samaf Medium Term Strategic Framework 2011 2014 Click

samaf Medium Term Strategic Framework 2011 – 2014 Click to edit Master subtitle style Presentation to the Portfolio Committee on Economic Development 30 March 2011 11

Contents Mandate Vision, Mission and Values Key Deliverables over the Three Years samaf Products and Services Alignment of samaf to the New Growth Path Performance Targets Budget – Challenges samaf Provincial Office Addresses 22

Mandate To create work opportunities and sustainable livelihoods through the facilitation and provision of affordable access to finance by micro, small and survivalist businesses for the purpose of growing their income and asset base. samaf is also required to act as a catalyst in the development of a vibrant micro-finance industry in South Africa. 33

Mandate Effectively this means that samaf must: Facilitate the provision of affordable access to finance by micro and survivalist businesses; Extend financial and non-financial services to reach deeper and broader into the rural areas, informal settlement and peri-urban settlement of South Africa; Build a strong, effective and efficient wholesale (Apex) Fund; Contribute to a better quality of life; and Contribute towards a sustainable and vibrant micro financial industry in 44

Vision and Mission Vision “To be a leader in developmental micro finance” Mission To provide developmental finance and non-financial services to Financial Intermediaries through: Mobilization of financial intermediaries; Wholesaling of funds; Development of institutional capacity; Lobbying and advocacy towards policy development; and Development of valuable partnerships. 55

Values The following values will underscore samaf’s behaviour as it strives towards the achievement of its mandate, vision and mission: Integrity - Dealing with stakeholders in an honest and ethical manner; Transparency - Ensuring compliance with best practice on the dissemination and sharing of information with all stakeholders and consulting with them to ensure comprehensiveness and buy-in to samaf activities; Professionalism - Adhere to specific defined norms and setting standards of workmanship, respect, and communication; Accountability - Taking responsibility for the decisions and actions, including allocation of powers and duties; High Performance - Excellent performance and satisfied customers that guarantee long term sustainability of the South African Micro-Finance Apex Fund. The relevant behaviour by staff to achieve the above values have also been developed. 66

Key Deliverables over the Three Years Provision of financial support to FI’s totalling R 279 m for on-lending R 115 m for capacity & institutional building support Establishment of 122 new Financial Intermediaries (FI’s) Funding of 193 FI’s Creation of 56 000 projected new jobs Diversified microfinance products to address the needs of the Financial Intermediaries Increasing visibility and awareness of samaf’s mandate, products and services Improvements in Information Technology Improved turn around times 77

samaf Products and Services LOANS: USAGE: • Development Loans Education loans Housing loans Emergency loans 2. Micro-enterprise Loans INSTITUTIONAL INCENTIVES: 1. Fund 2. Saving formalisation & mobilisation fund Consumption loans aimed at FSC’s and MFI’s for on-lending to clients (household) earning below R 1 500 per month MINIMUM - MAXIMUM USAGE: R 4 Million R 10 Million Micro – surviving generating activities with the total income of R 3 500 per month USAGE: To assist both MFI’s and FSC’s to be utilised for enhancing the institutional capacity, partial subsidizing of operation costs, development of reporting systems policies and procedures To assist current and unregistered cooperatives, groups and clubs to formalise their registration with CIPRO and samaf and the overall operations capacity in order to grow MINIMUM R 1 Million N/A MAXIMUM R 5 Million R 200 000 Note: The above thresholds are under review to ensure relevance to the market that samaf serves 88

Alignment to the New Growth Path The performance objectives are aligned to the New Growth Path as defined by the Economic Development Department (EDD) and are as follows: Strengthening access to micro-finance for small enterprises Enterprise development: Promoting small business and entrepreneurship Eliminating red tape; Payment of small business suppliers within 30 days Spatial development: Extension of samaf offerings to remote and rural areas by working with the Provinces and Municipalities. Addressing key developmental goals for women empowerment and youth employment 99

Performance Targets Measure End-user borrowers 2011/12 Number 2012/13 % Number 2013/14 % Number % Total borrowers 22, 116 30, 233 43, 190 Women Men 17, 693 4, 423 80% 24, 186 6, 047 80% 20% 34, 551 8, 639 80% 20% Youth Disabled 2, 212 443 10% 2% 3, 023 604 10% 2% 4, 318 864 10% 2% 13, 791 8, 325 62% 38% 19, 564 10, 669 65% 35% 28, 815 14, 375 67% 33% Rural Semi-urban 10 10

Performance Targets End user borrowers 11 11

Performance Targets End user borrowers 12 12

Performance Targets Measure 2011/12 Number 2012/13 % Number 2013/14 % Number % End-user service loans Micro Enterprise 19, 421 88% 26, 894 89% 39, 023 90% Housing 1, 536 7% 1, 849 6% 2, 224 5% Education 1, 159 5% 1, 490 5% 1, 941 5% New jobs created 13, 100 17, 900 25, 000 End-user savings 23, 851 28, 419 34, 653 4, 568 6, 234 6, 982 17, 958, 423 22, 165, 123 26, 379, 053 Total active savers New savers Total savings book (R) 13 13

Performance Targets End user service loans 14 14

Performance Targets Measure 2011/12 Number 2012/13 % Number 2013/14 % Number % Funding support to FIs On Lending 65, 092, 040 88, 924, 500 124, 634, 500 Capacity Building 35, 049, 560 38, 110, 500 41, 544, 250 FI Repayment rate 60% 65% 70% Portfolio at risk 40% 35% 30% FI Retention 65% 70% 75% MFIs 4 10 8 FSCs 32 31 37 New FIs to be approved 15 15

Performance Targets Funding Support to FIs

Performance Targets Measure 2011/12 2012/13 2013/14 FIs to be funded MFIs 17 21 FSCs 33 49 56 Outreach to new communities 54 64 66 MFIs 13 10 18 FSCs 14 17 16 Financial reporting 12 12 12 Capacity Building Needs assessment for end user Capacity Building 60% Complete 80% Complete 100% Complete 17 17

Performance Targets Measure 2011/12 2012/13 2013/14 100% Complete Unqualified Audit Report 30 days Capacity Building Design products to meet end user capacity building requirements Finance Unqualified Audit Report Payment of creditors within 30 days Information Technology Implementation of software to manage turnaround times Software Implemented 18 18

Performance Targets Measure 2011/12 2012/13 2013/14 Marketing Conduct client satisfaction survey- FIs 0 1 0 Conduct client satisfaction survey- End user 1 0 1 Printing of brochures in Brochures printed 11 official languages Profiling of samaf in the media 27 Brochures printed 27 27 19 19

Budget 2011/12 Expenditure 2012/13 2013/14 61 302 000 63 360 000 66 985 000 20 835 000 21 567 000 22 592 000 1 514 000 1 706 000 1 738 000 Personnel Costs 33 987 000 36 027 000 38 189 000 Losses on Loans 4 966 000 4 060 000 4 466 000 141 600 127 035 000 166 178 750 Administrative Expenses Depreciation Transfers to FIs Grants 35 049 560 38 110 500 41 544 250 Loans 65 092 040 88 924 500 124 634 500 20 20

Challenges Sustainability of Financial Intermediaries (FIs) Capacity within samaf and the FIs Provincial spatial demographics Turnaround times 21

samaf Provincial Office Addresses Gauteng Provincial Manager: Ms Tsholofelo Molebaloa 108 Cnr Rissik and Fox Street 13 th Floor Metropolitan Building Johannesburg, 2001 North West Provincial Manager: Vacant Physical Address: Cnr University Drive and Provident Street Office no 229, 2 nd Floor, NWDC Building, Mmabatho , 2790 Postal Address: PO Box 61008, Marshalltown, 2107 Tel: 011 838 5482 Fax: 011 838 5486 Email: Postal Address: Private Bag X 58 Mmabatho 2735 Tel: 018 384 0766 Fax: 018 384 1963 Email: Mpumalanga Provincial Manager: Mr Sabelo Mamba Physical Address: 30 Brown Street First Floor, Nedbank Centre, Nelspruit, 1200 Postal Address: P O Box 3677 Nelspruit 1200 Tel: 013 755 2696 Fax: 013 752 7461 Email: Eastern Cape Provincial Manager: Vacant Physical Address: 58 Terminus Street, 7 th Floor, SA Eagle Building East London, 5201 Postal Address: P O Box 9071 East London 5200 Tel: 043 743 5259 Fax: 043 743 5249 Free State Provincial Manager: Mr Tefo Lekutle Physical Address: Cnr Maitland West Burger Street Bloemfontein 9301 Postal Address: Private Bag 20806 Bloemfontein 9300 Tel: 051 447 3510 Fax: 051 430 6470 Northern Cape Provincial Manager (Acting): Mr. Jacob Gumbo Physical Address: Suite 2, Perm Building, Woodley Street Kimberley, 8301 Postal Address: P O Box 1972 Kimberley 8300 Tel: 053 832 5422 Email: 22 22

samaf Provincial and Head Office Addresses Western Cape Provincial Manager: Mr Mark Alard Physical Address: 2 Long Street, 9 th floor, FNB Building Cape Town, 8001 Kwa. Zulu- Natal Provincial Manager: Mr Thanda Madlala Physical Address: 127 Johannes Nkosi Street Seda Ethekwini Durban, 4001 Postal Address: PO Box 7284, Roggebaai, Cape Town, 8012 Tel: 021 425 6774 Fax: 021 425 6776 Email: Postal Address: PO Box 3983, Durban, 4000 Tel: 031 309 5850 Fax: 031 309 5893 Email: Limpopo Provincial Manager: Mr Patrick Mathoma Physical Address: 22 Hans van Rensburg Street 1 st floor Suite no 2 Bonitas Building Polokwane 0699 Postal Address: P O Box 2938 Polokwane 0700 Tel: 015 291 5428 Fax: 015 291 5415 Email: Head Office Address 77 Meintjies Street, the dti group campus 3 rd floor, block D (Kgwebong), Sunnyside, Pretoria, 0002 Postal Address: Private Bag x 26, Sunnyside, 0132 Tel: 012 394 1479 Fax: 012 394 2479 23 23

Thank You 24 24