Innovation is a mind-set. Our focus is not on restoring the

status quo, but on developing a level of performance that exceeds

previous standards.

Farai & shumba

Attorneys business plan

“We

think in 4-D”

HIGHLY CONFIDENTIAL

INFORMATION

Legal Page

Confidentiality Agreement

The reader acknowledges that the information provided by Farai &

Shumba Attorneys in this business plan is confidential;

therefore, reader agrees not to disclose it without the express

written permission of Farai & Shumba Attorneys.

It is acknowledged by reader that information to be furnished in

this business plan is in all respects confidential in nature,

other than information which is in the public domain through

other means and that any disclosure or use of same by reader, may

cause serious harm or damage to the Law Firm.

Upon request, this document is to be immediately returned to

Farai & Shumba Attorneys.

___________________

Signature

___________________

Name

Page | 2

Table of Contents

Table of Contents1. THE FIRM.........................................................4

2. Vision...........................................................53. Our Executive Personnel..........................................6

4. EXECUTIVE SUMMARY................................................95. THE LAW FIRM’S OVERVIEW........................................11

6. CLIENT BASE......................................................137. BUSINESS ANALYSIS................................................16

8. MARKET ANALYSIS SUMMERY.......................................179. FARAI & SHUMBA ATTORNEYS’S FINACIAL STATEMENT....................19

10. ASSETS PURCHASED................................................2011. Conclusion....................................................22

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THE FIRMFarai & Shumba Attorneys is a law firm located in Quigney EastLondon. The law firm is led by Gwinyai Shumba, a seasonedattorney previously with Norton Rose. The Law Firm serves allneeds generated by mining, aviation, labour and InternationalTrade sectors respectively. It handles start up and establishedcompanies. The firm was established in 2003 and this year it willbe celebrating a decade of continuous existence. It operates as apartnership with more than ten partners.

In addition Farai & Shumba Attorney offers children legalservices at subsidized rates. The practice allows the firm toable to able to provide public interest organisations legal helpat the cost of overhead.

1.1 FIDELITY FUND CERTIFICATE

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We received our Fidelity Fund Certificate for the year 2013 onthe 11th of January 2013 and all our Attorneys are admitted.

1.2 FIRM ORGANOGRAM

Director of the Firm: GwinyaiShumbaLLB (cum laude), LLM, LLD(HAVARD) PGD TAX

Managing Partner: Farai Chigavazira LLB, LLM (CAMBRIDGE)

Senior Partner: Vincent Ndlovu BA(RHODES), LLB (PRINCETON),LLM (YALE)

Senior Partner:SoneniHlatshwayo LLB PCP (COLUMBIA)

Senior Partner: Talent Runganga BCOM LLB (STELBCH)

Partner:SehluleNkomo LLB (LEEDS), LLM (WITS)

Partner: Christopher Chigumba B JURIS, LLB(UCT)

Associate:MugoveChandauka LLB, LLM (WITS)

Associate: TsitsiSharara BCOM LAW (UFH)

Associate:Boniface Chitungo LLB, LLM (UZ)

Associate: BukiweCekeshe LLB, LLM(UFH)

Consultant: Harvey Spectra BA, LLB, LLM, LLD,PROFESSOR (STELLBCH)

Candidate Attorney: Roseline Muvevi LLB (UCT)

Candidate Attorney: Dylan Chigs LLB(OXFORD)

Accountant: Earnest and Young (sub contracted)

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Secretary/ Director’s Office: OLIVIA POPE (B.COM ADMIN)

General Secretary: CIARA WILLIAMS (DIPLPUBLIC RELATIONS)

2. VisionOur Vision is to become

 “The law firm of choice for people and businesses in our chosenmarkets” 

Our Mission is

“By understanding the needs of people and businesses, and bylistening to them, we will deliver services which ensure theyachieve their objectives.” 

We will become

The leading law firm in South Africa by a significantmargin.

We will become a Legal “one stop shop” for South Africa.

Farai & Shumba Attorneys will grow by 50% in the next threeyears (2013 - 2015).

Core to this success is our commitment to South Africa andour chosen markets.

We are

Totally committed to you - the people, businesses andcommunities of South Africa and beyond.

Totally Client Focused – we deliver“Client ServiceExcellence”.

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Committed to moving forward and investing in technology.Those that do not move forward get left behind. We continueto utilise the latest technologies to maximise the qualityof service and value for money our clients receive.

A success driven organisation, we are ambitious. Our clientsshare our determination to succeed and achieve.

A leading legal brand in South Africa with a commitment tocementing that position and growing our reputation as themost innovative and client focused law firm across bothcounties.

Our Objectives and Values

To act with total integrity at all times.

To be a friendly, approachable and sensitive firm.

To strive for excellence in all that we do, and delight ourclients.

To continually improve.

To listen and understand.

To offer value for money and added value services.

To go that extra mile, for each other and for our clients.

To work as a team and support one another.

To share knowledge.

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3. Our Executive PersonnelOur motto in this segment is tounderstand the client’s needs andget the job done.

GwinyaiShumbaHe has An LLB (cum laude)degree from Harvard Law School, LLM specialising in

Aviation law form Stellenbosch University and LLD from University of

Witwatersrand. While he was at Harvard Law school he was a part of the Student

Representative Council. It was through this Gwinyai become fond of public

interest law. Gwinyai has worked with a number of well-knownstarts up

organisations and established companies.

After five years however, Gwinyai was feeling constrained and desired to leaveand start his own law firm. He was able to bring his clients from some of theorganisations he has worked with helping the transition from leaving a well-established practice to hanging out his shingle and starting over.

Farai Chigavazira:He is the managing Partner at Farai & Shumba Attorneys. He currently

practices as an attorney in the corporate commercial department and

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specialises in mergers, acquisitions and general transactional work,

with a particular focus on mining related commercial matters.

He has acted for both listed and unlisted entities in the uranium, gold

mining, diamonds and rare earth sectors, and in the entertainment,

retail and distribution, renewable energy, higher education and property

development industries.

Qualifications

LLB (cum laude) (Cambridge University), LLM (Stellenbosch),Admitted as an

Attorney of the High Court of South Africa

Vincent Ndlovu He is a director of Commercial Law and has 18 years experience. He currently

practices as a litigation dispute resolution attorney. He specialises in

construction and engineering dispute resolution.

Vincent’s general practice experience includes contract based commercial

litigation, both locally and internationally, as well as varied commercial

litigation law.

He has acted for a number of major construction companies, parasternal

entities and various listed and multinational companies.

Vincent is a fellow of the Association of Arbitrators of South Africa. He is

also an admitted notary and conveyancer.

Qualifications

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BA (University of Cape Town), LLB (University of Cape Town), LLM in

Environmental Law-Mining and Energy law(YALE), Admitted as an attorney

of the High Court of South Africa

Talent RungangaHe is a partner and one of South Africa’s top labour lawyers, having

practiced as an attorney in the field for over 29 years.Piet started his

career as a candidate attorney at Sonnenberg Hoffman & Golombick Inc.

(SHG) in 1984 and later moved on to found and lead the firm’s labour law

department for 10 years before taking on the role of managing partner in

1991. Piet has acted as a labour court judge of the Labour Court of

South Africa and was a member of the technical team that redrafted the

Labour Relations Act.  He has co-authored several publications on labour

law and is regularly quoted in the press.In 2000, Piet was appointed

chair of SHG before becoming chief executive of ENS in 2006, following

the merger between SHG and Edward Nathan. At Piet’s helm, ENS has

experienced unprecedented expansion and, in less than a decade,

established itself as Africa’s largest law firm. The firm has amassed

numerous prestigious awards as a result of its innovative, world-class

and solution-driven approach.Piet attributes the firm’s growth to the

value proposition which ENS offers its clients, resulting from a change

in the legal firm’s culture to one with high levels of collaboration and

teamwork across the firm.Piet is a Harvard Business School graduate and

regularly attends local and international conferences on business

management and leadership principles.

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Qualifications

BComm (University of Stellenbosch)LLB (University of Stellenbosch)

SoneniHlatshwayo

Sheis a Senior Partner and has over 12 years of experience. She currentlypractices as an attorney in the employment department and specialises in

labour law litigation and various aspects of workplace procedures.

She has acted for a number of clients in the mining, construction and energy

industries.

Soneni’s general practice experience involves various aspects of employment

law, particularly the formulation and development of employment contracts,

personnel policies, procedures and the implementation of employment equity. 

She has also advised on collective bargaining and strike management,

restructuring, outsourcing and re-organisation of workplaces, employment

issues in mergers and acquisitions and the interpretation and application of

employment statutes, as well as labour law. She represents clients in labour

disputes such as unfair discrimination, dismissals and unfair labour

practices.

Qualifications

LLB (University of KwaZulu-Natal)

Postgraduate Certificate:  Pension Funds Law I (University of the

Witwatersrand)

Postgraduate Certificate:  Pension Funds Law II (University of the

Witwatersrand)

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4. EXECUTIVE SUMMARYAgenda:The legal sector is flourishing once again thanks to the

resurgence of the local economy which has resulted in the

following:

Increased inbound investors into the South African economy

especially in the Mining sector.

Improved disposable income for both individuals and

companies which has improved the ability to hire legal

services.

These are the key pillars to operate a Law Firm which from our

financial analysis we project a very profitable business for all

the stakeholders involved.

Financial Viability: The Law Firm is up and running we are

projecting 2013 revenue to be approximately 300 million rands

which will increase by 37.5% in 2014 to be $437 million rands.

This increase is significantly showed in the improvement of net

profit attributed to the Firmwhich we project to be about

R197 874 672.75 during the 2013 year and increase by about 49.9%

to $273 987 755.20 in 2014. The increase in the profits is

greater than the increase in revenue mainly because fixed costs

will remain constant from 2013 to 2014.

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Management: We believe a Law Firm needs hands on management,

hence we appointed two Managing Partners who will manage the Firm

on be-half of all the other partners. The management will have a

profit share of 20% versus the Partners and Associates as well as

candidate Attorneys 80%. The Firm’s management will be fully

involved and responsible in the running of the operations of

Farai & Shumba Attorneys and will accountable to all the Partners

of the Firm through monthly meetings as they present their

reports to the Partners and other Stakeholders of the Law Firm.

The future: We strongly believe that the Law firm is currently

incurring huge opportunity costs in terms of possible profits

foregone as it is not operating at full scale. Hence we propose

the Firm to expand its operations to countries like Zimbabwe and

Namibia.

4.1 QUICK FACTS and KEY QUESTIONS

Q: What is the projected profit for 2013 and 2014 Year?

A: 2013: R197 874 672.75 2014: $273 987 755.20

Q: What is projected revenue 1st Year, 2ndYear?

A:2013: 300 million 2014: 437 million

Q: FirmManagement

A: Farai Chigavazira and Gwinyai Shumba

Q: Management Fee

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A: 20% of net profit, payable on a monthly basis

Q: What are our advertisement platforms?

A: Our website www.fsatt.co.za and Bill boards

Q: Partnerships

We have more than ten Partners and several consultants

5. THE LAW FIRM’S OVERVIEWOur Firm is dedicated to improve the Legal sector in SouthAfrica, mainly focusing on private, Law, part of Public Law andMercantile Law. Mines, businesses, government departments andother individuals in urgent need of, efficient and competitiveLegal services are our priority. The Law Firm is dedicated toachieve quality and outstanding customer service that is aboveall our competitors to service various Legal needs.

Other services that ensure a cut above the edge so as to ensureefficiency and effectiveness in our delivery service include butnot limited to, ability to offer free legal services to childrenwith Human Rights issues. We ensure convenience to our customersthrough our conveniently located offices in Quigney East LondonBeach Front.

Our strategy is to offer extra services to our clients so as tocreate value in their Legal needs. Pick up services at an extracost to the customer.

5.1 Services

Our firm offers the following services,

Mining Law

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Aviation Law

Maritime Law

Labour Law

Cyber Law

International Trade Law

Administrative Law

Mining

Farai and Shumba Attorneys offer services to a number of mining

firms in several jurisdictions. Our work includes applications

for prospecting rights and mining rights, all the environmental

aspects of establishing and operating a mine, as well as advising

on long term off-take and supply agreements. We are also involved

in the acquisition and disposal of mining businesses, and the

funding arrangements around these transactions and new mining

projects. We have also been involved in a number of significant

BEE transactions within the mining sector.

As the long term demand for Africa’s resources grows, we expect a

significant increase in mining and resources work across the

continent, both in South Africa and in our other African offices.

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The energy area at Farai and Shumba Attorneys is one of the most

experienced practices in the country’s energy sector, and has

dealt with both renewable and non-renewable energy projects.

A major focus of our work in recent times has been in relation to

the SA Government’s renewable energy programme for solar, wind

and bio-thermal energy projects. We have established several

dedicated teams working in different areas: one team advises the

Government, multiple teams are assisting developers and operators

on bid submission and evaluation, while further teams provide

detailed advice in relation to the funding for these projects

Eskom is a major client and we are involved in all aspects of its

business, ranging from advice on the construction of new power

stations to negotiating coal supply agreements for the supply of

coal to those stations.

Our firm has experience in the oil and gas and industry. The

practice group has a unique knowledge base covering the full

legal spectrum of energy and related matters for both emerging

and established clients. Our specialist knowledge in the oil and

gas industry is supplemented by our capacity to draw on an

established network of multi-disciplinary experts so as to meet

the varied needs and requirements of our clients.

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We have advised Sasol and other energy businesses on multiple

aspects of their businesses, with an excellent understanding of

the regulatory environments in which these businesses operate, be

it natural gas, oil refining or the retail of energy products.

All of these disciplines in our group are backed up by support

from our team of experienced environmental lawyers, long

recognised as market leaders in the field.

NB: The following information is highly confidential

6. CLIENT BASEOur Firm’s top 10 clients are the following

Office of the State Attorney

Ministry of Mines

South African Revenue Authorities

Johannesburg Stock Exchange

De Beers Holding

Implats Ltd

Lohnro Pty

Eskom

Kimberly Diamond

Samsung Africa Ltd

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6.1 CONTRACT WITH UNICEF, ILO and the State Attorney.

“Nothing will ever be attempted if all possible objections mustfirst be overcome”

UNITED NATIONS CHILDREN’S FUND

Farai & Shumba Attorneys signed acontract with the United Nations Children’s Fund in which thefirm undertakes to provide legal services to children withChildren’s Rights concerns among other legal aspects. The firmreceives fees from UNICEF for all the work done at the end ofeach month. The firm also decided to subsidize all the costs aspart of its corporate social responsibility.

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INTERNATIONAL LABOUR ORGANIZATION Apartfrom the UNICEF agreement, our firm also signed a contract withthe International LabourOrganisation in which the firm undertakesto offer legal services to children who are employed illegally.In South Africa child labour has become a growing concern hencethe firm is also engaging in massive community outreach. With theassistance of ILO, the firm is working with various Schools toadvocate for the eradication of child labour.

STATE ATTORNEY

The firm also entered into a contract with theOffice of the state Attorney. According to this contract, theFirm will work with the State Attorney in Areas of Mining Law,Cyber Law and Administrative Law. The state attorney will pay thefirm for any work done for the government. This is a massive deal

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that has increased the law firm’s revenue and market confidence.The firm has becoming a major player in the mentioned field andits expansion project prognosticated a few months ago willinevitably succeed due to the rapid growth in revenue.

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7. BUSINESS ANALYSIS7.1 Competitors

“Positive thoughts and positive actions lead to positive

results”

There are a few participants in our area of expertise in South

Africa which include but not limited to Madikane and

Associates, Chidede and Partners among others. There are other

various small Law Firms that are operated throughout South

Africa but they are limited in terms resources. The above

mentioned Law Firms are slightly below ours hence the need to

offer the best legal services. Mainly they deal with the top

elite which imply a market loop hole in the middle class,

individuals, small to medium business persons and growing

corporations. This allows more room for our Firm in the

industry hence the need to capitalize on the existing

opportunities which will enable our company to expand as

envisaged. There is market gap on the following areas that

need to be satisfied at unimaginable profits:

Small Mining Companies

Small to Medium Enterprises

Small Corporations

Budget non-governmental organizations

Budget government officials

Strong inflow of Investors coming into the Country who

needs short term legal services

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One night rich people who need affordable and efficient

legal services

Our Law Firm will cater for clients with budgets in the range

of R10 000 and above per month as this is the market that is

not fully catered for as there is only one Law Firm that is

currently servicing this market. Firms such as

ChidedeandMadikane are unlikely to become key competitors. As

projected in the profitability section this industry has huge

profits that are not yet tapped hence the need for another

major player.

7.2 Business Advantages:

o This business offers limited down side risk as well as

unlimited upside potential, this implies that if the

market is not viable to operate, our company will always

dispose its assets which will ensure that we recover our

Initial cost of capital.

o Important to note is that Legal fees in South Africa

generally remain constant over time even though the

economy fluctuates sometimes, which gives the firm a

guarantee of profit

o South African Business environment is picking up since

2012, as well as the general political risk is improving

which means an improvement in the number of investors.

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8. MARKET ANALYSIS SUMMERYOur customers can be divided three main groups:

parastatals, private sector companies in various fields,

labour groups and public interest groups.

1. Parastatals . Due to our expertise in the fields of

mining, aviation, labour, cyber law and maritime law,

government parastatals offer our firm an abundant client

base with large firms that have mandates to administer

but require extensive representation.

2. Private sector companies .Our clients within the private

sector have various needs that we are able to cater to

particularly in regards to international trade as well as

mining law. The recent discovery of natural gas deposits

within the territorial waters of South Africa will also

see an increase in new clients that will need

representation in maritime disputes.

3. Labour groups .These groups in particular need

representation to ensure that employee and employer

rights across all spheres are adequately catered for.

4. Public interest groups .These are various groups within

society that need to be represented. Our work will be pro

bono for these particular groups as part of our duty to

society.

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8.1 Target Market Segment Strategy

“The will to win is worthless if you do not have the will to

prepare “Thane Yost

Farai and Shumba Attorneys will be targeting these specific

clients for the following reasons.

1. Government run parastatals often run into many problems

particularly due to the recent recession that the economy

is still recovering from. Airlines such as 1time have

been forced into provisional liquidation, and there are

many social upheavals that have occurred of late and they

require specialist litigators or legal advisors with a

wealth of experience. We believe that our firm is fully

capable of administering these services.

2. The recent discovery of natural gases within the

territorial waters of South Africa has seen an upsurge in

interest from international private mining firms that

wish to establish themselves within the country. Our

prominence as a market leader within the legal spheres of

mining law will allow us to draw these clients in and

allow us to cater to their needs.

3. South Africa has numerous labour disputes with many

labour groups protesting and marching for their rights.

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For example the mining industry has seen recent

instability due to worker’s wishing to express their

grievances and feeling as though they are not being

heard. Our firm will target these groups and assist them

wherever possible in order to protect their rights

4. Farai and Shumba will be targeting public interest

organizations for one simple reason, a desire to give

back to the community. Public interest work is inherently

altruistic to some degree. Generally, the person

performing the work receives a good feeling for his/her

contribution, but in today's capitalistic society,

someone who donates his/her time at far below market

wages should be considered altruistic.

8.2 Service Business Analysis

As a mainly mining and aviation firm our clients may not

be numerous but they are very large players within their

respective industries. As a service-based industry, the

practice of law is driven by personal relationships and

reputation and potential clients choose attorneys based

on reputation and who they are familiar with or are

recommended to. Therefore, if the attorney is providing

better service to a client, the client is likely to form

a long lasting business relationship with the client. Our

firm aims to do just that in order to ensure that we

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remain a leading firm and attract new clients from large

international players.

Farai & Shumba Attorneys has the advantage of specialised

experienced within our teams that cater directly to our

clients and are well versed in the intricacies of their

filed.

9. FARAI & SHUMBA ATTORNEYS’S FINACIAL STATEMENT2012 Statement

Income statement

Income 287 000 000

Expenses 120 000 000

Balance sheet

Assets

Fixed assets

Equipment 15 000 000

Motor vehicle 7 000 000

Premises 2 000 000

Current assets

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167 000000

25 000000

Debtors 700 000

VAT control 28 000 000

Bank 12 387 354

Total assets

Equity and liabilities

Capital 50 000 000

Net profit 117 000 000

167 000000

Liabilities

Creditors 35 000 000

Total Equity and Liabilities

35 000 000

10. ASSETS PURCHASED

“All our dreams can come true - if we have the courage to

pursue them”

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40388054

65388054

The firm purchased a fleet of cars for all the Managing

Partners, the Partners, Associates and other staff members.

The managing Partners bought two Bentley Continental GT.

All the Partners were given each a Mercedes Benz S350 CDI Blue

Efficency

Apart from the cars, the firm also Purchased Offices in

Port Elizabeth which will soon be used.

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11. ConclusionOur firm is elastic. It shall stretch and grab clients across

the continent. Our overall vision is expansion and efficiency.

At the moment we aim to be a leading legal brand in South

Africa with a commitment to cementing that position and

growing our reputation as the most innovative and client

focused law firm across the nation.

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