Khula Enterprise Finance Ltd Khula Budget for 2001/2002 Presentation to the Portfolio Committee 07/03/2001 Presented by Khula MD Mr. S Tati

To become a wholesaler of first choice in mobilizing SMMEs’ finance. Vision To become a wholesaler of first choice in mobilizing SMMEs’ finance.

Mission Statement To promote sustainable access to loans & equity by SMMEs’ through RFIs’ and offering a range of financial resources and information to the public. Financial Resources : Seed and business loans; Capacity building; Guarantees; Equity finance

Prioritised Corporate Objectives 2001/02 Re-capitalize on a realistic basis as a matter of urgency [R1,2 billion including r250m seed activities] Formalize future capital and grant activity funding with DTI Reconfirm mandate and underwriting needs Build strategic alliances with non-finance service providers and NDFIs [IDC; DBSA; Ntsika; Alliance; APDF; Sizabantu; Etc]

Prioritised Corporate Objectives 2001/02 Identify growth markets with job potential [Tourism; construction; state procurement; taxi recap; franchise] Implement the marketing strategy in order to raise public profile of Khula Strengthening Donor relations & reporting Pursue flexible range of products; repackage

Prioritised Corporate Objectives 2001/02 Replicate and disseminate best practice. Create deliberate and strategic R&D processes. Play an active role in shaping a conducive environment for SMME. Pursuing tax exemption for development work.

Prioritised Corporate Objectives 2001/02 Review of “risk management framework” Basic qualifying criteria Provisioning and reserving policies Pricing strategy Re-define exposure limits/hedging Compliance with legislative framework Consolidate MIS development process.

Prioritised Corporate Objectives 2001/02 Organisation development initiatives. Creating a clear understanding of our mission and values. Key strategic focus areas and accompanying critical success factors. Adopt a sound skills development framework to enhance Khula’s core competencies. Integrated performance management system.

Divisional Strategy for Loans Consolidation and growth. Grow existing RFIs and allow natural attrition where necessary. Adopt a systematic and integrated approach to capacity building. Segment and differentiate start-up RFIs to growing RFIs. Allow for synergies and rationalization where appropriate [apex strategies]. Involve sector players in setting growth targets and objectives.

Divisional Strategy for Guarantees Increase dialogue and interface with banks Support active and innovative players Tailor mentorship scheme to bank needs and complete pilot phases Research alternative instrument for bank participation than guarantees

Divisional Strategy for Equity Raise capital for and fast-tract Equity fund establishment and roll-out Complete setting up of the governing structures Link-up to the privatisation processes of Government Work closer with other DFI players like IDC Tap on SDI opportunities for SMEs’

Consolidated Income Statement

Core Income (Breakdown)

Core Expenses (Breakdown)

Operating Expenses (Breakdown)

Donor Funds Application

Comparative Program Activities

Donor Funded Activities

Aggregate Capital Projections

Assumptions of Average Facilities

Job Creation/outreach

Opening address by former President Mandela “It will not be easy to achieve these goals. Government cannot do it on its own. “Only a partnership embracing small business and the big corporations, government and foreign donors, can marshal the energies and generate the bulk of the resources needed” Opening address by former President Mandela Durban, 28 March 1995

Thank You for Your Attention Presented by Mr Sizwe Tati Managing director Khula enterprise finance (Pty) ltd 23/01/2001

Khula Impact system Donors/Stakeholders Impact Budget Products Khula EU R Products R LRCF Mentorship Credit Available RFI Seed Loans Khula Equity Fund growth R R DTI Credit Guarantee Khulastart EU SMME’s R R Ford Banks JOBS UNDP SIDA NORAD