Introducing sefa … Umsunduzi Business day – May 2015

Corporate Profile EstablishedApril 2012 (merged entity) Corporate TypeState-owned Company registered in terms of the Companies Act Shareholding100% owned by IDC ReportingEconomic Development Department FundingGovernment & IDC ObjectiveDevelopment of sustainable Small Medium and Micro Enterprises and Co-operative Enterprises ActivitiesProvision of finance Geographic mandateSouth Africa FinanceProvided funding of R1bn to SMMEs in FY2014 GovernanceFollows normal company policy and procedures ValuesKuyasheshwa!; Passion for development; Integrity; Transparency; Innovation

Strategic & Operational Principles Focus of SMMEs Market Failure Catalytic or unlocking latent potential Transformative Partnership

Distribution model

Portfolio of Products DIRECT LENDING Working Capital Facilities Asset Finance Term Loans Revolving Loans Bridging Loans Short-term Trade Finance SECTOR-SPECIFIC FINANCING PRODUCTS Land Reform - Land Reform Empowerment Facility for emerging black farmers. Tourism: iKwezi Tourism Facility (sefa /Tourism Enterprise Partnership (TEP)) Sugar Farming: sefa/ Hulett Sugar (THS) Facility Mining: sefa Anglo- American Mining Fund Youth: sefa/Awethu Youth Fund CREDIT GUARANTEE SCHEME Designed to indemnify commercial banks and suppliers who extend credit to SMME. Supplier Credit Guarantee programme is in its pilot phase. funding from R50k up to R5 m million MICRO-FINANCE sefa has partnered with 13 MFIs nationally small scale finance – between R500 and R50k CO-OPERATIVE FINANCIAL INSTITUTIONS (CFIs) sefa has partnered with 10 CFIs in across the country facilities from R500 up to R50k

Geographic footprint

Funding requirements … are owned by South African citizens and permanent residents are legally registered fixed physical address are within the required contractual capacity operate in South Africa have a written proposal or business plan that meets the requirements of sefa’s loan application criteria demonstrate the character and ability to repay the loan have provided personal and/or credit references (if available) have the majority shareholder as the owner manager of the business where available, can provide relevant securities/ collateral have a valid tax clearance certificate

Funding exclusions Manufacturing and selling of ammunition Tobacco, liquor, gambling and sex trade Political organisations Persons under debt review Un-rehabilitated insolvent shareholders and/or directors of applying entities Primary agriculture (except cash crops and the applicant should have an off take agreement) Speculative property development

2011/ / /14 ex-Khula and ex- samaf sefa Approvals R211 million R440 million R1, 065 billion Disbursements R143 million R198 million R549 million Loan book performance

Job facilitated & SMMEs funded

Support to Target Groups

sefa Provincial Support to SMMEs (Dec’ 14)

Success Stories SinMon trading is a construction company based in Durban, KwaZulu Natal. The business is 100% women owned by Mrs Nokulunga Mkhize. In 2014 Mrs Mkhize approached sefa for funding for her start- up business in order to commence with the project of constructing low cost houses that her business had been awarded. The business received funding of R4,545, from sefa in Through this project the business has far created 40 job opportunities. Sasapi was funded for R2,068,400 for expansion of its manufacturing plant. The business manufactures shoes for Futura Shoes or as they are known Bata Toughees. They are based in Hammarsdale. The business created 120 jobs. Abaphumeleli, a construction company, was funded for R4,8 million for construction of low cost houses in Newcastle. This business created 100 jobs.

Success Stories (Contd….) Heidi Barkhuizen, which is a sweets/nuts supplier to retailers, was funded for R476, 473. The company is based in Stanger. 28 jobs were created. RRK Trading was funded to start up a “Build It” at Umkomaas, South Coast. The business was funded for R2 million. 14 jobs were created.

Pilot initiative to increase access to Finance Pilot initiatives is aimed at establishing a new generations intermediaries − Reduce to cost of credit, especially to micro enterprises − Provide sefa with scale to reach thousands of enterprises − Technical capability and expertise to provide post investment support to SMMEs Fresh Produce Markets − Majority of informal traders buy fresh produce from municipal markets − 18 municipal Fresh Products markets in SA and 30-40% of buyers is informal traders − Pilot programme initiated with Durban and Mangaung Fresh Produce Markets − Short credit facilities with a 20% interest rate cap Supplier Credit Programme − Indemnifying suppliers of input goods to SMMEs against possible default by SMME − Short term trade credit facilities (30 day, zero interest) − Pilot initiative – Construction and Steel Sector Mobile Micro Enterprise Finance − Technology platform to extend credit via online application server and credit scoring − Focus on youth entrepreneurship Structured Enterprise Finance Solutions − Promote enterprise development and encourage supply chain reform and business linkages with large corporates − Aligned with the BBBEE codes 15

16 Strategic partnerships

sefa Contact Details sefa National Call Centre :