SITEMBELE MASE

1
first floor, block b (entirweni), mapungubwe
the dti group campus 77 meintjies street,
sunnyside tel [phone] fax 012 394
2703 www.samaf.org.za
SITEMBELE MASE CEO samaf PRESENTATION TO
SELECT COMMITTEE ON ECONOMIC AND FOREIGN AFFAIRS
Time 10h00 -13h00 Venue Parliament,
Committee Room S26, First Floor, NCOP Wing
2

1. MISSION
To provide competitive and customized
micro-finance services by going deeper and
broader to the target market

2. VISION
samaf seeks to be a leader in the field of
developmental micro-finance and provide best
practice models in South Africa
3
3. PRODUCTS AND SERVICES
Max. loan amount for Financial Intermediary
(Primary Target Market)
Capacity Building Support Fund
Secondary Target Market (end-users)
Primary Target Market (Financial Intermediaries)
Product
From R480 000 to R10m, at interest rate of
between 5 to 6 per annum. The loan amount is
based on evaluation of risk exposure, capital
adequacy and available capacity to manage the
fund The allocation of poverty micro-enterprise
loans to FSCs is on an 8020 basis and for the
MFIs on a 2080 basis This leads to a calculation
of interest on a simple-weighted average basis of
4.4 for FSCs and 5.6 for MFIs per annum
Micro- enterprise and survivalists entrepreneurs
generating an income above R1500 per month.
End-user loan between R2000 R10 000 Households
earning below R1500 per month and utilizing the
funds for home improvements and education.
End-user loan between R100 R3000. Interest on
all above loans is capped as per NCA.
Financial Services Co-ops (FSCs) Corporative
Banks Micro-Finance Intermediaries (MFIs)

• On- Lending Fund
• Micro enterprise development loan
• Poverty alleviation loan

4
PRODUCTS AND SERVICES (cont.)
From R500 000 to R5m, depending on the capacity
gaps, including acquisition of a robust reporting
system
Training for staff, Management and
Board Acquisition and development of IT systems
(MIS) Development of savings and credit
policies Once-off working capital (for office
equipment, computers and furniture). Subsidization
of Operational Costs Asset enhancement based on
performance
Capacity Building
Maximum R200 000, specifically to harness and
grow existing saving schemes and
initiatives. Asset enhancement fund to a maximum
of R250 000 per entity, specifically to reward
good performing financial intermediaries to
acquire buildings
Development of savings products and
policies Training of Board, Management and
staff Acquisition of equipment and IT
systems Subsidization of direct costs
Savings Mobilization Fund
5
4. Infrastructure Network

1. Eight (8) offices are operational, except the
   Northern Cape which is not completely
   operational. We are still recruiting a Provincial
   Manager there
2. Thirty-four (34) Financial Service Co-operatives
   (FSCs) and four (4) micro-finance institutions
   (MFIs) have already been approved for funding to
   the amount of R69.6m. Four MFIs conditionally
   approved. This includes funding for technical
   and capacity building support
3. A total of R13m has already been disbursed to
   these organizations to be used for on-lending,
   capacity building, technical support and
   subsidization of operational costs
4. Each provincial office has four (4) staff members
   with two (2) officers deployed to implement
   outreach programs
5. The website is fully functional with all the
   information about products and services,
   including the funding criteria. Please visit
   (www.samaf.org.za)
6. All brochures have been revised with new and up
   to date information and are disseminated through
   the provincial offices
7. New banners have been developed with the approved
   samaf logo and colours, to be utilised when
   necessary at functions and exhibitions
8. Our first newsletter Inkanyezi (meaning the STAR)
   has been released and distributed to the
   provincial offices to be distributed to the
   partner organisations..

6
5. Outreach as at March 2007
PROVINCE

DELIVERY

INVESTMENTS

ON
-
LENDING
BORROWERS

NO. OF SAVERS

AMOUNT
NETWORK

DISBURSEMEN
SAVED

TS ONLY

North West

4

R 6,450,000

R 753,127

352

3810

R5,807,663

Easter Cape

3

R17,400,000

R 457,000

310

330

R

66,335

Free State

2

R 2,600,000

R 659,700

469

684

R 472,519

Gauteng

6

R 7,950,0
00

R3,048,198

1093

556

R 221,589

Kwa
-
Zulu Natal

4

R 5,200,000

R 463,600

142

4801

R 160,818

Limpopo

4

R 5,200,000

R 693,090

440

1965

R 169,769

Mpumalanga

4

R 5,200,000

R1, 897,699

699

1157

R 220, 857

Western Cape

4

R 5,200,000

R 740,646

841

1050

R 1
24,643

Norther Cape

0

0

0

0

0

0

SUB
-
TOTAL
31
R55,200,000
R 9,059,000




4346

14353

R7,244,193









Disbursements
-



R11,301,000




Capacity Building

TOTAL



R20,360, 000











An additional 7 Financial Intermediaries were
added during April and May 2007, thus increasing
The funds allocated to R65.6million.
7
6. PARTNERSHIPS

• We have a proposal for integrated service
  delivery and roll-out with MAFISA (the
  agricultural fund) for implementation during
  2007/8
• We have established good strategic relationship
  with the BANKSETA in order to ensure that we make
  use of qualified and accredited service
  providers
• Our relationships with SACCOL have been improved
  at strategic and operational levels, especially
  in the area of capacity building and technical
  support. The funding of the SACCOs has been
  discussed and a model agreed to in order to
  provide this funding at arms length from SACCOL
• We have developed a strategic relationship with
  the microfinance industry (AMFISA) a strategic
  policy lobby group of micro-finance practitioners
  with high level expertise in development
  micro-finance
• We have conducted our first consultative workshop
  with the FSC funded under samaf. This project
  was extremely helpful in terms of clarifying
  responsibilities, setting ground rules and
  building principled relations helps going
  forward.

8
QUESTIONS
9
THANK YOU.