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ACTIS and Corporate Governance, an International Owner perspective.

Dakar, Senegal 8-10 November 2005

Nkosana MoyoManaging Partner - Africa

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Who are we?

• Ex CDC Capital Partners– CDC split into 2 organisations

– CDC the LP 100% government owned has B/S

– Actis MBO – GP manages most of CDC’s money

– 60% Employees 40% British Government

– $3 billion under management

– Africa accounts for $1 billion

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Actis Mandate

• PE investing in EM only– Demonstration effect

– Find deals, entrepreneurs and/or

managers

– Transact

– manage portfolio for value

– exit

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Objectives of Corporate Governance

• Protecting stake holders– Employees

– Financiers

– Customers

– Public at large

– Shareholders

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Shareholder or Equity risk

• Financial– Residual value behind all other claims on business

– Any leakage impacts on equity value

– Contingent liabilities

• Reputational• Exit options

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The Actis Governance checklist

• Systems and Opportunities

• Business Integrity

• Health and Safety

• Environmental

• Social

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Control or/and Influence

• Sign up to our business principles

• Significant equity stake

• Protection of minority rights

• Board representation

• Financial alignment with management

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Summary

• Corporate governance is: -– An international language

– An international currency

– A credit rating mechanism

– A valuation system

• Compliance enhances enterprise value

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