1. EDC Customer Value proposition Access to finance 07/05/ 2015 Dumisani Makhathini 1

2. Importance of Entrepreneurs & Absa ED Absa stands firm behind our government’s vision of an adaptive and restructured economy characterised by: –Accelerated economic growth –Employment creation –Greater equity by 2014 Key to achieving these objectives are the development of SMEs as they are: The biggest contributors to the country’s GDP The driving force of economic development Employ in excess of 60% of the total labour force To drive the development of more sustainable SMEs, government is incentivising large business to procure more from SMEs and to develop them. This is achieved through the Preferential Procurement and Enterprise Development codes on the Broad Based Black Economic Empowerment (BBBEE) Scorecard. 2

3. Key Needs of Entrepreneurs? Entrepreneurs have highlighted the following key needs to develop sustainable businesses: 1) Access to Markets (Innovative Solutions). 2) Access to Non-Traditional Lending Solutions. 3) Access to Non-Financial Support. Absa has developed a range of products, services and channels to effectively support the needs of entrepreneurs.

4. Access to Markets (Innovative Solutions)

5. The Procurement Portal The portal is a virtual market place that allows suppliers (of all shapes, sizes and profiles) to be visible to the Corporate/ Government buying community, instantly the supply will be visible to Blue Chip Companies/ government that they previously could not access. Conversely Corporate Buyers/ Government now also have access to a Portal that have validated and verified suppliers and can search for specific suppliers in a particular, region, of a certain profile and with a particular capacity. Tenders Professional Buyers can advertise tenders and can upload up to three tender documents which qualifying businesses can view. SMMEs as basic members - can view high level tender detail. SMMEs as premium members - can view full tender detail, qualifying criteria and can download the tender documents. SMMEs as premium members - can search the tender database by keyword or company. SMMEs as premium members - will proactively receive notification of a tender that is being advertised based on defined. Value Add Services BEE Status Report Business Templates

6. The Procurement Portal Smart filters Filters available include industry sector, region, empowerment level, black ownership %, black women ownership %, enterprise size, business classification (e.g. agent/manufacturer), company type (e.g. Pty-Ltd or CC), black company status and profile score. Document Management One of the most challenging processes for Big Business is the process of chasing updated documentation that has expired. The Procurement Portal technology proactively notifies a company when their BBBEE Certificate and/or Tax Clearance certificate has expired and request that updated documentation is loaded as it is a requirement of doing business with Big Business. Membership & Pricing Basic membership for both big business and SME suppliers are free. Basic members have access to the procurement portal on a limited basis. Premium Membership is available to SME suppliers on the following basis: Absa Business Banking clients – R99/month (VAT excl). All other premium members R149/month (VAT excl)

7. Snap short

8. Access to Non-Financial Support

9. Payment Pebble

10. Monthly Rental fees: The Payment Pebble will cost R50 (VAT excluded) per month rental for the first 12 months. If you choose to swap your Payment Pebble for a new one after 12 months, the R50 rental fee will continue for an additional 12 months. If you choose to keep your existing Payment Pebble after the initial 12 months, you pay only R20 (VAT excluded) rental for as long as you keep your existing Payment Pebble Merchant Service Fees: Absa Bank Account customers will be charged 3,20% (VAT excluded) on all transactions. Customers banking with other banks will be charged at 3,75% (VAT excluded) on all transactions Initiation Fee: The Payment Pebble will also incur a once-off initiation fee of R160 (VAT excluded) for the first payment Pebble and R30 (VAT excluded) for each Payment Pebble thereafter (only available if the order is through one delivery order).

11. Enterprise Development Centres (EDCs) Non financial support addresses the lack of business skills Enterprise Development Centres (EDC's) across the country offer non-financial services and support to start-ups and SME's. The vision is to make these centres points of destination where SME's can access non-financial support, advice and other related services, as well as identification of robust business opportunities. Enterprise Development Centres We currently have 9 EDC's spread across all 9 provinces; the EDC's are strategically located in area's that facilitate easy access to the target market. The following business development services are offered to SME's: –Guidance on business plans, cash flows; –Provide guidance on licenses, permits, registration regulation and documents required to start and/or register a business; –Facilitates entrepreneurial skills development and facilitation of workshops and seminars. –Registering of businesses through CIPC

12. Access to Non-Traditional Lending

13. Non-Traditional Lending ABSA generic fund/ Smme fund Target Market,start-ups, expansions and existing business Tenders, mostly government departments Amount, from R10 000 to R3 000 000 Interest rate, prime rate + Credit records,flexibility Term of payment, merit to contract conditions

14. Enterprise Development Presentation Thank you

15. Point of Entry and Contact Details Dumisani Makhathini Enterprise Development Consultant 204 Peter Kerchoff Street Pietermaritzburg,3201 Tel : 033 264 3860 Cell : 082 828 9136 Email : Dumisani.Makhathini@absa.co.za