1. PRESENTATION TO PORTFOLIO COMMITTEE SITEMBELE MASE : CEO samafBY
SITEMBELE MASE : CEO samaf ON
DATE: 10 October 2007

2. INTRODUCTION FORMATION –letter from National Treasury to the dti
April launched
Policy intervention on:
Poverty alleviation
Employment
Entrepreneurship
Access to finance

3. Framework
Empirical evidence of successfully inteverntions in india, bangladesh, chile ,bolivia ,kenya ,uganda and others.
More than 40 years of interventions.
Not a social grant for destitute but for the working and enterprising poor engaging in economic activities.
Must facilitate asset building and integration of the working poor into mainstream banking and financial markets
Fund is structured as wholesale loan and capacity grant (the spear and the sharpner)

4. To provide accessible and affordable financial services through:
MANDATE
To provide accessible and affordable financial services through:
Development of sustainable financial intermediaries that reach deeper and broader to the enterprising poor
Facilitation of training and capacity building for micro-entrepreneurs and financial intermediaries.
Ensuring effective financial intermediation and working markets for the working and enterprising poor.

5. MISSION
To provide competitive, professional and customised wholesale financial services to intermediaries that reach deeper and broader.

6. MEETING THE DEVELOPMENT MANDATE

7. FINANCIAL PERFORMANCE
Budget (R’000)
Actual (R’000)
Compensation to employees
10 000
9 856
Goods and services
40 200
13 447
Transfers
65 000
19 831
Payment for Capital Assets
13 000
986
Software licenses and intangible assets
1 800 66
TOTAL EXPENDITURE
44 186
Interest received
595
Sundry income 1
TOTAL INCOME
596

8. DELIVERY NETWORK TOTAL Province Delivery Network Approvals/ Committed
On-lending
Disbursements
Capacity
Borrowers
No. of savers
North West 4
R 6,
R 1, 071,000
R 700,000
352
3 810
Eastern Cape 3
R 17,400,000
R 480,000
R 400,000
310
330
Free State 2
R 2,600,000
R 360,000
R 512,500
469
684
Gauteng 6
R 7,950,000
R 3,960,000
R 6, 855,000
1 093
556
Kwa-Zulu Natal
R 5,200,000
R ,000
R 310,000
142
4 801
Limpopo
R ,000
R 759,000
440
1 965
Mpumala
nga
R 1,748,000
699
1 157
Western Cape
R ,000
R 535,600
841
1 050
Northern Cape
TOTAL 31
R55,200,000
R9,059,000
R10,772,100
4 346
14 353

9. Graph 7.1

10. Graph 7.2

11. Graph 7.3

12. Demographics 7.4

13. HR ISSUES 46 staff member were employed
12 HO
34 Provinces
Salaries are paid as per Public Service Act
No performance bonuses have been paid
Employment Equity
35% women senior management

14. Challenges 1. Qualification Due to: Grant payment of 3.8 mil
Expenses of R273,000 with insufficient audit evidence
Non-consolidation of funded institutions (P.O.) into samaf group financial statements in accordance with IAS 27 (AC 132)
The standard considers samaf to have a financial and legal control on the entities that we funded

15. Challenges continue… 2. Efficiency and Effectiveness
samaf has operated within budget although the actual transfer to Partner Organisations has been low and the approvals were high
The approval for transfers was 55.2 million vs. R65 million budgeted
This is as a result of lack of capacity and quality reports from the intermediaries thus resulting in slower draw downs
LEGAL STATUS of samaf

16. Improvement plan
1. Strategy structure alignment:-
New and improved functions have been introduced to enable samaf to operate efficiently
Due diligence and Portfolio management
IT for integrated and reporting requirements
Outreach functions are being rationalised for better performance
Note:
These amendments have been submitted for approval

17. Improvement plan continues…
2. Improvement in Governance
Appointment of Credit and Risk committee
Implementation of Risk Management Framework
Implementation of the Performance Management System
Implementation of improved business process , policies and procedures
Identification and acquisition of an appropriate IT/MIS reporting system
Improvement in the capacity building programme for Financial Intermediaries (PO)

18. THANK YOU