Oslo A new world of Opportunities There is a new Africa opportunity emerging with Ghana spearheading development

…the bad perceptions of Africa are being replaced by amazing stories of recovery and opportunity Ghana Unleashed Unleashed

Ghana Overview

Population GDP 29.0m US$ 51.6B Growing young population with an Diverse and robust economy rich in emerging middle class resources including gold, cocoa and oil

GDP Growth GDP Per Capita 2nd Largest % (2018) economy in West Africa 6.1 US$ 2,003 (2018) One of the fastest growing economies in the world

US$51.6 billion GDP (2018) Inflation Trade Balance

Land Area: 238,535 sq km % US$ B (2018) US$3.3 billion 9.1 1.5 Language: English Headline inflation dropping for the last 4 FDI inflows (2018) Improved Trade Balance Position Currency: Ghana Cedis (GHS) consecutive quarters 1st Trade Surplus after a decade of deficits

Source: IMF WEO Oct 2018; Ghana Budget Statements ; Bank of Ghana, World Bank Data; World Investment Report 2018; Press releases 5 Why Ghana Key Investment Pillars

1 Stable political climate and business friendly reforms ▪ Stable democracy with 26 years of uninterrupted rule ▪ One of the most peaceful and hospitable countries ▪ Ranked best place for doing business in West Africa ▪ We are in the middle of the world ` 2 Strong macroeconomic prospects and government commitment ▪ Fastest growing Anglophone sub-Saharan country in the medium term ▪ Diversified economy with strong resources backbone ▪ Favourable demographics and skilled labour

3 Robust policy initiatives to ensure stability ▪ Prudent debt management and fiscal consolidation ▪ Relative Stabilisation of local currency and inflation under control ▪ Improvement of external sector and capital market

4 Attractive investment opportunities ▪ Financial services, ICT and Fintech ▪ Energy and Infrastructure, agriculture ▪ FMCGs, Manufacturing and Others

Source: SG Research 6 Ghana Economy Prospects of Economy The 3 O’s Opportunity Openness Optimism

7 Ghana Economy Political Stability and Business Friendly Reforms 26 5 3 Years of uninterrupted democratic Democratically elected Successful presidential transitions rule, one of the longest in SSA presidents since 1992 between political parties in the 4th republic

Ranked in West Ranked in West Ranked in West Africa Africa Africa # for rule of law #1for ease of doing # for peace 1 business 2

Based on Rule of Law Based on Ease of Doing Business Based on Global Peace Index Index(Measures 8 factors including: Index(Measures 8 factors (Measures level of safety, the extent Order & Security, Regulatory including: Order & Security, of conflicts and the degree of Enforcement, etc) Regulatory Enforcement, etc) militarization)

Source: The Economist; Transparency International; Institute of Economics and Peace; The World Justice Project; 8 8 8 A conducive and safe Political and Business Environment

Rule of Law #1 Measures 8 factors including (Order & Rank in West Africa Security, Regulatory Enforcement, etc.)

Ghana remains a model for Global Peace Index stability in #2 Measures level of safety, the extent of Rank in West Africa Sub-Saharan conflicts and the degree of militarization. Africa, with a strong democracy, a Ease of doing Business in Sectors that Investment history of 25 Democratic Rule Sub-Saharan Africa Incentives cover relative One of the longest uninterrupted peacefulness Years democratic rules in Sub-Saharan Africa. as compared to its neighbors and Elected Presidents relatively low 5 5 leaders democratically elected through crime rates in Rulers fair and peaceful elections since 1992. its urban centers 3 Change of administration Successful Successful presidential transitions between Tax for Companies listed on Transfer of profits and dividends under th the Transitions political parties in the 4 Republic. Ghanaian investment laws

9 Ghana Economy High investor confidence

Key Highlights ▪ As per 2017 performance, Ghana is ranked 4th in Africa in terms of FDI inflows and 7th with regards to FDI projects ▪ Total FDI inflows of ~US$6.7bn in two years of current administration. FDI in 2018 was in the region of $3.4bn ▪ Majority of FDI inflows from Europe and Asia

Ghana’s Position in Africa

FDI Inflows FDI Projects Country Share % Rank Share % Rank +168 Egypt 17.7% 1 7.8% 6 ~US$8.2BN Total Number of projects Ethiopia 8.6% 2 8.6% 5 registered as at end of Total FDI inflows under 2018. Wholly foreign Nigeria 8.4% 3 8.9% 4 current administration owned – 74% and JVs – (2017 – 2018) Ghana 7.8% 4 6.0% 7 26% . 45 (27%) in manufacturing Morocco 6.3% 5 13.4% 1

Source: EY 2018 Africa Attractiveness; UNCTAD World Investment Report 2018; Press Releases 10 10 10 Ghana Economy Achievements and Expectations of Current Administration

▪ 2nd Largest economy in West Africa (2018) Macro Economy ▪ High GDP growth of 8.1 % achieved in 2017 from a low of 3.4 % in 2016. ▪ Medium term growth of 5%-8% (top 5 in SSA region) ▪ Revenues growth of 39% (GHS51bn in 2018 vs. GHS34bn in 2016) ▪ Fiscal deficit halved to 3.7% in 2018 (9.3% in 2016) ▪ Improvement in debt burden (73.1% debt to GDP in 2016 vrs 69.2% in 2017 and below 50% in 2018) ▪ Positive trade surplus since 2017 first in about 10 years ▪ New Aker oil find bigger than TEN field(108%) means a doubling of output to some 400,000 bpd ▪ S&P ratings upgrade from B- to B, first time in 10 years

Foreign Direct Investment ▪ Largest FDI recipient of West Africa 2018 and top 4 in SSA ▪ FDI of US$8.2 bn inflow (2018 &2017) ▪ 168 projects in 2018 ▪ Partnership with Japan, China UK on industrialization agenda ▪ MOUs signed with multinational companies(Volkswagen, Renault, Nissan, and Sinotruk) ▪ Joined the Africa Trade Investment Agency ▪ Highest number of investment projects in manufacturing followed by services ▪ Significant investment and business sector reforms to remove bureaucratic bottlenecks ▪ Last sovereign bond for US$3 billion was oversubscribed by 7 times Sources:Gov’t of Ghana 2019 budget, Ministry of Finance, GIPC, press releases 11 Ghana Economy Achievements and Expectations of Current Administration

Power ▪ Load shedding eliminated ▪ Over 4,000 MW installed capacity with 3,000 MW to be added by 2020 ▪ Privatization of management of power distributor ▪ Energy debt restructuring via ESLA ▪ Gazprom led consortium to supply LNG gas to boost power supply by 1,000MW ▪ MOU with Equatorial Guinea for supply of 150mft3 of gas for next 15 years

▪ Industry & Infrastructure Rapid growth in industry (9.7% target for 2019 vs. 5.9% 2018) ▪ One District One Factory Initiative & establishment of industrial parks ▪ ~US$2bn port expansion in Tema and Takoradi to be biggest in West Africa ▪ Ultra modern airport terminal and new carrier (in partnership with Ethiopia Airlines) ▪ Over 450km of railway development ongoing (out of planned 4,003km of new lines) ▪ US$2bn Sino-hydro barter for development of key road infrastructure ▪ Establishment of automotive assembly plants (VW and Nissan)

Sources:Gov’t of Ghana 2019 budget, Ministry of Finance, GIPC, press releases 12 Ghana Economy Achievements and Expectations of Current Administration

Education ▪ Free Senior High School program ▪ Tax relief for private universities ▪ Double track system ▪ Upgrade of school infrastructure under “Model Schools Project” ▪ Revamping curricula and teacher training ▪ High adult literacy rate in sub-region of ~77%

▪ Financial Services Recapitalization of the banking sector ▪ Over 143% 5-year CAGR in mobile money transactions ▪ Total transactions value of US50bn in 2018 ▪ ~1.5 billion in transaction volumes in 2018 (highest payment option) ▪ Private pension reforms with over US$2bn under management ▪ Expected recapitalization of sector ▪ Inauguration of Ghana Commodity Exchange in 2018 to boost commodity trading

Sources:Gov’t of Ghana 2019 budget, Ministry of Finance, GIPC, press releases 13 • President Nana Addo Dankwa Akufo-Addo on Ghana Beyond assumption of office on the 7th January 2017 made his desire known to prudently manage Ghana’s natural Aid resources. • President as co-Chair of the Group of Eminent Persons of the SDGs “My vision for Ghana is of an optimistic, self-confident and prosperous nation with a strong and thriving democratic society in which mutual trust and economic opportunities exist for all, irrespective of their background. “prosperous and self-confident Ghana that is in charge of her economic destiny; a transformed Ghana that is prosperous enough to be beyond needing aid, and that engages competitively with the rest of the world through trade and investment.” 'I promise to build a Ghana that works and gives each and every one of us the opportunity to improve our lives... we are determined to forge a new Ghanaian and African, who is neither a victim nor a pawn of the world economic order, but who will be a dignified member of a successful, thriving, prosperous society.' 14 GhanaGhana BeyondBeyond AidAid ….building….building the the……

Society

15 Ghana Beating the Big Drums of the African economic renaissance

16 Empowering the economy with investment capital, partnerships and linkages…….

Macro economic stability, Reforms to improve the investment and business climate. Infusing SDGs into policy

17 The Ghanaian government is committed to executing on its plans to drive growth

Simplifying Aligning budgets to requirements and their priorities, fiscal the registration discipline and macro process for economic stability and businesses growth

Improving the Improving access to current tax finance for Driving a stable environment to be businesses, electricity supply and more favorable for especially for SMEs, price to fuel industrial business, ease of by reducing the cost growth and value doing business of capital added economy Fast Moving Consumer Goods Household spending expected to reach USD20.7 billion by 2020 as the middle class increases

Transportation Over 4,007.6 km of integrative railway linking south and north of Ghana and also east and west.

19 PRIORITY SECTORS ENERGY • Distribution network • Generation in renewable and sustainable energy • Oil and Gas INFRASTRUCTURE • Integrative and transformative transportation, railway • Schools • Hospitals • Road, bridges and airports AGROPROCESSING • Mechanized production • Irrigation • Value Addition and Processing • Planting for Food and Jobs TOURISM • Ecotourism • Culture Tourism • Hospitality Centres and Hotels • Theme parks MANUFACTURING • One District One Factory Manufacturing Transforming the economy from export of • Gold processing raw materials and resources to value added and processing and manufacturing • Pharmaceuticals • Textiles • Cocoa processing Grow in Ghana Grow with Ghana Banking And Finance

22 Transforming and Deepening Financial Sector for Accelerated Growth

Investment Target: USD 10.0 Billion

▪ Government of Ghana seeded the ▪ Investment required to drive $1.0bn $2.0bn fund with $250m. financial inclusion initiatives.

▪ Opportunity for expansion of ▪ Allocation of capital and trade finance service offering for $2.0bn management of investments with $0.2bn trade with standardization of port private sector participation. documentation.

▪ Exclusive focus on long-term $0.5bn finance for industrial and $3.0bn ▪ Housing deficit of 1.8m units. agricultural sectors in Ghana.

▪ Recapitalization of banks to ▪ Capital injection to consolidate $0.3bn GHS400m requiring approximately sector and drive penetration. US$1.5bn

23 Trade And Industry

24 Industrialization – A strategic focus for the current Administration to transform the Ghanaian economy

Investment Target: USD 2.80billion Industrial $100m - Stimulus package to viable but distressed Export Development Facilitate businesses to explore Revitalization $200m companies. Programme export opportunities including AGOA and the EPA. One District $500m - ▪ Focus on creation of factories and Retail Infrastructure ▪ Value addition to meet global One Factory $1bn industries standards ▪ Decentralize industrial development ▪ Demand for retail infrastructure ▪ State will facilitate business set up due to rollout of flagship. Anchor ▪ Develop robust industries in: Regulatory reforms Ease the cost and process of doing Industries − Petrochemical business in the country. − Integrated Aluminum − Pharmaceuticals − Vehicle assembling plants − Industrial salt architecture − Palm oil Industrial $100m - ▪ Creation of industrial parks Industrial Creation of useful contractual Parks $300m ▪ Parks could be Free Zone enclaves sub-contracting relationships between corporations ▪ Access to reliable energy supply. exchange and SMEs. SME $100m - ▪ Create enabling environment for SMEs Public-Private sector Annual evaluation of initiatives to Development $300m ▪ Provide assistance – financial and technical Dialogue ensure efficiency. ▪ Regulatory reform

25 Oil and Gas

26 Ghana’s Oil & Gas Industry | Overview

Jubilee Field Jubilee Field Jubilee Field DWCTP Field DWCTP Field • First Deepwater Oil & Gas • Commercial Production • 236 million Oil Barrels and • Exxon Mobil signed Aker Energy Reserves Discovery 260 Billion cubic feet Gas agreement with announced oil finds • Average oil production production Government to explore in its Pecan South 1A • 628 million Oil Barrels Reserve increased from ~36,000 bopd this large ultra deepwater field in addition to its and 686 Billion cubic feet Gas to ~103,000 bopd in 2015 • Reserve of 392 million Oil block, located offshore 450-550 mmboe Barrels and 426 Billion • Discovered by consortium led • Managed by Tullow and Western Ghana cubic feet Gas by Kosmos Energy Ghana consortium partners

23 additional fields discovered between 2008 and 2014 2007 2009 2010 2016 2017 2018 2019

TEN Field TEN Field Sankofa Field ITLOS Ruling • Offshore Oil & Gas • Commercial Production • 173 million Oil Barrels • Landmark Ruling in Discovery commences Reserve and 1,071 unanimous favour of Billion cubic feet Gas Ghana over Cote • 239 million Oil Barrels • Initially delayed due to d’Ivoire Reserve and 360 ITLOS arbitration • Development of oilfield Billion cubic feet by ENI • Clear boundary giving • Managed by Tullow Ghana control of oilfields

27 Ghana’s offshore Activity Map

Basin Status Tano-Cape Three • Shallow/Deepwater Points well explored • Ultra deepwater to be explored

Accra - Keta • Shallow water moderately explored • Deepwater inadequately explored

28 Voltaian Basin presents significant Onshore Exploration Opportunity

Ghana’s Onshore Voltaian Basin • Covers area of over 100,000sqkm; ~40% of Ghana land mass

• GNPC pioneering exploration activities to unlock the untapped hydrocarbon potential

• The 5-year reconnaissance program will cover 2D seismic data acquisition and processing, environmental impact assessment, community relations management and drilling of 2 conventional wells

Key Achievements • Technical and financial evaluations of 2D Seismic Acquisition which are awaiting approval from Central Tender Review Committee • Seismic Data Processing contracting and • Explosives and Detonators Contracting

29 Key Players along the Oil & Gas Value Chain

Service Providers Downstream Midstream Upstream

Spectrum of opportunities across Value Chain

• Voltaian Onshore exploration • Transport and Logistics • Infrastructure to support new • Gap exists to provide technical • Additional oilfield development Infrastructure national LPG Recirculation Policy expertise and service

30 Harnessing oil and gas resources to support national industrialization agenda

Investment Target: USD 15billion – USD 19billion Onshore Farm-in $ 2.0bn Farm-in investments in Natural Gas Processing $ 1.5bn Additional natural gas processing Opportunities onshore projects located on facilities/ equipment to ensure the Tano, Keta and Inland continued supply during routine Voltaian Basin. maintenance.

Development and $ 1.0bn - $ 3.0bn Investment in the LPG Distribution $ 1.5bn Investment in safe and standardized Production of development of abandoned LPG vending and distribution Abandoned Fields fields in Shelf Tano and Cape facilities. Three Points areas.

Further Exploration $ 3.0bn - $ 5.0bn Further exploration in the Ammonia/ Fertilizer $ 1.0bn Local plants to convert gas to Opportunities adjoining areas and south of Plants fertilizer. the Saltpond field.

Crude Oil Refinery $ 3.0bn Establishing an additional oil Oil and Gas Servicing $ 2.0bn Investment in indigenous oil and gas refinery for increased Operations service companies to provide processing of crude oil locally. services to upstream and downstream players.

31 Power

32 Ghana’s Power Sector | Overview

Generation Transmission Distribution

Government

Public-Private Shenzhan Energy CMS Energy Potential to Group Ghana Partnership partner with GRIDCO Sunon Asogli Power Ghana Ltd

Private PDS A JV 51% held by a Ghanaian consortium ad 49% foreign partner

33 Transmission and Distribution Losses present opportunity in Ghana Power Sector

Power Demand and Supply Existing supply Transmission and Distribution Losses Transmission Losses (MW) Committed supply (Percentage) Distribution Losses Demand 25 • Significant losses 5000 (~$1.2bn) in 4500 20 transmission and 4000 distribution present investment 3500 15 opportunity through 3000 PPP arrangements

2500 10 • Opportunistic power 2000 5 generation can be 1500 explored to improve

1000 transmission losses 0 500 2012 2013 2014 2015 2016 • Government working 0 2017 2018 2019 2020 2021 2022 “We need to reduce transmission losses ..We also need to to allocate ensure and preserve the financial health of the transmission distribution to private • Potential to invest in the medium term in power utilities. This opens up tremendous opportunities for concessionaire generation to address growing demand investments in the transmission system”. Mr. Benjamin Boakye Agyarko • Adequate current supply to meet immediate demand Minister of Energy, Ghana

34 Railways

35 USD 21.5 Billion Rail Upgrade and Expansion underway

Phases Amount Distance (km)

Phase 1: Rehabilitation of Line: $ 2.8 Bn 1,335 km

Phase 2: Eastern “A” Expansion $ 6.5 Bn 1,161 km

Phase 3: Sections $ 2.7 Bn 484 km

Phase 4: Trans ECOWAS Expansion $ 2.8 Bn 498 km

Phase 5: Western Expansion $ 4.1 Bn 729 km

Phase 6: Eastern B Expansion $ 2.6 Bn 468 km

$21.5 Bn 4,675km

36 Roads and Highways

37 Ghana’s Road Development Plan Urban Highway Feeder USD 3.3Bn USD 1.8Bn USD 4.4Bn USD 9.5Bn (~1,200km) (~2,100km) (~6,100km)

Pavements Others $ 0.6bn To Agric/Tourist sites $ 0.7bn Bridges $ 0.9bn Others Arterial $ 0.2bn $ 0.1bn $ 2.9bn

Interchange $ 0.8bn

Critical Roads Inter-district $ 2.4bn $ 0.9bn

38 Transport infrastructure is critical to Industrialization Drive in Ghana

Usable Rail Ghana’s roads network Railway 130km Roads 67,400 km

Rail Lines installed in 1957 41% in good 940 km condition

Western Central Eastern Feeder Roads Urban Roads Trunk Roads Line Line Line 42,192 km 12,400 km 11,628 km

Kotoka International Airport Aviation Harbors Sunyani Airport Tema Port Takoradi Port Takoradi Airport Size: Medium; $1.5Bn Expansion underway Small; $428mm scheduled for 2018 Ports - Wa Airport Aviation Max. Vessel Size: > 500ft length > 500ft length Airport Type: Coastal Breakwater Coastal Breakwater Yendi Airport Volume: 70-80% of national volume 20-30% of national volume Ship Repairs: Limited Limited

39 Opportunities exist across all segments of the Transport sector

Roads & Highways Railway • Upgrade and repair of existing road network - 39% in good condition, • Strong Government commitment to revitalize the railway sector 32% fair and 29% in poor condition over the last 5 years.

• The Railway expansion master plan proposes over 4,007 km of • Priority to construct and upgrade major highways and agriculture integrative railway feeder roads

• Estimated capital required – USD21.0Bn • Government addressing contractor bottlenecks (e.g., late payments) to accelerate construction

Aviation Ports

• Expansion works in (USD 274mn) and Kumasi Airports (USD • Need for a world class Dry Dock facility to provide Ship Repair and 29mn). Maintenance services

• Creation of new national carrier under consideration • Opportunity to build an upgraded jetty to receive LPG and crude oil vessels • Airport infrastructure (e.g., parking and transportation at airport)

40 Real estate

41 4. Real Estate

Overview of Ghana’s Real Estate Landscape

Development

& &

Management

Development Management

42 Real Estate Sector provides attractive returns on investments

This presents opportunities to real estate investors in the country. Attractive yields averaging 10% on retail, office and industrial properties. Housing Deficit in millions Retail & Office Key Stats 2.70 2.66 Rent per Sqm 2.59 Type Yield 2.60 (USD) 2.53 Retail 8 – 10 % 20 - 65 2.50 2.47 2.41 Office 9 – 10 % 18 – 35 2.40 2.35 Industrial 10 – 11% 4 – 10 2.30 Residential (Prime Areas) 2.20 No. of Beds Rent (USD) Sale (USD) 2.10 2015 2016 2017E 2018E 2019E 2020 1 1.2k -1.5k 200k - 250k

2 2.0k - 2.2k 280k - 330k

3 3.0k - 3.5k 425k - 500k

Source: Broll Ghana; OBG Ghana 2017; W Hospitality; JLL Accra City Report; Sentinel Global

43 Industrial Park Status: Goal of 1 in each of 10 regions

Region Project Location Size Developer Status Greater Accra • Tema Free Zone Tema 200 acres ILDC Limited (ILDC) Completed Enclave • Industrial Park Ghana Tema 60,000 square metres Rendeavour Phase I – Completed • Appolonia Business Ningo Prampram 89 acres LMI Holdings Completed Park • Dawa Industrial Park Dawa 2,000 acres Under construction

• Tema Business Park Tema Aflao Highway 18.5 acres Mobus Property Holdings Completed Ltd

Western Region West Park Industrial Zone Shama 405 acre BlackIvy Group LLC Under construction Greater Kumasi City Special Kumasi 5,000 acres Yet to commence Economic Zone Central Region Volta Region Northern Region Opportunities Upper East Region To Upper West Region Explore Eastern Region Brong Ahafo Region

44 Residential, Retail & Office projects Over The Last 5 Years

Category Project Location Size Developer Status Residential The Affordable Housing Project Saglemi, Prampram Messrs Construtora OAS Limited Under construction The Appolonia City Accra 6 acres Rendeavour Under construction Villaggio Vista Airport Residential Trasacco Estate Development Co. Completed

Retail Junction Shopping Centre Nungua 11,597-sq-metre RMB Westport Completed Accra Mall Accra 23,000 sq metres Actis Completed West Hills Mall Weija 27,000 sq metres Delico Property Development Completed Kumasi City Mall 29,000-sq-metre Completed

Office Accra Financial Centre Accra RMB Westport Completed Stanbic Heights Airport City 20,000-sq-metre RMB Westport Completed One Airport Square Airport City Laurus Development Partners Under Construction The Octagon Accra Central Dream Realty Completed The Rhombus West Ridge 6500-sq-metre Completed

45 Agriculture

46 Comprehensive Agricultural Investment Program Across Sub-sectors Investment Target: USD 3.3bn – USD 6.0bn $ 200m - $ 1.0bn Establishment of fertilizer plant $ 1.0bn Investment in cocoa processing in Western Region. and value-addition for export.

$ 300m Setup manufacturing facility for $ 200m Financing for fish farming production of irrigation operations to increase fish supply equipment. and manage restoration of water resources.

$ 500m Investment in the growth, $ 200m - $ 500m Investment in poultry production consumption and export of to meet local consumption and quality rice grains. reduce imports.

$ 300m Investment in entire value $ 200m - $ 500m ▪ Investment in the e-Agriculture chain – Revival of Komenda Extension program. Sugar Factory.

$ 200m Investment in production of $ 200m Transformation of cashew into improved cotton varieties. major cash crop and foreign exchange earner.

47 Ghana’s Agricultural Landscape

GDP Contribution Agriculture Sector by Segment Sector Growth Rates

Fishing 5.7% 7.3% 4.6% 4.3% Forestry and Services Logging 3.0% 55.9% 12.2% 2.8% Agriculture 18.5% Crops 66.2% Livestock 6.1%

Industry 2013 2014 2015 2016 2017* 25.6% Cocoa 8.2% Annual Growth Rate

Sector Growth Key Facts and Figures Outlook and Opportunities 7.79 ▪ Agricultural activities most prevalent in Ghana. ▪ The agricultural sector though predominant, 7.57 ▪ Sector employs about 45% of the population contributes relatively less to GDP. The thrust of 7.36 both in the formal and informal sector, making the sector, however, depends on improving the up an average of 20.80% of total national value chains of the sub sectors that exists. 7.04 output. ▪ Government Commitment: ▪ Sector proves to be very promising and with a ✓ Planting for Food and Jobs Program: the lot of opportunities. program created 754,000 jobs in 2017. ▪ Subsectors within the Ghanaian agriculture ✓ One-Village-One-Dam Initiative: provision a 2013 2014 2015 2016 sector include fishing, forestry and logging, sustainable irrigation system. livestock and crops. ✓ 1 District 1 Factory campaign: 3 agro GDP From Agriculture (GHS billion) processing plants ready under the campaign.

48 Fast Moving Consumer Goods

▪ Household spending to reach USD20.7 billion by 2020 ➢ Growth of 15% in USD terms ▪ Huge potential in the West African ➢ +350m population with growing middle class

Breakdown of household spending

Source: Press Releases; BMI; Sentinel Global 49 49 Cocoa

50 COCOBOD Overview

Company Profile Syndicated Funding for Cocoa Output

The Ghana Cocoa Board (COCOBOD) was established by ordinance in 1947 as the Cocoa Output (Tonnage) Value U$D main government agency responsible for the development, promotion, facilitation, production, processing and marketing of good quality Cocoa, Coffee and Sheanut in 1.8 1.8 all forms in the most efficient and cost effective manner, and maintain the best 1.7 mutual industrial relation with its objectives. 1.3 • Currently there are 7 cocoa growing regions namely Ashanti, Brong Ahafo, Eastern, Volta, Central and Western North and Western South regions. 0.85 0.9 0.74 0.78 • COCOBOD has successfully lived up to its mandate of facilitating and promoting the growth and sustenance of the Ghanaian cocoa industry. The success story is owed to a well-structured set of agencies of COCOBOD that work together with synergy to provide most of the services and products required by various stakeholders in the industry. 14/15 15/16 16/17 17/18E • COCOBOD and its subsidiaries and divisions are involved in the following operations;

❖ Marketing of cocoa beans and cocoa products COCOBOD Subsidiaries ❖ Cocoa Quality Assurance ▪ Cocoa Research Institute of Ghana (CRIG) ❖ Evacuation/transportation ▪ Seed Production Division (SPD) ❖ Research and training ▪ Cocoa Health and Extension Division (CHED) ❖ Crop diseases & pests control ▪ Quality Control Company (QCC) ❖ Crop rehabilitation projects ▪ Cocoa Marketing Company (CMC) ❖ Farmer Extension Services

51 Ghana’s Cocoa Industry | Overview (1/2) Processing Capacity of Key Local Players in the Industry Industry Overview 70 65 • Ghana is the world’s second largest cocoa producer after Cote d’Ivoire, 60 80% 80% with a 21% market share of global cocoa production. 50 • The Ghanaian economy has a reputation for superior bean quality, 45 40 enabling beans to consistently command a premium on the 32 45% 29 30

‘000s 30 international market. 24 26 • The country’s cocoa sector is controlled by the government through 20

the Ghana Cocoa Board (COCOBOD). COCOBOD acts as a regulatory 10 body for the coca industry. 0 - - • The cocoa sector accounts for 4.5 % of GDP and contributes 25% of Afrotropic CPC Niche PLOT Ghana’s merchandise export earnings. Capacity Effective Capacity Utilisation

Cocoa Exports (MT) Top 5 Producers of Cocoa 1,000 900 900 850 Country ‘000 MT Share 773 780 800 714 732 Cote D’Ivoire 1,724 40% 700 649 600 567 Ghana 888 21% 500

‘000s 400 Indonesia 401 9% 300 200 Nigeria 248 6% 100 0 Brazil 226 5% 2010 2011 2012 2013 2014 2015 2016 2017E

52 Ghana’s Cocoa Industry | Overview (2/2)

Cocoa Beans Processed by Factories (2017) Outlook of Ghana’s Cocoa Industry • PLOT CPC The future of the cocoa industry continues to be positive, through 10.8% 9.3% policies to ensure the industry’s growth. NICHE • Measures to strengthen the existing public-private partnership 12.8% CARGILL extension model by promoting Farmer Based Organizations and the REAL PRODUCTS 25.1% training of Local Community Facilitators. 0.4% ADM • The Government through COCOBOD is continuing the distribution of 13.3% free hybrid cocoa seedlings to farmers to complement the effort of farmers in the implementation of the National Cocoa Rehabilitation BD ASSOCIATES BARRY 0.3% Programme. 28.0%

Contribution of Cocoa to Ghana’s GDP Shipment of Ghanaian Cocoa Beans by Destination (2017) 1 4 3.5 Others 0.8 0.7 0.8 0.7 0.7 0.7 11.0% 0.7 0.6 3 0.6 0.5 2.5 2 Asia 0.4 1.5 25.2% Europe 54.6% 1 0.2 0.5 0 0 2009 2010 2011 2012 2013 2014 2015 2016 North America Contribution (GHS bn) % Contribution 9.2%

53 Global Cocoa Industry | Key Players

Select Companies on the Global Scene Industry Overview • Consumption is concentrated in Europe and America. Europe has the largest chocolate industry in the world and purchases 58% of cocoa grindings which originate mainly from West Africa. • Cote d’Ivoire and Ghana have maintained dominance as the leading cocoa producers in the world, producing 60% of global cocoa beans. • A shift in global consumption of cocoa in emerging countries with strong positive growth in North America fueled a 1.01% growth in global consumption of cocoa: 3.95mn tonnes to 3.99mn tonnes1. • Between 2016 and 2018, the prices of cocoa on the world market has experienced a decline, reducing from USD 3,162 to USD 1,714.

Processing Capacity of Select Players in the Global Cocoa Industry Average Cocoa Prices ($/kg) 70 4.0 65 65 60 59 59 3.5 3.0 50 2.5 40 30 2.0

30 27 ‘000s 1.5 20 15 15 12 1.0 10 8 0.5 - ADM Barry Callebaut Cargill Real Touton 0.0 2000 2002 2004 2006 2008 2010 2012 2014 2016 Capacity Effective Capacity Utilisation

54 Global Industry | Overview

Outlook of the Global Cocoa Industry Production of Cocoa Beans

• With Olam’s 70,000-MT factory in San Pedro reaching full production Côte d’Ivoire is expected to overtake the Netherlands as the world’s top grinder once. West Africa Asia & Oceanis will continue to dominate the supply of raw cocoa beans to the world market with a 12% forecast 1.95mn MT of exports in 2017/18. America 13% • After peaking at US$3,179/MT in mid-October 2014, international cocoa prices have been on a downward trajectory, falling to a one-year low of US$2,760/MT at the end of January 2017. The slump in prices has reflected numerous factors, including last season’s record crop in West Africa, weakening chocolate demand in the key Africa markets of North America and Western Europe, and the strengthening of the US 75% dollar, which has an inverse effect on cocoa prices. Cocoa prices are expected to average US$2,300/MT in 2019.

World Cocoa Bean Production & Grinding (in ‘000 MT) Consumption of Cocoa Beans ( ‘000 MT) 6000 500 5000 400 5000 4500 300 4000 4000 3500 200 3000 3000 100 2500 0 2000 2000 -100 1500 1000 1000 -200 500 0 -300 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 Surplus/Deficit Production Grindings Europe Americas Asia Africa

55 testimonials…….. “We want to build an economy that is not dependent “For those of you who needed proof that on charity and handouts, but an economy that will there is a new generation of leaders look at the proper management of its resources as the way to engineer social and economic growth in our believe in a new future, you have your country.” proof now...There are leaders in Africa who want a new relationship...[and] a Nana Addo Dankwa Akufo Addo, President of Ghana Africa CEO Forum, Monday March 20 2017 future for the youth in their country.” 57 Emmanuel Macron, President of France Africa CEO Forum, Monday March 20 2017 “The people of Ghana have worked hard to put democracy on a firmer footing, with peaceful transfers of power even in the wake of closely contested elections. And with improved governance and an emerging civil society, Ghana’s economy has shown impressive rates of growth.”

Barack Obama, former President of USA58 Parliament House - Ghana, Saturday July 11 2009 “Africa is on the ascent and Singapore must ride this wave.”

Tharman Shanmugaratnam, Deputy Prime Minister of Singapore Africa-Singapore Business Forum, Wednesday 24th January 2018

59

59 “Your (Ghana) government’s approach to governance with an emphasis on efficiency, transparency, accountability, democratic and civilian oversight, coordination and professionalism is exemplary.”

Tsutomu Himenu, Ambassador from Japan Flagstaff House - Ghana, Thursday 18th January 2018

60

60 “Chinese enterprises are very interested in investing in Ghana because it has a lot of advantages. I think the biggest dividend is the peaceful nature of the country and stability. There are also abundant resources and the labour force is educated.”

Sun Baohong, Chinese Ambassador to Ghana China-Ghana Economic and Trade Cooperation Forum, Tuesday 28th June 2016

61

61 “It’s a kind of model case for many African countries and we see a lot of potential in Ghana.”

Christophe Retzlaff, German Ambassador to Ghana Interview with Ghana News Agency, Monday 19th June 2017

62 The Chinese Exim Bank’s confidence “We are very excited about what we in Ghana is reflected in the fact that have been able to do in Accra, with our store opening on Oxford Street in the country (Ghana) has received the Osu because this is such a wonderful largest amount of money from the asset that's created such fantastic bank in Africa for projects such as opportunity for the Ghanaian telecom and agriculture. people.”

Mr Liu Liange, President of the China Keith Warren, Managing Director Exim Bank (KFC Ghana) Vice President Bawumia's official visit to the People’s Republic of China, Official Opening of KFC Ghana, Friday Wednesday 21st June 2017 5th September 2011

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63 “Accra is a bustling, connected city “Total Ghana Limited, as that Uber is proud to be launching part of its three year investment in. Its rapid growth and multiple programme between 2014-2016 said ethnic communities make it an to be investing over GHC 160 million to products and services to ensure exciting place to introduce our customer satisfaction.” service.”

Olivier Van- Parys, Former Managing Director Alon Lits, General Manager (Total Petroleum Ghana Ltd.) (Sub-Saharan Africa- Uber) Annual General Meeting of Total Petroleum Ghana Ltd., Thursday 12th May 2016 Uber Ghana Launch, Wednesday 8th June 2016

64 “We will continue to make significant “We are very excited with the hotel contributions to the Ghanaian opening. Accra is becoming the economic economy.” $100 million investment hub of the West African region, which offers such rich and diverse natural and for new grinding plant to provide economic potential.” 3,000 direct jobs and 5,000 indirect jobs. Stuart Chase (Mövenpick Hotels & Mr Etornam Komla Buami, Media Resorts) Relations Manager of Dangote Press Release on Cision PR Web, Monday 7th Cement November 2011 End of Year Program of Tema Command of the Customs Division - Ghana, 19th January 2017

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65 “Ghana’s post-election upswing now is “Ghana’s economy is looking so strong that the country is poised rebounding and the major to take the lead as Africa’s fastest-growing commodity exporter is poised to economy this year -- for the first time in at wean itself off bailouts through least three decades.” sustained fiscal discipline and a battle against corruption.”

Bloomberg, Monday 5th February 2018 CNBC Africa, Thursday 18th January 2018 "Star of Africa in 2018 Lenders’ Economic Forecasts Is Ghana" by Ekow Dontoh “Ghana’s economy back on track: President” by Reuters

66 Partnership with government in social and public investments INVESTMENT OPPORTUNITIES

• Seeking rewarding investment partnerships and relationships for growth and mutual benefit

• Opportunities with great prospects for growth and attractive returns in a diversified and fast growing economy Glorious Ghana, a great story to tell….. PRIORITY SECTORS

..a great story, a greatENERGY opportunity, a great experience, • Distribution network • Generation in renewable and sustainable energy • Oil and Gas INFRASTRUCTURE • Integrative and transformative transportation, railway • Schools • Hospitals • Road, bridges and airports AGROPROCESSING • Mechanized production • Irrigation, One Village One Dam • Value Addition and Processing • Planting for Food and Jobs TOURISM • Ecotourism • Culture Tourism • Hospitality Centres and Hotels • Theme parks MANUFACTURING Manufacturing Transforming the economy from export of • One District One Factory raw materials and resources to value added and processing and manufacturing • Bauxite, Iron ore, Gold processing • Pharmaceuticals • Textiles • Cocoa processing

“We want to build an economy that is not dependent on charity and handouts, but an economy that will look at the proper management of its resources as the way to engineer social and economic growth in our country.”

Nana Addo Dankwa Akufo Addo, President of Ghana

72 ……A land of endless possibilities

Thank you r. yofi grant, ceo gipc [email protected]

Ghana Investment Promotion Centre Tel: +233 302 665125 +233 302 665126 +233 302 665127 Email: [email protected]

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