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2 ACTIS and Corporate Governance, an International Owner perspective. Dakar, Senegal 8-10 November 2005 Nkosana Moyo Managing Partner - Africa

3 Who are we? Ex CDC Capital Partners –CDC split into 2 organisations –CDC the LP 100% government owned has B/S –Actis MBO – GP manages most of CDC’s money –60% Employees 40% British Government –$3 billion under management –Africa accounts for $1 billion

4 Actis Mandate PE investing in EM only –Demonstration effect –Find deals, entrepreneurs and/or managers –Transact –manage portfolio for value –exit

5 Objectives of Corporate Governance Protecting stake holders –Employees –Financiers –Customers –Public at large –Shareholders

6 Shareholder or Equity risk Financial –Residual value behind all other claims on business –Any leakage impacts on equity value –Contingent liabilities Reputational Exit options

7 The Actis Governance checklist Systems and Opportunities Business Integrity Health and Safety Environmental Social

8 Control or/and Influence Sign up to our business principles Significant equity stake Protection of minority rights Board representation Financial alignment with management

9 Summary Corporate governance is: - –An international language –An international currency –A credit rating mechanism –A valuation system Compliance enhances enterprise value

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