MTN SA: SMMEs Portfolio Committee Briefing 25 October 2017

Table of Contents Introduction Our Team Not Yet Uhuru Store Breakdown Procurement Spend Infrastructure Spend Our Capacity Building Approach Incubation and CSI programmes Our commitment

Introduction MTN is a company that was born out of democracy Proudly South African Company with headquarters in Johannesburg, Gauteng We have a presence in 22 markets in Africa We use technology to empower communities – to lead the bold new Digital World

Our Team Godfrey Motsa Sandile Nstele Trevor Msimang Godfrey is the Chief Executive Officer of MTN South Africa He was appointed to the role in March 2017 after serving as the Vice President of South & East Africa at MTN Group He has over 10 years of experience in the mobile telecommunications industry Sandile Nstele Sandile is the Chief Financial Officer for MTN SA Prior to assuming this role in 2015, he was the Chief Financial Officer for MTN Cameroon and MTN Zambia. He is an accomplished financial professional who is well versed in mergers and acquisitions, investor relations, sales and marketing and regulatory aspects of the business. Trevor Msimang Trevor recently joined MTN He is role at MTN is General Manager BBBEE He is responsible for provided strategic direction to the Group on Transformation and Broad Based Black Economic Empowerment (B-BBEE) related priorities, through the development and implementation of MTN’s Transformation strategy.

NOT YET UHURU AS WE EXPAND, OUR PARTNERS IN TURN BENEFIT AND THIS BOOSTS INCLUSIVITY AND COMPETITIVENESS

Store Breakdown

Closing the Gap between the Past and Today TOTAL MEASURED PROCUREMENT SPEND 2016 30% Black Female owned 9 258 793 770.26 51% Black owned 3 526 530 580.11 EME 326 897 497.59 QSE 1 261 362 061.43

Areas of Infrastructure Spend Full Turn Key Localisation of Service Rural Community Participation Shared Incubation Programmes NETWORK REGIONS: NPR – Northern GAN – Gauteng North GAS – Gauteng South KZN – KwaZulu Natal FS – Free State / Central ECP – Eastern Cape WCP – Western Cape

Tender Evaluation Criteria Weighting Foundation Technical 35.0 40.0 Financial Due Diligence 5.0 - B-BBEE 20.0 30.0 Safety Health & Environment (SHE) Quality Management Total Cost of Ownership 25.0 Standard Terms & Conditions Total 100.0 MTN’s B-BBEE evaluation criteria is set-up so as to benefit SMMEs, Black Owned and Black Women Owned entities. 80% of the overall B-BBEE scoring is directly related to promote Black Owned, Black Women Owned and SMME participation within the supply chain.

Our Capacity Building Approach Supplier Development Skills Development Job Creation Localisation Pillars Black Owned Black Women Owned EME / QSE Designated Groups Focus Groups Evaluation MTN’s B-BBEE evaluation criteria is set-up so as to benefit SMMEs, Black Owned and Black Women Owned entities (80% of the overall B-BBEE scoring is directly related to this). Virtual & Physical Incubation Mentoring & Coaching 45 Beneficiaries 100% Black Owned (28 Youth & 11 Women Owned) Gazelle Partnership NGM Partnership MTN Zoner’s Early Payment for SMMEs within 10 days avg >95%Non//Local branded handsets procured from black-owned suppliers SMME Fund ESD Programmes

Incubation Programme Beneficiaries eCubed

Contracted SMME’s (July 2016- Current) eCubed

MTN Corporate Social Investment Education Programme: School Connectivity multimedia centres rollout ~R290 Million ICT support for 299 Schools plus four Universities (Educator Training & support): University of Johannesburg University of Venda University of Mpumalanga Walter Sisulu University Community Programme: eHealth programme in Nursing/EMS Colleges ~ R74,8 Million Entrepreneurship Programme ~ R88,8 Million Special Projects: 13

Our Commitment Transforming our industry Enhancing access to services and opportunities for SMMEs Achieving NDP targets Finding working ways to enhance SMME growth Creating Innovative solutions and partnerships