1. Overview of the Strategic Plan
Presentation to the Portfolio Committee on Trade and Industry
5 March 2008 1

2. Presenters Ms Philisiwe Buthelezi Mr. Andrew Wright
Chief Executive Officer
(Telephone / 8147 (Manager in the CEOs Office: Emma Riley)
Mr. Andrew Wright
Chief Operating Officer (COO)
Mr. Frencel Gillion
Chief Investment Officer (CIO)
Mr. Moemise Motsepe
Manager: Marketing & Communications
Ms Hlengiwe Makhatini
Pre-Investment Manager 2

3. Mission Statement broad- based Black Economic
“The National Empowerment Fund
(NEF) is the catalyst of
broad- based Black Economic
Empowerment in South Africa.
We enable, develop, promote and implement innovative investment
and transformation solutions to advance sustainable Black economic participation.” 3

4. NEF Mandate Main objective Driven by Development focus
To be a catalyst in facilitating economic equality and transformation
Driven by
Current market needs
Broad-based empowerment charters
Government policy and sectoral charters (Industrial Policy)
Addressing past failures of BEE structures
Broad Based BEE Codes of Good Practice
Development focus
Maximise the empowerment dividend 4

5. Key Objectives of the NEF
Promote and support business ventures pioneered and run by black people;
Promote the understanding of equity ownership among black people;
Provide black people with direct and indirect opportunities to acquire share interests in State Owned and private business enterprises;
Encourage and promote investments, savings and meaningful economic participation among black people. 5

6. Key Objectives of the NEF Strategic Plan
To create a prudently and effectively managed fund with a time horizon of at least 10 years;
To ensure broad-based and sustainable empowerment;
To act as a catalyst to stimulating Broad Based BEE and hence economic growth;
To avoid duplicating existing offerings by other operating Development Finance Institutions (DFIs);
To work in partnership with both public and private sectors;
To maximise the empowerment dividend in lieu of the financial dividend;
To protect the capital base of the NEF and provide a real return. 6

7. NEF’s Performance Criteria – “The Empowerment Dividend”
The assessment of impact is not driven only by financial returns but by measurement in terms of “The Empowerment Dividend” made up as follows:
Broad Based Black Economic Empowerment
Ownership, management control, employment equity, skills etc
Black Women Empowerment
Job Creation
Growth Sectors
Geographic Spread
Investment Return 7

8. Provincial Roundtables
With effect from October 2007, NEF has launched Provincial Roundtables with stakeholders in the following provinces:
KZN
North West
Limpopo
The NEF has so far participated in Provincial Roundtables in Northern Cape (12 December
2007) and North West (7 March 2008)
Objective is to optimise regional invested portfolio through intensive local interaction and
communication
Stakeholders include:
MECs for Finance & Economic Affairs, as well as MECs for Agriculture, to
encourage rural and community development
Constituency Members of Parliament
Local Development Finance Institutions (DFIs)
Local entrepreneurs and co-operatives
Mass Media
Mpumalanga
Northern Cape
Free State 8

9. Strategic Initiatives
NEF, in 2006/7, reached two significant and strategic milestones in its history since its establishment:
On-going track record achieved in the Fund Management Division, with approvals to date now exceeding R600m;
Asset Management Division was able to obtain the overall approval for the NEF’s first BEE Retail Product, Asonge, subsequently launched on 25 June 2007. 9

10. (INCL. UNDRAWN CAPITAL)
NEF Invested Process Report
31 January 2008
ENQUIRIES
Approx.
28,664
APPLICATIONS
5,908
NEW DEALS
ACCEPTED 24
worth
R 344m
DUE DILIGENCE 18
R 404m
APPROVED 13
R 245m
DISBURSED
(INCL. UNDRAWN CAPITAL)
102
R 631m
NEF work in progress: 55 transactions worth R 993 million 10

11. NEF Approved & Disbursed Deals by Value
1 April January 2008
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
R 363m
R 135m
Accumulative Value of Deals Approved
Accumulative Value of Deals Disbursed 11

12. NEF Approved & Disbursed Deals by Number
1 April January 2008 5 10 15 20 25
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08 23 16
Accumulative Value of Deals Approved
Accumulative Value of Deals Disbursed 12

13. FMD Portfolio by Sector by Value
31 January 2008
ICT & Media
14.3%
Engineering
1.5%
Manufacturing
8.3%
Transportation
5.2%
Mining
Services
7.4%
Printing
2.5%
Motor
Industry
1.8%
Tourism &
Entertainment
Wood & Paper
2.0%
Chemicals &
Pharmaceuticals
5.4%
Construction
25.6%
Financial
1.1%
Other
0.1%
Food & Agro
Processing
12.9%
3.1%
Textile Industry 13

14. Asset Management Division14

15. Asset Management Division
Through its Asset Management Division, the NEF:
Promotes the understanding of equity ownership among black people
Provides black people with direct and indirect opportunities to acquire shares in State Owned and private business enterprises
Encourages and promote investments, savings and meaningful economic participation amongst black people
It is specifically to address the above objectives that the NEF Asonge Share Scheme was conceived, designed, launched, implemented, subscribed for and now allocated to its beneficiaries. 15

16. “The NEF Asonge Share Scheme”
Subscriptions by Value
100%
R 889,058,857.00
85,314
4.61%
R 40,988,400.00
0.48%
410
90001 to
0.05%
R 446,000.00
0.01% 5
80001 to 90000
0.18%
R 1,641,220.00
0.02% 21
70001 to 80000
0.24%
R 2,147,282.00
0.04% 37
50001 to 60000
0.12%
R 1,102,484.00 16
60001 to 70000
39.77%
R 353,604,161.00
8.31%
7,091
40001 to 50000
4.30%
R 38,256,743.00
1.17%
998
30001 to 40000
8.34%
R 74,163,562.00
3.18%
2,717
20001 to 30000
12.57%
R 111,795,894.00
7.38%
6,297
10001 to 20000
12.84%
R 114,196,042.00
14.81%
12,637
5001 to 10000
16.95%
R 150,717,069.00
64.57%
55,085
2000 to 5000
%age
TOTAL VALUE
TOTAL APPLICANTS
INVESTMENT 16

17. Asset Management Division – Enabling Legislation
NEF Act (No.105 of 1998) – Objects of the NEF Trust
Policy Framework for an Accelerated Agenda for the Restructuring of State-owned Enterprises (August 2000) – requirement of the NEF to broaden empowerment with State Owned Commercial Enterprise (SOCE) allocations through individual & collective share ownership
Cabinet Memorandum No. 32 of 29 November 2000, which was adopted on 6 December 2000 – SOCE equity allocations nominated for transfer to NEF 17

18. Asset Management Division – Designated State Allocated Investments
Asset Shareholding % Status
MTN Group received by NEF
Telkom not yet received
SAA not yet received
ACSA not yet received
Connex Travel received by NEF
Viamax not yet received
Syncat not yet received
Transwerk Perway not yet received
Sentech not yet received
Uthingo received by NEF
SAFCOL in discussion 18

19. Key Strategic Interventions for NEF Asset Management
Ensure that new products are aimed at accessible subscription levels and structures so that lower income groups are not excluded
Address geographic access to product offerings through targeted communication campaigns, engagement with provincial government and existing Asonge share register
Capitalise on the Asonge share register with future offers allowing investors to diversify and extend the reach of future offers through this channel 19

20. Fund Management Division
On-going track record achieved in the Fund Management Division, with approvals to date now exceeding R600m. 20

21. Fund Management Strategy – Strategic Drivers
PROCESSES
MARKETING
HUMAN CAPITAL
Streamline investment reports
Refine investment processes
Establish post investment as separate unit – freeing resources
Strengthen due diligence processes
Compile Investment Manual
Coordinated marketing strategy
Develop partnership
Pro-active Business Development
Enhance NEF brand awareness
Deepening skills base
Encourage team work
Build sector expertise
Key recruitments
Performance management focus
Retention strategy
Ongoing training 21

22. Fund Management Strategy – Strategic Drivers contd
RISK MGMT
PARTNERSHIPS
PORTFOLIO MGMT
Strengthen due diligence process
Restructure post investment
Establish portfolio limits to reduce over exposure
Institutionalize investment process – Investment Manual
Refine investment products / Criteria
Build partnerships with banks, DFI’s, Private Equity firms
Explore non-financial support partnerships
Explore co-funding opportunities in large transactions
Enterprise Development partnerships with corporates
Portfolio allocation to reduce risk
Portfolio Management Committee
Dedicated Portfolio Management Unit
Mentorship programmes
Work-out Unit 22

23. FMD Portfolio by Stage of Investment
31 January 2008
(R)
Value
R138m
R103m
R390m
R631m %
By Value
21.9%
16.2%
61.8%
100% By
Number 55 29 18
102 %
By Number
53.9%
28.4%
17.6%
100%
Early Stage
Development Stage
Later Stage 23

24. Budget 2008/9 24

25. Consolidated Budget for the years 2007 - 2011 R1 042m R 1 377m R1 632m
R 1 377m
R1 632m
R 1 970m
R 315m
TOTAL SURPLUS
R1 377m
R1 970m
Including proceeds of the Asonge Share Scheme
R 1 631m
R 290m
Surplus brought forward
(R 335m)
(R 255m)
(R 338m)
R 339m
R 25m
Surplus/ (Application of Surplus)
 R765m
 R123m
 R 685m
 R 114m
 R 650m
R107m 
R 270m
R 75m
Actual/Budgeted Spending
R 430m
R 123m
R 114m
R 312m
R 107m
R 609m
R 100m
Budget Approved
Capital
Operations
2010/11 (MTEF)
2009/10 (MTEF)
2008/9 (MTEF)
2007/08 (actual) 25

26. We thank you for your attention. 26

27. Fund Management Activity Reports for the year to date 2007/8
Appendices
Fund Management Activity Reports for the year to date 2007/8 27

28. (INCL. UNDRAWN CAPITAL)
NEF Invested Process Report
31 January 2008
ENQUIRIES
Approx.
28,664
APPLICATIONS
5,908
NEW DEALS
ACCEPTED 24
worth
R 344m
DUE DILIGENCE 18
R 404m
APPROVED 13
R 245m
DISBURSED
(INCL. UNDRAWN CAPITAL)
102
R 631m
NEF work in progress: 55 transactions worth R 993 million 28

29. iMbewu Fund - Work in Progress Corporate Fund - Work in Progress
FMD Invested Process Report
31 January 2008
iMbewu Fund
Corporate Fund
Since inception to
31 January 2008
INFORMATION
MANAGEMENT
SYSTEM
NEW DEALS
ACCEPTED 24
worth
R344m 14
R 132m 10
R 212m
DUE
DILIGENCE 18
R 404m 11
R 140m 7
R 264m
APPROVED 13
R 245m 8
R 85m 5
R 160m
WORK IN
PROGRESS 55
R 993m 33
R 357m 22
R 636m
iMbewu Fund
Disbursed
Corporate Fund
DISBURSED
(INCLUDING UNDRAWN
CAPITAL)
102
R 631m 70
R 158.7m 32
R 472.5m
iMbewu Fund - Work in Progress
Corporate Fund - Work in Progress 29

30. FMD Approved & Disbursed Deals by Value
31 January 2008
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
900,000,000
1,000,000,000
Mar-03
Jun-03
Sep-03
Dec-03
Mar-04
Jun-04
Sep-04
Dec-04
Mar-05
Jun-05
Sep-05
Dec-05
Mar-06
Jun-06
Sep-06
Dec-06
Mar-07
Jun-07
Sep-07
Dec-07
R 943m
R 631m
Accumulative Value of Deals Approved
Accumulative Value of Deals Disbursed 30

31. FMD Portfolio by Stage of Investment
31 January 2008
(R)
Value
R138m
R103m
R390m
R631m %
By Value
21.9%
16.2%
61.8%
100% By
Number 55 29 18
102 %
By Number
53.9%
28.4%
17.6%
100%
Early Stage
Development Stage
Later Stage 31

32. FMD Portfolio by Product by Value
31 January 2008
Entrepreneurship
Fund
14.1%
Expansion
Capital
0.0%
Market
10.2%
Franchise
3.9%
Liquidity &
Warehousing
13.8%
Procurement
8.5%
Rural &
Community
3.3%
Project
Finance
3.8%
Acquisition Funding
42.4% 32

33. FMD Portfolio by Sector by Value
31 January 2008
ICT & Media
14.3%
Engineering
1.5%
Manufacturing
8.3%
Transportation
5.2%
Mining
Services
7.4%
Printing
2.5%
Motor
Industry
1.8%
Tourism &
Entertainment
Wood & Paper
2.0%
Chemicals &
Pharmaceuticals
5.4%
Construction
25.6%
Financial
1.1%
Other
0.1%
Food & Agro
Processing
12.9%
3.1%
Textile Industry 33

34. FMD Portfolio by Region by Value
31 January 2008
Gauteng
46.6%
Limpopo
0.5%
Western Cape
22.7%
Mpumalanga
4.2%
Eastern Cape
17.3%
Kwa-Zulu
Natal
9.0%
Free
State
0.0% 34

35. FMD Portfolio by Region by Number
31 January 2008
Kwa-Zulu
Natal
10.3%
Gauteng
59.8%
Free State
1.0%
Eastern Cape
8.8%
Mpumalanga
2.0%
Western Cape
15.7%
Limpopo
2.9% 35

36. Job Creation Statistics
31 December 2007
Rand
Invested
Number of Jobs
Existing Jobs
New
Jobs
Rand
Per Job
2,210
1,402
808
121,248
4,507
4,444 63
14,220
1,079
265
814
82,275
267,957,806
64,087,480
88,774,575
286 70
216
86,825
1,172
892
280
74,386
947
682
56,585
24,832,020
87,180,000
53,586,432
891
274
617
27,071
807
24,120,130
20,819,000
Acquisition Funding
Capital Market
Entrepreneurship Fund
Franchise
Liquidity & Warehousing
Procurement
Project Finance
Rural & Community
11,899
7,612
4,287
53,060
631,357,443
64%
36%
TOTAL PORTFOLIO: 36