1. The Banking Council South Africa AN OVERVIEW OF THE FINANCIAL SECTOR CHARTER: CITY STRATEGIES TO ACCESS FINANCIAL SERVICES FOR THE URBAN POOR CITIES ALLIANCE PUBLIC FORUM WEDNESDAY, 3 NOVEMBER 2004 DURBAN, SOUTH AFRICA

2. CONTENT OF PRESENTATION  Principles  Content  Implementation  Current status  Challenges  Conclusion CAS COOVADIA BANKING COUNCIL, SA

3. PRINCIPLES  Voluntary  Inclusive, within this context  Commercially driven  Partnership  Not business as usual  “Black” economic empowerment  Transformation / Growth / Best practice  Common ultimate objectives CAS COOVADIA BANKING COUNCIL, SA

4. CONTENT EMPLOYMENT EQUITY25% Senior Man. Level (4% black women) to 50% Junior Man. Level (15% black women) – 33% black women by 2014 all levels PROCUREMENT50% (70% by 2014) OWNERSHIP10% direct, 15% indirect BOARD33% black (11% black women EXECUTIVE MANAGEMENT 25% black (4% black women) – 33% black women by 2014 SKILLS DEVELOPMENT1.5% of payroll LEARNERSHIPS4.5% of payroll ENTERPRISE DEVELOPMENT 50% to 125% of R spend for black influenced to black empowered to black women empowered and SME ACCESS TO FINANCIAL SERVICES 80% reach to LSM 1-5. Basic savings and transaction accounts EMPOWERMENT FINANCING: TRF. INFRASTRUCTURE LOW INC. HSNG AGRI. DEV BLACK SME BEE TRANSACTION FIN Approx. R 120B

5. IMPLEMENTATION  Low income housing agreed critical priorities with DOH developing securitisation vehicle underwriting by government evaluating all aspects interacting with delivery channels products CAS COOVADIA BANKING COUNCIL, SA

6. IMPLEMENTATION – Cont.  Transformational infrastructure definitions deal flow  Bee transactions research into ownership trustee activism broad based / individual  Access to financial services geographic access Mzansi technology CAS COOVADIA BANKING COUNCIL, SA

7. IMPLEMENTATION - Cont.  Working groups  Task groups  Detailed work  Availability of work  Optimise all available capacity  Inclusive CAS COOVADIA BANKING COUNCIL, SA

8. CURRENT STATUS  Charter Council  Finalisation of targets and release  State-owned enterprises  Mandated government positions  Implementation of institutional vehicles  Interaction with other stakeholders  Accreditation CAS COOVADIA BANKING COUNCIL, SA

9. CHALLENGES  Government participation  Management of Charter Council  Consolidate partnership  Maintain “maximalist” approach  Change paradigms at all levels MAKE IT HAPPEN! CAS COOVADIA BANKING COUNCIL, SA

10. CONCLUSION  What does this mean for urban poor? - Mzansi - Targeted investments - CSI - “Community rehabilitation” - New entrants CAS COOVADIA BANKING COUNCIL, SA