Investor Presentaiton

South Africa E.1 Roads and Transport: Improve federal government and private sector investment for high-value transport infrastructure (I/II) Initiative objective • Improve enabling environment for Public Private Partnerships Secure federal government support to re-open key railroad routes Actions E.1.1 Enable private sector investments in roads, transport and bridges ✓ Work with the state government to gazette PPP4 state laws allowing tolls & concessions for private investors e.g., Lagos State "Roads Law", which enabled privatized toll roads South Africa removed requirement of one alternative route per toll road, incentivizing PPPs¹ by reducing toll avoidance by drivers Look for partnerships (e.g., BOT¹, BOO² ) to build terminals and truck stops³ along key transit, trading, and economic routes (e.g., agro-hubs, food-processing and mining areas) Identify frequently used routes and those with high potential traffic from the agriculture and mining strategy (see initiatives A.2.4 and B.2.3) Deliverables . Initiative Lead Infrastructure E.1.1: Permanent Secretary, Ministry of Works ⚫ Gazetted state law allowing tolls and concessions for private investors Dedicate land, plan energy & water connections, and create tax breaks for companies willing to invest or set up shops in designated transport hubs & routes List of agro-hubs, food processing and mining routes, terminals/stops for prioritized investment ⚫ List of potential private investors and attractive incentives for them Recommended timeline ⚫ 9 months . 6 months • 6 months 1. Build, Operate and Transfer 2. Build, Operate and Own 3. Truck stops could serve as collection points for haulage fees, prime locations for restaurants, hotels, gas stations etc. 4. Public Private Partnerships Source: Media Coverage Potential quick-win 150 Copyright 2019 by Boston Consulting Group. All rights reserved. A

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