1 Savings solutions for All - Informal Sector Coverage

Objective and Concept MBAO SA To establish a long term savings scheme for the informal sector employees through a minimum daily contribution Create a saving culture for the employees in the informal sector …………….Based on the MBAO Scheme in Kenya  Flexible contributions – any amount, any frequency  Easy access – ID & mobile phone  Continuous communication - sms  CISCA Feeder Fund - Daily NAV  Co-contribution – employer and government  Distribution via multiple channels at ground level  Low cost structure  Continuous awareness through advertisements 2

Considerations  Retail distribution model – create a footprint  Level of financial literacy  Unbanked Investors  Cell phone coverage  Cash in / out  Initial engagement - registration and FICA  Different scenarios  Street hawker  Multiple employers  Seasonal workers

FICA Requirements  Regulation 7 (1)(i) : CISCA Exemption  < R25k per annum investment  Exemption 17 : Bank Account  Only ID required  < R25k account balance  Limit on transaction amounts

Investment Options / Proposals  Sponsored Bank Account – real bank account – deposit money at retail outlets via cell phone app. – transfer to Mbao saving, do 3 rd party transfers, buy airtime, buy electricity  Electronic Transfers from :  e-Wallets such e.g. Vodacom M-Pesa  Bank accounts via cell phone banking solutions e.g. Standard Bank  Salary deduction / co-contribution by Employers

Financial Transaction Capability Financial Transaction Interoperability System Participant & Investor Detail Financial Transactions Investment & Disinvestment Audit trails Settlement Reconciliations User Interfaces Investor Participant Admin Company Points-of-Presence (PoP) Reporting & Queries Electronic Communication NPS Compliance Value Added Services: Purchase airtime & electricity MBAO Transaction account Pay beneficiaries Money transfer Mbao National Payment System (NPS) Investor Participant Points of Presence Points of Presence Employer Savings Risk bolt-on Product n