Benefits of Making Business in mali | Buy & Sell Business

1. BENEFITS OF MAKING BUSINESS IN MALI WWW.MERGERSCORP.COM

2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

3. BENEFITS OF MAKING BUSINESS IN MALI WWW.MERGERSCORP.COM

4. Country Overview Mali, landlocked country of western Africa, mostly in the Saharan and Sahelian regions. Mali is largely flat and arid. The Niger River flows through its interior, functioning as the main trading and transport artery in the country. Sections of the river flood periodically, providing much-needed fertile agricultural soil along its banks as well as creating pasture for livestock. Although Mali is one of the largest countries in Africa, it has a relatively small population, which is largely centred along the Niger River. The Bambara (Bamana) ethnic group and language predominate, with several other groups—including the Fulani (Fulbe), Dogon, and Tuareg—also present in the population. Agriculture is the dominant economic sector in the country.

5. Executive Summary Mali is a landlocked country in interior of Western Africa, large parts in the north reach deep into the center of the Sahara, more than half of the country lies in the extremely hot, dust-laden desert. Mali is bordered by Algeria in north, by Niger in east, by Burkina Faso and Cote d'Ivoire in south, by Guinea in south-west, and by Senegal and Mauritania in west. With an area of 1,241,238 km² the country is 3.5 times the size of Germany, or slightly less than twice the size of the U.S. state of Texas. Located in the central part of the country is its highest point, Mount Hombori Tondo, with 1,155 m.

6. Introduction – Doing business in Mali Mali is ranked 148 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Mali deteriorated to 148 in 2019 from 145 in 2018. Major business opportunities include: chemical/pharmaceutical products, construction materials, mineral exploitation, water resource development, livestock, hides/leather, food and beverage processing, machinery, energy (turbine-generated and solar), and new and used clothing imports. International tenders as part of donor-funded development projects offer prospects to sell agricultural, construction, irrigation, telecommunications, and computer equipment and services.

7. Conducting business in Mali Office. Steps to registering a company are carried out mainly at the Mali Investment Promotion Agency One Stop Center which is in charge of simplification and facilitation of business related procedures. It is now possible to register a business in less than 72 hours. The One Stop Center is currently expanding its services to the entire country. There are three main types of legal entities that could be considered to start a new business in Mali : Limited Liability Company, Public Limited Company, Branch or Representative

8. Taxation in Mali name) 18% (standard rate). Reduced rate of 5% of computer and agricultural material 17% on financial transactions Company Tax : Corporate tax: 35% Synthetic tax regime (companies with an annual turnover less than XOF 30 million): Between XOF 14,700 and 1.2 million Alternative minimum tax (in case of loss or deficit): 1% of turnover. Withholding Taxes : Dividends: 10%, Interests: 9/13/15/18%, Royalties :15%. Social Security Contributions Paid By Employers : 35% Value Added Tax (VAT) - Taxe sur la Valeur Ajoutée (Local

9. Trade Mali is the 128th largest export economy in the world and the 90th most complex economy according to the Economic Complexity Index (ECI). In 2017, Mali exported $2.31B and imported $4.56B, resulting in a negative trade balance of $2.25B. In 2017 the GDP of Mali was $15.3B and its GDP per capita was $2.21k. The top exports of Mali are Gold ($1.44B), Prepared Cotton ($131M), Raw Cotton ($119M), Bovine ($109M) and Sheep and Goats ($78.5M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Refined Petroleum ($818M), Packaged Medicaments ($203M), Cement ($177M), Light Pure Woven Cotton ($154M) and Rice ($90.1M).

10. Banking in Mali The Central Bank of West African States (BCEAO) serves as Mali’s central bank and has an office in Mali. The structure of the banking system is oligopolistic with 14 commercial banks and three financial institutions. The commercial banks are open to business and have developed partnerships with multinational banks, including from Morocco, France, and the United States. While the Government of Mali is a shareholder in most commercial banks, it has minimal interference in their management, which is more influenced by international investors. According to Mali’s National Institute for Statistics (INSTAT), the banking services penetration rate is 17%. Mobile banking has helped increase access to financial services.

11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

12. Looking to Buy or Sell a Business? CONTACT US NOW FOR A FREE BUSINESS VALUATION WWW.MERGERSCORP.COM

13. MergersCorp.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Member firms of the MergersCorp network of independent firms are affiliated with MergersCorp International. MergersCorp International provides no client services. No member firm has any authority to obligate or bind MergersCorp International or any other member firm vis-à-vis third parties, nor does MergersCorp International have any such authority to obligate or bind any member firm. Copyright © 2020 MergersCorp International. All rights reserved. 13 © Midaxo 2018 www.midaxo.com