UNILEVER trade and development Richard Morgan: Corporate Relations and Communications Director for Unilevercovering Africa, Middle East and Turkey (since May 2005) with a focus on economic development and corporate responsibility.

Unilevers representative on the Investment Climate Facility, the jointPublic-Private Partnership aimed at improving the conditions for doing business in Africa, where he is helping to lead work on Customs reform and intra-African trade.

Co-chair of the EU-Africa Business Forum for first three meetings(Brussels, Accra and Lisbon). He previously worked for the British Foreign and Commonwealth Office with whom he was previously posted overseas to France (2000-4), South Africa (1995-2000) and Japan (1986-1990).

1

2

Consumer spending10.6$trillion (at 2006 PPP exchange rates)

10.6

8.111.12000 2010

8.3

11.1

16.5 16.5

2000 2010

9.2 9.2

2000 2010

2.6 3.7 2.62000 2010

2.3 3.62000 2010

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Source: World Bank, OEF

Unilever Asia Africa

Americas 34%

Asia Africa 29%

Europe 37%

Based on 2007 YTD turnover

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Unilevers Supply Chain in AfricaEliminating Trade Barriers to improve Supply Chain Competitiveness

Unilever Factories in AMET

6

Impact of scale

Production (Make) Cost (Euro) / Tonne

400 350 300 250 200 150 100 50 0 0 20 40 60 80 100 120 140 Volume ('000 Tonnes / Year)Scale plant - the point at which the curve flattens out

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Landed Cost ComparisonLux Toilet Soap for South Africa /T

Ex S Africa Ex factory

Ex Indonesia Freight/Clearance Duty8

Landed Cost ComparisonToothpaste for Cote dIvoire /T

Ex CdI Ex factory

Ex Nigeria Freight/Clearance Duty

Ex India9

Trading blocksGCC (Gulf Co-operation Council) UAE Oman Bahrain Kuwait Saudi Arabia Qatar

WESTERN SAHARA

EGYPT

UA E

MAURITANIA CAPE VERDE GAMBIA GUINEA BISSAU SENEGAL GUINEA

MALI

SUDAN NIGER CHAD

YEMEN ERITREA DJIBOUTI

AFTA (Arab Free Trade Agreement) Jordon Oman UAE Kuwait Bahrain Lebanon Tunisia Libya Saudi Arabia Egypt Syria Morocco IraqEAC (East African Community) Kenya Uganda Tanzania SACU (Southern African Customs Union) Botswana South Africa Lesotho Swaziland Namibia SADC (Southern African Development Community) Angola Namibia Botswana South Africa Lesotho Swaziland

BURKINA FASO BENIN NIGERIA CENTRAL AFRICAN REPUBLIC

SIERRA-LEONE LIBERIA

COTE DIVOIRE

ETHIOPIA SOMALIA

TOGO GHANA EQUATORIAL GUINEA

CAMEROON

UGANDA KENYA CONGO GABON DEM. REPUBLIC OF CONGO

BURUNDI RWANDA

AMU (Arab Maghreb Union) Algeria Morocco Libya Tunisia Mauritania ECOWAS (Economic Community of West African States) Benin Liberia Berkino Faso Mali Cape Verde Niger Cote dIvoire Nigeria Gambia Senegal Ghana Sierra Leone Guinea Togo Guinea-Bissau

TANZANIAANGOLA MALAWI ZAMBIA COMOROS

SEYCHELLES

NAMIBIA

ZIMBABWE

MADAGASCAR

BOTSWANA SOUTH AFRICA

MOZAMBIQUE

MAURITIUSSWAZILAND LESOTHO

COMESA (Common Market for Eastern & Southern Africa) Angola Malawi Burindi Mauritius Comoros Namibia Dem. Rep. of Congo Rwanda Djibouti Seychelles Egypt Sudan Eritrea Swaziland Ethiopia Uganda Kenya Zambia 10 Madagascar Zimbabwe

Sourcing Strategy Consolidate within trade blocks to achieveeconomies of scale

Import or outsource low volume or high value / highdensity products

Drive Operational Excellence to reduce costs

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ESA Example

6% of turnover savings for toilet soaps

Toilet soap conversion costs have on average beenreduced by 50%

Packaging cost reduction of 10% due to consolidation &harmonisation.

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Ongoing Trade Barriers Trade agreements not fully in place or applied

Import duties not in line with trade agreements Slow or inconsistent implementation of new protocols Other indirect taxes imposed on imported products

Disruption to X-border flow of goods Poor infrastructure

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Some examples: duties ECOWAS

Import bans of certain products into Nigeria Imposition of import duty on margarine supplied from Cote dIvoire to Nigeria Import duties on products to be supplied from Nigeria into Cote dIvoire Inconsistent application of duty agreements, often requiring discussions with several groups to resolve

E.g. Issues on supply of margarine from Ghana to Nigeria

Erratic charges and frequent reviews of levies

COMESA/SADC

Slow implementation of agree protocols Unilever had to lobby for the agreed zero duty on soaps into Zambia to be applied Still paying import duty on soaps into Malawi

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Some examples: duties AFTA/AMU

Import duty being applied to Foods products imported into Morocco Taxes on advertising for imported products or rebates for locally manufactured products Tunisia, Saudi Arabia Import duties on tea bags of