Investment Proposal for Prospective InvestorsBy Prof. JJ AsonguUS: 5382 Guilford Rd, Rockford, IL 61107, USACameroon: P.O. Box 189, Molyko, Buea, SW, CameroonEmail: asongu@charteredltd.com; Website: http://www.charteredltd.com

Executive Summary

Business Description

Marketing

Finances

Management

Conclusion

Chartered Financial Assistance (CFA), Savings & Loans Cooperative Society, Ltd, is a micro-finance institution (MFI) currently approved to operate in CameroonHeadquartered in Buea, CFA was founded in 2009 by Prof. JJ Asongu and a few othersThe company currently operates only in the Southwest Region, but it plans to open three more branches that should extend the company to three Regions including the West and NorthwestCFA has an aggressive growth strategy, with the intention of extending to all 10 Regions of Cameroon by 2012 and to all six CEMAC countries by 2015

There is a market for CFA and other similar MFIs considering that less than 5% of the Cameroonian population is served by commercial banksThere are only about 11 commercial banks in the country, and most of them do not target the rural, self-employed, & less affluent populations (these constitute our target market)There are about 500 MFIs in the country, but many of them operate as non-profits (NGOs), have just one location, & are not professionally managedThere is a tremendous opportunity for MFIs in general and CFA in particular because it doesnt have many of the shortcomings of other MFIs

Our marketing strategy is designed to allow us to concentrate our limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantageCFAs marketing strategy focuses on customer satisfactionWe also offer a wide array of services, many of which are not offered by either commercial banks or other MFIsCFA will provide these products and services to clients all across the country, whereas other commercial banks and MFIs tend to concentrate in particular markets

MFIs in Cameroon have a low entry threshold unlike commercial banks that require a capital of over $20 million, MFIs need just over $100,000.00 to go operationalSensing the opportunity to get into the market before the regulations are tightened, CFA was registered after barely raising this minimum capitalCFA is fast gaining the approval of the public and attracting savings of over $10,000.00 monthlyThe company has an immediate need of over $200,000.00 to implement its strategy, otherwise it must embrace a less aggressive growth strategyThis money will be realized by the sale of 800 shares at $250.00 (about 100,000 Frs) each, making the total of $200,000.00CFA has a total of 2,000 shares, thus it plans to sell a 40% stake in the company

The management and staff of the company is young but well educated and fairly experiencedAll employees have a business, economics, or accounting degree, with at least one year of prior MFI management experienceThe current Board of Directors is well experienced in the banking/MFI industry, and the founder is a professor of economics, business, and accounting in the US, and plans to return to Cameroon to personally run the company once he raises enough capitalConsidering the business opportunity here, the marketing strategy, finances, and management of CFA, the company is poised for success especially if it raises the required $200,000.00 in additional capital

Chartered Financial Assistance (CFA) Savings and Loans Cooperative Society, Ltd, is a leading micro-financial institution (MFI) in CameroonFounded in 2009, it is headquartered in Buea, the English-speaking SW Region and a growing academic and commercial cityIts location is strategic, considering that it provides the needed human resources essential for our successAll savings with CFA are secured and insured by a third-party insurance companyThanks to our state-of-the-art technology, CFA plans to offer services that are unsurpassed by any other financial institution in the country

CFA HistoryCFA was founded in 2009 by Prof. JJ Asongu and a few others including its current managersThe company is headquartered in Buea, Southwest RegionThere are plans to open more branches in the Northwest, Southwest, and the French-speaking West RegionsIt is projected that by December 2010, CFA will be operational in three Regions out of the 10 Regions in CameroonIt intends to spread to all 10 Regions of Cameroon by 2012 and to begin going international to the central African (CEMAC) countries in 2013 and to be established in all by 2015It also plans to meet the conditions for becoming a commercial bank by 2015

Mission StatementTo provide the highest level of personal financial services in a friendly and professional mannerTo encourage thrift, savings, and the wise use of creditTo increase the knowledge and ability of our members to manage and control their financial well-beingTo provide sound financial management in order to maintain earnings for our continued growthTo provide our employees with a challenging and rewarding career

Vision StatementTo achieve sustainable growth, we have established a vision with clear goals:Profit: Maximizing return to members while being mindful of our overall responsibilities.People: Being a great place to work where people are inspired to be the best they can be.Portfolio: Bringing to our members a portfolio of services that anticipate and satisfy their desires and needs.Partners: Nurturing a winning network of partners and building mutual loyalty.Planet: Being a responsible global citizen that makes a difference.

* These services have not yet gone operational

Marketing ResearchThere are only about 11 banks in Cameroon, serving a population of about 19 million, and the situation is even worse in other CEMAC countries Gabon, Equatorial Guinea, Chad, Central African Republic, and CongoAccording to a World Bank study, these 11 commercial banks serve less than 5% of the Cameroonian population and in some CEMAC countries it is as low as 2%The threshold for becoming a commercial bank was recently raised and by 2014, both new and existing commercial banks will need a capital of over $20 million to be in businessThese 11 commercial banks in Cameroon charge very high deposits just to open an account, with the most affordable requiring over $100.00Most Cameroonians are therefore not able to open a bank account and worse still these banks are located exclusively in the urban areas, with most of them operating in less than five of the countrys 10 Regions

Marketing Research (Continue)Most of the banks do not target the rural, self-employed, & less affluent populations With very few commercial banks in the CEMAC region, MFIs have recently been flourishing and some of the current commercial banks started as MFIsCameroon has many MFIs, about 500, but most of them have only a single location and there is hardly any one with a national presenceMany of the MFIs operate as non-profits (NGOs) and as such do not apply market strategies in their operationsMany MFIs are also run by inexperienced staff with little or no training in the areas of banking and financeThere is a tremendous opportunity for MFIs in general and CFA in particular because it doesnt have many of the shortcomings of other MFIs

Marketing StrategyOur marketing strategy is designed to allow us to concentrate our limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantageCFAs marketing strategy focuses on customer satisfaction; with an important aspect of it being convenienceWe plan to be conveniently located in all 10 Regions of Cameroon and enhance our presence through mobile banking, as well as other services such as online banking, ATMs, etc.We also offer a wide array of services, many of which are not offered by either commercial banks or other MFIsAn example of such unique offering will be Individual Retirement Accounts (IRA) CFA will provide these products and services to clients all across the country, whereas other commercial banks and MFIs tend to concentrate in particular markets

CFA SWOT Analysis

STRENGHTSExperienced & well trained staffPerceived as an American brand and seen as credibleOffers wide variety of products, some of which are uniquePlanned nationwide locationsWEAKNESSESNew, no name recognitionLimited capital, preventing us from implementing strategyCurrently over-dependent on loans as a source of incomeOPPORTUNITIESOver 90% of people not served by any financial institutionNear absence of MFIs in some CEMAC countriesLack of strict regulationsLow cost of skilled laborTHREATSFailure of other MFIs has resulted in client skepticismThreat of greater regulations in futureCompetition from other MFIsWeak banking sector

Target MarketYoung people looking for state of the art products and services e.g. ATMs, online banking, debit cards, etc.Travelers looking for convenient way of carrying money locally and internationallyCorporate and organizational clients Individuals, including civil servants, private sector employees, and the self-employedSmall business owners, including real estate investors, contractors, etcThose who have been ignored by the traditional banking sector in the country

Why CFA Will Succeed:The strengths of CFA far outweigh its weaknessesThe greatest weakness is its lack of sufficient capital at the moment, but when we raise the $200,000.00, well overcome the other weaknessesThere are many opportunities, which the company can capitalize on to become a highly successful financial institutionWith more capital, CFA will be able to implement its aggressive growth strategy and its nationwide presence in Cameroon will help it implement its money transfer businessCountries like Equatorial Guinea and Chad have very few MFIs and we should take advantage of itThe banking sector in the six CEMAC countries has been harmonized and we can function in all of them, providing us a further incentive for growth

Current SituationThe start a fully licensed Category One MFI in Cameroon, one needs a capital of over $100,000.00 (50 million Frs)However, with proof of about $35,000.00, a company will be licensed and they have one year to raise the remainderCommercial banks require a capital of over $20 million to go operational and there have been rumors about raising the threshold for MFIsSensing the opportunity to get into the market before the regulations are tightened, CFA was registered after barely raising this minimum capitalMore than half of this capital has since been spent on items like lease, salaries, computers and software, office equipment, utility bills etc

Immediate Capital NeedsThe company has an immediate need of at least $200,000.00 to implement its strategyThis money will be realized by the sale of 800 shares at $250.00 (about 100,000 Frs) each, making the total of $200,000.00CFA has a total of 2,000 shares, thus it plans to sell a 40% stake in the companyCFA is fast gaining the approval of the public and attracting savings of over $10,000.00 monthlyWithout this capital infusion, the company will continue to survive and grow, but it will be forced to embrace a less aggressive growth strategy

Board of DirectorsChair: Prof. JJ Asongu, PhD, DBA, CIO Cert, FABPP (President/CEO of IRGB, Rockford, IL, USA)Vice Chair: Mr. Callistus Fonkem (Vice President of Bomaka Credit Union, Buea, Cameroon)Secretary: Ms. Hannah Mokoko, BA, MA, Vice Principal of GHS Bokwango, Buea, CameroonTreasurer: Mr. Stanley A. Fomenky, BSc Management (General Manager of CFA)Mr. George Y. Wirnkar, BPhil (Former Manager, Amity Bank, Limbe, Cameroon)Mr. George Fontom, BSc Accounting (Credit & Risk Manager, Union Bank of Cameroon, Douala, Cameroon)Mr. Nicholas Asongu Jingwa, BA, MA (President, Lewoh Village Bank, Lewoh, Cameroon)Mr. Louis N. Nkembi, MSc (President/CEO, ERUDEF, Buea, Cameroon)

Managers & StaffChief Executive Officer: Prof. JJ Asongu (US-based Professor of Economics, Business, & Accounting; Will relocate to Cameroon once he raises the $200,000.00)General Manager: Mr. Stanley A. Fomenky, BSc Mgmt (3 years experience in banking & finance; founded a credit union)Manager Buea Branch: Mr. John Chabajong, BSc Econs (1 year experience)Manager Kumba Branch: Mr. James O. Eyambe, BSc Econs (4 years, Former Credit Union Manager)Manager Muyuka Branch: Mr. Lionel Mesumbe (2 years experience)CFA has seven other employees, all of which have at least a Bachelor of Science degree and some experience

The management and staff of the company is young but well educated and fairly experiencedAll managers have a business, economics, or accounting degree, with at least one year of prior MFI management experienceThe current Board of Directors is well experienced in the banking/MFI industry, and the founder is a professor of economics, business, and accounting in the US, and plans to return to Cameroon to personally run the company once he raises enough capitalConsidering the business opportunity here, the marketing strategy, finances, and management of CFA, the company is poised for success especially if it raises the required $200,000.00 in additional capital

Whats In It For You?Opportunity to invest in a new, but growing company, as the window of opportunity will close once we raise the needed capitalOpportunity to be a player in a highly profitable and growing industryWith the Cameroon economy growing at over 4%, it makes sense to invest here as opposed to the US where there is still a recessionCFA projects that it will begin to make a profit as early as next year, thus investors can begin seeing a return on their investmentAfrica presents many opportunities and this is a golden opportunity to become a major African player

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