ONE DISTRICT ONE FACTORY INFORMATION SEMINAR Presentation on AGI/CNBM CHINESE FACILITY By: Seth Twum-Akwaboah (CEO of AGI)

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1 ONE DISTRICT ONE FACTORY INFORMATION SEMINAR Presentation on AGI/CNBM CHINESE FACILITY By: Seth Twum-Akwaboah (CEO of AGI)

2 Background A welcome initiative embraced by AGI and all Private Sector understanding of 1D1F That Government will facilities the establishment of the factories through the private sector Government will not be the actual implementer of the factory business Exception could be made That more than one factory could be established in a district. Both local and foreign companies could be part of the initiative. Largely, Agro business related, but other products as well General Expectations within Private Sector Financial Support? From where? And how?

3 Signing of AGI /CNBM Facility in China

4 Facility Overview The CNBM facility is a turnkey project financing option secured by Association of Ghana Industries (AGI) and 1D1F partner banks for private sector led industrialization under the One- District, One-Factory Project. from project design, equipment manufacture, installation and commissioning. The facility is being offered by China National Building Materials International (CNBM Group), a China based Investment & Trading Entity with support from Ghana EXIM Bank and other local 1D1F Partner Banks.

$cement, plasterboard and glass fiber provider Chinese largest fan blade and refractory producer PART 01 Introduction$

5 China National Building Materials & Equipment Import and Export Corporation CNBM is holding over 1100 independent subsidiaries (6 are listed in overseas market) and 85% are mixed ownership enterprises, with 180,000 employees. Turnover in 2015: over Y 200b Profit in 2015: Y 6b Total Assets: 2015: Y 469b Specialized Development World s largest cement, plasterboard and glass fiber provider Chinese largest fan blade and refractory producer PART 01 Introduction to CNBM Group 5

6 Key Stakeholder Institutions One District, One Factory Project Ghana EXIM Bank Association of Ghana Industries China National Building Materials International (CNBM Group) Local 1D1F Partner Banks approved by Ghana EXIM Bank.

7 Facility Overview The facility offers: financing support of up to 85% of total Capital Expenditure required for factory setup. This comes in the form of factory equipment and machinery covered by warranty and strict fitness of purpose clauses Technical Management and Training of up to 2 years (By which time factories should be setup and operational) Working Capital support from local 1D1F Partner banks Guaranteed market for selected products

8 Facility Terms Interest Rate : within single digit(this covers entire facility i.e. CNBM CAPEX Support, Bank Guarantee and Processing fees) Collateral: Factory setup and Equipment Global limit: Not fixed. 85% of total CAPEX required. Tenor: 8-25 years (or less, depending on project). Moratorium: (Negotiable as factory should be well into production before loan repayment starts) Entrepreneur s Matching Funds: 15% of total CAPEX required. (Can be in cash or kind)

9 Target Industry Areas The facility covers a number of industry areas including: General Manufacturing Agriculture, Agribusiness & Agro processing ICT Garments & Textiles Renewable Energy Waste Management Pharmaceuticals & Cosmetics Tourism & Creative Arts

10 Target Industry/Commodity Areas Commodities targeted under this facility are high potential commodities identified in the various districts in Ghana. These include: Cassava Cocoa Plantain Cashew Maize Wood Pineapple Herbs & Spices Aluminum & other metals Poultry Sisal Coconut Shea Butter Salt Fish Clay Orange Banana Oil Palm Rice Soy Tomato Cotton Waste

11 Typical Agro-Products

12 Orange/Lemon-Citrus Fruits Project Orange/Lemon - NFC juice - concentration juice - fruit oil - animal feed - orange juice beverage(mixing with sugar & water etc.)

13 NFC juice & Orange fruit juice concentrate

14 Main ingredients and comprehensive utilization Coconut fruit peel: shell tenacity and resilience, corrosion resistance, good fire resistance, can be processed into fiber mats, cultivation substrate, fiber nets, brooms, ropes and carpets, mattresses, noise boards and shockproof packaging materials.

15 Coconut milk beverage: after grating the coconut meat, then pressing, is coconut pulp, with high edible value. Coconut pulp is an important raw material of Coconut milk beverages, according to different proportions, can produce a variety of flavor Coconut Juice beverage. Coconut pulp is also an important ingredient in coconut flavor foods

16 2.3Mango, Pineapple Fruit Project Mango, Pineapple Mango, Pineapple pulp - Mango, Pineapple concentration juice - Mango, Pineapple juice beverages

17 2.5 Corn/cassava Starch Project Corn/cassva starch,protein powder,fiber Maize: Starch Contents.70%, Moisture<14%; Cracks and Impurities<3%; Protein:8-10%; Mildew<1%

18 Who is Eligible An applicant is considered eligible for the offer when the applicant can/has: Prove arrangement to guarantee raw material supply. prove he/she has secured/is securing land and platform for factory. Provide a feasible project plan Provide 15% of CAPEX required for factory setup and has a good credit rating to access working capital support. An experienced team with the required skills to manage the factory. Provide a solid succession plan

1D1F-CNBM Process Flow Screened Applicati ons Approved Projects Projects Approved for EXIM

Submission 2 Initial Screening Initial Screening by Receiving Institutio n* Evaluatio Evaluation n

& Approval Evaluation Review and approval by Technical Committee.

1st Approval Approval from lending Bank. By EXIM Bank 7. 2 nd Approval 8.

Projects with Evaluation Summary Projects Approved for lending Initial screening will be done to

19 1D1F-CNBM Process Flow Screened Applicati ons Approved Projects Projects Approved for EXIM underwriting Submissio n of Applicatio n via ID1F /AGI. 1. Submission 2 Initial Screening Initial Screening by Receiving Institutio n* Evaluatio Evaluation n by AGI* by EXIM * Evaluation by 1D1F/ CNBM 3 Invoice Evaluation confirmati on * 4 Evaluation Review & Approval Evaluation Review and approval by Technical Committee. Due Diligence & Risk Analysis 5 Due by Diligence Lending & Bank* Credit Assessment 6. 1st Approval Approval from lending Bank. By EXIM Bank 7. 2 nd Approval 8. Signoff & Offer Release Sign off by 1D1F & Consent from 1D1F to CNBM; Release of Offer Recommended Projects with Evaluation Summary Projects Approved for lending Initial screening will be done to select applications that match 1D1F objectives and have good industry recommendations *Contact with Applicant for technical assistance may be necessary TAT for process is 10days, provided all necessary documents are submitted.

20 How to Apply Application is done via One-District, One-Factory District offices Association of Ghana Industries (AGI) Offices Online at 1d1fghana.org/apply

21 Contact The C.E.O Association of Ghana Industries 2nd Floor, Addison House Trade Fair Centre, La, Accra P. O. Box AN-8624, Accra North, Ghana Phone: /4 Website: THANK YOU!!!

Association of Ghana Industries (AGI) 1D1F partner banks One- District, One-Factory Project.

1D1F-CNBM Facility Facility Overview The CNBM facility is a turnkey project financing option secured by Association of Ghana Industries (AGI) and 1D1F partner banks for private sector led industrialization