1. Aluminum Fabrication Seminar Vuyelwa Matsiliza: Executive Manager, Wholesale Lending 05 March 2015

2. Contents Mandate of sefa sefa’s Target Market sefa’s Delivery Model sefa’s Distribution Model Our products sefa’s Footprint sefa’s Development Impact Highlights ABI Facility Details Qualification Criteria Documentation Required Application Checklist Application Process Flow

3. Mandate of sefa To be the leading catalyst in South Africa for the development of sustainable Survivalist, Micro, Small and Medium enterprises (SSMMEs) through the provision of finance in an efficient and sustainable manner by: Providing loans to SSMMEs Providing credit guarantees to SMMEs; creating strategic partnerships with a range of institutions for sustainable SMME development and support; developing (through partnerships) innovative finance products, tools and channels to speed up increased market participation in the provision of affordable finance. 3

4. sefa’s Target Market Targeted Groups  women,  black people,  youth,  people in rural communities and,  people living with disabilities.  services (including retail, wholesale, IT and tourism);  manufacturing (including agro-processing);  agriculture (specifically land reform beneficiaries and micro-farming activities);  construction (small construction contractors);  Mining (specifically small miners);  green industries (renewable energy, waste and recycling management). sefa funds in the following sectors Lending policy is informed by government’s economic policy - NGP, IPAP, NDP 4

5. sefa’s Delivery Model 5

6. sefa’s distribution model R50k to R5mUp to R5m R500 to R5m sefa DIRECT LENDING sefa WHOLESALE LENDING sefa Funding Model SMMEs can access sefa funding solutions through any of the above channels CREDIT GUARANTEE SCHEMES Finance Intermediaries: (CFIs, MFIs, Joint Ventures & Funds, Retail Finance Intermediaries) Registered financial institutions sefa regional offices and seda co-locations 6

7. Our products Our Direct Lending channel offers the following products: Working Capital Facilities Asset Finance Term Loans Revolving Loans Bridging Loans Through our Wholesale Lending channel, we offer these financial products: Business Loans – (RFIs, Joint Venture Funds) Microfinance; Financing of Co-operatively owned enterprises Credit Guarantee Scheme; Land Reform Empowerment Fund. Structured Finance Solutions The Institutional Support for the following: Institutional Strengthening Technical Support Rental Property (Industrial and commercial) 7

8. * ● ● ● ● ● ● ● ● ● ● ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ 6 sefa Branch Offices ◦ ◦ ◦ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 9 sefa Regional Offices 10 Co-operative Financial Institutions * * * * * * * * ∞ ∞ 8 Specialised Funds & Joint Ventures ∞ ∞ sefa’s Footprint ● 11 Active Micro-Finance Institutions 6 Retail Finance Intermediaries 25 seda Co-locations Referral Offices ◦ ◦ ◦ ◦ 8

9. sefa’s Development Impact R822m disbursements 46 702 SMMEs funded 46 402 permanent and contract jobs facilitated YOUTH OWNED ENTERPRISES 10 291 R157 million WOMEN OWNED BUSINESSES 44 302 R362 million RURAL-BASED ENTERPRISES 36 729 R429 million BLACK OWNED ENTERPRISES 43 643 R599 million 9

10. Highlights – Co-operatives 10 GROCAT - Funding of 24 Charcoal briquettes manufacturing Co- operatives in Gauteng, Mpumalanga and Kwazulu Natal in partnership with - R11,6 million. RiseUp Bakeries – Establishment of at least 20 Bakery Co-operatives in the Swartland District Municipality, Western Cape using donor funding of R14 million. Feeding Scheme –Ring- fenced facility for the funding of 60 School Feeding Scheme Co- operatives in KwaZulu- Natal and Gauteng – R28,5 million GEP - Partnership forged with the Gauteng Economic Propeller to support at least 100 youth Co- operatives in the Tshwane area – R30 million. The first groubeneficiaries of the Tshepo 10 000 initiative, finally graduated.

11. Highlights - LREF 11 Partnered with Tongaat Hulett and Akwandze (TSB) to provide financing to black small scale farmers in Mpumalanga and KwaZulu Natal – R100 million. Provide finance for Black citrus farmers in conjunction with Lona Citrus – R50 million. Forged a new partnership with First National Bank (FNB) to support black farmers – R50 million

12. Highlights - Microenterprises Microenterprise Finance Intermediaries −Small Enterprise Foundation (SEF)  Disbursed to over 33, 270 new microenterprises (2014) creating and/or maintain as many jobs in the priority Provinces.  Enabled over R109.9 million to circulate within the microenterprise sector. −Phakamani Foundation  Disbursed to over 7,500 microenterprises and creating approximately 2,900 new jobs (2014).  Circulated over R20 million to microenterprises. 12

13. Highlights - SME 13 Taxi finance in partnership with BAW (SA) – R60 million. Greenfund for SMMEs in partnership with DBSA – R30 million. Gold Loan Scheme for SMME in partnership with the IDC an d the dti – R20 million. SME Supply Chain and Aluminium Beneficiation Initiative in partnership with Hulamin and BHP Billiton – R100 million. Facility for Liquid Petroleum Gas SME distributors in partnership with Cadac – R20 million. 13

14. ABI Facility Details Facility Aluminium Beneficiation Facility On-lending R80 million R19 million Purpose of facility / application of finance Finance SMEs doing aluminium beneficiation. Revolving credit facility to finance contractors in the aluminium plants of Hulamin and BHP Billiton. Term 1 to 5 years 30 days to 1 year Repayment Monthly Interest Rate - SMME Prime lending rate plus risk margin subject to sefa pricing model Prime lending rate plus risk margin, subject to sefa pricing model Administration Fee 1% Initiation feeNil4% of loan value Payment MoratoriumDetermined based on each case’ s merit 14

15. Qualification Criteria The majority shareholder(s) must be involved in the day to day running of the business on a full time basis (owner - manager) The business must be registered in SA The major shareholder must be an SA citizen and/ or permanent resident The business must be conducted with a profit motive and be economically viable The forecasted cash flow must show the ability to repay the facility (affordability) The owner must display sufficient entrepreneurship, skills and experience directly related to the nature of the business Compliance with all relevant laws and regulations Demonstrate job creation (potential to create new jobs or sustain existing ones) Loan Range R50 000 to R5 million 15

16. Documentation Required BRIDGING/TERM LOAN APPLICATIONS- Contractors 1. Application Form10.Six months latest Bank Statements (personal and business) 2.Surety Form (where applicable)11.Copy of Contract or Order (if applicable) 3.Certified Copy of ID and that of Spouse (if Married in Community of Property (ICOP)) 12.Loan Breakdown 4.Marriage Certificate (where applicable)13.Supporting Quotations (with contact person and banking details of supplier) 5.Short CV of the Members / Directors / Shareholders / Trustees, etc. 14.Personal Income and Expenditure Schedule 6.Proof of Residence – Utility Bill / Sworn Affidavit (not older than 3 months) 15.Assets & Liability Statement 7.Valid Tax Clearance Certificate16.Proof of own Contribution and Source (if applicable) 8.Company Registration Documents e.g. CK2, Company Profile 17.Member’s Resolution to Apply (if applicable) 9Proof of CIPC/CIPRO Annual Fees18.If a judgment, notice, default is issued against the applicant, a letter or document to prove that arrangements are made to settle the account or proof that the account is settled must be provided 16

17. ADDITIONAL CHECKLIST FOR TERM LOAN AND ASSET FINANCE APPLICATIONS- Aluminium Beneficiation Project 19Cash Flow Projections 20Business Plan 21Historic Financial Statements (not less than 3 years – if applicable) 22Up to date Management Accounts (if applicable) 23Debtors Age Analysis (if applicable) 24Creditors Age Analysis (if applicable) 25Lease Agreement (if applicable) 26Franchise Agreement (if applicable) Documentation Required (Cont’d) 17

18. Application Checklist Documents Required (Bridging Loan)Yes/NoComment  Applications filled correctly  Surety form filled in correctly (if married)  Certified copy if ID and Spouse (If married)  Personal Income & Expenditure (by client and spouse)  Marriage certificate  Short CV of applicant  Email address  Proof Residence-utility bill, affidavit (not older than 3 months)  Valid Tax Clearance certificate  Company registration e.g. CK2, Company profile)  6 months latest bank statement (personal)  6 months latest bank statement (business)  Copy of Contract or Order  Loan Breakdown  Supporting quotations (with banking details)  Personal Income and Expenditure Schedule  Assets & Liabilities Statement  Proof of own Contribution and Source (if applicable)  Member’s Resolution to Apply (if applicable)  If a judgment, notice, default is issued against the applicant, a letter or document to prove that arrangements are made to settle the account or proof that the account is settled must be provided 18

19. Application Checklist Documents Required(Term Loan)Yes/NoComments  Applications filled correctly  Surety form filled in correctly (if married)  Certified copy if ID and Spouse (If married)  Personal Income & Expenditure (by client and spouse)  Marriage certificate  Short CV of applicant  Email address  Proof Residence-utility bill, affidavit (not older than 3 months)  Valid Tax Clearance certificate  Company registration e.g. CK2, Company profile)  6 months latest bank statement (personal)  6 months latest bank statement (business)  Copy of Contract or Order  Loan Breakdown  Supporting quotations (with banking details)  Cash flow Projections  Business Plan  Financial statements  Proof of CIPC Annual Fees 19

20. Application Process Flow 20

21. Application Process Flow (cont’d) Deal Origination: Source deals from SMEs contracted to either BHP Billiton and/or Hulamin as well as SMEs which have gone through the Aluminium Beneficiation Initiative program. These clients would be referred to BSC by either BHP Billiton, Hulamin or ABI. Enquiries: BSC Credit Manager will receive and load applications to sefaLAS based on information received from SMEs. Checklist to be agreed upon. Basic Assessment and Initial Screening: BSC Credit Manager will perform the checks and determine whether the SME qualifies. The supply or service contract between an SME and Hulamin or BHP Billiton will form part of the documentation. 21

22. Application Process Flow (cont’d) Application: BSC Credit Manager will load the applicant’s details onto sefaLAS systems. Access to system to be granted to BSC. Due Diligence: Part One - BSC will conduct the technical due diligence which shall comprise the following activities: Collection of all FICA documentation using an agreed checklist Compilation of the applicant profile in terms of: Demographics of owner/s Number of years in business Annual Turnover Number of jobs created Track record in complying with sefa rules and terms and conditions Post Investment Monitoring Operations Management Financial Performance Development Impact Business Support, where necessary Compliance to Loan Agreement undertakings 22

23. Thank You