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samaf Medium Term Strategic Framework2011 – 2014

Presentation to the Portfolio Committee on Economic Development

30 March 2011

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Contents

Mandate

Vision, Mission and Values

Key Deliverables over the Three Years

samaf Products and Services

Alignment of samaf to the New Growth Path

Performance Targets

Budget

– Challenges

samaf Provincial Office Addresses

22

MandateTo create work opportunities and sustainable livelihoods through the facilitation and provision of affordable access to finance by micro, small and survivalist businesses for the purpose of growing their income and asset base. samaf is also required to act as a catalyst in the development of a vibrant micro-finance industry in South Africa.

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MandateEffectively this means that samaf must:-

Facilitate the provision of affordable access to finance by micro and

survivalist businesses;

Extend financial and non-financial services to reach deeper and

broader into the rural areas, informal settlement and peri-urban

settlement of South Africa;

Build a strong, effective and efficient wholesale (Apex) Fund;

Contribute to a better quality of life; and

Contribute towards a sustainable and vibrant micro financial industry in

South Africa

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Vision and Mission

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Vision

“To be a leader in developmental micro finance”Mission

To provide developmental finance and non-financial services to Financial Intermediaries through:

Mobilization of financial intermediaries;

Wholesaling of funds;

Development of institutional capacity;

Lobbying and advocacy towards policy development; and

Development of valuable partnerships.

ValuesThe following values will underscore samaf’s behaviour as it strives towards the achievement of its mandate, vision and mission: 

Integrity - Dealing with stakeholders in an honest and ethical manner;

Transparency - Ensuring compliance with best practice on the dissemination and sharing of information with all stakeholders and consulting with them to ensure comprehensiveness and buy-in to samaf activities;

Professionalism - Adhere to specific defined norms and setting standards of workmanship, respect, and communication;

Accountability - Taking responsibility for the decisions and actions, including allocation of powers and duties;

High Performance - Excellent performance and satisfied customers that guarantee long term sustainability of the South African Micro-Finance Apex Fund.

The relevant behaviour by staff to achieve the above values have also been developed.

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Key Deliverables over the Three YearsProvision of financial support to FI’s totalling R279m for on-lending

R115m for capacity & institutional building support

Establishment of 122 new Financial Intermediaries (FI’s)

Funding of 193 FI’s

Creation of 56 000 projected new jobs

Diversified microfinance products to address the needs of the Financial

Intermediaries

Increasing visibility and awareness of samaf’s mandate, products and

services

Improvements in Information Technology

Improved turn around times

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samaf Products and Services

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LOANS: USAGE: MINIMUM - MAXIMUM USAGE:

• Development Loans

Education loans Housing loans Emergency loans

Consumption loans aimed at FSC’s and MFI’s for on-lending to clients (household) earning below R1 500 per month

R 4 Million R10 Million

2. Micro-enterprise Loans Micro – surviving generating activities with the total income of R3 500 per month

INSTITUTIONAL INCENTIVES: USAGE: MINIMUM MAXIMUM

1. Fund

To assist both MFI’s and FSC’s to be utilised for enhancing the institutional capacity, partial subsidizing of operation costs, development of reporting systems policies and procedures

R 1 Million R 5 Million

2. Saving formalisation & mobilisation fund

To assist current and unregistered co-operatives, groups and clubs to formalise their registration with CIPRO and samaf and the overall operations capacity in order to grow

N/A R200 000

Note: The above thresholds are under review to ensure relevance to the market that samaf serves

Alignment to the New Growth PathThe performance objectives are aligned to the New Growth Path as defined by the Economic Development Department (EDD) and are as follows:

Strengthening access to micro-finance for small enterprises

Enterprise development: Promoting small business and entrepreneurship

Eliminating red tape;

Payment of small business suppliers within 30 days

Spatial development: Extension of samaf offerings to remote and rural

areas by working with the Provinces and Municipalities.

Addressing key developmental goals for women empowerment and youth

employment

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Performance Targets

1010

Measure2011/12 2012/13 2013/14

Number % Number % Number %

End-user borrowers      

Total borrowers 22,116 30,233 43,190

Women 17,693 80% 24,186 80% 34,551 80%Men 4,423 20% 6,047 20% 8,639 20%

Youth 2,212 10% 3,023 10% 4,318 10%Disabled 443 2% 604 2% 864 2%

Rural 13,791 62% 19,564 65% 28,815 67%Semi-urban 8,325 38% 10,669 35% 14,375 33%

Performance Targets

1111

End user borrowers

22,1

16

30,2

33

43,1

90

17,6

93

24,1

86

34,5

51

4,42

3

6,04

7 8,63

9

2,21

2

3,02

3

4,31

8

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Total Borrowers Women Men Youth

2011/12

2012/13

2013/14

Performance Targets

1212

End user borrowers

443

604

864

13,7

91

19,5

64

28,8

15

8,32

5 10,6

69

14,3

750

5000

10000

15000

20000

25000

30000

Disabled Rural Semi-urban

2011/12

2012/13

2013/14

Performance Targets

1313

Measure2011/12 2012/13 2013/14

Number % Number % Number %

End-user service loans 

Micro Enterprise 19,421 88% 26,894 89% 39,023 90%

Housing 1,536 7% 1,849 6% 2,224 5%

Education 1,159 5% 1,490 5% 1,941 5%

New jobs created 13, 100  17, 900 25, 000

       

End-user savings      

Total active savers 23,851 28,419 34,653

New savers 4,568 6,234 6,982

Total savings book (R) 17,958,423 22,165,123 26,379,053

Performance Targets

1414

End user service loans

19,4

21

26,8

94

39,0

23

1,53

6

1,84

9

2,22

4

1,15

9

1,49

0

1,94

1

13,1

00

17,9

00

25,0

00

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Micro Enterprise Housing Education New jobs created

2011/12

2012/13

2013/14

Performance Targets

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Measure2011/12 2012/13 2013/14

Number % Number % Number %

Funding support to FIs 

On Lending 65,092,040 88,924,500 124,634,500

Capacity Building 35,049,560 38,110,500 41,544,250

FI Repayment rate 60% 65% 70%

Portfolio at risk 40% 35% 30%

FI Retention   65% 70% 75%

       

New FIs to be approved 

MFIs 4 10 8

FSCs 32 31 37

Performance TargetsFunding Support to FIs

100,

2m

127,

0m

166,

1m

65,1

m

88,9

m

124,

6m

35,1

m

38,1

m

41,5

m

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

Total Transfers On - Lending Capacity Building

2011/12

2012/13

2013/14

Performance Targets

1717

Measure 2011/12 2012/13 2013/14

FIs to be funded

MFIs 17  17 21

FSCs 33 49 56

Outreach to new communities 54 64 66

Capacity Building

MFIs 13 10 18

FSCs 14 17 16

Financial reporting 12 12 12

Needs assessment for end user Capacity Building

60% Complete 80% Complete 100% Complete

Performance Targets

1818

Measure 2011/12 2012/13 2013/14

Capacity Building

Design products to meet end user capacity building requirements

100% Complete 100% Complete 100% Complete

Finance

Unqualified Audit ReportUnqualified Audit

ReportUnqualified Audit

ReportUnqualified Audit

Report

Payment of creditors within 30 days

30 days 30 days 30 days

Information Technology

Implementation of software to manage turnaround times

Software Implemented

Performance Targets

1919

Measure 2011/12 2012/13 2013/14

Marketing

Conduct client satisfaction survey- FIs 0  1 0

Conduct client satisfaction survey- End user 1 0 1

Printing of brochures in 11 official languages

Brochures printed Brochures printed Brochures printed

Profiling of samaf in the media 27 27 27

Budget

2020

2011/12 2012/13 2013/14

Expenditure 61 302 000 63 360 000 66 985 000

Administrative Expenses 20 835 000 21 567 000 22 592 000

Depreciation 1 514 000 1 706 000 1 738 000

Personnel Costs 33 987 000 36 027 000 38 189 000

Losses on Loans 4 966 000 4 060 000 4 466 000

Transfers to FIs 100 141 600 127 035 000 166 178 750

Grants 35 049 560 38 110 500 41 544 250

Loans 65 092 040 88 924 500 124 634 500

Challenges

Sustainability of Financial Intermediaries (FIs)

Capacity within samaf and the FIs

Provincial spatial demographics

Turnaround times

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samaf Provincial Office Addresses

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GautengProvincial Manager: Ms Tsholofelo Molebaloa108 Cnr Rissik and Fox Street13th Floor Metropolitan BuildingJohannesburg,2001

Postal Address: PO Box 61008, Marshalltown, 2107 Tel: 011 838 5482Fax: 011 838 5486Email:

North WestProvincial Manager: VacantPhysical Address: Cnr University Drive and Provident Street Office no 229,2nd Floor, NWDC Building, Mmabatho , 2790

Postal Address: Private Bag X58Mmabatho2735Tel: 018 384 0766 Fax: 018 384 1963Email:

MpumalangaProvincial Manager: Mr Sabelo MambaPhysical Address: 30 Brown Street First Floor, Nedbank Centre, Nelspruit, 1200Postal Address: P O Box 3677Nelspruit1200Tel: 013 755 2696 Fax: 013 752 7461Email:

Eastern CapeProvincial Manager: VacantPhysical Address: 58 Terminus Street, 7th Floor, SA Eagle BuildingEast London, 5201Postal Address: P O Box 9071East London5200Tel: 043 743 5259 Fax: 043 743 5249

Free StateProvincial Manager: Mr Tefo LekutlePhysical Address: Cnr Maitland and West Burger StreetBloemfontein9301Postal Address: Private Bag 20806Bloemfontein9300Tel: 051 447 3510 Fax: 051 430 6470Email:

Northern CapeProvincial Manager (Acting): Mr. Jacob Gumbo Physical Address: Suite 2, Perm Building,Woodley StreetKimberley, 8301Postal Address: P O Box 1972Kimberley8300Tel: 053 832 5422 Email:

samaf Provincial and Head Office Addresses

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Western CapeProvincial Manager: Mr Mark AlardPhysical Address: 2 Long Street, 9th floor, FNB BuildingCape Town,8001

Postal Address: PO Box 7284, Roggebaai, Cape Town, 8012Tel: 021 425 6774 Fax: 021 425 6776Email:

KwaZulu- NatalProvincial Manager: Mr Thanda MadlalaPhysical Address: 127 Johannes Nkosi StreetSeda EthekwiniDurban,4001

Postal Address: PO Box 3983, Durban, 4000Tel: 031 309 5850 Fax: 031 309 5893Email:

LimpopoProvincial Manager: Mr Patrick MathomaPhysical Address: 22 Hans van Rensburg Street1st floor Suite no 2Bonitas BuildingPolokwane0699Postal Address: P O Box 2938Polokwane0700Tel: 015 291 5428 Fax: 015 291 5415Email:

Head Office Address

77 Meintjies Street, the dti group campus

3rd floor, block D (Kgwebong), Sunnyside, Pretoria, 0002

Postal Address: Private Bag x26, Sunnyside, 0132

Tel: 012 394 1479

Fax: 012 394 2479

Thank You

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