AGRODOR AFRICAAfrica Agro Development CorridorExecutive PresentationSept 2012

 Ethraa is a real estate, infrastructure and energy (REIE) investment development & management firm  specialized in concessiondesign for REIE projects. The approach is hybrid combination of investment structuring coupled with development managementexpertise. Ethraa operates through offices in London, Buenos Aires and Dubai.

Our Due Diligence review and Critical Success Factors (CSF) audit had been concluded in producing the self financed Agro DevelopmentCorridor(AGRODOR )model; which comprehensively constitute an added value solution for agriculture downstream and upstream sectors. Ethraa has the expertise to manage both burdens and ambitions associated with AGRODOR initiative, the approach is briefly  defined as:

1. Developing an asset based sustainable investment concession structure in partnership with the government; which will reduce the contribution of Sovereign Client while enable the subscriptions of broader institutional investors and without Sovereign financial guarantee.

2. Structuring the Master Plan to generate viable economic cluster product, in synergy with both infrastructure requirement and urban planning.

3. Creating a governance platform of sustain feasibility, mitigate risks; and increase the added values, while initiating a synergy with the national development goals.

4. Building Human capacity  with economically and socially balanced investment model.

AGRODOR model provides solutions for most of the obstacles identified by the world bank for efficient agriculture development..Ethraa will deploy credible expertise to design the AGRODOR investment concession structure based on the forthcoming presentation of AGRODOR  Pilot and that will be tailored made for each country. AGRODOR  is flexible  model and can be implemented on fast track basis .

Acknowledgement

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RationaleApproximately 80% of all African depend directly or indirectly on agriculture for their livelihood. Agriculture provides 70% of Africa’s full time employment, one third of total GDP, and 40% of total export earning. Thus Africa’s overall economic performance is inextricably linked to the performance of its agriculture sector..

Africa ranks the lowest in the world in terms of yields-enhancing practice, mechanization, use of agro chemical and irrigated land. Also average only 125 grams of fertilizer per hectare compared to world average of 1020 gram per hectare, mechanization in reported figures equally dismal at 13 tractor per 100km square or arable land compared to world average 200 tractor per the same area..

There is enormous potential for agriculture growth in Africa, it has twelve times the land of India, which is self-sufficient in food production with twice as many people to feed...

It has been shown that each 1% increase in agriculture productivity in Africa reduces poverty by 0.6%..

Source: WB 

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Some of Africa Agriculture Challenges & Characteristics

  Over-reliance on primary agriculture .  Barriers to access  market due to poor infrastructure, market standards, limited    products ..  Limited public and private investment in R &D ,  rural infrastructure , healthcare and education..  Domestic agriculture policy constraint..  Very limited access to commodity market chain or global value chain..   Lack of know how to reconcile conservation, production and sustainable management..    Financing agriculture and rural development(Transportation & utilities infrastructure)..   Commercialization via Cash cropping   Community development and building capacity   Develop agriculture based industries to create an added value   Limited up to date yield-enhancing technologies and practices   Lack of sustainable development and ecosystem

Source: WB 

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Pillars of Agriculture Transformation in Africa

The challenges are know for some time, pillars of agriculture transformation in Africa:

1. Investment in rural infrastructure…2. Promotion of the use of yield-enhancing technologies…3. Privatization to enhance the competitiveness in agriculture input 

markets…4. Creating an enabling environment…

These pillars are the basic parameters in developing GRODOR AFRICAInvestment concession structure.

Source: WB 

Stat of Agro-World

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Railways & Transit

Agriculture Land Water Availability

Dense Forestry

The Land Grab

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AGRODOR Why

Development:The rising cost of Millennium Global Targets hinder the standards of wellbeing, whereas worldly the social financial measures are declining rather than climbing

Employment:The sharp rise of unemployment due to technology, economic contraction and austerity requires developing the manpowered Agro sectors and industries

Sustainability:The imbalance between development and urbanism creates shear stresses on governments to sustain the Urban Rural optimum equilibrium

Security:The Food Security and Agro Production is the worry of 21st century, with more than 15 mln hectares are currently utilized in global land grab, and increasing fast

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The Case

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Urban Overheating and Deterioration

Deterioration of Agro Production

By 2050; 70% of World Population are City Dwellers

Urban Migration

Opportunities

Urbanism

Aspiration

Solutionsto Upgrade Rural Areas

Infrastructure

Congestion

Inflation

Problems of Increased Urbanism

GOV Incubation

CSR Programs

Innovation

AGRODOR

AGRODOR How

Baselines: State Owned Arable Land Owners Agro Development Corporations (Holding & Operational) Transit Oriented Development (TOD) Comprehensive Socioeconomic Development Incentives and Facilities for Investments (FDIs & Local)

Components: Farming Models Agro Light Industries Agro Businesses Molecules Public Transit Systems Communications & Technology Grid Educational & Health Facilities Affordable Housing Models; if any Urban Businesses Incubation

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Farmers

Products

MarketFunds

Enterprising AGRODOR

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ConsumersOr Exchange

Local Transport& Delivery

Packing &Sort Processing

Farming& Production

Agro Infrastructure

Developing Leadership

Economy Diversification

Improving Wellness

Improving Environment

Improving Competitiveness

Agro Hub

Opportunities Consolidation

Regulatory Incentives

Sector Openness

Industry Evolution

Economical Sustainability

Rural Development (Concerns of Governments)

Agro Business Value Chain (Opportunities for Investments)

AGRODOR: “pro et contra”

Pros: Political Will that are interpreted in Executive Procedures Legislation Hospitality for Direct Foreign Investments Progressive and Upgradable Concession Structuring Public Awareness Plans and Programs Availability of Domestic Resources and Manpower

Cons: Complicated Legal Restrictions on Investments and Enterprising Complex Sociopolitical Fabrics and Unrest Acute Irrigation Resources Troubled Capacity Building Schemes

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AGRODOR Standard Hub

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Business Park &

Catalyst Plots

Railways Station

Freight HubMedium

Business

Small Business

Mixed Use

SmallRetail

Business

Railways Workshop

Planning, Activities and Design of the hubs vary and correlate to both business and 

socioeconomic needs of farming productions and facilities

TransitIndustrial

RetailAcademic

HealthcareGovernmental

BusinessFinancialLogistics

etc..!

AGRODOR Standard Model

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Arable Land

Railways

Tolled Roads

ICT Network

Farm Land

Farm Land

Farm Land

Farm Land

Farm Land

Farm Land

Farm Land100,000 Acres

40,000 Hectares

40,000 Hectares100,000 Acres

Farm Land

Farm Land

Farm Land

AGRO

DO

R H

ub

AGRO

DO

R H

ub

AGRO

DO

R H

ub

AGRO

DO

R H

ub

AGRO

DO

R H

ub

100 km 100 km50 km 100 km 100 km 50 km

20

km

500 km

AGRODOR Packages

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Cost of Green Land (Excluding Irrigation)

Railways; Alignment, Signaling & Rolling

Roads & ICT Grid

AGRODOR Hubs – 5 nos.

US$ 5,000,000

US$ TBA

US$ TBA

US$ 250,000,000

Annual Framing Production US$ 25,000,000,000

Annual Agro CAPEX & OPEX US$ 10,000,000,000

400,000 Hectares (1,000,000 Acres) Public or Private

Existing 40 villages (Each 6,000 Capita) 250,000 Capita

Development Corridor (10,000 km2 County) 500 kmTransit

Suburban

Agro Biz

These are general assumptions based on int’l rates

The Concession

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Ethraa Investment Development & Management

Award Mgmt

Negotiate

Award

Product

Concession Design Mgmt

Enabling Environment

PPP Initiative

Regulatory

Targets

AGRODOR Capital Partners

Minority Investors

(Syndicates, SIGs, Unions,..)

Development Agency

(Government Partner)

Sector Investors

X1, X2, X3, ..(Strategic Seed

Investors)

Operations

AGRODORThe Concession Company

AGRODOR Holding

Company

Special Purpose Vehicles (SPVs)

Infrastructure& Habitat FM &Town Management

Infrastructure Delivery

Real EstateDevelopment RE Developer

Land Bank

TransitOperations Roads & ICT Network Operations

Railways Supply & Operations

Agro Development Agro Utilities Operations

Farming Operations

Pre Concession Stage

Project Realization

Project Initiation

Product Validation

Award IDMA

Initial Statuary Consent

Concession Company

Investment & Development Management Plan1

2

3

Shareholders & Investors Management

Stakeholders & Regulatory Management

Post Concession Stage

Assets Development

Assets Management

Landlords &Plot Investors

End-Users

4

5

Infrastructure Technical & Procurement Management

Property & Commercial Concessions Management

Investment & Development Management

17Executive Proposal and General Orientation

AGRODOR Examples:1. AGRODOR SS

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AGRODOR Hub

Marin Transit Hub

Arable Land for cash Crops

Transit Corridor

Transit Connection

River Transport

Road TransportWater Consuming Crops

Railways , Roads & ICT 1300 km

14 AGRODOR Hubs & 3 River Hubs

Farming 4,000,000 Acres

Rail Alignment with 5 Destinations

CSRs for National Coherence

Rural & Nomad Development

2. AGRODOR Ivory

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Railways & ICT 2,000 km

New Deep-Sea Port

12 AGRODOR Hubs

Farming 600,000 Hectares

Rail Alignment with 4 Neighbors

CSRs for National Coherence

Spearhead National Development

3.AGRODOR SUDAN

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Mining

Livestock

Agriculture

Phase 1Phase 3

Phase 2

Phase 5Phase 4

4.AGRODOR DARFUR

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AGRODOR Hub

Marin Transit Hub

Arable Land for cash Crops

Transit Corridor

Transit Connection

Road Transport

Railways TransportLivestock Farming

Paved Roads & ICT 700 km

7 AGRODOR Hubs

Cash Crops Farming 1 mln Acres

Livestock Farming 2 mln Acres

Integrated CSRs Facilities

Rural & Nomad Development

Jabl Marrah

TZB

GEN

FOR

RHD

NYL

FSR

KRM

Railways 400 km

Facilities for 50 Farming Villages

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New Railways Tracks & Roads

Refurbished Existing Tracks

New Traffic Control System

New Strategic Northern Ring

Refurbished End Ports

Refurbished Existing Roads

End Ports

Connecting Ports

AGRODOR HUBs

5.AGRODOR Tanzania

These are carefully adapted and coordinated concepts to be developed as per standards and practices under Ethraa’s Coordination & Advisory

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New Railways Tracks

Refurbished Existing Tracks

Enhanced Traffic Control System

New Strategic Central Link

New Tolled Speed Highway

Refurbished Existing Highways

6.AGRODOR Ethiopia