Affiance Capital

African Investment Banking Fund

03 June 2015
Prepared By: Trice Kabundi
Fund Summary

• Targets projects and investments with significant positive social impact

• Pursues investments with already existing significant offtake or sales volume

arrangements

• Cash flow positive in phase one of the project by the end of 2017 with EBITDA of
US$44 million with sales of US$244 million

• Continues growth potential through vertical investment options in the following:

• Banking
• Energy (Power)
• Communications
• Water and Waste Management
• Agriculture

• Leverages advantages of low taxes, low input, and government support

Project Development Structure

Affiance
Investment Fund
Capital

Affordable Northern
Litestone
Projects and Products Morgage Outgrower
Factory
Product Program
Project Summaries

• 60,000 premiums guaranteed

Affordable Mortgage • 12 months of pre-payment on each premium
Product • Backed by the Zambian Government

• Franchise Licence secured

Litestone Production • Production for 60,000 housing units guaranteed
Factory Zambia • Backed by the Zambian government

• 10,000 hectares of land secured

Northern Outgrower
• Technical partner secured
Project • Backed by the Zambian government
Zambia: An Investment Destination
Investment Incentives
• Lower taxes with corporate tax
0% over five years on
investment.
• Capital and investment
allowance in the first year on
all capital expenditures.
• Exemptions on capital gains,
tax on dividends, customs and
excise duties on imports of
equipment and raw materials,
etc.
Foreign Investment Rights and
Protections
• Property protection
• Investors have the right of
repatriation in respect to
profits, debt service, fees,
royalties and disinvestment
proceeds
• Investors’ right of choice to
settle disputes
 Increase in FDI

Foreign direct investment, net inflows

2.0
1.8 • FDI increase in the last 8years
1.6 hit its peak with US $1.8 billion
US $ (billion)

1.4 in 2013.
1.2
1.0 • The main sectors have been in
0.8 mining, agriculture, energy,
0.6 tourism, real estate and
0.4
manufacturing.
0.2
-
2005 2006 2007 2008 2009 2010 2011 2012 2013

The steady Increase in FDI is a positive indicator of investor confidence in Zambia.