EDITORIAL

The Chinese word «weiji» means crisis - and contains the characters for danger (wei) as well as opportunity (ji). Being at the epicentre of the worst financial crisis since the 1930’s – we are as-king ourselves: «Where are the opportunities?», and «Which asset class will prove to be the best performer over the coming decade?». Although we have all learnt humility from the current situation, Africa and its abundance of resources remains our answer to this question – without a doubt! Its isolation from the financial ts-unami, the 6 % growth projected for 2009 and the Obama triumph coupled with the resurgence of the secular bull market in commodities, all contribute to Africa being our primary choice of future investment. With USD 50bn worth of mining projects at risk worldwide, the threat of declining future production of all commo-dities across the board is creating the route of the next Bull Run. The world needs resources, energy, food and rock solid investment alternatives to fiat currencies. Africa, emerging from many decades of its own problems can provide all of this.

Globally, saving or inflation can reduce debt. There is no doubt that govern-ments and central banks will chose the latter option, but how will Asian and GCC countries preserve the PPP of their huge dollar holdings?

Mauritius – the rainbow island - is the entrance door to East Africa and a prime location for business.

Supporting our view that the Mauritian economy is in relatively good shape to weather the global financial storm, has been the country’s performance in the World Bank’s 2009 «doing business» rankings. Mauritius ranks top in sub-Saharan Africa and 24th in the world, up from 29th the previous year. Starting a business, for which the country is rated 7th in the world, up from 8th in the world last year, remains its biggest strength. In Transparency International’s 2008 Corruptions Perceptions Index, Mauritius made significant gains, to become the second least corrupt nation in sub-Saharan Africa, after Botswana.

We hope that the world will emerge from its current crisis as Mauritius emer-ged stronger from each of its own economic slumps! Courage, solidarity, optimism and innovation remain the key to success whether in Mauritius or elsewhere in the world.

Bernard LoriolFounder of Best Asset Class (BAC), Switzerland

MAURITIUS

INDIAN OCEAN

MAURITIUS

Port Louis

Quatre Bornes

CurepipeMare aux Vacoas

Le MorneInternational Airport

Ile aux Cerfs

CHRONOLOGY1968, March 12 Independence

1993, March 1 The republic is proclaimed. Cassam Uteem is elected president

2001 Principle of the rotating presidency adopted by the SocialistMilitating Movement (MSM) of Anerood Jugnauth andthe Mauritian Militant Movement (MMM) of Paul Bérenger

2003, October 7 Anerood Jugnauth becomes president, with Paul Bérenger as Prime Minister

2005, July 3 The Mauritian Labour party (PTr) wins the elections and Navin Ramgoolam becomes a Prime Minister

KEY FEATURES

GDP (in billion $)

An. average growth rate of GDP (in %)

Inflation 8,9%

Foreign Direct Investment (FDI)$105 million

Exports $2263 million

Imports $3329 million

Major resourcesTextile industry, agro-industry (sugar), finances, information technologies

Area 2040 km2

Population 1,25 mio inhab.

Demogra. growth 0,82%

Pop. density 616 inhab./km2

Urban population 42,4%

Life expectancy 73 years

Literacy tuition 84,3%

Human Development Index IDH: 0,804 – Rank: 65/177

LanguagesEnglish (official), Creole, French, Hindi

Ethnic groupsIndians (Vaish), Creoles

ReligionsHindouist, Christians, Islamic

CurrencyMauritian Roupee

Parity as of January 1, 20081$ = 27,48 mauritian roupees / 1€ = 40,39 mauritian roupees

GDP per capita $5430

GDP breakdown Agriculture 5,3%; Manufacturing 27,3%; Services 67,4% Source : Jeune Afrique

Africa’s decade in China century

A Quarterly Preview of Africa’s Renaissance Through its Natural Resources Over the Coming Decade

Edition 48, 4th Quarter 2008

2004 2005 2006 2007

4.7 4.6 3.5 4.7

2004 2005 2006 2007

6 6.3 6.4 7

Based in Dubai, United Arab Emirates, the Gulf Research Center (GRC) began its activity in the year 2000 as an in-dependent, privately funded and non-partisan think tank, specializing in the Gulf region.

One of the main objectives of GRC is to produce recognized research from a Gulf perspective, thereby re-dressing the current imbalance in Gulf area studies, where local opinion and interests are under-represented.

The driving force behind GRC is the achievement of excellence in four core areas of activity: social science re-search, education, media and consultancy services. GRC is a pioneering interdisciplinary organization that aims to provide knowledge for all, using a variety of mediums to overcome traditional barriers.

As a non-profit research organization, GRC’s busi-ness model is unique in that it relies on its virtual com-munity to generate revenue required to produce research and education solutions. The model is a self-perpetuating cycle that ensures the Center’s independence and ability to respond to the needs of the community.

per capita income was US$ 572 in 2007. The island nation has developed from a low-income, agriculture-based economy to a middle-income diversified economy with growing industrial, financial, and tou-rist sectors. For most of the period, annual growth has ranged between 5 to 6 per cent.

This significant achievement has been reflected in more equitable income distri-bution, increased life expectancy, lowered infant mortality, and a much-improved in-frastructure. Such strong foundations exp-lain the political stability of the country and the significant foreign interest in its econo-my. Furthermore, as a regional and political actor, Mauritius is especially interesting for investors as it is a member of various trade blocs including the Common Market for Eastern and Southern Africa (COMESA) and the South African Development Com-munity (SADC). The middle and upper class population of these two regions con-stitute over 200 million people. There is, therefore, tremendous potential for exports and setting up businesses.

Mauritius: The Gateway to AfricaSince 2005 the government’s decision to embark on an active policy of turning Mau-ritius into a suitable business hub, has grab-bed the attention of international investors much the same as the rest of the continent. Indeed, in the race for economic growth, countries like China and India have turned to Africa and Mauritius for new oppor-tunities. For example, following the first Sino-African summit of November 2006, the Chinese authorities chose Mauritius to host one of the five economic and coopera-tion zones in Africa.

This vast and ambitious Chinese Tianli project costs around US$ 700 million and is expected to generate close to 34,000 jobs. It will include an industrial zone, a logistic zone, a business hotel, an international con-vention and exhibition centre, office space and health care, as well as educational and residential facilities. In a nutshell, a com-plete new city will rise where once only su-garcane fields were located. This zone will also constitute a new platform for Chinese – African business opportunities as some Chinese companies are already conside-ring opening offices in Mauritius to further economic activities with the neighbouring island of Madagascar.

India is also looking at Mauritius to be part of a trilateral cooperation between India, the island and the rest of Africa. Due to strong cultural and historical ties,

India considers Mauritius to be a safe and good first step into Africa as well as a hardy bridge to the rest of the continent especially because of its membership in COMESA and SADC.

A Difficult Act to Balance At the same time, this positive assessment of Mauritius’s effort to diversify its economy must be tempered with a mention of the new and serious challenges that the country faces. Cheap labour, the country’s only major comparative advantage, is rapidly eroding in the face of competition from countries such as China, Bangladesh and Sri Lanka; the dismantling of the international Multi-Fiber Arrangement with its accompanying loss of protected markets and guaranteed prices has affected the important textile industry; and the European Union sugar regime has led to a major cut in prices paid for Mauritian sugar. These difficulties have caused ballooning budget deficits as well as a rising level of unemployment that has now reached double-digit figures, while ensuing greater levels of poverty. The cur-rent financial crisis is certainly expected to exacerbate some of these issues especially in the tourism sector which employs around 20 per cent of the labour force.

All the same, Mauritius remains a ro-bust and reliable country that could emerge as a new investment hub. Although it has different assets to put on the table, it has been successful in gathering a lot of interest by putting itself forward as the new gate-way to mainland Africa.

Written by Marie BosGulf Research Center, Dubai

Mauritius:

The Gateway to Africa

Although the current financial turmoil has slowed down the race for primary commo-dities and has had an impact on energy de-mand and economic growth, Africa remains the focus of much international attention. In this context, given its strategic location and its position as an important regional economic player, the island of Mauritius constitutes a particularly ideal gateway to a continent which, even today, remains unk-nown to many.

The interest in Mauritius among inter-national powers such as India and China is already far greater than in the rest of Africa given the island’s sound business environ-ment and, more importantly, its strategic location. In this sense, cooperation with Mauritius is sought after for different rea-sons than with the rest of Africa as the is-land does not possess any natural resources or a large labour force. Nevertheless, the focus on Mauritius is a reflection of a more general trend and constitutes a window to the likely future relationship between Africa, China and India.

Mauritius: A Stable Country with a Strong Economy Mauritius obtained independence in 1968, and the country became a republic within the Commonwealth in 1992. It has been a stable democracy with regular free elections and a positive human rights record. It is one of the few African countries to hold elec-tions every five years, with peaceful transi-tions of government.

In less than two decades, Mauritius has transformed itself into a middle-income country (on a worldwide scale) with a per capita income of approximately US$ 6,000 in 2007. In comparison, Africa’s average

FOCUS ON Africa is BAC | Edition 48 | 4th Quarter 2008

ethnic and cultural differences run deep. But Mr Ramgoolam says the island has avoided the «poison of communal divisions». The fact that Mauritians were all immigrants also helps; some were colonials, many were indentured labourers. «All of us came on different ships from different continents,» says the prime minister. «Now we’re all on the same boat.»

Written by Port Louis The Economist © The Economist Newspaper Limited, London October 16th 2008.

An isolated island continues to reinvent itself and confound the sceptics

Beyond beaches and palm trees

MEDIA PARTNER CORNER Africa is BAC | Edition 48 | 4th Quarter 2008

more foreign money has been invested in Mauritius in the past three years than in the previous two decades. Long a gateway for investment into Asia, Mauritius now pro-motes itself as a stable jumping-board for investment into Africa. The government has persuaded China to select Mauritius as one of the five African destinations – and the only one with no oil or minerals on offer – where special investment zo-nes will be set up. The Chinese will spend about $700m to build offices and facto-ries north of the capital, Port Louis, for their companies keen to export to Africa.

Not everything is positive. Mauriti-us imports most of its food and energy, so rising world prices are pushing up inflation. Much of the economy remains concentrated in the hands of a few local conglomerates, often owned by descendants of French sett-lers who made their original fortunes out of sugar. The government has promised to spread the benefits of a growing economy more widely, but the so-called «sugar barons» still wield much influence. The imminent creation of a competition commission, together with the development of new in-dustries, may help loosen their grip.

A recession in rich countries will hit the country’s tourism and exports. But Mau-ritius has weathered previous storms. Its prime minister, Navinchandra Ramgoolam, says its success has depended on regular changes of government at the ballot box. An independent judiciary helps, as does the fact that the three main parties all agree on the broad direction of policy. The island’s people are a mix of Indian, Eu-ropean, African and Chinese. Religious,

The Economist is an English-language weekly news andinternational affairs publication owned by The Economist Newspaper Ltd and edited in London. Continuous publi-cation began under founder James Wilson in September 1843. While The Economist calls itself a «newspaper», each issue appears on glossy paper, like a newsmagazi-ne. In 2007, it reported an average circulation of just over 1.3 million copies per issue, about half of which are sold in North America. The Economist claims it «is not a chronicle of econo-mics.» Rather, it aims «to take part in a severe contest between intelligence, which presses forward, and an unworthy, timid ignorance obstructing our progress.» It practices advocacy journalism in taking an editorial stance based on free trade and globalisation. It targets educated readers and boasts an audience containing many influential executives and policy-makers. The publication belongs to The Economist Group, half of which is owned by the Financial Times, a subsidiary of Pearson PLC. A group of independent shareholders, including many members of the staff and the Rothschild banking family of England, owns the rest. A board of trus-tees formally appoints the editor, who cannot be removed without their permission. In addition, about two-thirds of the seventy-five staff journalists are based in London, de-spite the global emphasis.

The 1.3m people of Mauritius love to pro-ve famous people wrong. On independence from Britain in 1968, pundits such as a No-bel prize-winning economist, James Mea-de, and a novelist, V.S. Naipaul, did not give much of a chance to this tiny, isolated Indi-an Ocean Island 1,800km (1,100 miles) off the coast of east Africa. Its people depended on a sugar economy and enjoyed a GDP per person of only $200. Yet the island now bo-asts a GDP per person of $7,000, and very few of its people live in absolute poverty. It once again ranks first in the latest annual Mo Ibrahim index, which measures gover-nance in Africa. And it bagged 24th spot in the World Bank’s global ranking for ease of doing business – the only African coun-try in the top 30, ahead of countries such as Germany and France. How does it pull it off?

The country has come a long way from relying exclusively on sugar cane. It has become a popular destination for tourists craving sun, palm trees and good service, with more than 100 hotels, up from a single decent one at independence. Since then it has built a textile industry on the back of preferential market access. Although there were plenty of sceptics when it tried to be-come an offshore financial centre, the island now hosts 19 banks, including foreign hea-vyweights such as HSBC; and the intro-duction of Islamic banking has brought pe-tro-dollars from the Gulf. Thanks to some helpful double-taxation treaties, Mauritius became a low-tax gateway for investment into other countries, especially India.

That rosy outlook might have darkened in 2005 with the end of the Multi-Fibre Arrangement that had restricted Chine-se textile exports. As Mauritian factories closed, about 30,000 jobs were lost. Europe also started dismantling the sugar preferen-ces it granted to its former colonies, which used to guarantee above-market prices. Lo-cal farmers were squeezed.

Instead of moaning, Mauritius’s government moved swiftly to embrace global competition. It simplified and cut taxes, slashed red tape and lowered or drop-ped tariffs. The government tightened its purse-strings. Last month it brought in a new labour law, making it easier to hire and fire. The authorities and the private sector, working hand-in-hand for years, promote Mauritius as a business destination.

This has paid off. Unemployment is down, from 9.6% in 2005 to 7.6%. So is the budget deficit. Raju Jadoo, the dynamic head of the Board of Investment, says that

STOCK PICKING Africa is BAC | Edition 48 | 4th Quarter 2008

State Bank of Mauritius Study provided by Associate Brokers Ltd - Mauritius

• SBM is a leading financial services provider and is listed on the Official Market. Market Capitalisation is around Rs 16 billion, representing nearly 16.6% of total overall market capitalisation. SBM is present in Mauritius, India and Madagascar.• SBMwonBankofTheYear,Mauritius,awardedby«TheBanker»for2001,2002and 2004 as well as the Euromoney Best Bank in Mauritius Award for 2004, 2005 and 2006.•Costtoincomeratiofor2008isaround42.2%(2007-41.5%).Wewishtooutlinethis is significantly below that of competitor MCB (45.8%). Moody’s has also rated SBM as the highest among Mauritian peer banks. • Groupprofitaftertaxfortheyearended30June2008reachedRs2.1Billion.• EPS rose from Rs 5.03 to Rs 8.19 and management has attributed this to higher business volumes, exceptional dividends received (Mauritius Telecom) and effect of share buy back initiated. EPS excluding exceptional dividends comes to Rs 6.05.• Netprofitforthequarterended30Sept2008showeda22%increase(excludingdivi- dend income). Capital adequacy ratio was also ahead of 20%.• ThecompoundedSBMannualisedgrowthrateinEPSovertheperiod2003-2007 stands at 17.6%. DPS over the same period registered a compounded growth of 20.7%.• Returnonaverageequityamountedto21.4%for2008,upfrom17.73%in2007.• AdividendofRs2.55persharewasdeclaredin2008.• SBMalsohasa19%holdinginMauritiusTelecomand20%holdinginSICOM.Inthe 2007 Budget, it was announced that these two companies could soon be listed on the Stock Exchange. We believe the listing could have a significant impact on SBM profits and Net Book Value.• TheGroupalsointendstoexpandintoIndiaandislookingforstrategicpartnershipsin the financial services sector.• SBMintendstogrowSegmentB(non-resident)activitiesandcrossborderfinancing over time. This is expected to diversify further its different sources of income.• TheGroupintendstoincreaseitslinesofbusinessanddiversifysourcesofincome.Both organic and non organic opportunities are being explored by the Board of Directors.

Valuation

Market Cap MRU (000)US$ (000)

16,401,972519,542

P.E Ratio 6.59E.P.S 8.19Dividend Yield 4.72

New Mauritius Hotels Ltd. Study provided by Associate Brokers Ltd - Mauritius

• InvestinginNewMauritiusHotelsLimited(NMHL)shareswillgivetheportfolio greater exposure to the tourism sector. The tourism sector performed very well during 2007. 2008 will however be one of slower growth. Jan-Oct tourist arrivals in 2008 rose by 4.4% compared to same period last year while October 2008 arrivals increased by 2.8% compared to last year. We believe this trend is encouraging given the slowdown in several economies.• Furthermore,NMHLisagrowing company and it released an impressive set of results for the year ended 30 Sept 2007. EPS rose by 75%. P/E ratio comes close to 5.4X, based on a price of Rs 66.50. The first 9 months results (2007/08) for NMH showed a 5.6% decrease in earnings. However, this has been achieved with an 8% increase in turnover, a sharp appreciating Rupee, closure of Ste Anne Resort as well as higher opera- ting costs. Future prospects (see below) are however very promising.• TheCEOhasindicatedthatreservationratesforNMHin2008aremuchbetterthan in 2007! NMH Management has forecast that EPS of Rs 11.29 for 2008. This gene- rates a forward P/E ratio of 5.9X, which is still very attractive. Dividend Yield is at 9%. • NMHisalsoembarkinginmanyambitiousprojectssuchasreconstructionofTrou- aux-Biches hotel, construction of luxury hotel in Seychelles and an integrated property development (including a hotel) in Marrakech, Morocco.• DuringJuly2008,NMHacquiredlandandsharesofapropertycompanyatLesSalines for Rs 1.6 billion. The intention is to start an integrated development comprising a 5-star hotel, a golf-course and 220 luxury villas. Management has also indicated that the intention is to make the villas in Marrakesh and Les Salines «pay» for the hotels. Generally, there will be focus on internal financing.• NMHhaslost nearly 68% since attaining high of Rs 206 during January 2008. The price is furthermore at a 12-month low. We consider the actual price weakness a strong buy given the track record of the Group, its strong balance sheet and projects. Given the good long term fundamentals of the Group, we consider it highly appropriate to incre- ase exposure to NMH. • Risks: Appreciation of Rupee, unexpected events (e.g. Chikungunya), unrest in Morocco/ Seychelles, slowdown in tourism arrivals, competition from USD based destinations, competition from other local hotels, greater leasehold costs payable, higher finance and operating costs. Note however that NMH recorded growth during Chikungunya outbreak and this may be a sign of good management.

Valuation

Market Cap MRU (000)US $ (000)

10,653,953337,470

P.E Ratio 5.41E.P.S 12.20Dividend Yield 9.09

105.0

94.2

83.4

72.6

61.8

51.0

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07

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2.20

08

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5.20

07

12.0

7.20

07

12.0

9.20

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12.1

1.20

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12m Share Price (in MRU)

206

177

148

119

90

61

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3.20

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12m Share Price (in MRU)

Ireland Blyth Limited Study provided by Associate Brokers Ltd - Mauritius

• Ireland Blyth’s (IBL) is one of the largest conglomerates in Mauritius with activities in a wide number of sectors. The main sectors include: consumer goods, durables, pharmaceuticals, fertilizers, engineering, financial services, fish storage and processing, logistics, insurance aviation and shipping.• During2006,BostonConsultingGroup(BCG)recommendedamediumtermplanto the IBL Board of Directors. Henceforth, there will be emphasis on growth businesses in the Retail, Financial Services and Seafood and Marine sectors. Non-core assets will be sold while non-core operations will be disposed. • IBLalsohasanumberofassociatecompanies,includingChantierNavaldel’Ocean Indien, Princes Tuna, Shoprite (Mauritius) and Sun Resorts Ltd (29.36%). IBL also has good exposure to the Sea Food sector via its subsidiaries Thon des Mascareignes, Froid des Mascareignes, Fish Meal Producers and through joint venture Mer des Mascareignes.• P/Eratioisaround6.3timeswhereastrailingdividendyieldstandscloseto4.1%. EPS for the half year ended 30 June 2008 more than doubled to reach Rs 5.27, compa- red to same period last year. Operating profit also more than doubled from Rs 195m to reach Rs 422m at end-June 2008. Net Assets per share stood at around Rs 51.32. Part of the improved results is attributable to the seafood activities while a portion relates to exceptional items such as sale of Highway Properties and exceptional profit on disposal by Sun Resorts.• ItshouldhoweverbehighlightedthatIBLishighlygeared.Thiswillpartlybeaddressed by particular measures announced below. During September 2008, IBL announced the following: - Intention of acquiring an additional 15.35% stake in Sun Resorts from CIEL Investment, - Dispose of its holdings in Manser Saxon, Scomat and DTOS.• IBLhasindicatedthatitintendstoconsolidateitspresenceinthehospitalitysectorvia the higher holding in Sun Resorts. Furthermore, disposal proceeds will be used to reduce existing gearing.• TheBoardofIBLalsoannouncedthatithadreceivedanofferfromCIDLforthe acquisition of its 49% holding in Mauritian Eagle Leasing (MEL). MEL is a subsidiary of Mauritian Eagle Insurance, which is itself a 60% subsidiary of IBL. This could potentially enable IBL to earn an exceptional profit. • CIDLhasalsoindicatedthatitwillacquireCIELInvestment’s16.05%stakeinIBLat a price of Rs 62.50/share. Given that the shares are presently trading at 29% below this level, we view IBL as a good medium term buying opportunity.• IBLsharepriceisfurthermorenow39% below its all-time high of Rs 73 attained during January 2008.

STOCK PICKING Africa is BAC | Edition 48 | 4th Quarter 2008

AFRICAN SAYINGS

«For being in the water, is the fish less freethan the bird in the air?» Cheikh Hamidou Kane

«For being in the water, is the fish less freethan the bird in the air?» Cheikh Hamidou Kane

Valuation

Market Cap MRU (000)US $ (000)

3,179,006100,697

P.E Ratio 7.04E.P.S 6.32Dividend Yield 3.71

73.00

66.36

59.72

53.08

46.44

39.80

12.0

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12m Share Price (in MRU)

The Stock Exchange of Mauritiusthe Central Depository System (CDS) in January 1997 has brought about prompt, efficient clearing and settlement of trades and at the same time reduced some of the inherent risks in the process. With the sup-port of the Bank of Mauritius which acts as clearing bank, CDS ensures delivery versus payment (DVP) on a T+3 rolling basis. The CDS also provides for a Guarantee Fund Mechanism to guarantee settlement failu-res of participants.

SEM‘s Automated Trading System (SEMATS) was launched on 29th June 2001. It constitutes a state-of-the-art elec-tronic trading system built on third gene-ration technology. SEMATS puts an end to traditional trading patterns which have typified the Stock Exchange of Mauritius since its inception. Trading in securities is conducted through dedicated trading work-stations located at intermediate dealers and linked by communication lines to the SEM trading engine.

Similarly, the trading of treasury bills on the market has been introduced by the SEM in December 2003, a first step of a process aimed at the setting up of an active secondary market for government instru-ments. New listing rules are underway in the setting up of an appropriate operational and regulatory framework to cater for the listing of offshore funds and international products.

The attainment of Membership sta-tus of the World Federation of Exchanges (WFE) in November 2005 also constituted an important milestone that has enabled the SEM to join the league of stock exchanges that are compliant with the stringent stan-dards and market principles established by the WFE. The latter is a central reference point and standards setter for exchanges and the securities industry in the world. Membership identifies the SEM as having assumed the commitment to prescribed business standards, recognized as such by users of exchanges, as well as by regulators and supervisory bodies.

SEM‘s most recent undertaking con-cerns the setting up of the Development & Enterprise Market (DEM), which is a mar-ket designed for Small and Medium-sized Enterprises (SME’s) and newly set-up companies which possess a sound business plan and demonstrate a good growth po-tential. It is meant for companies wishing to avail themselves of the advantages and

The Stock Exchange of Mauritius Ltd (SEM) was incorporated in Mauritius on March 30, 1989 under the Stock Exchange Act 1988, as a private limited company res-ponsible for the operation and promotion of an efficient and regulated securities market in Mauritius. Since October 6th, 2008, the SEM has become a public company, and over the years the Exchange has witnessed a significant overhaul of its operational, regulatory and technical framework to re-flect the ever-changing standards of the stock market environment worldwide.

SEM is today one of the leading Ex-changes in Africa and a member of the World Federation of Exchanges (WFE). The SEM operates two markets: the Of-ficial Market, the Development & Enter-prise Market (DEM). The Official Market started its operations in 1989 with five listed companies and a market capitalisation of nearly USD 92 million.

Currently, there are 40 companies listed on the Official Market representing a mar-ket capitalisation of nearly US$ 3,331.73 million as at 28 November 2008.

The DEM has been launched on 4 Au-gust 2006 and there are presently 50 com-panies listed on this market with a market capitalisation of nearly US$ 1,175.96 million as at 28 November 2008.

The stock market was opened to foreign investors following the lifting of exchange control in 1994. Foreign investors do not need approval to trade shares, unless investment is for the purpose of legal or management control of a Mauritian com-pany or for the holding of more than 15% in a sugar company.

Foreign investors benefit from nu-merous incentives such as revenue on sale of shares can be freely repatriated and divi-dends and capital gains are tax free.

Over the years, efforts have been be gea-red towards ensuring that the SEM remains at the forefront of institutional reform and development while offering quality services to its stakeholders and contributing to the deepening and broadening of the financial sector in Mauritius. Much of our focus has been geared towards updating the current operational and regulatory framework to reflect the ever-changing standards of the Stock Exchange environment worldwide and the requirements of the Securities Act 2005.

The successful implementation of

facilities provided by an organised and re-gulated market to raise capital to fund their future growth, improve liquidity in their shares, obtain an objective market valuati-on of their shares and enhance their overall corporate image. The DEM is also in line with Government‘s policy to foster the de-velopment of a dynamic business environ-ment in Mauritius and the emergence of a diversified financial services sector where companies can raise financial resources from a variety of sources and where investors can have access to a wider array of investment opportunities.

One of the key challenges of the Ex-change during the next few years will be to increase the range of products available to investors. In the wake of the bull phase du-ring the last three years on the local front as well as on the African continent, investors have been looking for investment opportu-nities in new stocks and/or in new products. We are hopeful that the launching of the DEM will somehow address some of the needs of investors.

The prevailing stellar performance of African stock markets is being driven by strong foreign investor interest, and such influx of foreign investors is being viewed as a statement of confidence for African bourses. In this light, we also intend to step up our efforts to place the Stock Exchange of Mauritius on the radar screen of insti-tutional investors who are keen on frontier emerging markets that are well regulated and adhere to international best practice.

The SEM has made some important strides in its development process since 1989 and looks well poised to undertake a number of reforms in order to contribute towards the enhancement of the operati-onal and regulatory efficiency of the local market. In the forthcoming years, the SEM aims at consolidating its position with a view to further contributing to the deve-lopment of the Mauritian economy and of capital market activities on the national and regional fronts.

Written by Associate Brokers Ltd - Mauritius

STOCK EXCHANGE Africa is BAC | Edition 48 | 4th Quarter 2008

Facts and Numbers

150 participants

60% Independent Asset Managers

15% Private Bankers

5% Private Investors/Family Offices

5% Brokers/Analysts

5% Pension Fund Managers

5% Fund Managers

4% Other Financial Institutions

1% Journalists

Key speeches of the 8th BAC Platinum Day

Active Niche Funds SA Dr. Pascal Rochat Managing Partner

Best Asset Class AG Mr. Bernard Loriol Managing Partner and Fund Advisor

Anooraq Resources Corp. Mr. Philip Kotze CEO

Braemore Resources Plc Mr. David Russell Executive Corporate Development

Nkwe Platinum Ltd Mr. Maredi W. Mphahlele

Mr. Shammy Luvengo

Managing Director

Exec GM: Business Development and Investor Relations

Platfields Ltd Mr. Bongani Mbindwane CEO

Ridge Mining Plc Mr. Francis Johnstone Commercial Director

After the StormIs the Storm behind us? What is the real current situation?What does the debt situation of the explorer’s look like?What are their cash reserves?How much cash is burnt to support their operations?When will the next round of capital raising take place and howmuch do they need? Will there be any project delays?Have there been any major changes in shareholder composition?

Visit our website to see the video of the panel discussionthat answers these questions and to download the speakerpresentations:

www.bacfund.ch/8thPlatinumDay.php

EVENTS REVIEW Africa is BAC | Edition 48 | 4th Quarter 2008

8TH BAC PLATINUM DAYThe conference dedicated to the platinum sector

EVENTS REVIEW Africa is BAC | Edition 48 | 4th Quarter 2008

Anooraq Resources Corporation is in the business of acquiring, exploring and developing prospective platinum group metals (PGM) properties. The Company has projects in the Bushveld Complex, a geological region that is internationally recognised for its PGM and chromotite deposits, located in South Africa.

Anooraq has a primary listing on the Toronto Venture Ex-change (TSXV), and secondary listings on the American Stock Exchange (AMEX) and the JSE Limited ( JSE).

Anooraq is in the process of acquiring 51% of the Lebowa operating mine (currently producing about 180 000 oz/annum in the 4E catagory) from Anglo Platinum, as well as an additional 1% additional interest in the Ga-Phasha, Boikgantsho and Kwan-

da PGM projects, which will give the company control over the projects as well. On completion of this transaction, Anooraq will be in control of the third biggest PGM resource in the world.

Anooraq is well poised for growth in a dynamic environment, as it has access to international and South African capital markets; sustainable BEE credentials and projects that are located in the world’s premier PGM region.

Anooraq Resources Corp. / Mr. Philip Kotze – Chief Executive Officer

Nkwe Platinum Ltd / Mr. Maredi Mphahlele – Managing Director Mr. Shammy Luvhengo – Exec GM: Business Development and Investor Relations

Nkwe Platinum Limited («Nkwe Platinum») ’s strategy is to add substantial shareholder value through the acquisition, explora-tion, development and commercialization of Platinum Group Elements (PGEs) and associated base metal projects in the Bus-hveld Complex of South Africa. Nkwe Platinum is an exciting emerging platinum company targeting to be 1 million PGE ounce producer at peak production, with over 30km of strike length and over 10 000 hectares of tenements. Nkwe Platinum is listed on the Australian Stock Exchange, under the code NKP. Currently Nkwe Platinum is busy conducting a feasibility study on its two main flagship projects, namely Garatau and Tubatse. The aim is to deliver a bankable feasibility study («BFS») on the two main

projects in the next 18 months, and the company is fully funded to achieve this. To achieve the company’s production target, Nkwe Platinum has concluded an option agreement with Xstrata that will see Nkwe fully funding its capital expenditure requirements and having access to technical expertise. The focus remains to de-liver the feasibility study within the next 18months. The aim of the company is to give investors exposure to the full value chain in the PGE industry by being in control the end products.

Braemore Resources / Mr. David Russell – Executive Corporate Development

Braemore Resources offers investors an attractive opportunity to enter into the PGMs and nickel business, initially through the mid-stream processing of these metals and, in time, through mine-to-market production opportunities. Braemore Resources is principally involved in evaluating, establishing and operating independent facilities for the roasting, smelting and refining of concentrates containing PGM and associated base metals and for the reclamation and processing of sulphide nickel tailings. Diver-sified both geographically and in terms of product, the company is located in two key mining regions – Braemore Nickel in Western Australia and Braemore Platinum in South Africa. Braemore’s ac-cess to proprietary technology, and in particular the Mintek Con-Roast technology, which has successfully operated at test plant level, makes the company well-positioned to become a significant

player in the burgeoning South African PGMs sector, offering a more cost-effective, environmentally friendly and accessible smel-ting option to a host of junior mining companies. Unlike con-ventional smelters, ConRoast is unaffected by the high-chrome content ores, which are increasingly being mined.

Braemore’s management team, in South Africa and Australia, brings with them impressive credentials in their respective sectors, combined with a board that is knowledgeable in metals proces-sing, financial and commodities markets.

Platfields Ltd / Mr. Bongani Mbindwane – Chief Executive Officer Mr. Joshua Hattingh – Operations Director

Platfields Limited, founded in 2002, is currently an unlisted South African precious metals exploration company, 37% black-owned, with two platinum group metals (PGM) exploration projects on the Eastern Limb of the Bushveld Complex in South Africa, the world’s largest repository of those metals, and one gold explorati-on project in the Transvaal Drakensberg gold field of Mpumalan-ga Province, South Africa. The company’s objective is to advance rapidly from its current status as an emerging precious metals explorer to become a deve-

loper and operator of precious metals mining operations, taking full advantage of the opportunities presented by South Africa’s new, enabling minerals legislation and the continued, sound long-term outlook for precious metals - PGMs and gold in particular.

8th BAC Platinum Day

The speaker’s company outlook

Facts and Numbers

90 participants

50% Independent Asset Managers

25% Private Bankers

10% Private Investors/Family Offices

10% Brokers/Analysts

4% Other Financial Institutions

1% Journalists

Key speeches of the 2nd BAC Indaba Natural Resources Day

Afren Plc Mr. Galib Virani

Mr. Andrew Dymond

Head of Acquisitions and Inv. Relations

Investor Relations

Gasol Plc Mr. Soumo Bose

Mr. Theo Oerlemans

CEO

Chairman

Keaton Energy Mr. Paul Miller CEO

Tharisa Minerals Mr. Jonathan Clark CEO

Transafrika Resources Ltd Mr. Roeland van Kerckhoven CEO

Chromex Mining Plc Mr. Phoevos Pouroulis CEO

What is the current situation for Platinum, Chrome, Gold, Diamonds, Coal, Oil and Gas in Africa?

Visit our website to see the video of the panel discussion that answers these questions and to download the speaker presentations:

http://www.bacfund.ch/2ndBACIndaba.php

EVENTS REVIEW Africa is BAC | Edition 48 | 4th Quarter 2008

Ridge Mining Plc / Mr. Francis Johnstone – Commercial Director

The development of Ridge Mining plc’s first project, the 50% ow-ned Blue Ridge Mine started in January 2007 and is due to start production of concentrate at the end of2008. Once up to full pro-duction in mid 2009, the mine will produce 125,000 4E ounces of platinum group metals per annum for an initial design life of 18 years. Following the acquisition of the neighbouring Millennium project total JORC mineral resources at the project stand at 9.2 million ounces 4E and Ridge are investigating the potential to

expand and extend production at the mine. Ridge Mining’s second project is the large open pit Sheba’s Ridge nickel/PGM project where a feasibility study was completed mid 2008.

2ND BAC INDABA NATURAL RESOURCES DAY

The conference dedicated to Africa and its Natural Resources

An Opportunityfor the Coming Decade

8th BAC Platinum Day

The speaker’s company outlook

2nd BAC Indaba Natural Recources Day

The speaker’s company outlook

EVENTS REVIEW Africa is BAC | Edition 48 | 4th Quarter 2008

Afren / Mr. Galib Virani – Head of Acquisitions and Investor Relations Mr. Andrew Dymond – Investor Relations

Afren plc was founded in 2004 with the vision to become the premier pan-African independent exploration and production Company, through a differentiated strategy based on a strong African representation in the Board and management, partne-ring with indigenous companies, partnering with National Oil Companies and Governments as well as finding a solution to the vast untapped gas resources in the Gulf of Guinea. Since the Company’s listing on the AIM market in 2005, Afren has rapidly

expanded its portfolio to 15 assets (producing, development and exploration) across 6 African countries. The Company is listed on London Stock Exchange (symbol AFR).

Gasol Plc / Mr. Soumo Bose – Chief Executive Officer Mr. Theo Oerlemans – Chairman

Gasol (AIM: GAS) aims to become the premier Africa-focused gas independent; initially the Company is focusing on the mone-tization of stranded gas by its aggregation and liquefaction and shipment to high-value markets world-wide.Gasol works in partnership with governments, energy majors, uti-lities and independents in Africa, the USA and Europe. The board of Gasol, chaired by Theo Oerlemans, has substantial experience and relationships in oil and gas, particularly in Afri-ca; Dr Rilwanu Lukman (former OPEC President and Secretary

General, who is currently Honorary Advisor to the President of Nigeria on Energy and Strategic Matters) is Strategic Advisor to the Board.

Company‘s website: www.gasolplc.com

Keaton Energy / Mr. Paul Miller – Chief Executive Officer

Keaton Energy Holdings Limited is a new South African (SA) coal explorer, developer and producer, created in response to both the increased demand for coal and the changed SA mineral rights dispensation. Although international coal prices have decreased significantly in the last 3 months, they are still well above long-term averages. SA‘s own energy challenges have seen increased domestic demand for coal resulting in a reasonably positive ou-look for domestic coal producers. Keaton Energy was established by Rutendo Mining and the Eland Platinum founders in 2006. It

has brought its Klip Colliery into production and is aggressively pursuing its larger Delmas Project, which is scheduled to come into production in 2009. Importantly, Keaton Energy has suffici-ent funds to develop its Delmas Project, having raised a total of R412 million prior to listing on the JSE in April 2008.

Tharisa Minerals / Mr. Jonathan Clark – Chief Executive Officer

Tharisa Limited is an independent mining company focused on the development of mining rights it has over a large platinum group metals (PGMs) and chrome deposit on the western limb of the Bushveld Complex of South Africa. The company’s recently completed a feasibility study discloses reserves of ~73Mt – an open pit mine for the first 14 years – and a resource of in excess of 900Mt. Tharisa estimates that it will produce up to 200,000

PGM ounces per annum (6E) together with 2Mt of chrome con-centrate. The team behind Tharisa intends to replicate its success with Eland Platinum (sold to Xstrata in 2007 for ~US$1billion).

TransAfrika Resources (TransAfrika) was founded in 2006 as a gold exploration, development and mining company, focused on Africa. The company has subsequently become a multi-commo-dity exploration, development and mining company, owing to its success in securing permits to explore for commodities in addi-tion to gold. TransAfrika remains focused on Africa, prioritising those countries with stable or stabilizing political and economic environments, a history of mining activity, and clear mineral rights laws. Exploration permit areas have been acquired in highly prospective gold areas of Zimbabwe, Mali, Mauritania, Rwanda,

Democratic Republic of Congo (DRC), and Senegal. The company will develop and mine precious and base metals prospects that meet or exceed its internal hurdle rates, and will extract the best possible value from all other commodities it discovers by the most appropriate means at the time.

Transafrika Resources Ltd / Mr. Roeland van Kerckhoven – Chief Executive Officer

Name of the Fund 1 month ydt 1 year 2 years 3 years Fund size Domicile Launch date Management company

Africa Opportunity Fund -28.45 -61.29 -61.46 47.94 Cayman Islands 25.07.2011 Africa Opportunity Partners Limited

Albion African Fund 0 10.19 Liechtenstein 25.07.2012 Independent Fund Management AG

BAC Mining Regions Managed Vol South Africa (CHF) -5.09 -81 -79.79 -65.22 -40.87 56.55 Switzerland 02.10.2008 CACEIS Fastnet (Suisse) SA

BAC Africa Natural Resources Fund N/A N/A Luxembourg 02.04.2012 Corner Banca SA

DWS Invest Africa LC -6.15 1.93 Luxembourg 12.07.2012 DWS Investment SA

EasyETF FTSE South Africa EUR 1.47 23.01 France 12.07.2012 BNP Paribas Asset Management SAS

EMIF South Africa B Cap (Load) ZAR 1.03 -43.50 -45.69 -31.21 -15.04 8.23 Luxembourg 02.12.2004 Sinopia Asset Management SA

Imara African Opportunities -8.89 -46.47 -46.01 -18.30 6.85 155 British Virgin Isl. 01.07.2009 Imara Asset Management

Imara Nigeria -9.45 -32.54 -31.21 9.2 British Virgin Isl. 31.03.2011 Imara Asset Management

Imara Zimbabwe 0 -44.24 -40.39 15 British Virgin Isl. 31.03.2011 Imara Asset Management

Investec Africa A Acc Gross -15.10 -45.90 -44.09 32.4 Guernsey 01.02.2011 Investec Asset Management Guernsey Ltd

Investec GSF Africa & Middle East A Acc Gross USD -11.88 7.78 Luxembourg 14.10.2012 Investec Asset Management Ltd

Investec Pan Africa A Acc Gross -14.45 -46.13 -44.17 -12.97 87.82 Guernsey 18.02.2010 Investec Asset Management Guernsey Ltd

JPM Africa Equity A Acc USD -5.59 1.02 Luxembourg 09.07.2012 JPMorgan Asset Management (Europe) Sarl

Julius Baer African Equity Fund (JPY) C 2.26 5.95 Luxembourg 01.10.2012 Julius Baer (Luxembourg) SA

Lyxor ETF Pan Africa A 0.72 23.26 France 23.09.2012 Lyxor International Asset Management SA

Lyxor ETF South Africa (FTSE JSE Top 40) (GBP) 5.06 2.6 France 31.08.2011 Lyxor International Asset Management SA

Lyxor ETF South Africa (FTSE JSE Top 40) A 4.59 -49.30 -49.51 38.52 France 06.06.2011 Lyxor International Asset Management SA

Market Access FTSE/JSE Africa Top 40 Index Fund 0 -48.58 -51.51 7.98 Luxembourg 18.07.2011 ABN AMRO Bank NV (London)

New Star Heart of Africa Acc -9.76 -40.36 -39.91 90.24 UK 10.11.2011 New Star Investment Funds Limited

Orbis Africa Equity ZAR -2.31 -44.60 -47.27 -29.52 -3.37 139.69 Bermuda 02.07.2002 Orbis Investment Management Ltd

Renaissance Africa 1 0 -24.52 -21.07 104.05 Cayman Islands 01.11.2011 Renaissance Capital Investment Management Ltd

RMB MM Africa ex South Africa -7.98 -37.11 -34.77 0.78 Luxembourg 06.09.2011 RMB Multimanager SICAV

Santander Seleccion Africa, FI -8.06 0.73 Spain 12.04.2012 Santander Asset Management

SSgA Emerging Middle East & Africa Index Eq P -0.85 -47.56 -48.29 -31.66 -17.79 7.29 France 29.11.2004 State Street Global Advisors France SA

SWEDBANK ROBUR Africa Equity EUR -9.96 -61.86 0.01 Luxembourg 06.12.2011 Swedbank Robur Kapitalforvaltning AB

UBS (CH) Equity Fund - South Africa -0.32 -45.80 -47.86 -31.09 -15.42 41.01 Switzerland 05.03.1952 UBS Fund Management (Switzerland) AG

VP Bank Aktienfonds Top 50 Afrika B -1.13 0.9 Liechtenstein 01.08.2012 IFOS Internationale Fonds Service AG

Wallberg African All Stars P 2.48 0.23 Luxembourg 26.06.2012 Wallberg Invest SA

Source: Lipper, USD, Data as of 28/11/2008, Primary Funds only, Geofocus Africa and South Africa

EVENTS REVIEW Africa is BAC | Edition 48 | 4th Quarter 2008

Chromex Mining plc (AIM: CHX) is an AIM quoted dedica-ted chrome company established to acquire, control and develop chromite mining and processing facilities. It currently has two key mining assets located on the Bushveld Complex in South Africa, which between them have total resources of approximately 41 million tonnes of chromite. Mecklenburg – Eastern Limb9.6Mt underground resource with a bankable feasibility study completed in March 2007, the mining right for Mecklenburg was awarded in June 2008. Development of this project is scheduled to commence in Q2 2009.Stellite Project – Western LimbApprox. 31Mt opencast and underground resource with an exis-

ting New Order Mining RightStellite is currently in production producing a Run of Mine chrome ore which is being crushed and screened. A spiral beneficiation plant has been designed and is anticipated to be commissioned in Q2 2009.Chromex is focused on generating early cash flows and growing its current resource base with near production projects.

Chromex Mining Plc / Mr. Phoevos Pouroulis – Commercial Director

2nd BAC Indaba Natural Recources Day

The speaker’s company outlook

FUND RANKING

BAC PARTNERS Africa is BAC | Edition 48 | 4th Quarter 2008

COMING EVENT

BAC BEST ASSET CLASSFounded in 2004 by Bernard Loriol and Csaba Viràg in Switzerland, Best Asset Class (BAC) is a pioneer in the crea-tion of niche investment funds that recognize the tremendous growth potential of African companies involved in mining and natural resources, including energy. Our commitment to Af-rica has resulted in deep experience in these sectors, including an active role in the strategic development and promotion of mining as well as other projects. As Afro-optimists, BAC believes that Africa represents the highest potential for growth worldwide. Our quarterly review, Africa is BAC, places the spotlight on a different country in

Organiser Platinum Sponsor Partners

Associate Brokers Ltd - Mauritius(Partner in this edition)The company which was incorporated on 22nd May 1989, to carry out Stock broking activities on the newly created Port Louis Stock Exchange (start up of operations 5th July 1989) is one of the lea-ding Stock broking firms in the local capital market. ABL has in the past been involved in many assignments as Financial Advisor and Sponsoring Stockbroker in Public Offerings, Rights Issues and Private Placement of Shares of various Companies where it has gained relevant experience. ABL, a private company, is a subsidiary of The Mauritius Union Assurance Company Limi-

each new edition in order to showcase the extensive opportunities available across the Continent. With our partners, BAC also hosts conferences and events to raise awareness around investing in Af-rica. BAC is currently the only Swiss financial company to offer a fund invested solely in platinum equities, BAC Mining Fund and on the solar industry, BAC Solar Fund as well as in Africa’s natural resources, BAC Africa Natural Resources Fund.

ted, one of the top insurers (life and general) in Mauritius whose shares are regularly quoted on the Stock Exchange of Mauritius. ABL employs well qualified staff members who are conversant with all issues concerning the floatation of various types of capital market instruments. A qualified, multi-disciplinary Board of Di-rectors guides this team. The Board members hold key positions in various private and public sector organisations.

ImpressumBAC Newsletter | Edition 48, 4th Quarter 2008Subscriptions: info@bacfund.chPublished by: BAC Best Asset Class,

Schönegg 3, 6300 Zug, Switzerland Phone: +41 848 48 00 00

Editor: Patrick Gallati, gallati@bacfund.chDesign: Christian Forrer, forrer@c-forrer.chPrinting: Maus Druck & Medien, Konstanz

DisclaimerThis document is not a prospectus and investors should not subscribe for or purchase any securities referred to in this publication, except on the basis of a prospectus to be pu-blished by the issuer in due course. This document is deli-vered to you personally in your capacity as qualified investor within the meaning of article 10 of the Swiss Act on Collective Investments («Qualified Investor») and may not be passed on to any third person. You hereby represent that you fall, or the entity on behalf of which you are acting falls, within the definition of Qualified Investor. This document is not for pu-blication or distribution to persons in the United States. No offer to sell or invitation to acquire securities is being made by

or in connection with this document and this document does not constitute an offer of securities for sale in the United States. Any such offer, if any, will be made solely by means of the prospectus and any acquisition of securities should be made solely on the basis of the information contained in such document and any supplements thereto. The securities refer-red to in this announcement may not be offered or sold in the United States absent registration or an exemption from regi- stration; the securities described in this announcement have not been and will not be registered in the United States and are being offered only to Qualified Investors as described above.

The Gulf Africa Strategy EventAs part of the overall expansion of the Gulf-Africa Research Pro-gram at the Gulf Research Center (GRC), the Center is organi-zing a high-level conference in Cape Town, South Africa entitled «The Gulf and Africa: Developing a new Strategic Partnership.» The Gulf-Africa Strategy Forum 2009 aims to cement the Gulf-Africa relationship by offering an in-depth assessment of the status of ties and a clear outlook to where the relationship could be heading.The Gulf-Africa Strategy Forum will become an annual GRC

conference event which will bring together the key leaders and personalities from business, academia, government and media to outline the main issues and challenges facing more constructive relations between the key regions of Africa and the Gulf. The main purpose of this event will be to propose a set of policy recommendations that can ensure that the opportunities in closer Africa-Gulf ties are highlighted and adequately responded to. Of equal importance is to identify trends and future prospects to ma-ximize benefits and advantages of such relation.

February 24th – 25th, 2009, International Convention Centre – Cape Town – South Africa, www.grcevent.net/gulfafrica