RICE PORTFOLIO 2009

Around 60 percent of sub-Saharan Africa’s (SSA) demand for rice is met by imports, costing about $6billion in 2008. Marketable crop surpluses in SSA represent less than one third of total output. Rather than being a threat, the increasing rice price is an unique historical opportunity to use latent potential for production of Swamp Rice in Sierra Leone.

Rice Field
Coping with fluctuating commodity prices for rice imported from China, Thailand and other Asian countries, rice is one of the few sectors that brings social and economic development to poor communities in a straightforward way and therefore any investors will be proud to be associated with our sustainable project. In addition to its profitability, this project combines significant effects in local development with care for the environment and as such perfectly fits into global business principle of corporate social responsibility.

Rice is Africa’s most rapidly growing food source, but production has not kept pace with demand. As a result, rice self-sufficiency (i.e., ratio of production over consumption) has slid from 112% in 1961 to just 45% in 2008. As a result, sub-Saharan Africa imports 10million tons of rice annually at a cost of around US$6billion. This is the continent’s largest import bill after petroleum. The per capita rice consumption in Sierra Leone is 100kg. Sierra Leone has a population of 5million.

The country is heavily reliant on imports for its staples like rice. When we visited at the end of February 2009, the high price of a standard 50kg bag of rice caused tempers to flare on the streets of Freetown. It was then around 120,000leones (approximately $40), whereas a 25kg bag cost 70,000leones ($23). “We will not succeed in poverty reduction if we don’t change the circumstances of the farmers” President Ernest Bai Koroma told us last year.

I. MASAMA RICE INVESTMENT PORTFOLIO: MRP-1/2009

The MASAMA RICE PORTFOLIO (MRP-1/2009) is an agricultural resource investment opportunity looking to meet the growing demand for rice and Emission Reduction Units. MANO PROPERTIES & INVESTMENT SL LTD (MPI) will plant in total 33,000ha- possible 2,000ha per annum - with NERICA swamp rice at the rate of 500ha per coup in feasible swamp areas in the Loko Masama Chiefdom in Sierra Leone, West Africa.

The business that endures will foster long-term success and sustainable profits through collaborative relationships with stakeholders, coupled with investments in both their current and future workforce.

MPI aims to be able to generate long term sustainable returns for investors without compromising the principles of sustainable development. The MASAMA RICE PORTFOLIO (MRP-1/2009) is working in partnership with the traditional landowners and the Government of Sierra Leone to meet the United Nations Millennium Goals while generating a sustainable and renewable source in the food chain.

MPI offers you the opportunity to benefit from the MASAMA RICE PORTFOLIO (MRP-1/2009) providing a long term commitment to manage your investment.

The MASAMA RICE PORTFOLIO (MRP-1/2009) provides you with an opportunity to invest in sustainable and durable agri-cultivation.

Your rice-field property will grow, produce and process rice in the Loko Masama Chiefdom of Sierra Leone with expert support at all stages of the process. Once growing the rice fields will yield 3 times a year and the rice processed will be sold on your behalf.

Uniquely, the MASAMA RICE PORTFOLIO (MRP-1/2009) additionally offers the opportunity to invest in the emission reduction potential of rice production.

By investing in the MASAMA RICE PORTFOLIO (MRP-1/2009) you have the potential to benefit from any proceeds from the scale of Emission Reduction Units (ERUs) throughout the life of the investment term in addition to the cash returns from the sale of your rice.

II. POTENTIAL INVESTOR BENEFITS

An unique opportunity to participate upstream in a long term highly profitable sector of the durable food value chain without compromising the principles of sustainable development.

Working in partnership with traditional landowners and the government of Sierra Leone to meet the United Nations Millennium Goals while generating affordable crop food for the domestic market.

Developing and providing technologies, education and employment to improve the livelihoods of thousands of poor indigenous farmers and consumers while contributing to sustainable growth and poverty reduction in West Africa.

Improve the social and economic infrastructure without a negative impact on the environment.

Producing rice for a rapidly expanding domestic market.

Made in Africa for Africa

Producing carbon sinks to help reduce GHG levels globally.

A team of industry experts dedicated to managing all aspects of your investment.

Supervision and control of your investment by a reputable international auditing company.

The NERICA rice in the MASAMA RICE PORTFOLIO could generate 7ton per hectare per yield, and crops are 3 times a year. Unlike with investment in tree planting or palm oil, rice starts producing for the first time within 4 months after planting. Under ideal circumstances, one hectare can produce 21ton annually. After drying, milling and processing 70% remains for sales on the domestic market. This effects the profit substantially because no complicated logistic solutions have to be implemented nor expensive shipping costs, export taxes etc. To be on the safe side MPI calculates a production risk of 25% in case of unforeseen weather impact and diseases. Still 11ton per hectare could remain for final sale. The minimum profit on this rice is $100/ton while selling the rice on the domestic market for at least $100/ton less then imported rice from Asia. This guarantees that the local population also benefits from this new approach of fair sustainable agriculture.

It takes one (1) year to produce the first yield and from then onwards three (3) times a year, generating a minimum possible profit of $1,100/ha/year- a result of 22% on investment.

III. THE PRODUCT

Rice Field

WHAT IS SWAMP RICE?

Swamp rice is the most wanted and most traded staple crop in West Africa. With support from the UN a special rice NERICA has especially been developed for West Africa. It contains the full nutrition and preferred taste demanded. In the process the skin is separated from the seed and the seed dried and flavored. Rice is cost-effective as it does not need to go through expensive hydrogenation processes. Its high content of natural antioxidants and its stability at high temperatures make it an excellent staple food.

WHY INVEST IN RICE?

Rice is one of the major necessities and with global demand, including growing Asian economies such as China and India. Fields producing rice is increasingly important in the overall markets. Fields developed in the Masama Rice Portfolio provide good quality raw material for the production of cooking rice for the domestic and regional market.

HOW THE INVESTMENT WORKS

The MASAMA RICE PORTFOLIO starts when a full parcel of 500ha has been assigned to investors. A minimum investment certificate concerns a five (5) hectares (ha) big block to be planted with NERICA rice. The investment sum is $5,000/ha. The first rice crop starts producing 6 months after preparation of the land and then produces 3 times a year 3.675ton processed rice per hectare per harvest (11ton/year), generating a minimum profit of $100/ton ($1,100 per year – 22%). In contrary with forestry and palm oil projects, rice generates income and profit immediately in the first year of planting.

MASAMA RICE-TEAM

MPI has formed a team of international industry experts and plantation managers from The Netherlands, Africa and China who will manage the investment throughout all stages of the project. The plantation managers will look after the field from the nursery stage to the day of sales. An independent plantation assessor (reputable international auditing company) will frequently survey the property and provide independent evaluations and supervise the project on behalf of the investors.

IV KEY FEATURES

THE OFFER MASAMA RICE PORTFOLIO (MRP-1/2009).

THE STRUCTURE A way to gain investment exposure to market returns in emission reduction and the agricultural food market.

APPLICATION Application closes 31 June 2009.

ISSUE PRICE $5,000 per hectare (equivalent to the production of 11ton/year).

PARTICIPATION Minimum 5hectares per Investment (US$25,000.00).

RETURN A maximum of $150.00/ton sold rice from your 5hectares, based on the average result from the total parcel.

INVESTMENT TERM 5years extendable.

POTENTIAL RETURNS From the sale of processed rice.

RESERVATION NON-BINDING pre-registering is the first step to stake your claim till 100 registrations have been received. At that stage pre-registered participants will get 30days to commit by means of an official binding application.

HOW TO APPLY Investment in MASAMA RICE PORTFOLIO (MRP-1/2009) must be made by completing an application form attached to the PDS.

V. OBJECTIVE

Who may be interested in this investment?

This investment may be suitable to you for a number of reasons, including:

Looking for diversity of your own investment portfolio;

Looking for ethical investment opportunity;

Want potential for growth;

Have a self managed super fund;

Are looking for potentially tax efficient investment solutions;

Want the potential to earn income outside superannuation;

Have a medium term investment horizon;

Exposure to the renewable sustainable sector;

Exposure to the emission reduction market.

VI. RISKS

As with any investment there are risks to be considered, and as this is a middle term natural resource investment, many variables may affect the performance of the investment. General investment risks, risks specific to the land and rice include agriculture and environmental risks as well as risks associated with the global price fluctuations of rice. The return you receive from MASAMA RICE PORTFOLIO (MRP-1/2009) could be less than you might earn on other investments, it even could be nil, but it also can be beyond expectation.

Key risks include

Investors should read the section on “Investment Risks” in the Product Disclosure Statement (PDS) for a detailed discussion of the risks of investing in the MASAMA RICE PORTFOLIO.

How to apply?

Before you invest in the MASAMA RICE PORTFOLIO it is important that you read and understand the terms, conditions and the investment risks set out in the PDS. To apply, simply complete the application form attached to the PDS and send it directly to MPI. Remember, as with any investment decision, you should consult your financial, legal and taxation adviser for personalized recommendation and advice.

More Information

For more information on Mano Properties & Investment SL Ltd (MPI)
Phone: +31-610900773