This document discusses investment opportunities in Belarus and provides tips for establishing businesses there. It notes that Belarus presents a lower-risk option than Russia or Ukraine, with a stable market economy and predictable rules. It highlights sectors like agriculture, food processing, and energy as promising areas for growth. The presenter's company, MAFCON, has successfully established over 100 projects across the former Soviet states. The document stresses the importance of thorough research and understanding local norms to navigate the administrative processes and ensure long-term success when investing in Belarus and the broader CIS region.

1. Belarus – The heart of Europe!
Investment and Establishment
in Belarus
2. May 2014
Morten Munk, CEO & Consul
MAFCON - More than 100 projects in the CIS.

2. Belarus – The heart of Europe!
The next 15 min. will be about “Why and How”
regarding investment and establishment in Belarus!
• Shortly about Belarus and Mafcon!
• The key issues!
• Why to get a foothold in Belarus!
• Tips and tricks!
• Experience and lessons learned!

3. Business in Belarus
• The East Region – when there are no
more easy picks!

4. Business in Belarus
• Belarus - a democratic and presidential
governed social state.
• The country that is a bit easier than
Russia and Ukraine.
• Both a market and a manufacturing hub!
• Market economy – on state conditions!
• Easy accessable from the West!
• The Customs Union paves the way further
east!
Hard facts at:
http://www.belarus.by/en/about-belarus/key-facts

5. The current crises!
• Changes are coming, and the East
Region as a whole will be reformatted
over time!
• The expected massive capital inflow to
Ukraine will be a game changer!
• Business conditions will be upgraded!
• Corruption and safety issues will ease!
In the meantime – Business as usual!

6. Russia
• Russia will remain on a distance to the
West for quite a while.
• CIS will remain CIS for a long time.
• Russia, Ukraine and Belarus were already
in 2013 facing lower growthrates.
• The Customs Union will increase its
importance for Russia.

7. Mafcon – why are we here?
Just about to complete a € 3 mio.
investment for a Danish company in
Orscha.
• Salling Plast manufactors a full range of
plastic fittings for a range of business
sectors
• Buildings, management, equipment &
machinery, approvals and permits.
• Targeting the Belarussian market and via
the Customs Union to explore Russia.
MAFCON - More than 100 projects in the CIS.

8. Mafcon’s CIS competencies
Planning & Execution
”End-to-End” establishments, production as well
as sales companies– buildings, management,
equipment and machinery, approvals & permits
Upgrading of CIS business struktures -
Mafcon’s Business Alignment Model
Business Excellence – concrete knowledge about
CIS business standards and conditions
Market intelligence – analytical bodies covering all
CIS
MAFCON - More than 100 projects in the CIS.

9. MAFCON in Belarus!
Maria Golovko, Legal counsel
+375 29 681 4631 mg@mafcon.com
MAFCON - More than 100 projects in the CIS.

10. MAFCON in Belarus!
• Interesting potential.
• Excellent platform in the Customs Union.
• The rules of engagement calls for
professional guidance.
MAFCON - More than 100 projects in the CIS.

11. The key issues!
When talking about the East Region there
is always 3 questions coming forward:
-Corruption
-Safety
-Why is it so difficult to become
successful there?

12. Corruption
• Transparency International puts Belarus
on a 132 place.
• The experienced presure for corruption
is definitely lower than average in the
East Region.

13. Safety
• The physical safety (crime, etc.)
• The business safety (court system, etc.)
• High degree of predictability provided
that the rules of the game are followed.

14. Why is it so difficult?
• A complex set of rules, but with an built
in logic and good cohesion, which again
creates a high degree of predictability!
Thus, if you understand the rules.
• The precondition is a professional
approach – thoroughness and many
details.

15. The Customs Union
-Transition problems and unclearness
-Winners and looser’s.
-General growth in custom tariff’s
-One common set of rules
-Common industrial standards
-Increasing internal competition inside
the Union.
-Economic growth factor.
-Russian will prevail as business
language.

16. The Customs Union
• Registration as local producer.
• Buy local clauses.
• Labor market legislation.
• Etc., etc., etc.
• A learning process for Danish companies.
• The short and long term perspective.

17. For a long time to come
Cultural and structural the region is not in
line with international business standards,
but can be characterized by what might
be called institutional voids and contexts.

18. Why to get a foothold in
Belarus!
Motivation:
• Explore the potential in Belarus
• A cost efficient platform in the Customs
Union

19. Belarus - Market economy
on governmental level!
• Economic activity in Belarus: 30% private
and 70% state.
• The goal is to regain economic growth by
privatisation, that can add dynamics,
capital and technology.
• Key areas are agriculture, food processing
and energy transformation.
• The B – B sector is by far the most
interesting.

20. A few words about the potential
Agriculture:
Cultivated land: 3,5 times Denmark
Efficiency potential: 75 – 100% increase
Yet to be privatized: More than 80%
Reforms announced!

21. Belarus – an untapped
potential

22. A few words about the potential
Energy:
Energy consumption, DK 36,2 TWH/mio.
24,5% from renewable sources (wind and wood)
Energy consumption, BEL 37,5 TWH/mio.
0,5% from renewable sources
Energy plan 2020 in place.

23. A cost efficient platform

24. For those of you who want
to get established…
• To get established in the CIS is primary
an administrative exercise, and Belarus
is very similar to other CIS countries.
• A complex set of rules, but with a built in
logic and a good cohesion!
• The authorities in Belarus are thorough
and professional; clear line of command
that works.
• To understand and accept norms and set
of rules in the CIS!

25. For those of you who want to
get established…
A successful investor must possess:
Deep and comprehensive knowledge and
understanding of the CIS in general and
Belarus in particular in order to be able to:
• ID of attractive targets and locations.
• Define conditions for the investment.
• Define the future outlines for his business
activities in order to ensure room for
manoeuvring.

26. Tips & Tricks!
• Professional approach - thoroughness
and many levels
• Own knowledge and competence a
precondition for success.
• Top down decision processes.
• Contracts and agreements are the back
bone of any business relation and
creates predictability.

27. Tips & Tricks!
• Norms & standards need attention.
• Supply and distribution channels are
often exclusive.
• The administrative landscape must be
mapped.
• The political dimension must be
considered in the overall business
process!

28. Lessons learned
• The political dimension! Administrative
practise often overtake the role as
legislation.
• The investment agreement is the
backbone in any investment or
establishment, not only for the
transaction, but even more seen in the
forward perspective.
• When the home work is done well!
Relations last for a long time.

29. If you want to know more?
• www.mafcon.com
• Hvad kan vi danskere i Hviderusland, LinkedIn

30. Selected references
Giract

31. Thank you for your
attention!
Questions are welcome!
Aarhus, Denmark +45 70 22 84 55
mm@mafcon.com
www.mafcon.com/dk