Mobilizing Institutional Investment in Africa Stockholm, 22 th October 2014 Changing the Game for Africa

This confidential presentation (this “Presentation”) is being provided to prospective investors for information purposes only and is not intended to be, and prospective investors must not take it to be, the sole basis for an investment decision. The information set forth in this Presentation is given in summary form and does not purport to be complete. Prospective investors should not construe the contents of this Presentation to be investment, legal or tax advice. This Presentation has been furnished on a strictly confidential basis for the information of the person to whom it has been delivered and each such person, by accepting delivery of this Presentation, agrees not to divulge the contents hereof to any third party. Each person accepting this document hereby agrees to return it to the African Development Bank (“AfDB”) promptly following any request by the AfDB. The market analysis and projections presented in this Presentation represent the subjective views of the AfDB. Current estimates of Africa50’s future performance are based on a number of assumptions that AfDB believes are reasonable, but there can be no assurance that such estimates are correct or that Africa50’s investment objectives will be achieved. The projections included herein have been provided to assist prospective investors in evaluating an investment in Africa50, but should not be relied upon as a representation of future financial results. The information supplied herein is for illustrative purposes only and is not necessarily indicative of future results of Africa50 or its investments. Before acting on any information contained in this Presentation you should consider the appropriateness of the information having regard to these matters, any relevant offering document and in particular, you should seek independent financial advice. Important Notice 2

Track Record of AfDB Private Sector Infrastructure Investments 3 Facilitated USD 32 billion worth of PPP and Private Sector Projects Acted as Mandated Lead Arranger on 10 Projects 49 projects delivered USD 3.1 billion invested USD 4.6 billion syndicated PPP or Private Infrastructure Investments between 2006 and 2014

ADB takes the lead role in: …for a wide range of responsibilities… …to ensure that the transaction is: Project structuring  Early involvement to contribute to project preparation  As needed, bring in new partners  Ensure quality and fairness of project contracts Bankable and sustainable… Project coordination  Assist Project Sponsors in coordinating all parties  Work “behind the scene” to resolve problems  Leverage on strategic partnership with Governments …Continuously moving forward… Project financing  Play a lead role in the due diligence processes  Mobilise and coordinate debt (and equity) financing  Coordinate preparation of financing documentation …Fully financed 4 `````` `````` `````` `````` Driving the transaction to Financial Close Not just a financier Leading the way from beginning to end 4

US$2.0 trillion 1.1 billion 38% US$ 1tr US$5.5 trillion 2.4 billion 60% US$ 4.75tr Collective GDP in 2013 Africa’s Population 2013 Population in Urban Areas 2013 Consumer Spending 2013 Collective GDP in 2050 Africa’s Population 2050 Population In Urban Areas 2050 Consumer Spending 2050 Africa is on the Move Emerging as an Economic Success Story Today Tomorrow 5

Innovative Solution African Infrastructure Market Market Opportunity Africa50 6

African Infrastructure Market What is needed? Size of funding requirement to finance PIDA and Project Development PIDA Total Financing Required $68 billion Development Capital Required $2.5 billion per annum for 5 years PPF $80 m

Project Development Company Providing steady deal flow of well-structured Projects Project Finance Company Sound investments generating commercial returns Africa50 will operate across the project life cycle through two separate companies each with dedicated investor groups What is Africa50? A “One-Stop-Shop” Approach 8

What is Africa50? A Capital Base at Sufficient Scale Paid-in Capital of $3billion Single “A” rating target Leverage 2-3 times capital reaching up to $10billion Project Development Capital of $500m INFRASTRUCTURE INVESTMENT OPPORTUNITY $100 Billion 9

A Corporation - Commercial Structure Autonomous - Own Rules & Procedures Independent - Legally & Financially Independent Capital Structure - A, B & C Shares A TRUE PUBLIC PRIVATE PARTNERSHIP What is Africa50? A New DNA, Flexible and Efficient 10

11 Commercial Attractiveness Long Term and Robust Returns Close end fund structure with a 10-year lifespan Failure rate at 30% with stop loss mechanism Strong returns from successful projects Investor IRR of 15-16% Project Development Business Line Open-end structure Bridge financing and senior debt as the two main instruments Project selection as an essential success factor Investor ROE of 8% over a 15- year period Project Finance Business Line TRIPLE BOTTOM LINE Financial Return & Development Impact Business Opportunities

12 AFRICAN GOVERNMENTS Initial Expressions of Interest USD650 million Project Development Company Seed investment of USD100 million over 3 to 4 years Project Finance Company Seed Investment of up to USD500 million in tranches African Development Bank Cornerstone Investor Accelerated Implementation Strong African Commitment

Nomination & Compensation Committee CEO Africa50 Shareholders Board of Directors Board Committees Investment Committee Portfolio Management Committee Risk and Compliance Management Committee Executive Committees Management Team Audit & Risk Committee New Investment Committee How is Africa50 Governed? Corporate Structure 13

SELECTION CRITERIA 433 projects in PIDA-PAP 294 active 83 at concept stage 13 short-term opportunities PROJECT SCREENING Taking Projects from Feasibility to Bankable and Operations Economical viable, E&S sustainable Commercially viable Regional & national transformational projects A Robust Pipeline Solid framework for Project Selection and Screening 14

A Robust Pipeline Transforming Africa 8 projects USD1 billion USD15 billion Project Value Investing Facilitating : 21 projects USD3 billion USD47 billion Project Value Investing Facilitating : 15

AN ATTRACTIVE ASSET CLASS Secured cash flows backed by contractual agreements Long term investment horizons Responsible investments for institutional investors Historically, well-structured projects have generated returns of 16-18% IRR in Africa African Infrastructure Market Robust, Safe and Steady Returns 16

African Infrastructure Market Low Default Rates 17 Africa % 1 0.7%

Tas Anvaripour CEO Africa50 Thank You