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Africa Opening thelast frontier market

September 2008


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Africa Opening the last frontier

marketPresentation to the Securities &

Investment Institute CPD Seminar

23 September 2008

Dr Ayo Salami

2


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AfricaMoving from promises to results

Africa is indeed on the move. In contrast with the 1990s, conflicts in Africa havedeclined, economic performance has improved and some clear high performers arebeginning to emerge.

World Bank 2006

Africa has learnt to trade more effectively with the rest of the world, to rely more on theprivate sector, and to avoid the very serious collapses in economic growth thatcharacterized the 1970s, 1980s and even the early 1990s.

World Bank 2007

Since 1995 there has been at least one African equity market among the top 10 bestperforming markets in the world. Last year (2007), it was Zambia, posting gains of 127%in US dollar terms. Joining Zambia among the best performing markets was Malawi (up114%), Cote DIvoire (up 105%) and Nigeria (up 90%). In 2006, Malawi was the best

performing stock market in the world posting gains of 129% in US dollar terms.African Business Research Limited

4


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Africa

A Lie by Omission

Why invest in Africa?

5


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Misconceptions about Africa

Investing in Africa is risky

The region is a basket case that is politically unstable

Regulations are insurmountable

There are no investment opportunities

6

The view from abroad :


7/49

7

Africa in Perspective

Global Land Mass and Proportion of Worlds Resources

Square Miles:

China 3,705,390

United States 3,618,770

India 1,266,595

Europe 1,905,000

Argentina 1,065,189

New Zealand 103,736

Total 11,664,680

Africa 11,707,000

Proportion of globalresources in Africa:

Land Mass 20%

Diamonds 90%

Gold 50%

Phosphate 90%

Platinum 40%

Petroleum 8%

Natural Gas 12%

Source: Academic Centre for Education Development

Source: Ayittey, George B.N. Africa Betrayed, 1993, Palgrave Macmillan , ISBN: 0312104006


8/49

8

Political Overview

Source: Duet, African Business Research

Wind of change blowing across Africa declining political risk

CurrentCirca.1980


9/49

9

Macro Overview

Source: World Bank Data

Population and GDP Growth (Sub-Saharan Africa ex South Africa)

12 consecutive years of growth in real per capita CDP

-4.0%

-3.0%

-2.0%

-1.0%

0.0%1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

2006

E

2007

E

2008

E

Population (grow th) Grow th in real GDP Grow th in real per capita GDP

Since 1995, Real GDP

growth has exceeded

population grow th


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0

2

4

6

8

10

12

2000 2001 2002 2003 2004 2005 2006 2007 2008

%Chang

eRealGDP

World G7 Countries Sub-Saharan Africa

Developing Asia Middle East Newly Industrialised Asia

Macro Overview

GDP Growth across the world

African growth is now among the highest in the world



11/49

Some out-performing economies

Angola 15.9 %

Sudan 12.6%

Equatorial Guinea 10.0%

Nigeria 9.0%

Uganda 7.1%

Mozambique 7.0%

Rwanda 6.0%

Botswana 4.9%


2008 Forecast growth in Real GDP

Macro Overview


12/49

Sound monetary policies .

Source: World Bank data

12

-3.5%

-1.5%

0.5%

2.5%

4.5%

6.5%

8.5%

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Deficitas%ofGD

P

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Budgetdeficit(US$bn)

Budget Deficit (US$ billions) Def icit Including Grants as % of GDP

Deficit Excluding Grants as % of GDP

Macro Overview


13/49

have controlled money supply and reduced inflation


13

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06E

20

07E

20

08E

20

09E

Inflation(%)

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Moneysupply(%

Year-On-Year % in price index Growth in money supply Ratio of money supply to GDP

Macro Overview


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External debt is becoming sustainable


14

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006E

2007E

2008E

2009E

DebtServ

icetoExportsRat

io(%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Extern

alDebtas%ofGD

Debt service to exports ratio External debt as % of GDP

Macro Overview


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With a little help from our friends in China

As the Chinese economic

resurgence has proceeded,Africa has become more

important for China as a

source of the raw materials

needed by the Chinese

manufacturing sector.

African economies, inparticular oil and

commodity producers have

benefited substantially from

Chinas demand for raw

materials

The historical trade deficitwith Chinas has now

become a surplus

Source: WTO Direction of trade statistics

0

2000

4000

6000

8000

10000

12000

14000

16000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

USDollarmillions

China Imports from Africa China Exports to Africa

15

Macro Overview


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Correlation with other global markets

Correlation matrix between regional equity markets

Africa Asia

Emerging

markets Far East G7 Countries

Latin

America

South

Africa

World

Index

World Small

Companies

Africa (ex South Africa) 100%

Asia -9% 100%

Emerging markets -7% 88% 100%

Far East -10% 99% 86% 100%

G7 Countries 12% 18% 43% 17% 100%

Latin America -14% 6% 44% 5% 57% 100%

South Africa 3% 42% 58% 40% 22% 7% 100%

World Index 14% 21% 46% 20% 99% 57% 24% 100%

World Small Companies 14% 22% 46% 21% 90% 46% 28% 90% 100%

Correlation coefficients based on daily equity returns between 1/1/2000 and 29/09/2006

Source: MSCI, African Business Research

16

Low correlation with other global markets offersdiversification opportunities


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-25%

-20%

-15%

-10%

-5%

0%

5%

10%

West

Africa

Sub-S

aharanAfrica

Africa

(ex-SAfrica)

EastA

frica

North

Africa

South

ernAfrica

India

Japan

China

Asia

FarEast

Germ

any

UnitedStates

G7Index

World

Index

Europ

e

Russia

UnitedKingdom

Easte

rnEurope

EmergingMarkets

South

Africa

Latin

America

Brazil

Anybody heard of Sub-Prime?

USD Returns to various equity markets over the period 19 July to 15 August 2007

On July 19, 2007, the Dow Jones Industrial Average hit a record high, closing above

14,000 for the first time. By August 15, the Dow had dropped below 13,000 and the S&P

500 had crossed into negative territory year-to-date.

The correction in

global equity

markets following

the sub-prime crisis

had minimal impacton Africa


17



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-10%

-8%

-6%

-4%

-2%

0%

2%

4%

NorthA

frica

WestA

frica

Africaex-SAfrica

Sub-Sa

haranAfrica

Southe

rnAfrica

Japan

USA

G7Cou

ntries

WorldI

ndex

Europe

EastAfrica

United

Kingdom

LatinA

merica

Germany

Brazil

FarEast

Asia

EmergingMarkets

India

EasternEurope

Russia

SouthAfrica

China

USD Returns to various equity markets over the 2 week period 26 Feb to 9 March 2007

The sell-off in

global equity

markets following

the correction in

China in February

did not affect Africa

On February 27, 2007, the Shanghai index plunged 8.8%, its biggest one day drop in a

decade following rumors of the introduction of capital gains tax on equity investments.

Over the next two weeks, most global markets followed with sharp declines.


18

Did you say something happened in China? Sorry we missed it!



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African Equity Markets

From Cape to Cairo

There are 22 stock exchanges in Africa

with a combined market value of

US$670.8 billion and 2,090 listedequities

Data as at 31 August 2008

Market ValueNumber of

listed companies

Sub-SaharanAfrica (ex SA)

South Africa

551

427

$129.2 bn

$339.9 bn

North Africa 1,112$201.7 bn

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Trading and settlement

12 countries (94% of the stock

markets ex South Africa)

have electronic and automated

trading platforms. More

countries are already planning

a switch over.

Also more markets are moving

towards the international

standard of t+3 settlement

cycle

20

Country Trading system Settlement cycle

Central

depository

Algeria Electronic t+5 YesBotswana Call over t+5 yesBRVM Electronic t+5 Yes

CameroonCape VerdeEgypt Electronic t+2 for active shares Yes

t+3 for dematerialised sharest+4 for physical shares

Ghana Call over t+3 yesKenya Electronic t+5 Yes

Malawi Call over t+7 yesMauritius Electronic t+3 YesMorocco Electronic t+3 yesMozambiqueNamibia Electronic t+3Nigeria Electronic t+3 YesSouth Africa Electronic t+3 yesSudan

Swaziland Call over t+5Tanzania Electronic t+3 yesTunisia Electronic t+3 yesUganda Electronic t+5Zambia Call over t+5 yesZimbabwe Call over t+7

Love thy neighbour but dont take counterparty risk


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0 2 4 6 8 10

12

14

SouthAfrica

Egypt

Nigeria

Morocco

Kenya

CoteD'Ivoire

Mauritius

Tunisia

Zimbabwe

Botswana

Zambia

Ghana

Malawi

Uganda

Tanzania

Namibia

Natural Log of market size (US$ million)

$339.9 bn

$81.3 bn

$76.4 bn

$14.4 bn

$7.3 bn

$5.5 bn

$5.3 bn

$4.9 bn

$4.5 bn

$4.2 bn

$2.8 bn

$1.5 bn

$1.1 bn

$0.85 bn

$0.57 bn

$120.1

Sizem

atters?

Market

valuesofstoc

kexchangesinAfrica

Da


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There is a good distribution of economic sectors

22

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Banks

Telecom

Construction

Food

Conglo

merates

RealEstate

Oiland

Gas

Enterta

inment

Finance

Chemic

als

Insuran

ce

Agriculture

Health

Transportation

Manufacturing

Utilities

Consum

erGoods

Mining

Retail

InfoTe

chnology

Service

s

Autos

Media

Africa (ex South Africa)

Data as at 31 August 2008

Jointly, banks, construction and consumer goods companies represent 70%of the total capitalisation of sub-Saharan African equity markets ex South

Africa.

One of the least known open secrets of the investment world is that African

banks are among the most profitable in the world with average ROE above

30%.

The high proportion of telecom companies reflects Africas status as the

fastest growing telecoms market in the world. The average mobile phone user

in Nigeria spends US$22 per month nearly double that of a Chinese user.


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-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Avera

g

e

African equity markets Great returns

Annual returns to Sub-Saharan Africa equity markets (ex South Africa) over 1995 2007

Source: Local Stock Exchanges, African Business Research

Average annual returns of 11.5% (in US$) over the last 12 years from Jan.

1995 to December 2007, relative to 8.8% for SA, 6.3% for G7 countries and

6.6% for the All Global equities markets.

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0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

La

tin

Ame

rica

Eas

tern

Europe

Su

b-

Saharan

Africa

SouthAf

rica

Emerging

Markets

G7

Coun

tries

Asia

Far

East

Equity returns among the best in the world

Average annual returns to various regions (1995 to 2007)


24


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-15%

5%

25%

45%

65%

85%

105%

125%

Zambia

Malawi

BR

VM

Nigeria

Mauritius

Nam

ibia

Botsw

ana

Zimb

abwe

G

hana

Ug

anda

Kenya

Swaz

iland

Avg(exSAfrica)

2007 Another Vintage year

US$ Returns to sub-Saharan African equity markets


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-20%

30%

80%

130%

180%

230%

280%

330%

380%

430%

480%

1

994

1

995

1

996

1

997

1

998

1

999

2

000

2

001

2

002

2

003

2

004

2

005

2

006

2

007

Cumula

tive$returns(%)

-65%

-55%

-45%

-35%

-25%

-15%

-5%

5%

15%

Annual%lossoncurrency

Annual % loss on currency Cumulative $ returns

Despite currency

depreciation,

cumulative $returnsare positive averaging

12% per annum

Lose on the currency swing

Gain on the growth roundaboutSub-Saharan Africa equity returns in US$ since 1994 (excluding South Africa and Zimbabwe)


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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

NorthAfrica

Eastern

Euro

pe

FarEast

Asia

Latin

America

Eme

rging

Mar

kets

SouthAfrica

Sub-Saharan

A

frica

WorldSmall

Com

panies

G7C

ountries

44%

37% 36% 35% 35%31%

30%

19%18%

23%

What about volatility?

Give a dog a bad name

Standard deviation of annual returns (1995 2007)

The risk from

investing in Africa

is similar to that of

other emerging

markets.

The perception

that Africa is

inherently riskier

is not supportedby data


27


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0.0%

5.0%

10.0%

15.0%20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

W

orldSmall

Companies

NorthAfrica

La

tinAmerica

Eastern

Europe

Sub-Saharan

Africa

G7Countries

SouthAfrica

Emerging

M

arkets

Asia

FarEast

50% 41% 39%38%

35%32%

25%21%

-2%

3%

Risk Return Ratio

How Sharpe is that?

Sharpe ratio for Sub-

Saharan Africa is 1.5x

better than for

emerging markets

generally


28


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0

10

20

30

40

50

60

Asia

G7Countries

FarEast

World

Index

SSA

(ex-

South

Africa)

Easte

rn

Europ

e

Emerging

Mark

ets

LatinAmerica

Numberoflosingmonths

0%

5%

10%

15%20%

25%

30%

35%

40%

45%

50%

Riskofloss

Number of losing months Risk of loss

49 48 47 346 4440

38

37

Risk of Loss

Number of losing months (Jan 2000 to August2008, 104 Months )

Risk of Loss for Africa is similar to other regions of the world


29

You think I am a loser, wait till you meet my siblings


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-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

WorldIndex

G7Countries

Africa(exS

outh

Africa)

Asia

FarEast

EmergingM

arkets

SouthAfric

a

LatinAmerica

EasternEu

rope

Lowest Monthly Return Highest Monthly Return

Historic Value At Risk

Always look on the bright side of life

Outside the developed world, Africa has the lowest Historic VARSource: MSCI, African Business Research

30


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-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

2000 2001 2002 2003 2004 2005 2006 2007

AnnualTra

dedVolume(US$billion)

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Tu

rnoverRatio(%)

Annual Traded Volume Turnover ratio

Trading Liquidity

Annual tradedvolume has

increased by

25x since 2000


31

Spreading equity culture reflected in rising turnover


32/49

Investment strategies

Key sectors for equity investors

Banks

Telecoms

Breweries

Construction and cement

Consumer goods

Increasing number of investment vehicles are becoming available. In the last 3

years about 10 new Africa focused funds have been launched

Research can be challenging but fun


33/49

Dynamics of economic reform

Cost of input

Ex

pectedOutput

Public sector output

Private sector output

Total output

Source: Olivier Blanchard; The Economics of Post-Communist Transition

X

Africa is just beginning to

realise the benefits of the

economic restructuring of the

1990s.

Africa has had the pain, the

gains are about to become

evident

15 years ago, Africa would not

have been able to cope with adoubling of energy prices.

Despite recent doubling of oil

prices few African countries

have required balance of

payments support from the

IMF.

The continent is less

vulnerable to external shocks.

We believe Africa is

positioned here on

the growth curve

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Would you invest in these countries?

A country recently endured a long and bloody civil war, the

assassination of its president, a financial panic and an influx of

poor immigrants

A country formed from the ruins of a vanquished army forced

from its historic homeland to a small barren island

A country divided after a long and destructive civil war and

still technically at a state of war

A country that started a regional war, suffered a humiliating

defeat, heavy bombing that destroyed its infrastructure andwithout a history of civil liberties or democratic government

United States

of America

Taiwan

Korea

Japan

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Duet: Who are we?

We are farmers not hunters

DUET GROUP


36/49

36

Duet Group is a client-focused financial group specialising in Alternative Asset Management that is

dedicated not only to generating superior investment returns, but also to delivering riskmanagement, transparency and client service required by sophisticated investors.

Duet Group was founded by Henry Gabay & Alain Schibl in June 2002 in London.

Osman Semerci joined Duet Group in April 2008 as Chief Executive Officer and Managing Partner.

As of 1st July 2008 Duet Group has USD 1.8 billion of equity under management.

DUET GROUPOverview

DUET GROUP


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37

Duets primary focus is its clients needs. It strives to understand their individual investmentobjectives.

Values such as integrity, fairness and transparency ensure its reputation. Through thesequalities it looks to build solid, long-lasting relationships with its clients.

Through commitment and respect to its people Duet aims to create a close, collegial working

environment. This is essential to produce optimum results from its individual team membersand thus determines its overall success.

Duets commitment to excellence ensures that they approach each task in hand withprofessionalism and dedication.

DUET GROUPValues and Principles

DUET GROUP


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38

Duet Asset ManagementDuet Asset ManagementDuet Asset ManagementDuet Asset Management Duet Private Equity & Real EstateDuet Private Equity & Real EstateDuet Private Equity & Real EstateDuet Private Equity & Real Estate Duet Financial ProductsDuet Financial ProductsDuet Financial ProductsDuet Financial Products

Brazil: ITACARE Real Estate FundBrazil: ITACARE Real Estate FundBrazil: ITACARE Real Estate FundBrazil: ITACARE Real Estate Fund

India: SARE South Asia Real EstateIndia: SARE South Asia Real EstateIndia: SARE South Asia Real EstateIndia: SARE South Asia Real Estate

FundFundFundFund

India: Duet India Hotels FundIndia: Duet India Hotels FundIndia: Duet India Hotels FundIndia: Duet India Hotels Fund

Turkey: Duet Golden Horn Real EstateTurkey: Duet Golden Horn Real EstateTurkey: Duet Golden Horn Real EstateTurkey: Duet Golden Horn Real Estate

FundFundFundFund

BR.I.T PlatformBR.I.T PlatformBR.I.T PlatformBR.I.T Platform

Duet Real EstateDuet Real EstateDuet Real EstateDuet Real Estate

Duet Private EquityDuet Private EquityDuet Private EquityDuet Private Equity

Hedge FundsHedge FundsHedge FundsHedge Funds

Duet Multi StrategyDuet Multi StrategyDuet Multi StrategyDuet Multi Strategy

Duet Global OpportunitiesDuet Global OpportunitiesDuet Global OpportunitiesDuet Global Opportunities

Duet ConvertiblesDuet ConvertiblesDuet ConvertiblesDuet Convertibles

Duet Special SituationsDuet Special SituationsDuet Special SituationsDuet Special Situations

Astor Duet Managed FuturesAstor Duet Managed FuturesAstor Duet Managed FuturesAstor Duet Managed Futures

Duet Global MacroDuet Global MacroDuet Global MacroDuet Global Macro

Fund of FundsFund of FundsFund of FundsFund of Funds

GSAH OptimumGSAH OptimumGSAH OptimumGSAH Optimum

Long Only FundsLong Only FundsLong Only FundsLong Only Funds

Duet Victoire Africa Index FundDuet Victoire Africa Index FundDuet Victoire Africa Index FundDuet Victoire Africa Index Fund

Capital MarketsCapital MarketsCapital MarketsCapital Markets

SLCDO 1SLCDO 1SLCDO 1SLCDO 1

Structured ProductsStructured ProductsStructured ProductsStructured Products

DPEL 1DPEL 1DPEL 1DPEL 1

Corporate FinanceCorporate FinanceCorporate FinanceCorporate Finance

Placement AgentPlacement AgentPlacement AgentPlacement AgentDuet Luxury Hotel Fund IDuet Luxury Hotel Fund IDuet Luxury Hotel Fund IDuet Luxury Hotel Fund I

DUET GROUPGroup Structure

DUET GROUP


39/49

39

Alain SchiblAlain SchiblAlain SchiblAlain SchiblFounding Partner & Co-Chairman

Henry GabayHenry GabayHenry GabayHenry GabayFounding Partner & Co-Chairman

Osman SemerciOsman SemerciOsman SemerciOsman SemerciManaging Partner & CEO

Private EquityTrading

CFO

Risk Management

Compliance

Operations

Real EstateHedge Funds

New Business Development

Financial Products

Marketing

Investor Relations

Operating Model

Technology

39

DUET GROUP


40/49

40

Duet Asset Management is authorised and regulated by the FSA and is registered as anInvestment Advisor with the SEC.

Duets mission is to become the leading provider of absolute return investment strategies tosophisticated investors. Each strategy aims to deliver risk-adjusted absolute returnsuncorrelated to broad market indices.

Duet integrates its Investment Managers through a common infrastructure and economicalignment based on shared equity ownership. The alignment of incentives is critical toachieving sustainability, team collaboration, developing and retaining quality people and

building a long-term franchise value.

Duet Asset Management Ltd is the Investment Manager of:

Hedge FundsHedge FundsHedge FundsHedge Funds

Duet Multi Strategy

Duet Global Opportunities

Duet Convertibles Duet Special Situations

Astor Duet Managed Futures

Duet Global Macro

Fund of FundsFund of FundsFund of FundsFund of Funds

GSAH OptimumGSAH OptimumGSAH OptimumGSAH Optimum

Long Only FundsLong Only FundsLong Only FundsLong Only Funds

Duet Victoire Africa Index FundDuet Victoire Africa Index FundDuet Victoire Africa Index FundDuet Victoire Africa Index Fund

Funds

Duet Victoire Africa Index Fund


41/49

41

Duet Victoire Africa Index Fund

The fund seeks to replicate the performance of a proprietary benchmark index that measures theinvestment returns of large capitalisation stocks listed on stock exchanges in sub-Saharan Africaexcluding the Johannesburg Stock Exchange.

The benchmark index is the Sub-Saharan Africa Large Companies Index. This is a customisedmarket-cap weighted index developed by Dr Ayo Salami and his research team.

Sub-Saharan Africa Large Companies Index US$ Returns


42/49

Africa The Indexing Approach


43/49

43

Significant challenges are faced for investors seeking alpha. Active managers in Africa arecompelled to use a bottom-up approach to stock selection with liquidity and market size as two of

the key screening criteria. By the time a stock will meet the minimum liquidity constraints that mostactive fund managers are using, the stock is not likely to be under-valued.

Higher transaction costs in emerging markets combined with high turnover can represent asignificant performance hurdle for active managers in emerging markets.

Index funds deliver a highly transparent investment processes, that consistently comply with fund

guidelines and regulations. Index funds provide investors with low cost access to the performance of different financial

markets.

For the large relatively liquid stocks in Africa, a passive investment strategy will prove to beeffective. Even in Africa it is difficult to consistently beat the market. In the search for alpha, youare more likely to find beta and sigma.

Africa The Indexing Approach

Index Membership Rules


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44

Index Membership Rules

The primary factors that determine index membership are liquidity and market value.

To be eligible for inclusion in the index, each individual security must achieve a traded turnover of atleast 0.1% of its market capitalisation in the quarter preceding the index review date and in at least 2 ofthe 4 quarters prior to the quarterly index review date.

At each quarterly review date all securities that satisfy the liquidity constraint and have a market valueabove $250 million are selected. Inclusion and deletion of index constituents is managed according tothe following buffer rules:-

An index constituent is not deleted from the index until its market capitalisation has been below$250 million for at least 2 consecutive quarters.

A non constituent is not added to the index until its market capitalisation has been above $250

million for at least two consecutive quarters.

Constituent companies in the index are reviewed on the last day of March, June, September andDecember and the rules governing index membership is implemented by a computer algorithm.

The index is capped and no single constituent has a weighting of more than 10%.

The aggregate weighting for all securities from a single country is capped at 40%.

Historic Simulation


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The historic performance of the Index was simulated back to 31 March 1999 to create a time series of dailyreturns for the index, with quality revision of the securities in the index. The index has generated positive returnsin 27 out of the last 35 quarters.

Benchmark Index Price Returns

Historic Simulation


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2007 Return 64.7%

2006 Return 38.4%

2005 Return 10.2%

2004 Return 14.7%

2003 Return 43.2%

2002 Return 21.5%

Index since inception 599.2%

(31 March 1999 to 31 Jan 2008)

Historic Simulation

Summary Statistics Sub-Saharan Africa Large Companies Index

Annualised Standard Deviation 14.1%

(over last 5 years monthly returns)

Best Quarterly Return 23.3%

Worst Quarterly Return -16.7%

Best Monthly Return 12.4%

Worst Monthly Return -10.2%

Percentage of positive months 73.3%

In last 5 years

Lets start running


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g

Every morning in Africa, a Gazelle wakes up. It knows itmust run faster than the fastest lion or it will be killed. Every

morning a Lion wakes up. It knows it must outrun the slowest

Gazelle or it will starve to death. It doesn't matter whether you

are a Lion or a Gazelle... when the sun comes up, you'd better

be running.

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Sustaining growth in Africa


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No magic bullet, however growth has to be private sector-led

Improving property protection rightsEnhancing the international networks of African companies

Closing the infrastructure gap particularly transportation and housing

Creating vibrant financial markets regional cooperation


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