1. Khula Enterprise Finance Ltd
Khula Budget for 2001/2002 Presentation to the Portfolio Committee 07/03/2001
Presented by Khula MD
Mr. S Tati

2. To become a wholesaler of first choice in mobilizing SMMEs’ finance.
Vision
To become a wholesaler of first choice in mobilizing SMMEs’ finance.

3. Mission Statement
To promote sustainable access to loans & equity by SMMEs’ through RFIs’ and offering a range of financial resources and information to the public.
Financial Resources :
Seed and business loans; Capacity building; Guarantees; Equity finance

4. Prioritised Corporate Objectives 2001/02
Re-capitalize on a realistic basis as a matter of urgency [R1,2 billion including r250m seed activities]
Formalize future capital and grant activity funding with DTI
Reconfirm mandate and underwriting needs
Build strategic alliances with non-finance service providers and NDFIs [IDC; DBSA; Ntsika; Alliance; APDF; Sizabantu; Etc]

5. Prioritised Corporate Objectives 2001/02
Identify growth markets with job potential [Tourism; construction; state procurement; taxi recap; franchise]
Implement the marketing strategy in order to raise public profile of Khula
Strengthening Donor relations & reporting
Pursue flexible range of products; repackage

6. Prioritised Corporate Objectives 2001/02
Replicate and disseminate best practice.
Create deliberate and strategic R&D processes.
Play an active role in shaping a conducive environment for SMME.
Pursuing tax exemption for development work.

7. Prioritised Corporate Objectives 2001/02
Review of “risk management framework”
Basic qualifying criteria
Provisioning and reserving policies
Pricing strategy
Re-define exposure limits/hedging
Compliance with legislative framework
Consolidate MIS development process.

8. Prioritised Corporate Objectives 2001/02
Organisation development initiatives.
Creating a clear understanding of our mission and values.
Key strategic focus areas and accompanying critical success factors.
Adopt a sound skills development framework to enhance Khula’s core competencies.
Integrated performance management system.

9. Divisional Strategy for Loans
Consolidation and growth.
Grow existing RFIs and allow natural attrition where necessary.
Adopt a systematic and integrated approach to capacity building.
Segment and differentiate start-up RFIs to growing RFIs.
Allow for synergies and rationalization where appropriate [apex strategies].
Involve sector players in setting growth targets and objectives.

10. Divisional Strategy for Guarantees
Increase dialogue and interface with banks
Support active and innovative players
Tailor mentorship scheme to bank needs and complete pilot phases
Research alternative instrument for bank participation than guarantees

11. Divisional Strategy for Equity
Raise capital for and fast-tract Equity fund establishment and roll-out
Complete setting up of the governing structures
Link-up to the privatisation processes of Government
Work closer with other DFI players like IDC
Tap on SDI opportunities for SMEs’

12. Consolidated Income Statement

13. Core Income (Breakdown)

14. Core Expenses (Breakdown)

15. Operating Expenses (Breakdown)

16. Donor Funds Application

17. Comparative Program Activities

18. Donor Funded Activities

19. Aggregate Capital Projections

20. Assumptions of Average Facilities

21. Job Creation/outreach

22. Opening address by former President Mandela
“It will not be easy to achieve these goals. Government cannot do it on its own.
“Only a partnership embracing small business and the big corporations, government and foreign donors, can marshal the energies and generate the bulk of the resources needed”
Opening address by former President Mandela
Durban, 28 March 1995

23. Thank You for Your Attention
Presented by Mr Sizwe Tati
Managing director
Khula enterprise finance (Pty) ltd
23/01/2001

24. Khula Impact system Donors/Stakeholders Impact Budget Products KhulaEU R
Products R
LRCF
Mentorship
Credit
Available
RFI
Seed
Loans
Khula
Equity
Fund
growth R R
DTI
Credit
Guarantee
Khulastart EU
SMME’s R R
Ford
Banks
JOBS
UNDP
SIDA
NORAD