Chamber of Commerce Registration No. 27371119 The Netherlands Office Rwanda: The OfficeRW, Kigali. P.O.Box 5748. Rue de Masaka / Kiyovu / Nyarugenge Page 1

Rwanda Chamber Foundation Office Hazenboslaan 65, 2343SX, Oegstgeest, The Netherlands Phone +31(0)629075200 and Rwanda +250(0)784997683 Mail f.castelein@planet.nl ; chris.van.der.plasse@planet.nl Website www.rwandachamber.org

Folkert Castelein, VP Rwanda Chamber Foundation June 01, 2014

Chris van der Plasse, strategy RCF

To

Potential co-investors in the Erasmus Investment International program in Rwanda Concerns: Green Business Hub Rwanda Holding Company (GBHR) Three levels, A, B, C of co-investments opportunities at max. 30% of the total equity. GBHR keeps always at least 67% of the shares. RCF is preparing the final proposal for an investment program in Rwanda, financed by Erasmus Investment International and their financing platform. Over the last two years we have selected feasible, doable and manageable projects and our proposition is now US$ 2.5 Billion. We also selected over 25 committed foreign companies to realize the program with us. Our EPC-m is Witteveen + Bos (http://www.witteveenbos.com ). Erasmus Investment International (EII) works for a platform of international (country) Banks. A reference of a program financed through this channel is Macedonia, € 1.5 B . http://www.foodhubmacedonia.com/erasmus-investment-macedonia-new-company-responsable-for-development-of-food-hub ) . For execution 52 companies are contracted. Starting now. Rwanda Chamber Foundation as the representative of EII in Rwanda, is preparing a major investment in Rwanda, making a difference for the country by investing in the private sector and creating jobs. The Erasmus group (www.erasmus-group.com ) can invest in renewable and sustainable (non-)profit projects, important for economic growth and humanitarian importance. The money goes to the local private sector in feasible and do-able business cases. The (new) local companies should be able to make a good profit and to grow. The investment must create jobs and indirect incomes. The initial investment money will be spend within three years in the selected projects / companies. Financial engineering through trading & quantitative easing: A- investor In investment programs, we have three levels of co-investors. At the highest level, the A investor, makes it possible to start a Trade. Mostly Western European and Asian investors use this system that started just after the second World War at Bretton Woods. The system generates cash for Infrastructure projects by very specialized, discreetly operated Trade Programs. The system starts with a Trader and a Client (the Money) partnering under a contract. This allows the Trader to “show” the Client’s money so he

Chamber of Commerce Registration No. 27371119 The Netherlands Office Rwanda: The OfficeRW, Kigali. P.O.Box 5748. Rue de Masaka / Kiyovu / Nyarugenge Page 2

legally can buy newly issued bank paper. The advantage of the system is that the client’s money is never touched, because the only way the Trader will buy new paper is if he has a second buyer ready to take it from him immediately at a higher price. A trader is regulated about the kind of investments he can make. He cannot buy an instrument without demonstrated marketability and he is restricted from buying “Wholesale”. The trader for Erasmus Group Projects is only supplying money for sustainable projects that assist business expansion and development of commercial, humanitarian, charitable and (non-)profit projects. When you are an A-investor and when you are willing to reserve a cash amount money for the period of one year and 30 days on your (AAA) bank account as initial investment into our project, than we have an interesting proposition! There will be no physical transfer of your money to another account and nobody can touch it besides yourself. In return for you’ re investment, the assignment of your money to our project, we will guarantee you a 100% profit. You can also choose to use part of your profit to invest in the project and receive a 20% share, becoming a B-investor as well, or you can take your 100% profit. Based on this we are interested in collaboration with you to investigate the total financial support that is needed to realize the compete project portfolio with a total value of approximately 125 million euro. The company that assigns the cash money has to proof its ethical and moral standards and that the money comes from a traceable and legal source. The Banking platform will do a Due Dilligens. The final decision, financing the total program is based on a SWOT analysis, in this case Rwanda, feasible projects within the requirements, contracted EPC and suppliers, and co-investor(s) for the total program, the B-investor(s). Find more information on the website www.erasmus-group.com The international banking platform leverages the money of this buy-sell program by quantitative easing. In the case of Rwanda the total proposition and the costs of executing will be about USD 2.7 billion. EII need to keep assets on the balance sheet (at least 75% of the total investment) as value for the funding. In Rwanda we will have 80% of the investment as assets on the balance sheet for 25 years. There is no exit strategy before 25 years. (It is not a loan, the money stays in the country. In that sense, the Capex is like a gift under specific conditions. After 25 years we sell all investments for $ 1). Projects that will be financed by the Erasmus Group has to be approved by the investment committee. There has to be an agreement with all parties and the EPC contractor has to approve that he is ready, willing and able to realize the project. A Single Purpose Vehicle (SPV) is established to administer the project and directors from the major parties are appointed. A set of specific bylaws are created to control the operation of the company

Chamber of Commerce Registration No. 27371119 The Netherlands Office Rwanda: The OfficeRW, Kigali. P.O.Box 5748. Rue de Masaka / Kiyovu / Nyarugenge Page 3

and to protect all the parties. Bank accounts are opened under the auspices of the bank and in line with the Company Bylaws. After that a short verification phase initiated where the final approvals are gained, during this phase the SPV trading account will be populated with the required funds to complete the transaction, this will be visible to all the parties. Work commences and is progressed in line with the EPC contractual terms and conditions. All works are completed, commissioned and handed over to Erasmus Investment International S.A. Erasmus Investment International SA will create the local legal entity Green Business Hub Rwanda Holding Company (GBHR). At that level, B (co-) investors can step in B- investor Regarding co-investors at B level, they can get a on the face of it, Euro 750,000 for a 10% share (of what will be an over $ 1.5 bn program in assets). Or for Euro 375,000 it is 5% share. Why is the leverage so high? That is the case for some reasons:

1. If the B-investor steps in before the trade & financial engineering process has ended, he earns the leverage. We as EIR use that money to start the FEED phase (Front End Engineering Development), not losing time for our suppliers & partners. There is always a small risk that there are delays or other problems during the funding process. The B-investor might lose part of his money (€ 5000 and interest) because the financing is still not guaranteed.

2. If the program ends up with over $ 2B investment in Rwanda, there will be at least $ 1.5 B

assets on the balance sheet at Holding level. The remaining part of the total investment is used for execution the program, non-profit expenses, and paying back pre-investments done by the parties involved in preparation the program. The returns in dividend are based on a ROI for assets, at least $ 1.5 Billion.

3. We are not after maximizing the profit. Green Business Hub Rwanda uses dividend partly for

re-investments in the projects / companies, for project costs and the humanitarian non-profit side program, also in several business units under the Green Business Hub Rwanda Holding. Dividend from the 67% shares of GBHR stays in the country.

Suppose at Holding level, we maximize the ROI for the B-level co-investor at net 5%. The 5% from a normal Bank for the original € 750.000 is = € 37,500 / year. But if you have 10% of the shares in the Holding: The 5% of $1.5 B = $ 75 M. 70% is for EII, $ 52,500,000. That will be used for project costs and financing the humanitarian side program, year after year. With B investor’s 10% it is 1/3 of $ 22,500,000 = $ 7.500.000 before dividend tax (in Rwanda max. 15%). A very good ROI indeed. But the first one or two years there is no 5% net dividend.

4. You get 10 % of the shares in the Holding but shares will have and keep a nominal value. You

cannot make a profit with the shares. If you decide to sell you shares after some time you

Chamber of Commerce Registration No. 27371119 The Netherlands Office Rwanda: The OfficeRW, Kigali. P.O.Box 5748. Rue de Masaka / Kiyovu / Nyarugenge Page 4

must sell them to EII at nominal value again (statutory). B-investment is open for local and international investors, under the condition they step in before the financing (Trade) has started. After that they can step in at nominal value of the shares. C-investor Co-investors at C level might take a share at company level, business units / Ltd. under the Holding. That investment is done into real estate or a construction factory or agriculture, greenhouses, agro-processing plants, poultry, fish farming, silk production, production of fertilizers, an economic zone, the logistic center or in energy. On request we send you an overview of projects. Also there is a leverage between 5 – 10 times the total amount invested, but depending the timing of the investment and the %% of the total Capex in equity. After funding co-investors can buy shares at nominal value. Kind Regards, Folkert Castelein VP & CFO RCF