Outline About UYF Programmes of UYF Description, Achievement, Lessons, Challenges Context (Conditions, Policies) Financial information Plans 2004 - 2006 Outline

History Feb 1998 Budget Speech - Minister of Finance announces a levy on the demutualisation proceeds establish the UYF   Sep 1998 Government Gazette - Demutualisation Act Oct 1999 Monies are transferred from SARS to the Umsobomvu Youth Fund account and placed a deposit with CPD National Treasury begins the process of appointing the Board of Directors Nov 1999 Articles of Association drafted Jan 2000 Board of Directors appointed Feb 2000 Board of Directors meet for the first time Mar 2000 Board begins the process of appointing the CEO

History Jul 2000 Government Gazette amending the Demutualisation Act to exempt the UYF from income tax   Aug 2000 Consultative Forum Jan 2001 CEO and COO are appointed Strategic planning session between the Directors and Management to establish four key result areas for the UYF Mar 2001 Bankers, auditors and asset consultant are appointed Work commenced on the internal structure, policies, procedures and systems to administer the UYF Board of Directors approve the focus areas of the UYF Apr 2001 Recruitment process to fill 10 strategic posts begins

INVESTMENTS & PROJECTS Focus of the Fund INVESTMENTS & PROJECTS Contact, Information & Counselling Skills Development & Transfer Youth Entrepreneurship SME Finance Cooperative Funding Micro Finance Business Development Support Entrepreneurship Education New Venture Creation Learnership Business skills development voucher programme Youth information service Youth line Youth portal Youth advisory centres Youth Card On-the-job Training / Skills Development National Youth Service School to Work (FETCs)

Commitments TYPE NO of PROJECTS AMOUNT Core projects 74 R589 million M& E, CBR 16 R 13,6 million TOTAL 90 R602 million Commitments

Targets* *At current funding commitment level 50 000 jobs by 2006

Number of beneficiaries Participants to date Programme Number of beneficiaries 1. Youth Advisory Centres 80 554 2. Youth Line 83 480 3. Business Development Services Voucher Programme 3 356 4. Entrepreneurship Education 10 000 4. Small & Medium Enterprise Finance 60 5. Micro Finance 1 015 6. Youth Co-operatives Finance 120 7. School to Work 2 236 8. Community Youth Service 990 9. Skills Training (including Volunteer Campaign) 1 572 10. Youth Portal 507 000 Total beneficiaries in excess of 650 000

EntrepreneurshipTarget Market Existing businesses Start-ups Aspiring Entrepreneurs

PROGRAMME AREAS

EF PROGRAM STRUCTURE Progress Fund: R100 million Fund – provides finance from R100k to R5,000k to SMEs which are beneficiaries of procurement contracts. Franchise Fund: R125 million Fund – provides finance from R150k to R3,000 for purchase of new or existing franchises. General Fund: R90 million Fund – provides finance from R50k to R5,000k to SMEs which are not covered by Franchise or Progress Fund Micro-Finance: Provides finance of up to R50k for start up or expansion of existing business. Co-operatives: Provides finance to groups of people in co-operative up to R500,000 per co-operative

ACHIEVEMENTS Micro: 1015 enterprises (2000 jobs) SME: 60 SMEs (979 jobs) Co-investment: R50 million (7:1) Private sector involvement – Banks High (50%) support for women in micro Returns = 21%-22% (Portfolio) Bank direct commitment of R160 million and indirect of R320 million) Strong expression of interest from other Banks Partnership in process with ECDC and Ithala Achieved significantly more than Khula, Msele-Nedventures, NEF Ventures, Equity Africa

2004/2005 PLAN Approve R60 m loans/investments to SMMEs SME (70), Co-operatives (28), Micro (1,208) Leverage private sector finance = 2:1 (R340m : R170m) Implement partnerships with ECDC, Ithala, MEEC, NPDC; Provincial Investment Promotion Agencies and Provincial Departments Create / preserve 3,000 jobs Women-owned SMMEs = 60% Design, develop, implement mainstream micro Gross portfolio return >20%