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1. UNECA/AUC/UNIDO Expert Group Meeting on AIDALynette ChenCEO4 October 2010Addis Ababa, Ethiopia www.thenbf.co.za

2. Africa – the next super power of the world?

3. Figure 3 – Relationship between NPCA Directorates, Compelling Agenda and Themes NPCA THEMES Agriculture and Food Security Climate Change and Natural Resources Mgt. Regional Integration and Infrastructure Human Development Economic and Corporate Governance COMPELLING AGENDA Enhanced capacity of member States to drive continental development processes Assist in creating an enabling environment to stimulate and facilitate private sector engagement in sustainable growth and development Support member states and regional bodies in developing and implementing quality investment programmes and projects DIRECTORATES Office of the CEO Strategy and Knowledge Management Policy & Programme Development Partnership, Resource Mobilisation & Communication Programme Implementation & Co-ordination Programme Implementation & Co-ordination AU Decision (Assembly/AU/Dec. 289(XIV)): Establishment of NPCA

4. Assembly of the African Union NEPAD HSGIC External Stakeholders NEPAD Steering Committee SA Government NEPAD Planning & Coordination Agency (NPCA) Continental / Regional Economic Communities NBF (South Africa) Board Independent, non-profit org Private sector funded NBF NBF / NBG Counterparts Project Management Office Donors & DFI’s Sectoral Groups Legal Agribusiness Audit & Accounting Energy Finance / Banking Media ICT Infrastructure Mining & Resources Stock Exchanges Asset Mngt, Insurance & Investment Transport Water FMCG Healthcare NEPAD and NBF structure

5. NBF Vision and Mission • The NBF’s visionenvisages an African powerhouse that utilizes all its resources to generate innovative economic growth that engenders socio-political stability and sustainable livelihood for all its people on par with global standards. • The NBF’s missionis to create a platform for dialogue between the private and public sectors, ultimately creating a more sustainable business environment in Africa. • The NBF strategic objectives: • To facilitate and coordinate activities across sectors; • To be a catalyst for NEPAD related business opportunities by collaborating and integrating with relevant organisations across the globe • This will be done through the delivery of sustainable projectsfor the benefit of the African people and the prosperity of the African continent.

6. Context Government Civic Society Multi-stakeholder Synergies • Shared Risks • Shared Opportunities • Common Interests Business

7. NBF MEMBERSHIP

8. THE NBF STRATEGY, INITIATIVES AND PROGRAMMES

9. Scaling up private sector participation in the implementation of NEPAD Coordination Partnerships Project Preparation Financing/ Capacity Access CONSTRAINTS PMO VALUE PROPOSITION

10. NBF Strategic Approach • NBF membership represents a diverse range of companies, each with unique capabilities and interests across several economic sectors. • The comprehensive and integrated development of Africa constitutes the core pillars of the African Development Agenda as represented by NEPAD. NBF intervention strategy focus on Spatial Development Initiatives (SDI): • Areas with high economic potential that are vital and at the core of regional economic integration; • Finding programmes and projects with high potential to leverage additional opportunities for business, including SMME development; • Crowding in investment and intervention by facilitating the pooling of resources to maximize impact; • Ensuring alignment and integration of social development components within all projects

11. Alignment with Africa’s Development Agenda: “Spatial Development Initiative” (SDI’s) • 2008-decision to use DEVELOPMENT CORRIDORS as a focus and organizing principle FOR PRIVATE SECTOR PARTICIPATION IN REGIONAL INTEGRATION: • North-South Corridor • Central Development Corridor • THE ABOVE IS PROVIDING A DIRECTION AND GUIDANCE TO ALL INITIATIVES, PROGRAMMES AND PROJECTS PURSUED/SUPPORTED BY THE NBF

12. Sector Specific Initiatives Programmes & Projects NBF / WEF Water Initiative&TransFarm Africa

13. 1. WEF/NBF WaterInitiative • Collaboration with World Economic Forum Africa Summit since mid-2006 • Goal : To support social development and economic growth goals by facilitating the development of water partnership projects that meet public and private sector objectives

14. NBF/WEF Water Initiative • Raising awareness • Leveraging the competencies of international business address the water challenge • Catalyzing new multi-stakeholder platforms • Public private partnership

15. ‘Growing' Agricultural Investment Along Africa's Regional Corridors 2. The TransFarm Africa Concept

16. What is TransFarm Africa? • Vision • An African-led “demonstration” programme proving and deploying scalable, sustainable financial and institutional interventions promoting inclusive modernisation of agriculture and acceleration of the Development Corridor process. Mission • To pilot and prove the TransFarm Africa concept by clearing the way for sustainable private investment in commercial African farming ventures within development corridors that enables agriculture in Africa to become globally competitive and provide tangible economic benefits to Africa’s citizens and consumers. • Three linked elements: • TransFarmAfrica (Pilot) Transformation Fund • “Removing the Barriers” of obstacles to success • Corridor development promotion and support Implemented via partnership with local African partner and Africa-based fund manager and investment funds

17. Transformative agriculture – just emerging, new and existing players,, opportunities all along value chain, new business models, able to harness value-add from small farmer segment........... but limited funding, limited understanding, many barriers Large Scale Mechanized(commercial money) Transformative Agriculture Subsistence Farming(donor focus) Dynamic and transitional consumer & export sector Export Oriented Closed System • Entrepreneurial, opportunistic • Mid-cap, growth oriented • Small Farmer ss Supplier, Employee, Customer , Partner • Large scale/high returns • Few local linkages • Small farmer engagement is ‘defensive’ & costly • Uneconomic size • Low productivity • Limited market access • Slow accumulation 1. TRANSFARM AFRICA “Transformative agriculture emerging as dynamic segment of African agriculture Evolving structure of African agriculture

18. TFA Structure

19. TransFarm Africa: Market driven regional spread of transformative agriculture TransFarm Africa TFA Investment Fund: TFA Fund manager (LHGP) w/local team TFA “Removing the Barriers” Program: NBF as implementing partner • “Market” insight on best TFA policies • Build capacity to deploy TFA policy • Promote Corridors to aid TFA policy roll out • - Work to align efforts of others • Show TFA can deliver good $ returns • Show TFA can modernize subs farmer • Harness other efforts to reduce risk • Help bring donor projects to market SCALE UP through successive funds supported by capital markets and copied by impact investors SCALE UP via adoption of best practice TFA policy and approach from corridor to corridor 19

20. CROSS CUTTING PROGRAMMES AND INITIATIVES

21. 1. Road Sector Investment Programme, Zambia • U$ 1.6 bn programme (40 000km network) • Capacity constraints • Quality of roads being built • Financing • What are we doing: • Mobilizing private sector • Organize regular consultations • Facilitating experience • Technical assistance

22. 2. PPP Unit, Zambia • Organized interactions with private sector to share experience • National Treasury, South Africa • Private sector: banking and finance, consulting engineers, contractors, concessionaires etc • Hosted an infrastructure sector meeting, February 2010 • Facilitated technical workshop • Marketing and promoting PPP Projects • Technical assistance to take projects to market (under negotiations)

23. 3. NEPAD Growth Optimization Center • Shortage of technical skills and challenges in the supply chain • FDI and local economic growth/development

24. 4. NBF African Leadership Programme • Focus on the individual delegate / Incorporate individual coaching • Specifically designed academic modules to address Africa’s challenges • Create networks among the delegates and through the international study tour • ALP 2010 – Gordon Institute of Business Science (GIBS) • Date : 14-28 October 2010 (full time study) • International study tour – Ethiopia (African Union, UNECA) & Botswana (SADC Secretariat) • Delegates – • Pan African participation - Government, private sector, NGOs • Senior executives and management – 27-40 years old • At least 50% women • 2011 - Phase 2 – expansion to east and west Africa

25. 5. Africa ADR • An Authentic Arbitral Voice for Africa • Why? The Need for an African Arbitral Authority • Broad Support and Endorsement: • Business Unity South Africa (BUSA); • NEPAD Business Foundation (NBF); • The Institute of Directors of Southern Africa (IOD); • The Arbitration Foundation of Southern Africa (AFSA); • The Mauritian Chamber of Commerce and Industry (MCCI); • Centro de Arbitragem Conciliaçăo e Mediaçăo (CACM); • Centre d’Arbitrage Du Congo (CDA); • Leading attorney firms with African and overseas clientele • The Legal Fraternity • Leading accounting firms

26. 6. InWent CHANCE Programme • Women Entrepreneurial Development Programme • Focus on building institutional capacity of Business Women’s Associations • Linking BWA’s from South Asia -> Southern Africa -> Europe • Programmes : • Management training courses – India, Germany, South Africa • Train-the-trainers workshops – South Africa • Database / portal • Newsletter • Exhibitions and networking event - 2011

27. Elements for successful Industrial Policy in Africa • Intra-Africa Trade • Africa represents 1 billion people market opportunity • Harmonisation of policies and regulations across regions – FTA vs Customs Unions • Tripartite Alliance – COMESA, EAC, SADC – work to remove barriers • Cross border processing hubs – leverage off areas of strengths of neighbours 2. African terms of trade for all investors • Local Economic Development : • Partner with local companies (JV’s) • Local skills development and capacity development • Procure from local SME’s • Minimum levels of beneficiation/processing before exporting • Understand key areas of economic growth potential and develop policies to enhance and expand value chains within these sectors

28. Elements for successful Industrial Policy in Africa • Government’s role • Develop policies according to national needs • Ability to pioneer and design innovative policies eg. Procurement • Strengthen capacity of govt institutions for effective implementation of policies eg. PPP units, Investment Agencies • Responsible for protection of natural resources – design long term sustainable strategy for investments, benefits for local economic development and protection of environment • Link policies across sectors • Engage private sector at early stages of policy development for input to understand challenges on the ground on a practical level • Create open forum for private sector engagement • Create working groups with govt officials from across borders to address policy constraints eg. Spatial Development Corridors / SDIs

29. Elements for successful Industrial Policy in Africa • Private Sector • Engine for economic growth on the continent • Leverage off private sector skills, expertise, technology and resources to provide solutions for implementation of govt policies and programmes • New ways of partnering between govt & private sector for service delivery eg. Anglocoal • Support for private sector development across the continent is required • Innovative and appropriate financing and training for SMEs • Linkages between SMEs and large Corporates required • Role of private sector in development is changing and more responsibility to become good corporate citizens of countries of investment

30. Thank you Lynette Chen Chief Executive Officer Email: lynette.chen@thenbf.co.za Tel : +27 (0)87 310-1888 www.thenbf.co.za