focus on the second transition

24. Rationale Why did we shift our focus? It’s easier to sell to parents –Our pool of prospective customers is larger, since more parents can afford to pay for two years of boarding school –Parents only have to wait two years, instead of six, to see their ROI (children getting into university) –Parents are more focused on university placement at this later stage –Parents are more comfortable sending their children to boarding school when they are 15 or 16 –Parents are more comfortable with co-ed schools when their children are 15-16 We can develop a reputation more quickly We can focus on our most important distinguishing characteristic—our expertise in college placement No other schools are focused solely on the final two years Students are more mature so there are fewer operational challenges We can charge higher tuition while lowering capital expenses

25. 25 Plan for Continued Market Research Finish Parent Interviews –3-4 parents Continue Web Survey University Interviews Assess Donor Demand –Interview 2-3 Donors Analyze Results Synthesize Key Learnings Area of Work Feb 29Mar 7Mar14 Week ending

26. Customer Acquisition Groups to target Parents Corporations, Embassies & Ngo’s Students (High Schools) Donors (for scholarships)

27. Customer Acquisition HOW TO TARGET? PHASE IPHASE IIIPHASE II Media (Magazines, Newspapers) Advertisements Brochures Alliances with high Schools - Students, Parents, Teachers, etc. Alliances with Corporations & NGO’s (extend special offers to employees) Annual Presentations in cities. Video Brochure Arrange visits by prospective parents, high- school heads, students, etc.

28. Risks and Plans to Mitigate

29. Risks and Plan to Mitigate Parents will be reluctant to enroll their children in a new school that lacks a reputation Recruit principal and initial teachers with a track record; Focus on differentiating characteristics Risk..Plan.. Parents will not switch schools Difficulty accessing customers Regulatory risk Venture will unable to raise sufficient funding Venture will be unable to become IB certified immediately Zoning regulations will prevent development Market to families early on so they plan on switching Location of school in South Africa will minimize regulatory risk Hold cocktail parties outside of school to inform parents; market to large companies Leverage network of contacts within development-minded sector; find group of private investors. Hire a high percentage of IB trained teachers and appeal to get certification earlier Buy land that is already zoned as “non- agricultural use”