Senegal: Opportunities & Outlook. Yves Coffi Quam-Dessou Managing Director, Ecobank Senegal Ecobank Group UK-Senegal Investment Forum 17 June 2013

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1 Senegal: Opportunities & Outlook Yves Coffi Quam-Dessou Managing Director, Ecobank Senegal Ecobank Group UK-Senegal Investment Forum 17 June 2013

2 Section 1 Senegal s economy: an overview

3 10 Senegal: slowly and steadily on the growth path The economy expanded in 2012, and the trend will continue Real GDP growth, annual % change Senegal Burkina Faso South Africa Sub-Saharan Africa WAEMU The economy continued to expand in 2012, but at a pace of around 3.7%. Real growth will accelerate in 2013 to around 4% due to infrastructure and mining in investments Ecobank Research 2012 Gabon: Opportunities & Outlook 29 November

4 Senegal s FDI inflows are rising FDI inflows have tabled out but remain buoyant FDI inflows, US$ m Burkina Faso Côte d'ivoire Guinea-Bissau Mali Senegal Togo Kenya Source: UNCTAD.. The tabling out of FDI flows to Senegal (in dark blue) partly reflects global economic conditions However Senegal FDI flows still relatively healthy compared to some of its regional neighbors. Also stronger than Kenya (light blue) except in 2007 Key sector for FDI flows include: Agriculture, fisheries, mining, transportation, energy and construction and infrastructure Ecobank Research 2013 Gabon: Opportunities & Outlook June

5 Section 2 Showcasing some key sectors

Key sectors Investment opportunities in Agriculture Senegal is currently West Africa s largest sugar producer 100,000 t/yr Senegal annual groundnut, seed cotton and sugarcane production, tonnes

6 Key sectors Investment opportunities in Agriculture Senegal is currently West Africa s largest sugar producer 100,000 t/yr Senegal annual groundnut, seed cotton and sugarcane production, tonnes Return to normal agricultural production since 2012, which aided primary sector growth of 8.9% in 2012 The groundnut sector has grown in volume, while sugar production is on a rebound as a result of a five-year sugar self-sufficiency plan, which ends in Food production will be aided by the stabilisation of the situation in Mali in 2013, with new focus on domestic processing 6

Key sectors: Fisheries Senegal s fish exports were worth US$300 million in 2012 Senegal s fish exports, 2003 2012, US$ 000 Fisheries sector has rebounded and grew by 6.8% in 2012.

7 Key sectors: Fisheries Senegal s fish exports were worth US$300 million in 2012 Senegal s fish exports, , US$ 000 Fisheries sector has rebounded and grew by 6.8% in It represents around 12% of exports Further growth is anticipated in 2013 These exports comprise frozen sardines, tuna and shrimps, 60% of which go to the EU New focus on local content and local processing Ecobank Research 2013 Senegal Opportunities & Outlook June

Key sectors Investment opportunities exist in mining Phosphate mining is the second largest source of foreign exchange for Senegal Production of rock phosphates, 1998 2011, 000 tonnes 2000 1800 1600

8 Key sectors Investment opportunities exist in mining Phosphate mining is the second largest source of foreign exchange for Senegal Production of rock phosphates, , 000 tonnes Apart from phosphates, there is also potential to develop gold, iron ore, uranium and copper resources Sources: ICS Foreign investment in the mining sector could reach US$5billion in 2013; Senegal is SSA s 3rd largest producer of phosphates, producing 650,000 tons in 2011 Taiba field accounts the largest share of Senegal s GDP but there are known phosphate deposits in northern Senegal waiting to be developed Production could rapidly increase from the current 650,000 tons of phosphate to more than 1 billion tons within the next decade. Mining and quarrying sector will enjoy growth in 2013, after contributing 22% of GDP n 2012 Ecobank Research 2013 Senegal: Opportunities & Outlook June

9 Section 3 Trade Flows and Regional Trade

Senegal s key exports Gold, agricultural crops and petroleum products accounted for more than 50% of exports in 2012 Senegal s total exports, 2012 Senegal s main exports 2008 2012 (US$ 000) 2008 2009

10 Senegal s key exports Gold, agricultural crops and petroleum products accounted for more than 50% of exports in 2012 Senegal s total exports, 2012 Senegal s main exports (US$ 000) Iron and steel Other commodities (Phosphates etc.) Fish Precious stones and metals Petroleum products export to the region are an increasing component of Senegal s export mix However the fishery sector, gold and other commodities such as phosphate remain important components of Senegal s export basket. Ecobank Research 2013 Gabon: Opportunities & Outlook June

11 Imports are dominated by crude, oil products and food Mostly coming from France, which accounts for 15% of Senegal s imports Imported value (US$ 000) Share of Senegal s Imports (2012) Machinery Cereals Crude and oil products France Nigeria India China United Kingdom Spain Russian Federation Belgium Netherlands Côte d'ivoire United States of America Others Sources: Intracen, Ecobank Research. France was Senegal s single largest source of imports in 2012, closely followed by Nigeria Although China and India are growing as important sources of imports, the EU still dominates as a source of imports, particularly food. Ecobank Research 2013 Senegal: Opportunities & Outlook June

12 Senegal has a handful of export partners Many are within the West Africa sub-region Top 12 destinations for Senegal s exports in 2012 by exported value (US$ million) Sources: Intracen, Ecobank Research. Mali 394 Switzerland 334 India 290 Guinea 121 France 112 Gambia 91 Mauritania 82 Guinea-Bissau 70 Côte d'ivoire 65 Italy 61 Burkina Faso 60 Spain 58 Cameroon 50 Exports dominated by Mali, Switzerland, India, Guinea, France and Gambia Exports of refined petroleum products, and commodities such as sugar account for the bulk of Senegal s exports to the West Africa sub-region Ecobank Research 2012 Gabon: Opportunities & Outlook 27 November

13 Senegal as a regional trade hub Senegal can help boost current levels of West Africa s intra-regional trade, Senegal s top six exports to the ECOWAS region 2012 Salt, lime & cement Iron and steel Fish Petroleum products Food and cereals Other Sources: Intracen, Ecobank Research. Senegal is a key source of imports for Mali, Gambia, Guinea and Guinea-Bissau With a strategically positioned coast line and planned improvements to its ports, it can serve as a gateway to the western portion of the ECOWAS sub-region Ecobank Research Senegal: Opportunities & Outlook June

14 Infrastructure and Logistics will be crucial Senegal leads logistics performance in the West Africa sub-region; room for improvement Sub-Saharan Africa (SSA) Logistics Performance Index (LPI) 2012, ranking & scores Overall Customs Infrastructure International Shipments Logistics Competence Tracking Timeliness South Africa Senegal Ghana Cote d'ivoire Nigeria Kenya Tanzania Uganda Sources: World Bank LPI Index, The LPI measures the logistics friendliness of 155 countries, with regards to trade facilitation Long-standing trade routes exist along the West African coast (Dakar-Lagos) which can be harnessed Within West Africa, Senegal tops the LPI infrastructure performance rankings Ecobank Research 2013 Senegal: Opportunities & Outlook June

15 Section 4 Ecobank in Senegal and the region

16 Ecobank Group : A Snapshot #1 in Africa in number of Countries (33) Dominant player in Middle Africa Leading bank in many markets Listed on 3 stock exchanges Operates to international standards IFRS, IFC code of conducts compliant, reports in USD Key strategic alliances : Nedbank Old Mutual, Bank of China & Accion

17 Our platform is our competitive advantage Ecobank Transnational Inc. (ETI) set up as Bank HoldCo # Countries (#in Africa) Branches ATMs Customers (mn) Employees Total Assets ($ bn) (33) 1,200 1, , Stock Exchanges NSE, GSE & BRVM Headquartered Reports Supervised Geographic Focus Lomé, Togo IFRS Commission Bancaire Middle Africa New York Rep Office London Rep Office M a l i Paris Affiliate Dubai Rep Office Beijing Rep Office Cape Verde Mali Niger Chad Senegal Gambia Guinea Bissau Sierra Leone Guinea Liberia Sierra Leone Burkina Faso Benin Cote d Ivore Ghana Togo Equatorial Guinea Nigeria Central African Republic Congo Uganda Congo (Democratic Rwanda Republic) Burundi Kenya Tanzania Angola Zambia Malawi Zimbabwe Ecobank presence in 2012 Ecobank future presence Ecobank representative offices and Paris affiliate Johannesburg Target countries Ethiopia Mozambique Angola Madagascar South Sudan

18 Ecobank in SenegalK in SENEGAL Date of Incorporation : 1999 A network of 38 branches across the country More than 400 employees including 53% of women and an average age of 36 years FCFA 410 Bn of Total balance sheet, 3rd largest bank in Senegal *FY 2012 figures

19 Section 4 Top recent deals in Senegal

SUNEOR FCFA 40 BILLION STRUCTURED COMMODITY FINANCING / 2012 2013 GROUNDNUTS SEASON Transaction description REPUBLIC OF SENEGAL SUNEOR Ecobank Capital acted as Co-Arranger for a

SUNEOR is the world leader in the export of groundnut crude oil and cakes.

Type : Facility A: Revolving credit facility; Facility B: Advance on Pledged Stocks to constitute a minimum security stock; Facility C: Advance to cover groundnuts trituration fees.

20 SUNEOR FCFA 40 BILLION STRUCTURED COMMODITY FINANCING / GROUNDNUTS SEASON Transaction description REPUBLIC OF SENEGAL SUNEOR Ecobank Capital acted as Co-Arranger for a FCFA 40 billion structured trade groundnuts facility in favor of SUNEOR, the largest groundnuts processing company in Senegal with 70% market share. SUNEOR is the world leader in the export of groundnut crude oil and cakes. Main terms and conditions FCFA 40 Billion (USD 80 Million) STRUCTURED TRADE FINANCING GROUNDNUTS SEASON Global Facility amount: FCFA 40 billion Tenor: 10 months Facility Type : Facility A: Revolving credit facility; Facility B: Advance on Pledged Stocks to constitute a minimum security stock; Facility C: Advance to cover groundnuts trituration fees. Co - Arranger 2012 Participants: Co-Arrangers: Ecobank Capital, Banque Atlantique Lenders: Ecobank Group (Benin - Guinea Bissau - Mali - Senegal), Banque Atlantique (Benin - Burkina Faso - Côte d'ivoire - Mali - Senegal Togo) Local agent bank: Ecobank Senegal, Banque Atlantique Senegal ; Offshore agent bank : EBI SA (Paris) 20

STATE OF SENEGAL FCFA 88 BILLION BOND ISSUE ON THE REGIONAL STOCK MARKET Transaction description STATE OF SENEGAL Ecobank Capital and CGF Bourse acted as Co-Arrangers in connection with the

21 STATE OF SENEGAL FCFA 88 BILLION BOND ISSUE ON THE REGIONAL STOCK MARKET Transaction description STATE OF SENEGAL Ecobank Capital and CGF Bourse acted as Co-Arrangers in connection with the FCFA50billion bond raising for the State of Senegal. The bond was oversubscribed by 176% and its proceeds were used to fund infrastructure projects and enhance the country s debt profile. Main terms and conditions Targeted amount: FCFA 50 billion FCFA 88 Billion (USD 176 Million) State Bond Co- Arranger Raised amount: FCFA 88 billion Interest rate: 6.70% Tenor: 7 years Role description: Structuring of the bond issue Placement of securities Registration of securities at the Central Depository Settlement Bank (DC / BR) Listing of securities on the stock market 2012 Co-Arrangers: Ecobank Capital CGF Bourse 21

TEYLIUM PROPERTIES GROUP FCFA 27 BILLION REAL ESTATE COMPLEX (HOTEL AND SHOPPING MALL) FINANCING IN DAKAR REPUBLIC OF SENEGAL TEYLIUM PROPERTIES GROUP (TPG) Transaction description Ecobank Capital

With its strong expertise in real estate projects financing, Ecobank capital contributed to the financing of an upscale real estate complex with an estimated FCAF 50 billion global cost.

Standing seaside on more than 11 400m 2, the mall consists of a supermarket, 90 internationally renowned establishments, restaurants, gaming rooms, a VIP movie theater and more 2 - Radisson Blu Hotel

22 TEYLIUM PROPERTIES GROUP FCFA 27 BILLION REAL ESTATE COMPLEX (HOTEL AND SHOPPING MALL) FINANCING IN DAKAR REPUBLIC OF SENEGAL TEYLIUM PROPERTIES GROUP (TPG) Transaction description Ecobank Capital has been mandated as Lead Arranger to raise FCFA 27 billion in favor of Teylium International ( a diversified regional group with a strong presence in the real estate sector). With its strong expertise in real estate projects financing, Ecobank capital contributed to the financing of an upscale real estate complex with an estimated FCAF 50 billion global cost. The hotel complex consits of: FCFA 27 Billion (USD 54 Million) Real Estate Complex Financing 1- Sea Plaza Mall: First shopping mall in francophone West Africa. Standing seaside on more than m 2, the mall consists of a supermarket, 90 internationally renowned establishments, restaurants, gaming rooms, a VIP movie theater and more 2 - Radisson Blu Hotel of Dakar: a 5 star luxurious hotel of 180 rooms, offering upscale amenities, especially: (i) the proximity to the beach giving its clients a unique atmosphere ; (ii) a 750m 2 spa like no other in Dakar. Main terms and conditions Project global cost: FCFA 50 billion Arranger 2008/2010 Global facility: Facility Type: Distribution: FCFA 27 billion Medium Term Loan with payments backed by revenues from the hotel Commercial banks: FCFA 17 billion Development Finance Institutions: FCFA 10 billlion 22

SOCIETE NATIONALE D ELECTRICITE FCFA 24 BILLION DEBT RESTRUCTURING AND URGENCY PLAN FINANCING FACILITIES Transaction description REPUBLIC OF SENEGAL SOCIÉTÉ NATIONALE D ELECTRICITÉ Ecobank structured

23 SOCIETE NATIONALE D ELECTRICITE FCFA 24 BILLION DEBT RESTRUCTURING AND URGENCY PLAN FINANCING FACILITIES Transaction description REPUBLIC OF SENEGAL SOCIÉTÉ NATIONALE D ELECTRICITÉ Ecobank structured a total of FCFA 22 billion (USD 44 million) debt restructuring and urgency plan financing to upgrade the distribution and transport network of Société Nationale d Electricité (SENELEC), the state-owned power utility company in Senegal. Main terms and conditions FCFA 22 Billion (USD 44 Million) Global Facility amount: A global amount of FCFA 22 billion divided as follows: Facility 1: FCFA 15 billion (urgency plan); Facility 2: FCFA 7 billion (debt resructuring). DEBT RESTRUCTURING URGENCY PLAN FINANCING Arranger Purpose: Facility 1: Finance the upgrade of the distribution and transport grid Facility 2 : Restructure Short Term Loans for longer maturities Type of facility: Short and Medium Term Loans. Tenor: Facility 1: 72 months Facility 2: 24 months ECOBANK SENEGAL

24 SOCIETE AFRICAINE DE RAFFINAGE FCFA 128 BILLION DEBT RESTRUCTURING AND CRUDE OIL IMPORT FINANCING FACILITIES Transaction description REPUBLIC OF SENEGAL SOCIÉTÉ AFRICAINE DE RAFFINAGE Ecobank structured a FCFA 128 billion (USD 256 million) debt restructuring and crude oil import finance facilities in favour of Société Africaine de Raffinage (SAR), the sole refinery in Senegal and neighbouring countries. FCFA 128 Billion (USD 256 Million) Global Facility amount: Main terms and conditions A global amount of FCFA 128 billion divided as follows: Facility 1: FCFA 37 billion; Facility 2: FCFA 3 billion; Facility 3: FCFA 43 billion; Facility 4: FCFA 45 billion DEBT RESTRUCTURING CRUDE OIL IMPORT FINANCING Arranger ECOBANK SENEGAL 2007/2011 Purpose: Facility 1 and 2: Restructure Short Term Loans Facility 3: Crude Oil Import Finance facility Facility 4: Debt refinancing Type of facility: Short Term Loans. Tenor: Facility 1and 2: 12 months Facility 3: 90-day Letter of credit refunded at maturity by a 90-day bridge loan; Facility 4: Medium term loan 24

25 Thank you

Regional outlook Sub-Saharan Africa 24/11/2015. Share commodities in good exports. Share commodities in goods imports

Regional outlook Sub-Saharan Africa 24/11/2015. Share commodities in good exports. Share commodities in goods imports Table 1: Economic structure indicators Number of Inhabitants (m.) Size of the economy (in USD bn.) Size of the economy (% of world GDP) Share commodities in good exports Share commodities in goods imports