MR.SITEMBELE MASE : CEO samaf

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• PRESENTED BY
• MR.SITEMBELE MASE CEO samaf
• TO
• 2007 AFRICA SMME CONFERENCE

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Content page

• Socio-economic landscape
• Socio-economic challenges in S.A.
• Government policy response
• samaf mandate
• Market segmentation
• Milestones and contribution

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Socio-economic landscape in S.A.

• Economy growth since leveled below 5 per annum
• Increased government and private expenditure on
  infrastructure development
• Growing inflation at close to 6 per annum
• 37 unemployment from 32 since 1994
• 50 of SA citizens live below poverty line
• 11,9 million earning less then R1 200 per month

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Socio-economic landscape in S.A. continue

• Government social grants more then 7 billion rand
• Proximately 16 million people in 2005 were un-
  banked
• One in every six individuals is involved in small
  and micro business
• Estimated 7 million is the working and
  enterprising poor

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GOVERNMENT POLICY RESPONSE

• Establishment of funds for employment and poverty
  alleviation
• International lessons and experiences
• Two key strategic goals of the policy are to
• grow the economy by 6 between 2010 and 2014 and
• reduce unemployment and poverty
• This gave birth to the Apex Fund, amongst others

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Marketsegmentation
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samaf 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.

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samaf milestones

• Launched in April 2006
• 55,2 million approvals
• Disbursements of R20m
• R11m loans
• R9m capacity building
• 31 Financial Intermediaries mostly based in rural
  and peri-urban
• 14 500 clients (borrowers and savers)

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Delivery Network
Province Delivery Network Approvals/Committed On-lending Disbursements Capacity
North West 4 R 6,450 000 R 1, 071,000 R 700,000
Eastern Cape 3 R 17,400,000 R 480,000 R 400,000
Free State 2 R 2,600,000 R 360,000 R 512,500
Gauteng 6 R 7,950,000 R 3,960,000 R 6, 855,000
Kwa-Zulu Natal 4 R 5,200,000 R 240,000 R 310,000
Limpopo 4 R 5,200,000 R 720,000 R 759,000
Mpumalanga 4 R 5,200,000 R 1,748,000 R 700,000
Western Cape 4 R 5,200,000 R 480,000 R 534,800
Northern Cape 0 0 0 0
TOTAL 31 R55,200,000 R9,059,000 R10,772,100
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Delivery network continues
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Total distribution of funds
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Number of borrowers savers 2006/7
Provinces Borrowers No. of savers
North West 352 3 810
Eastern Cape 310 330
Free State 469 684
Gauteng 1 093 556
KwaZulu Natal 142 4 801
Limpopo 440 1 965
Mpumalanga 699 1 157
Western Cape 841 1 050
Northern Cape 0 0
TOTAL 4 346 14 353
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Challenges

• How do we make use of FSC and RFI model
  effectively to scale-up ,increase outreach and
  deliver a balanced portfolio?
• Which legal entity structure ensure better fund
  management ,risk management other than the
  benevolent SECTION S21 NGO whilst at the being
  developmental in provisioning of financial
  services?

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THANK YOU