UnderstandingtheEastAfricanMarket‘Quan'fyingtheOpportunity’

EastAfricaCommunity(EAC)MemberCountries

SouthSudan

Uganda

Kenya

Rwanda

Burundi

Tanzania

EAC,COMESA,SADCMemberCountries

DoingBusinessInEastAfrica“Quan&fyingTheOpportuni&es”

Regional-Highlights

Region-fastestgrowinginAfrica,withagrowthrateof5.6%in2017.Ethiopiaistakingtheleadwitha10%growthrate.

KenyaisthefinancialandlogisRcalhuboftheregionanditsstrategiclocaRonservesasagatewaytoEastAfrica.MombasaportinKenyaisthebiggestportinEastAfrica.

ThenaRonalairline,KenyaAirways,fliestomorethan40AfricandesRnaRonsaswellasdirectflightstoEurope,AsiaandupcomingUS.

TheEastAfricanpopulaRonisgrowingatayearlyrateof3%,threeRmestheglobalaverage.ThegrowingpopulaRonandmiddleclassisresulRnginincreasedconsumerism,whichtogetherwithmegainfrastructureprojectsaretwofactorsthatwillfurtherbolstergrowth.

TheregionhasahighfocusonICT,whereKenyarecentlybecamethefirstcountryinAfricaand4thgloballyoutsideofUSAtohostaMicrosoXtesRngcenter.Itisalsohometotheworld-renownedM-pesa(mobilemoney)moneytransferservices,whichhasresultedinthehighestfinancialinclusioninAfricaandopennessforinnovaRon.

ThenaRonalairline,KenyaAirways,fliestomorethan40AfricandesRnaRonsaswellasdirectflightstoEurope,AsiaandupcomingUS.

RegionalReach

Na'onalDevelopmentPlansKENYAVision2030

Na'onalDevelopmentPlansUGANDAVision2040

AtransformedUgandansocietyfromapeasanttoamodernandprosperouscountrywithin30years

WithastableGDPof6.4%perannumAgricultureisthelargestcontributor(66.5%)followedbyservicesector(tourism)andindustry.

ThemainpillarsofVision2040are:•  Agriculture•  Oil&Gas•  Energy•  Transport&Infrastructure•  Mining•  IndustrializaRon•  Science,Technology,EngineeringandInnovaRon

Na'onalDevelopmentPlansRWANDAVision2020

•  TodevelopRwandaintoamiddleincomecountrybytheyear2020bytransformingitintoaknowledgebasedeconomythatiscompeRRve,regionallyandglobally

TheKeyPillarsofthevisionare:oGoodGovernanceoAnefficientstate

oSkilledHumanCapital,includingeducaRon,healthandinformaRontechnology.oAvibrantprivatesector

•  oAworldclassphysicalinfrastructureoModernAgriculture

•  Thestateshallactprimarilyasacatalysttoensureanadequatepolicyframeworkforinfrastructure,humanresourcesandguaranteelegalframeworkaregearedtowardssRmulaRngprivateinvestments

Keysectorsshallbe:ServiceSector;Healthcare&Humanresourcedevelopment

•  Infrastructure;Energy,transport,Water&TelecommunicaRon

Na'onalDevelopmentPlansTANZANIAVision2025

Vision2025aimsatachievingthreeprincipalobjecRvesforTanzania:1)  Highqualitylivelihood- EducaRonandgenderempowerment,Universalaccesstohealthcare- HumanResourceCapacityDevelopment2) GloballycompeRRveeconomy- PrivatesectorsRmulaRon- EstablishingasubstanRalindustrialsector-  Achievingadequatelevelofphysicalinfrastructure- Energy-TelecommunicaRon-Water-ICT

Na'onalDevelopmentPlansETHIOPIAGrowth&Transforma&onPlan(GTP)

GTP5yearplanaimstoachieveindustrializaRonandimprovethecountry’seconomybyadainingaprojectedGDPgrowthof11-15%from2010to2015

KeygoalsoftheGTPareto:•  Encourageforeigndirectinvestmentsinagriculture•  Providebasicinfrastructureinfourindustrialclusterzones•  Renewfocusonnaturalresourcesandrawmaterialindustriessuchas

gold,oil,gas,potashandgemstones•  Increaseroadnetworksby10,000Kmsthroughoutthecountry•  Builda1,500kmstandardgaugerailwaylineandcreate

manufacturingplantsforlocomoRveenginesandandrailwaysignalingsystems

•  QuadruplepowergeneraRonfrom2,000MWto8,000MW,building•  82,500milesofnewpowerdistribuRonlinesandrehabilitaRng4,800

milesoftransmissionlines•  Seekinvestmentinrenewableenergyprojectsinvolvinghydro,wind,

geothermalandbiofuels.•  Increasemobiletelephonesubscribersfrom7millionto40million.

Na'onalDevelopmentPlans;SOUTHSUDAN

•  SouthSudanisavastcountry(coveringanareaequaltoKenya,Uganda,RwandaandBurundicombined)witharelaRvelysmallpopulaRonofapproximately12million)

•  Ithasabundantnaturalresources(includingoil,gold,Uranium,CobaltandRmber)andqualityagriculturallandwithplentyofwater,includinglakesriversandabundantrainfall

SouthSudanisarelaRvelyyoungcountryandthushighlyunexplored.BusinessopportuniResinclude:

•  Mining•  OilexploraRon

- Drillingstartedasrecentlyas1990’s•  Agriculture

LargetractsofferRlelandprovideopportunityforlargescalefarming,livestockfarming,fisheries

•  Energy•  ForestryTourism

DEVELOPMENTS WITHIN INFRASTRUCTURE, MOBILE,AGRIBUSINESS AND RETAIL DRIVE BIGGEST ECONOMIC

GROWTH

Infrastructure

Becauseoflong-termpopula'ongrowthintheregionandhighcommitmentbymul'lateralfinanciers,infrastructureispriori'sedinordertobothfacilitateandleveragegrowingpressure.FinanciersallowsecureprocurementprocessesforIrishcompanies,forexamplewithinfibreop'ccablelaying,energyandtransportestablishments.

Mobile

Investmentscombinedwithagrowingyoungpopula'onhavinghighpurchasingpowerwillcon'nuetopushthetelecommunica'onsandICTsector.Expansionandmoderniza'onallowforIrishcompaniestoenterwiththeirhigh-technologicalandknowledgeablesolu'onsinthemobilemarket.

RetailAsthemiddleclasscon'nuestogrowinsizeandpurchasingpower,retailisaboomingsector.Thedemandforproductsbesidebasicneedshashugepoten'alforbusinessintelligence,realestate,sustainabilityproductsandstoreretailing.

AgribusinessAsthepopula'ongrowsintheregionandtheagriculturalsectorsgrowmoresignificantonGDPcontribu'onandemploymentagribusinessandagroprocessingandothervaluechaininvestmentwillcreatemoreinvestmentopportuni'es.

EASTERNAFRICAWILLEXPERIENCEAMONGTHE

HIGHESTPOPULATIONGROWTHINTHEWORLD

100% TOTAL = 273 MILLION (2015)

Ethiopia36%

Somalia4%

Uganda14%

Kenya17%

Tanzania20%

CHARACTERISTICS

• Eastern Africa is a dynamic region both compared to the rest of the African continent as well as the rest of the world, where population growth is flat or declining over the next 100 years

• Ethiopia, Tanzania and Kenya represent almost ¾ of population today

• The population is not only growing in size but also in purchasing power as the middle class steadily increases.

2020 2050 2100

POPULATIONSIZEPROJECTIONSINEA(MILLIONS)

305 593

1120

NaturalResourcesMapofEasternAfrica

MINING AND MINERALS EXPLOITATION

ICTTelephonyOpportunitesKenya–Mobilephonesubscribers–42.1subscribers

InternetAudience64%;agedbelow25years57%;aged25-34years.10%;55+andabove

64%

57%

41%

31%

10%

0%

10%

20%

30%

40%

50%

60%

70%

Under25Yrs 25-34Yrs 35-44Yrs 45-54Yrs 55+

InternetUsersbyAge

Source:GoogleConsumerBarometer,2016/InternetWorldStats,2017,CCK

ICT – MOBILE MARKET WILL CONTINUE TO GROW DUE TO INVESTMENTS MEETING THE INCREASING DEMAND

CHARACTERISTICS

Mobile market in Eastern Africa MOBILE PHONE AND MOBILE grew by an average `of 9,3% over INTERNET SUBSCRIBERS(MILLIONS the last 3 years Government and operators are committed in their

investments, e.g. Competitive environment in Tanzania due to foreign company investments Continued investments next-generation networks in Kenya is speeding up growth 31%37% 27% 19%23%

137151

161169

176

20152016201720182019

COUNTRIES WITH HIGH POTENTIAL ENERGY PROJECTS IN EASTERN AFRICA

ETHIOPIA;“Lookingtoadd10,000MWtothegridby2025”

Rwanda“ThegovernmentseekstoincreaseaccesstoelectricitybyJune2019to48%ofthepopulaRonon-gridand22%ofthepopulaRonwithoff-gridsoluRons”

KENYA“Geothermalisourimmediate

focus”

TANZANIA“ThecountryhasgeothermalenergyresourceesRmatedat4,000MW”

22.57

ENERGY PROJECT BUDGET OVERVIEW (USD BILLION)*

17,61

2,700,920,470,45

SOURCE:BUSINESSSWEDENINTERVIEWSANDANALYSIS

ETHIOPIA

KENYA

SOMALIA

SOUTH SUDAN

TANZANIA

RWANDA

BURUNDI

The Eastern Electricity Highway Project (First Phase of the Eastern Africa Power Integration Program)

2013 – 2019; Kenya, Ethiopia

The USD 1,3 billion project is to increase power-sharing, reduce costs and promote sustainable energy within a regional cooperation. Work is in progress promising subsequent phases to start soon.

Lamu Port - Southern Sudan - Ethiopia Transport Corridor (LAPSSET) 2012 – 2030; Kenya, South Sudan, Ethiopia

The USD 22,8 billion project is aimed at triggering economic activities and more than double Kenya’s GDP. Components include the Lamu port, Lamu-Ethiopia-South Sudan superhighway, Lamu-Juba-Addis Ababa railway line, an oil refinery and a 2240 km oil pipeline connecting oil fields in South Sudan to the refinery at the Lamu Port. SOURCES: WORLD BANK, AFRICAN DEVELOPMENT BANK

East Africa Railway projects 2012-018; Rwanda, Tanzania, Kenya, South Sudan

The first phase done while TANZANIA plans to connect South Sudan with Rwanda are well underway. Objective is to reduce transportation costs and thus improve trade routes through improving and interconnecting national railway lines across the region.

Regional Rusumu Falls Hydroelectric Project 2013 – 2020;

Burundi, Rwanda, Tanzania

The USD 470 million project aims at increasing power supply of electricity to the grids in all three countries.Components include access and construction of power facilities, generation substations and transmission lines.

INFRASTRUCTURE – CURRENT AND LONG-TERM HIGH-VALUE PROJECTS DEVELOPING THE REGION

MombasaPetroleumTradinghubwillbeamodernpetroleumterminalcomprisingtwoTradingHub-SingleoffshorepetroleumjetesBuoyMooring;AmodernGreenfieldPetroleumtankfarmwithadesigncapacityof800,000MTistobedevelopedinphasesfromaniniRalminimumcapacityof300,000MT.Mul'-PurposeDams•  BasedonPPPAgreement,severalmulR-purposedamsshallbeconstructedintheLakeBasinRegionunderBOOTModel•Pre-FeasibilityStudyCompleteforNyanza,Kisumu&BungomaSitesSpecialEconomicZones(SEZs)TheprojectenvisagestohavevariousprojectsavailableforInvestorsbasedontheMasterplandevelopedbyCountyGovernments(47CounRes)Source;CountyIntegratedDevelopmentPlans(CIDPs)

• “Ofthetotal606,394whosatthe2017KCSE,69,151gotadmissiontouniversiRes.

• OpportuniResfortechnicaleducaRon

• GrowingMiddleClass;InternaRonalCurriculum

BIG 4 AGENDA - Opportunities HOUSING;•  200,000housingunitsrequiredannuallyforallincomelevels.•  ProducRoncurrentlyatlessthan50,000unitsannually,•  Housingdeficitofover2millionunit.Nearly61%ofurbanhouseholdslivingin

slums.•  UrbanizaRonrateof4.4%,equivalentto0.5millionnewcitydwellersevery

year.

HEALTH;InexpensiveHealthcare

MANUFACTURING;Agroprocessing,Agribusiness,AgricultureValueChains

FOODSECURITY;•  2018,Kenya’spopulaRonforecast-51million•  FeedingagrowingpopulaRon.

PaulOumaKenyaNa'onalChamberofCommerce&Industry(KNCCI)

Paulouma.homabaychamber.co.ke0722259855