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MADAGASCAR :The world’s best kept secret ?

Geoffrey TassinariChairman

Malagasy Private Equity Association (AMIC)www.amic.mg

UK-Madagascar Trade & Investment Forum 2015

UK-Madagascar Trade & Investment Forum 2015 2

GROWTH POTENTIAL

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MADAGASCAR KEY FIGURES

GNPUSD 10 bn

(I : 26% II : 16 % III : 58 %)

SIZE580 000 km2

POPULATION22mm

AVERAGE ANNUAL INCOME USD 358

(157th out of 162 – WB)

GROWTH3% 2015 7% 2016

(target : 10% + in 2018)

INFLATION7%

KEY ECONOMIC SECTORS Agriculture - Mining

Tourism

BUDGETUSD 1 bn

DEBT/GDP34%

BUDGET DEFICIT/GDP : 1.6%

TAX REVENUES / GDP10%

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MADAGASCAR ASSETS / LIABILITIES

OPPORTUNITIES

• SIZE

• NATURAL RESOURCES

• PEOPLE

• WATER

CHALLENGES

• POLITICAL DISCONTINUITY

• YOUNG INSTITUTIONS

• BUSINESS PRACTICES

UK-Madagascar Trade & Investment Forum 2015 5

MADAGASCAR FINANCIAL SYSTEM

11 BANKS

5 VC/PE INSTITUTIONS

5 INSURANCE COMPANIES

5 FINANCIAL INSTITUTIONS

31 MICRO FINANCE INSTITUTIONS

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VC/PE

USD 400 mm committed

USD 150 mm invested

138 investees

32 000 direct jobs

27 000 indirect jobs

AMIC in figures

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Venture Capital/Private Equity

(www.amic.mg)

VC/PE

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Investment criteria

People, people and people

Growth potential

Cash Flows/Profitability

Scalability Governance

Exit

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UK-Madagascar Trade & Investment Forum 2015

Value creation process

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VC/PE

CULTURE

To take responsibility

To communicate

To learn from mistakes

To strive to be the best at what we do

Not to rest on past successes

VALUES

Integrity

Respect

Teamwork

Accountability

STRATEGY

CAPITAL ALLOCATION

TOP LINE / COST STRUCTURE

MANAGEMENT / ORGANISATION

EXECUTION / OPERATIONS / ESG

VC/PE

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Start-up Development Transmission Turnaround

A well kept secret

But

Might not be for long ! …

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CONCLUSION

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