Kindly consider the attached document for posterity about the road already travelled.

Transcription

1 Subject: Invitation to participate in a Tsoga Afrika Investment Holdings Dear Potential Investor I hereby invite you to be part of this grand initiative, a revolution by any measure. Tsoga Afrika Investment Holdings was registered by the Companies & Intellectual Property Commission (CIPC) on 6 September Kindly consider the attached document for posterity about the road already travelled. The Company is open to Black Professionals with the view of pursuing maverick economic and business activities in a way that has never been previously achieved. We are in the process of finalising Banking requirements with Investec. Members will then make lump sum pledges and commit to monthly deposits to build a fund that will grow and accrue interest in the first 6 months. Tsogo Afrika Investment Holdings (PTY) Ltd Reg. No: 2016 / / 07 Founding Directors: ZK Motene, P Marumo Postnet Suite 1405, Private Bag x1007, Lyttelton, 0140 info@tsogaafrika.co.za During this time, we will explore a wide range of economic pursuits including assisting members to build on their own interests as well. Members will have an opportunity to canvass business interests amongst the Brains Trust for input and participation. The rays of the African sun are radiating to illuminate our new path, let us embrace the radiance and multiply our efforts to plant the seed in all our corners. I look forward to welcoming you as a member of Tsoga Afrika, a new awakening. Thanking you in advance. Best Regards. Zakes KM

2 Tsoga Afrika Investment Holdings Background In 2014, I put together a concept document for building a Captive Network of Medunsa Graduates with a view to building an Investment Fund that could participate in meaningful economic activities. This was intended to add to what people are doing as individuals. Herewith the extract from the Medunsa Alumni Foundation concept document Group Investment Scheme Attached to this initiative, a Group investment initiative will be considered, of which enrolment will be by choice. Initial plan Members to contribute an amount of R1000 into a fund that will be subscribed to one of the leading investment houses in South Africa x R1000 = R1M/month 12 Month = R12M All of us have been involved in some economic activity in our little corners and have surely come to appreciate that real wealth creation lies in the mantra unity in numbers. We can never build significant corporations as Africans if we do not start to emulate the founders of such corporations to which we subscribe like PPS, Old Mutual, Liberty, etc. Also, there are many Government Grants and programs that we can take advantage of for advancement, which require building economic groups, e.g. Cooperatives etc. Imagine what a group that can raise R12M unencumbered cash per annum can buy in terms of Property Investment, JSE Stocks, etc. The next phase will then be to re-focus our consumption of consumer services such as Banking, Insurance etc. However, it is vital that the building blocks be firmly in place and a step-wise approach is paramount. This plan may sound very simplistic but it is the beginning of a significant milestone in our development as a people. I call on all of you to start thinking about the possibilities and general approach. Will even approach the big 4 Banks + Investec to re-organise this intention in proper terms. After all, we are among the top LSM consumers targeted by all business.

3 Current Developments Following the formalisation of the SMU-Medunsa Alumni Association (SMAA), we then decided that the Investment initiative be pursued as an external effort that will be canvassed amongst Alumni once formalised I have also been canvassing the idea with friends (Alumni) for some time, with the belief that if it was to happen at all, it will take root amongst people who are familiar with each other. I am happy to announce that the registration for Tsoga Afrika Investment Holdings has been finalised. The broad plan is to pool in capital to build a fund with a minimum investment of R1 Million (collected within the 1st month of contributions). The rationale for the figure was motivated by a number of factors and permutations, chief amongst which was a discussion with bankers and Investment managers that to catapult to a greater height, most Investors really only agree to Fund Management with a minimum threshold of a Million Rand base. Also, raising a Million or more in the shortest possible time will raise the temperature regarding our seriousness as a new player in the Investment space. Tsoga Afrika will be presented to all Government Empowerment Schemes as a potential partner in empowerment deals. These are: IDC NEF DTI organising members into Cooperatives to benefit from the favorable legislation for business with empowered cooperatives. Highlights of the journey. We have had endless discussions. 1. We approached Mr Owen Nkomo of Inkunzi Wealth Management to invite them to be a partner in our intentions (Dr Jowie Mbengo & Dr Pallo Marumo spearhearded discussions). 2. Inkunzi crafted some possible approaches with them being the Investment partner, to offer personal and group solution. 3. However, the fund could not be consummated as it could not be done under the Medunsa Alumni Foundation as it is an NPO. 4. A few weeks ago, I suggested to Owen and the Inkunzi team that they support us to establish a Company that will spearhead the project and open it to all professionals in SA. I have engaged with small groups formally and informally and the groundswell is ready for some revolution. Clearly, we cannot achieve major milestones by doing the same things we have been doing. 5. Maybe it needs some madness to achieve something unthinkable for blacks.

4 Why I believe this will work? I have been consulting for International players since These companies are looking for opporunities in developing countries and Africa in particular, as the next frontier of growth. NEF has a number of interesting projects in the Medical space of which Tsoga Afrika can take immediate advantage, especially that the Company includes Medical Professionals. Why SA? SA is most favoured by global fanancial factors as a favorable destination for Foreign Direct Investment. I have achieved significant traction in 2015 and want to use the experience and the financial support to finally realise all good plans and intentions. I have also been fortunate to relate to all government departments in the Business development space to know of multiple funds and grants aimed at promoting business participation by historically disadvantaged and marginalised. Why are we not taking advantage of all this? 1. Individualism is the biggest impediment for black people globally. 2. We calculate perpertually and never go beyond risk assessment. 3. Many people think only within their circle of influence without considering that the circle of interest can only grow bigger the more we come together. Structure Members to enjoy equal participation Shareholding to be determined by initial input Registration form to formalise membership and to make a declaration and commitment. Current Investors (Aiming for 25+) 1. Rafikis Society A group of 7 female Professionals and has been in existence for over 10 years. 2. Friends mostly related to Rafikis and SMAA Alumni 3. Likeminded professional happy with the proposition and willing to come on board. 4. Anyone else invited by an Investor. Action Stream 1. Finalising Bank Account with Investec Monday 13 September Pledges Rafikis have committed initial investment of R30 000/member R1000/2000 per month on a debit order basis. All invited members to fulfil administrative requirements. Main idea to accrue R1 Million within the first 2 weeks.

5 (Zakes & Partners) to match all investments and also fund any shortfalls and all short term financial needs. 2. Invite other people to build to 25+ members 3. Explore business opoortunities, including favorable legislation for Cooperatives etc. NEF Opportunities in the Health Space: Ke Nako, Renal Dialysis Reagents, Vaccine Manufacturing Plant, etc. Register on strategic databases for Cooperative business as legislated. Exploration of Cooperative legislation and evaluation of organising our structure into cooperatives to benefit from government schemes / Opportunities at SMU Graduates of SMU qualify need the following services at graduation: 1. Vehicle finance 2. Personal Insurance 3. Medical Aid 4. Personal Finance/Banking Services Now, imagine if we can have a broker that will understand the need of SMU graduates while contributing to a fund for students? Consider this example Based on 500 graduates/annum Lets us assume that all buy cars at an average = R R x 500 = Let us assume further that these 500 cars are going to be insured at an average of R500/car R500 x 500 = R /month This is the amount that graduates will be spending on Insurance. Personal Insurance (Life cover etc.) R1000 x 500 = R /month Banking Services R200 x 500 = R /month

6 SMU Graduates Vehicle Scheme/Company Now imagine if we could establish a brokerage that could take advantage of all these developments. A business oriented brokerage that will have a social drive at its roots to reinvest a percentage of its earnings to fund needy students. We are on the road to establish a Car Dealership for new graduates and our members broadly. We will run a survey among final year students for the cars that they would like to purchase, then negotiate preferential deals with Toyota, VW, BMW, Mercedes etc. Potential Investment needed = R5 Million to qualify for a R50M facility inkunzi SMU Office Just like PPS previously, we intend to open an office for inkunzi at SMU to market financial products to the SMU community, mainly graduates and also hold financial literacy workshops periodically throughout the 5 th and final years but especially a few weeks prior to final exams. Another immediate Opportunity = SMU Infrastructure Projects Social Responsibility All activities of Tsoga Afrika Investment Holdings will dedicate a percentage of earnings to a Fund that will be paid over to the Alumni Fund or alternatively funds specific projects of the Alumni Fund. We have to take full advantage of all business at SMU so as to raise enough capital to support our Philanthropic intentions.