Benefits of Making Business in Sudan | Buy & Sell Business

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

4. Country Overview Sudan was separated in 2011 into Northern Sudan, officially the Republic of the Sudan, with a predominantly Arab population and South Sudan, formerly the southern part of Sudan, now officially the Republic of South Sudan, with a majority population of people with a Black African heritage. The country is situated in north-eastern Africa, between Egypt to the north and Eritrea, bordering the Red Sea in north east. It is also bordered by Libya in north west, by Chad in west, by the Central African Republic in south west, by South Sudan in south and by Ethiopia in south east, and it shares maritime borders with Saudi Arabia. Sudan occupies an area of now 1,886,068 km², it is the 16th largest country in the world, more than five times the size of Germany, or slightly less than one-fifth the size of the USA. Sudan has a population of 40 million people (in 2015 est.), Capital city is Khartoum, largest city is Omdurman, Sudan's main port is Port Sudan. Spoken languages are Sudanese Arabic, the predominant language in the country, and Beja spoken along the Red Sea.

5. Executive Summary Sudan, once the largest and one of the most geographically diverse states in Africa, split into two countries in July 2011 after the people of the south voted for independence. The government of Sudan gave its blessing to an independent South Sudan, where the mainly Christian and Animist people had for decades been struggling against rule by the Arab Muslim north. However, various outstanding issues - especially the question of shared oil revenues and border demarcation - have continued to create tensions between the two successor states. Sudan has long been beset by conflict. Two rounds of north- south civil war cost the lives of 1.5 million people, and a continuing conflict in the western region of Darfur has driven two million people from their homes and killed more than 200,000. Sudan has a population of 43 million and occupies 1,886,068 square kilometres, making it Africa's third-largest country and also the third-largest in the Arab world.

6. Introduction – Doing business in Sudan Natural resources/mining: Natural resources, especially gold, oil, gas, chrome, manganese, zinc, aluminium, cobalt, and nickel. Gold production in Sudan reached 22.3 tonnes in 2016, ranking it as one of the top producers in Africa. Agriculture: With the Nile river running through it, Sudan has more than 150 million hectares of arable land. The climate is suitable for all types of crops, and water irrigation is readily available and/or natural. Sudan specialises in cereal production (sorghum, millet, wheat, corn and rice), crops (cotton, sugar, peanuts, sesame, and gum), and tropical fruit and vegetables. Livestock: Sudan is highly regarded in both the Middle East and Africa for its livestock and animal resources. The country has national animal resources, which include cattle, camels, sheep, goats, poultry, horses, and an annual stock of more than 110,000 tonnes of fish. Transport: As Africa’s third-largest country and bordering seven countries, Sudan offers great opportunities for investment in the transport sector.

7. Conducting business in Sudan Diesel Supply The oil and gas industry is one of the most lucrative zones in the world. In South Sudan, it adds to the country’s economic output, making it extremely important in aiding economic development in the nation. While this industry remains a great source of revenue for the country, a few individuals are taking advantage of it to create fascinating businesses. Restaurant Business Restaurant business is one of the business that has been creating millionaires in South Sudan for decades. There will always be the need for places to eat out. You can take advantage of this opportunity and start your own restaurant business in South Sudan today. The restaurant business in South Sudan and many other places around the world is one of the most lucrative ventures to start up. This is largely a result of the insatiable worldwide demand for food, which doesn’t just make it a highly profitable business for building entrepreneurs, but also one of the best recession proof business ideas to explore.

8. Taxation in Sudan Personal Income Tax Rate in Sudan averaged 15.91 percent from 2006 until 2016, reaching an all time high of 20 percent in 2007 and a record low of 15 percent. This page provides - Sudan Personal Income Tax Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Corporate Tax Rate in Sudan averaged 27.73 percent until 2016, reaching an all time high of 35.00 percent and a record low of 15.00 percent. Capital gains tax is charged at 2% on gains from the sale of land and buildings, sale of vehicles, and sale of securities, shares and bonds. Stamp duty rates vary in Sudan and are dependent on the type of instrument. In Sudan, the Personal Income Tax Rate is a tax collected from individuals and is imposed on different sources of income like labor, pensions, interest and dividends. The benchmark we use refers to the Top Marginal Tax Rate for individuals. Revenues from the Personal Income Tax Rate are an important source of income for the government of Sudan.

9. Trade Sudan is the 110th largest export economy in the world and the 120th most complex economy according to the Economic Complexity Index (ECI). In 2017, Sudan exported $4.67B and imported $9.9B, resulting in a negative trade balance of $5.2B. In 2017 the GDP of Sudan was $117B and its GDP per capita was $4.9k. The top exports of Sudan are Gold ($1.51B), Crude Petroleum ($720M), Sheep and Goats ($476M), Other Oily Seeds ($458M) and Other Animals ($302M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Wheat ($977M), Refined Petroleum ($718M), Raw Sugar ($425M), Unpackaged Medicaments ($263M) and Cars ($251M). The top export destinations of Sudan are the United Arab Emirates ($1.71B), China ($611M), Saudi Arabia ($600M), India ($426M) and Egypt ($394M). The top import origins are China ($2.34B), the United Arab Emirates ($972M), India ($834M), Saudi Arabia ($638M) and Russia ($636M).

10. Banking in Sudan Equity Bank is a commercial bank in South Sudan that started operations in May 2009. The bank provides banking services to individuals and to small and medium business enterprises. It is one of the commercial banks licensed to operate in the country by the Bank of South Sudan, the central bank and national banking regulator. It is a subsidiary of Equity Group Holdings Limited (EGHL, which has other subsidiaries in Kenya, Rwanda, Tanzania, Uganda. As of May 2016, the Group's asset base exceeded US$3.83 billion. Afriland First Bank South Sudan is the seventh subsidiary of First Bank group. It is licensed by the central bank and started on August 18, 2012 at its premises in Hai CINEMA ROAD. This social capital is mostly held by local investors and international companies that are present in this market. For the management of the bank, First Bank Afriland South Sudan plans to open over 10,000 accounts at the end of the first year and collect a large share of the resources market. By achieving these objectives at the end of the year, Afriland First Bank South Sudan should be ranked in the top 5 South Sudanese banking sector, which currently comprises 17 commercial banks.

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