B E PA R T

OF THE
PRIDE
Mara Pride is an affordable new
subscription-based membership
initiative to democratize financial,
educational, medical, agricultural
and social inclusiveness through
widespread smartphone adoption
and mobile broadband access
across emerging markets.

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INITIATIVE
AFTER FOUR YEARS OF R&D AND SETTING ITS
BUSINESS FOUNDATIONS, IN OCTOBER 2019
MARA PHONES LAUNCHED THE FIRST EVER HIGH-
QUALITY SMARTPHONES TO BE MADE IN AFRICA.
Our two state-of-the-art electronics
and manufacturing facilities, in Rwanda
and South Africa, have the capacity
to produce millions of smart devices
and now employ hundreds of skilled
and trained Africans, most of whom
are women, youth and the previously
unemployed.
More than half of the first year’s
trading was in the shadow of a global
pandemic that has changed the way we
communicate, work, live and learn – out
of which is emerging an accelerated
digitization everywhere.
We have a long-held vision to ‘do good
whilst doing well’ – we are fundamentally
a social enterprise.
At the core of this ethos are the United
Nations’ Sustainable Development
Goals, and we are the first manufacturer
of our kind anywhere in the world to
be recognized for gender equality,
for reducing inequalities, for industry,
innovation and infrastructure, and for
partnerships towards achieving the goals.
As part of our vision for an inclusive
digital ecosystem, in our first year
we have initiated solutions focused
on improving livelihoods, finances,
healthcare, electrification, connectivity,
mobility, transportation, communities
and education.
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 OUR ECOSYSTEM

17 1
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partnerships No poverty
for the goals
peace, justice

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and strong
institutions FIN
Zero hunger
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AFFORDABLE AND
and communities CLEAN ENERGY

10 reduced
inequalities
decent work and
economic growth 8
9 industry, innovation
and infrastructure

ADDITIONALITY &
ENABLEMENT TOOLS SDGs - GUIDING PRINCIPLES
ANNUITY INCOME

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INNOVATION
MARA PHONES IS FOCUSED PRINCIPALLY ON
DEMOCRATIZING A GENUINELY FEATURE-RICH
SMARTPHONE ECOSYSTEM IN AN AFFORDABLE
PRICE BRACKET WITHOUT COMPROMISE, REACHING
THE LARGELY UNBANKED AND UNDER-EDUCATED,
IN OFTEN THE MOST REMOTE AND LEAST CONNECTED
AND ELECTRIFIED COMMUNITIES, THROUGH
WIDESPREAD DIGITAL INCLUSION FOR ALL.

We have our very own R&D departments for
continuous development of industry-leading
proprietary technologies.
In addition to our in-house R&D functions
in Rwanda and South Africa, our sister
technology development centers within the
wider group include Mara Innovation Labs
and Mara Global Technology, principally
based in India and the UAE.
As the technology ideation, innovation and
incubation divisions for Mara Phones, their
sole functions are to create fresh, new and
disruptive technology-based value-additions
for our businesses and products, ultimately
translating into solutions for our end
customers, mainly governments and citizens
in emerging markets.
These dedicated R&D functions are separate
cost centers that ensure that Mara Phones
benefits from the results of constant
innovation without the inherent associated
direct costs and risks, with the intellectual
property rights and know-how transferring to
Mara Phones.

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EXPERIENTIAL MARKETING

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OPPORTUNITY
THE SINGLE-MOST SIGNIFICANT BARRIER TO
FIRST-TIME SMARTPHONE ADOPTION ACROSS
EMERGING MARKETS IS AFFORDABILITY,
CONSIDERING THE TOTAL COST OF OWNERSHIP.

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 Total cost of ownership of a smartphone is an issue for more than half of our target market
Affordability Literacy and Skills Relevance Safety and Security Accessibility
Do not know Reading/ Mobile is not Strangers Access
Handset / Personal Information Battery Network Family does
Credit Cost how to use a Writing relevant for Contacting to Agent ID
SIM Cost Safety Security Charging Coverage not approve
mobile phone Difficulties me me Support
M W M W M W M W M W M W M W M W M W M W M W M W M W
Algeria 15% 15% 3% 8% 22% 27% 21% 30% 13% 12% 0% 6% 5% 5% 11% 9% 3% 0% 7% 3% 3% 21% 5% 0% 0% 0%
Kenya 63% 44% 9% 4% 0% 7% 15% 26% 6% 9% 0% 3% 6% 5% 6% 7% 3% 2% 3% 3% 0% 3% 0% 2% 12% 9%
Mozambique 40% 41% 7% 12% 6% 24% 16% 28% 3% 4% 5% 4% 2% 6% 5% 4% 14% 10% 12% 8% 2% 9% 13% 9% 12% 14%
Nigeria 59% 50% 21% 20% 9% 16% 45% 49% 0% 6% 8% 3% 4% 6% 4% 1% 2% 4% 2% 3% 6% 22% 2% 1% 0% 3%
Senegal 35% 35% 6% 10% 7% 7% 28% 30% 4% 1% 5% 3% 6% 18% 11% 12% 2% 5% 14% 9% 6% 4% 9% 6% 5% 2%
South Africa 39% 16% 14% 24% 3% 10% 10% 16% 3% 10% 7% 11% 0% 12% 14% 9% 0% 6% 17% 4% 3% 6% 0% 2% 0% 2%
Uganda 55% 49% 16% 12% 12% 15% 23% 21% 7% 2% 4% 3% 3% 4% 3% 2% 6% 7% 8% 7% 4% 10% 5% 3% 14% 11%
Bangladesh 12% 8% 2% 1% 19% 31% 46% 21% 24% 16% 2% 4% 0% 1% 4% 2% 4% 2% 0% 5% 6% 11% 2% 2% 6% 3%
India 31% 42% 17% 12% 11% 16% 18% 24% 14% 17% 11% 5% 12% 7% 11% 6% 7% 7% 16% 8% 3% 9% 9% 5% 1% 4%
Indonesia 50% 49% 33% 27% 21% 27% 36% 32% 20% 20% 11% 11% 4% 11% 14% 15% 4% 12% 22% 18% 1% 7% 4% 11% 1% 1%
Myanmar 40% 37% 11% 16% 40% 43% 22% 20% 53% 46% 9% 14% 13% 12% 10% 9% 6% 11% 4% 7% 2% 9% 5% 7% 13% 12%
Pakistan 16% 24% 6% 6% 10% 13% 56% 38% 6% 15% 7% 7% 5% 13% 1% 10% 5% 1% 8% 4% 7% 38% 1% 1% 3% 3%
Brazil 29% 45% 14% 16% 14% 36% 26% 25% 15% 9% 12% 14% 2% 5% 10% 16% 6% 3% 6% 2% 6% 2% 0% 2% 1% 2%
Guatemala 27% 41% 14% 17% 10% 16% 17% 25% 7% 9% 43% 34% 31% 29% 27% 26% 9% 11% 13% 9% 8% 8% 12% 6% 4% 8%
Mexico 42% 3% 18% 16% 9% 14% 20% 14% 7% 8% 14% 15% 17% 14% 23% 23% 9% 4% 15% 8% 2% 3% 4% 6% 6% 1%

Men Women Lowest barrier cited in that country Highest barrier cited in that country

M W

Education remains a significant barrier to smartphone adoption

Source: GSMA Intelligence Consumer Survey, 2019

Base: Non-mobile owners aged 18+
Mobile ownership is defined as a person having sole or main use of a SIM card (or a mobile phone that does not require a SIM), and using it at least once a month.
Percentages indicate the proportion of non-mobile owners who responded, “This is one of the most important reasons stopping me” to the question, “Which, if any, of those factors would you say are the most important reasons stopping you from
having a mobile phone or SIM card, connected to a mobile operator’s network?”
n= from 49 to 317 for women, and n= from 30 to 225 for men 8
AFFORDABILITY
MARA PRIDE ADDRESSES DALBERG’S
AFFORDABILITY DRIVERS TO CREATE
A DISRUPTIVE PARADIGM.

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 WHAT DRIVES AFFORDABILITY OF SMARTPHONES?

SUPPLY / PRICE DEMAND / WILLINGNESS AND ABILITY TO PAY

COST Ability to pay

„ Income and wealth (e.g. assets, income,
Manufacturing costs
livestock that can be traded)
„ Hardware (e.g. cost of chip, screen, battery)
„ Access to credit
„ Software (e.g. operating system, preinstalled
„ Alternative sources of income (e.g. family,
applications)
third-parties)
„ Packaging
„ Customization
Willingness to pay
„ Content and relevance
Inbound supply chain
• Business use case
„ Import taxes and duties • Social and community use case
„ Transport (emerging markets in Africa • Personal use case (usefulness, justify use)
especially high cost) „ Community influence
„ Storage, warehousing and inventory • Social norms
management • Status
„ Delivery „ Awareness and know-how
„ Safety (e.g. concerns of online harassment,
Outbound supply chain and distribution misuse of personal images and data)
costs (via agents, retailers, online) „ Perceived need
„ VAT • Access via other means (sharing handsets,
„ Transport use at work)
„ Storage • Being gifted handset (no need to buy)
„ Damages and liabilities
„ Commissions and mark-ups Ability and willingness to pay is influenced by a number of
factors including, age, geographics, gender, educaction,
urban/rural
Advertising and marketing
Understanding of the total cost
PRICING DECISIONS
„ Actual handset
Business decision about mark-ups and pricing „ Acquisition cost (e.g. transport and time)
(e.g. share of overheads attached to devices) „ Ongoing cost (e.g. data, maintenance and
access to power)
Manufacturer suggested pricing

Source: GSMA/Dalberg Mara Pride 10

PROPOSITION
IN QUARTER ONE 2021, MARA PHONES IS LAUNCHING
MARA PRIDE – AN INNOVATIVE NEW APPROACH TO
AGGREGATE AND CONVENIENTLY PACKAGE OUR VISION
FOR AN INCLUSIVE DIGITAL ECOSYSTEM, AT THE NEXUS
OF WHICH IS AFFORDABLE SMARTPHONE ADOPTION,
DELIVERED TO OUR TARGET COMMUNITIES ACROSS
EMERGING MARKETS.

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 DISCOUNTED
DEVICES AND
ACCESSORIES

COMMUNICATIONS CONTENT

FINANCIAL CONSUMER
SERVICES SERVICES

LOYALTY
PROGRAM

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BE PART
OF IT
JOIN THE MARA PRIDE, AND
INSTANTLY GET ACCESS TO:

ƒ Free Mara smartphone immediately ƒ Membership referral program –

upon joining (and a replacement every
second year thereafter)
ƒ Free Mara smartwatch on the first
anniversary of joining (and a replacement
every second year thereafter)
ƒ Free Mara Pride merchandise
ƒ Up to 20% off the RRP of Mara
smartphones, devices and accessories
ƒ Extended warranty cover on
certain Mara devices
ƒ Damaged screen replacement cover
ƒ Access to banking, digital
wallet, microfinance, insurance,
healthcare, education initiatives,
entertainment and more
introduce friends and family to
earn points or cashback every time
ƒ Data and voice offers and bundles
ƒ Build an AI-based behavioral credit
profile and get finance in the future
ƒ Monitor and track blood pressure,
heart rate, oxygen levels, steps, sleep
patterns, activity and more through
the Mara smartwatch, and build a
realtime clinical record for improved
healthcare and insurance
ƒ Lots of additional members’
benefits, gifts, discounts,
vouchers and bundles

Indicative costings and benefits. Contents may vary. Terms apply.

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PARTNERSHIPS
MARA PRIDE PROVIDES THE PERFECT ‘WALLED GARDEN’
PLATFORM TO OFFER PARTNERS’ PRODUCTS AND
SERVICES TO ITS ACTIVE MEMBERS. FOR ALL OF OUR
PARTNERS, THIS DISRUPTIVE MODEL PRESENTS AN
OPPORTUNITY TO ACQUIRE NEW, TARGETED CUSTOMERS
AND TO ADD VALUE TO EXISTING ONES.

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TELCOS PUBLIC SERVICES
ƒ Bundling voice and data ƒ Public transportation
ƒ No risk to balance sheet ƒ Administering fees, fines and taxes,
and bill issuing and settlement
ƒ Payment collection options
ƒ Public announcements
CONTENT
MULTILATERALS
ƒ Localized content for news, sports and
entertainment, and gaming ƒ Boosting smartphone and Internet penetration
ƒ Bundling free third-party services and ƒ Truly enabling digital, social, financial,
subscriptions educational and medical inclusion
ƒ Additional revenue opportunity through ƒ Very large-scale positive social impact
subscription uptake

CONSUMERS
ƒ Retail offers and discounts to members
ƒ Targeting based on realtime geopositioning,
activities and trends
ƒ Attract new and repeat customers, for example in
hospitality and leisure

FINANCIAL
ƒ Banking the unbanked through mobile money
and neobanking
ƒ Reaching underserved and remote communities
and low earners with microfinance and insurance
ƒ Providing a means for transferring funds and
workers’ remittances electronically

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PROCESS
ONBOARDING
ƒ Subscriber application, online,
in-app, in-store, or through a
community-based agent network
ƒ Automated KYC qualifies
subscribers in seconds
ƒ Interrogates central credit bureau
(where one exists in-country) and
uses proprietary AI engine for
social and behavioral credit scoring
ƒ Successful applicants become
members and immediately receive
their first device with pre-loaded
applications and other benefits
MANAGEMENT
ƒ Includes a digital wallet as a convenient means
to maintain regular payments – through cash top-
ups, bank cards, cellular data, USSD
ƒ Automatically links to back-office administration
function – automated reminders and collections,
account reconciliations, allocation of membership
benefits, updates and notifications
ƒ Offers, promotions and vouchers are sent
to members
ƒ Subscribers build an AI-based social and
behavioral credit profile in compliance with GDPR
and other regional and international regulations,
for reporting and access to consumer finance on
improved terms
DELINQUENCIES
ƒ Machine learning, pattern
recognition and behavioral analytics
to predict at-risk accounts
ƒ In-built MDM firmware technology
to lock devices of delinquent or
default accounts
ƒ Secure, track and trace devices for
their safe return, with rewards for
doing so
ƒ Automated reporting to credit
bureaus and peer-to-peer services
of default accounts
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TARGET
MARKETS
THERE IS A DIRECT INVERSE CORRELATION
BETWEEN INTERNET PENETRATION AND THE
LEVELS OF SECONDARY EDUCATION, HEALTHCARE,
FINANCIAL INCLUSION AND THE INCOME PYRAMID.

These markets also typically have
digital adoption challenges, owing to
affordability, remoteness, cash economies
and a lack of effective implementation of
regulation and licensing.
One of our primary identified markets is
sub-Saharan Africa – with an estimated
market size of nearly 200 million new first-
time mobile Internet users by 2025, and of
over 700 million smartphone unit sales.
Our other focus markets are South Asia,
South East Asia and Latin America
– all of which have mobile Internet
penetrations at or below 50% and are
populous, migrant and urbanizing.
Parts of South East Asia more than
quintupled the Internet penetration in
less than a decade, 90% of which is
from mobile broadband usage. Yet still,
there is less than a 50% mobile Internet
penetration, demonstrating there is
capacity for both rapid and sustained
growth, the precursor to improving
education, healthcare, financial inclusion
and stabilized incomes and economies.
Although often more pronounced in
emerging markets, some of these issues
are not unique to Africa and South
Asia. There are low-income and migrant
communities the world over, with many
millions of households in otherwise
more developed regions affected by
remoteness, disenfranchisement, low
bankability, poor education, inaccessible
healthcare and a generally low quality
of life, all of which can be improved
through broad digital inclusiveness. 17
ROLL-OUT
THE PILOT PHASE OF MARA PRIDE IN Q1 2021
WILL BEGIN IN THE COMPANY’S OWN MARKETS
OF RWANDA, SOUTH AFRICA AND NIGERIA,
REPRESENTING THE CORNERS OF OUR
CONTINENT, ALONG WITH THE UNITED ARAB
EMIRATES WHERE MORE THAN 50% OF THE
POPULATION ARE UNSKILLED OR LOW-
SKILLED WORKERS FROM INDIA, PAKISTAN,
BANGLADESH, PHILIPPINES,
NEPAL AND SRI LANKA.

Once we have proved the concept and product, we will expand in these
primary markets whilst identifying expansion markets in Africa and South Asia,
based on our market research and the business intelligence from the pilot phase.
We aim to have 100,000 subscribers by the end of year one. With the 1.7 billion
unbanked adults representing our target market, and two-thirds of the
developing world still not currently online, our ambitious vision is to reach 100
million subscribers to the Mara Pride digital ecosystem by 2030.

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www.maraphones.com
info@maraphones.com
Kigali, Rwanda: +250 252 502 525
Durban, South Africa: +27 32 815 3250
Dubai, UAE: +971 4 275 2900

January 2021 © All rights reserved by Mara Phones Limited