Sierra Leone Investor Presentation R CONFIDENTIAL Sierra Leone

Sierra Leone Investor Presentation R CONFIDENTIAL

Sierra Leone is a strategically placed West African country with a population of 6. 3 M and GDP of $4. 8 B in 2014 2 71, 740 km Land area 6. 3 M Population $4. 8 B 2014 GDP Source: World Bank 1

It enjoys strategic access to markets and attractive competitive advantages Sierra Leone enjoys natural proximity to key markets … … And competitive advantages to harness the opportunity ▪ Freetown has a natural deep-water harbor, located along major global trade routes ▪ Duty-free & preferred access to key markets: – Economic Community of West African 2 hrs from Lagos 4 hrs Sea route to Brazil 6 hrs From Europe 8 hrs from the Americas Source: SLIEPA States (ECOWAS) – ~225 million people – European Union (EU) via Everything but Arms initiative (EBA) – ~500 million people – The US via The African Growth and Opportunity Act (AGOA) – ~300 million people 2

The country has emerged from civil war to become a beacon for religious tolerance and democracy in the region “ Sierra Leone takes religious tolerance seriously. Not only are relations between the two main religious groups in the west African country cordial, but it is not unusual to be both Christian and Muslim…. ▪ Sierra Leone enjoys remarkable social and religious tolerance ▪ Country has enjoyed two peaceful democratic elections (2007 and 2012) since the end of the civil war underpinning it as one of the more stable countries in the region “ The Economist – May 31 st 2014 Source: The Economist 3

It is now is a fast growing economy with annual GDP growth forecasted to reach 9% in 2017 GDP annual growth 2009 -2014, % ▪ ▪ Ebola and commodity price slumps 2010 Source: World Bank 2011 2012 2013 2014 2015 e 2016 f Sierra Leone was the fastest growing developing nation in 2013 Expected to bounce back rapidly from Ebola and commodity price shocks 2017 f 4

Sierra Leone ranks above the African average in the World Bank’s ease of doing business index… World Bank Ease of Doing Business 2015 Distance to Frontier (DTF) score 1 Ghana Weaker Score Sierra Leone SSA average Cameroon Senegal Nigeria Liberia 1 DTF – shows the gap in an economy’s performance in the Ease of Doing Business indicators in relation to the best in class Source: World Bank 5

… and is recognized for its attractiveness to FDI Best FDI Strategy – Rank by country 2013/2014 Rank Country 1 Mauritius 1 Nairobi, Kenya 2 Morocco 2 Johannesburg, South Africa 3 Botswana 3 Midrand, South Africa 4 Namibia 4 Casablanca, Morocco 5 Kenya 5 Lagos, Nigeria 6 South Africa 6 Arusha, Tanzania 7 Sierra Leone 7 Freetown, Sierra Leone 8 Ghana 8 Tanger, Morocco 9 Gabon 9 New Cairo City, Egypt 10 Source: FDI Intelligence Country Top cities for FDI growth – Rankings 2013/2014 Ethiopia 10 Stellenbosch, South Africa 6

Recent regulatory reforms look set to further improve the country’s business environment in the near term Starting a Business Protecting Minority Investors Registering Property ▪ ▪ ▪ Online registration available at www. oarg. gov. sl Companies Act amended in 2014 – Inspection rights granted to minority investors – Court empowered to protect minority investors ▪ 7 day process with the Land Registry Fixed prices provide certainty [Stamp duty (0. 1%) + 50, 000 (~$12) Leones for fast track procedure] Construction Permits Getting Electricity Trading Across Border ▪ ▪ Streamlined location clearances and building permits Bundled Issuing of inspections and permit Source: World Bank Doing Business Unbundled the utility company (EDSA) from the NPA to improve efficiency ▪ Import clearance and export processes streamlined Transparent fees and charges 7

Underpinning this attractive environment is a transparent and competitive tax regime Corporate tax Resident companies Non-resident companies Basic rate 30 percent Mining companies 30 percent Capital gains 30 percent (subject to a minimum chargeable threshold of Le 3. 6 million (US$829) per annum or per transaction) Goods and services tax 15 percent (subject to exemptions for exports for goods (excluding minerals) stores on vessels and aircraft leaving Sierra Leone and various exempt supplies 2; and for businesses with an annual turnover of less than Le 350 million (US$82, 000)) 15 percent (subject to exemptions for exports for goods (excluding minerals) stores on vessels and aircraft leaving Sierra Leone and various exempt supplies; and for businesses with an annual turnover of less than Le 350 million (US$82, 000)) Rental income 10 percent (subject to an allowance of 20 percent for repairs and maintenance and a tax free threshold of Le 3. 6 million (US$829) 25 percent (final tax for non-resident companies) Dividends 0 percent (dividends received by a resident company from another resident company are exempt from tax) 10 percent (final tax for non-resident companies) Interest 15 percent (interest on government development stocks is exempt from tax) 15 percent (final tax for non-resident companies) Royalties 25 percent (final tax for non-resident companies) Natural resource payments 25 percent Payments to contractors 5 percent 10 percent Source: Income Tax Act, Sierra Leone: An Investor's Guide 8

Sierra Leone presents investors with opportunities in 5 key sectors Sector A Agriculture B Fisheries Infra. C structure Description ▪ ▪ ▪ ▪ D Energy ▪ E Mining ▪ ▪ ~5. 4 M hectares of fertile agricultural land, 75% uncultivated 5 -year duty free for inputs for agribusiness Currently an untapped sector with minimal competition Region is one of the richest fishing grounds in the entire world Advanced stage plans to develop and integrated fishing harbour Government currently looking at private sector participation as it rebuild infrastructure PPP Act eases private sector involvement in infrastructure projects Government committed to tripling energy capacity by June 2017 from 100 MW to 300 MW Key government reforms enacted including separating the distributor and the generating company and National Electricity Act that allows participation of IPPs Country rich in iron ore, diamonds, bauxite, rutile and gold Iron ore deposit at Tonkili is 2 nd largest in Africa and in bottom 10% of global FOB costs 9

A Sierra Leone has the natural agricultural potential to meet local demand export to international markets 1 Savannah Woodland 3 Transitional Rainforest Savannah Woodland Cassava Rice Cassava 2 Maize Rice Savannah Woodland Banana Beans Yams 3 2 Coastal Plains 1 Rice Pepper Coastal Plains Transitional rainforest Savannah Woodland 4 4 Rainforest Sweet Potato Maize Cocoa Rice Coffee Cassava Emerging opportunities include: ▪ Coastal Plains – Livestock, Aquaculture (Fisheries) ▪ Transitional Rainforest Savannah Woodland – Livestock (Ruminant) Source: FAO, African Technology Policy Studies Network, Web Search 10

A It is currently the largest contributor to GDP and a major source of exports GDP contribution 2013, USD millions Agriculture Mining Other Fishing Retail & hosp. Tourism 39% ▪ Agriculture remains the major contributor to the economy ▪ Mining GDP contribution is estimated to have reduced by >70% in 2014 ▪ Coffee and cocoa represent 96% of Sierra Leone’s agricultural exports in 2013 21% 13% 9% 8% 5% Transport & Comm. Manufacturing 4% 2% Total Source: FAO Stats, World Bank; Sierra Leone National Accounts Report 2013, Bank of Sierra Leone 11

A SLIEPA has already identified 11+ opportunities across 7 key value chains Commodity Rice Brief Description ▪ Suitable areas for mechanical cultivation include Torma Bum Rice Fields (51, 300 ha in Bonthe District) and Gbondapi Rice Fields (41, 000 ha in Pujehun District) ▪ Oil Palm Sugar and Ethanol Production Cocoa, Coffee and Cashew Processing Carbon Trading Cassava Poultry products Source: SLIEPA ▪ Production of Palm and Kernel Oil (PKO) and other ancillary products including soap, bio-fuel, cooking oil, etc Opportunities for integrated production & refining of ethanol (sugar, Cassava) & biodiesel (oil palm) ▪ ▪ Excellent growing conditions Opportunity to satisfy local consumption demand (currently 50% local demand met through imports) as well as import to EU & West Africa ▪ Large areas under cultivation but require rehabilitation, replanting, new planting, value addition Sierra Leone has enormous potential for improvement and growth - improved quality afforded Sierra Leone a 10% premium on world prices ▪ ▪ The Gola Forest and other protected areas offer significant potential for carbon credits, Wild life, Flowers ▪ Many opportunities for processing cassava flour, flakes, ethanol, etc, ▪ High potential, strong local demand, and a nascent industry to build on 12

A The Government is also looking for private partnership in two additional investments Agriculture projects PPP Oil Palm Plantation Management Project Generation of seeds for the farming community to farm and feed the nation Source: MDA sponsor MAFFS Current status Policy concept MAFFS Policy concept 13

B Sierra Leone enjoys abundant fish reserves in close proximity to key European and West African markets Sierra Leone has extensive fishing waters… Source: Sierra Leone: An Investor's Guide …with large quantities of fish and strong local and international markets ▪ Sierra Leone marine ecosystems gives it a comparative advantage in West Africa – Hosts high fish biomass with healthy potential yields around tuna, shrimp, pelagic and demersal fish ▪ There’s a large domestic market with fish making 80% of the animal protein consumed by Sierra Leoneans ▪ Key challenge for the fisheries sector is illegal fishing. Estimated to cost the country ~$29 M annually 14

A SLIEPA has identified 10+ bankable opportunities across 8 key value chains Aquaculture Oyster farming Fish processing ▪ Potential to develop aquaculture in Sierra Leone from current production levels - less than 40 tons per annum - to commercial levels ▪ ▪ Oyster farming in estuaries provides opportunity for mariculture Sierra Leone also has marine environments suitable for a range of shellfish and finfish farming activities in the longer term ▪ Involves value added processing, packaging and marketing of fisheries products to national regional and other export markets Opportunities include, processing rooms, chill rooms, vacuum packaging, blast freezing, cold storage, boxing and containerization ▪ ▪ Design and construction of fit for purpose industrial fishing boats and sale to local small fishing enterprises ▪ Transportation of fish products from a wide network of landing centers to processing and packaging centers for exports ▪ Fishing operations using own vessels and sales of production catches to larger buyers for processing and export Construction of a fish harbor complex ▪ An opportunity for the construction of a fish harbour in Freetown that serve as transhipment hub Construction of fish landing sites ▪ Opportunities for the construction and operation of fish landing sites at 5 major locations Boat Building Transportation Fishing and sales Source: SLIEPA 15

A The Government is also looking for private partnership in three additional investments Source: Fisheries projects Fisheries Harbour & industrial estate for processing MDA sponsor MFMR Current status Policy concept Fisheries regional distribution network Mo. FMR Policy concept Af. DB Fish landing sites at Goderich, Tombo, Shenge and Bonthe MFMR Project agreement 16

C Country’s infrastructure has for long been wanting but government keen to improve this Country’s infrastructure destroyed during the war ▪ Close to 50% of Sierra Leoneans lack access to safe water supply and sanitation services ▪ Efficiency at Freetown Port low due to poor infrastructure in and around the port. ▪ Transport between Freetown and the International Airport at Lungi limited to boats and ferries – need for more airport access options ▪ Less than 10% of roads are paved – making travelling within the country difficult during the rainy season Improvements being made countrywide ▪ ▪ ▪ Source: Water: Under the Agenda for Prosperity blueprint, government aiming for 74% of Sierra Leoneans have access to potable water by 2017 Port: Government is planning on developing a new Deepwater port and associated rail infrastructure Airport: Concession awarded to CIRG for development of a new international airport outside Freetown Investment incentives: Infrastructure projects with development costs exceeding $20 M are exempt from income taxes for 15 yrs PPP unit: Government lacks finances for all planned projects so has set up the PPP Unit to facilitate private sector involvement 17

C The government is looking for private partners in 8 major infrastructure projects Project Description Project Type ▪ Construction & Operation of a Heavy Duty Toll Roads PPP/BOT (238 Km) Status Ministry data available ▪ Development of passenger Jetty terminals and Logistic Depot for Oil Exploration including development of a Tank Farm PPP/BOT Ministry data available ▪ Extension of the Freetown Elizabeth Quay PPP/BOT Ministry data available ▪ Real Estate Development Investment PPP/BOT Ministry data available ▪ Construction & Operation of a Heavy Duty Toll Roads PPP/BOT (238 Km) Ministry data available ▪ Fishing & Transport Infrastructure Development – investments in harbour infrastructure PPP Ministry data available ▪ Construction of Lungi – Freetown Bridge PPP/BOT Ministry data available ▪ Improvement of Transfer facilities between the Lungi PPP/BOT International Airport and the Main land Ministry data available ▪ ICT Infrastructure – to support the landed fibre optic Ministry data available Source: PPP 18

C Private partnership also required in a number of transport projects Source: Project description MDA sponsor Current status Freetown Estuary integrated transport study Mo. TA Pre-feasibility Deep Sea port & Rail (bulk minerals) Mo. TA Pre-feasibility Road maintenance services project Mo. TA & RMFA Policy concept only Freetown water network and distribution Mo. WR Policy concept Regional clinics Mo. HS Policy concept King Jimmy Market & Mall Freetown CC Pre-feasibility Affordable housing Mo. WHI Policy concept Freetown Estuary integrated transport study Mo. TA Pre-feasibility Deep Sea port & Rail (bulk minerals) Mo. TA Pre-feasibility Road maintenance services project Mo. TA & RMFA Policy concept only 19

D The country’s energy needs are underserved and require substantial investment going forward Transmission Generation ▪ Installed capacity of 164. 8 MW but effectively producing 100 MW during rainy season and 65 MW during dry season ▪ ▪ Very limited access - Overall electrification rate of 5%; urban: 11%, rural: 1% T&D system is old and poorly maintained, losses are as high as 45% Distribution ▪ ▪ Average retail tariff is about 28. 6 USD cents/k. Wh; high due to high cost of generation, low revenue collection rate and mainly utilizing diesel/oil Supply is intermittent, with 81. 8 % firms mentioning electricity as major constraint to their business. Peak supply/demand, 201220, MW Current, 2012 Demand Supply Surplus/ deficit 300 49 -251 Forecast, 2020 Demand Supply 1 Surplus/ deficit 1, 380 349 -1, 031 1 Incl. all planned capacity, at present availability ~25%-30% 2 Including all planned capacity at improved availability of 50% Source: UDI, World Bank Enterprise surveys, Enerdata 20

D Sample of some of the PPP opportunities in power generation PPP Energy Sector Source: Energy projects Hydro Bekonkgor Hydro Power Project (160 MW) MDA sponsor Mo. E Current status Pre-feasibility Hydro Manage Hydro Power Project (100 MW) Mo. E Pre-feasibility Hydro Power Plant at Rokon site on Seli river (31 MW) Mo. E Pre-feasibility Hydro Moyamba Hydro project (25 MW) Mo. E Project Hydro Bumbuna II Hydro 200 MW Mo. E Project HFO Freetown 128 MW thermal plant (HFO) for Freetown Mo. E Project agreement Thermal power plant 300 -600 MW Thermal plant (Coal and/or gas) Mo. E Pre-feasibility Renewable energy Solar projects on the national grid and off-grid Mo. E Pre-feasibility Solar mini projects Solar Era Pilot project Mo. E Project agreement 21

D For further information, please consult the investors guide or request a consultation with SLIEPA Further advice is available from the investor guide, promotional video and website … … as well as in person from any SLIEPA representative 22