SITEMBELE MASECEO samaf

PRESENTATION TO SELECT COMMITTEE ON ECONOMIC AND FOREIGN AFFAIRS

Time: 10h00 -13h00

Venue: Parliament, Committee Room S26, First Floor, NCOP Wing

first floor, block b (entirweni),mapungubwe – the dti group campus77 meintjies street, sunnysidetel: 012 394 1703 fax: 012 394 2703www.samaf.org.za

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

samaf seeks to be a leader in the field of developmental micro-finance and provide best practice models in South Africa

2. VISION

3. PRODUCTS AND SERVICES

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 fundThe allocation of poverty & micro-enterprise loans to FSCs is on an 80:20 basis and for the MFIs on a 20:80 basisThis 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 000Households 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 BanksMicro-Finance Intermediaries (MFIs)

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

Max. loan amount for Financial Intermediary

(Primary Target Market)

Capacity Building & Support Fund

SecondaryTarget Market (end-users)

PrimaryTarget Market

(Financial Intermediaries)

Product

PRODUCTS AND SERVICES (cont.)

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 systemsSubsidization of direct costs

Savings Mobilization Fund

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

4. Infrastructure Network

a. Eight (8) offices are operational, except the Northern Cape which is not completely operational. We are still recruiting a Provincial Manager there;

b. Thirty-four (34) Financial Service Co-operatives (FSC’s) and four (4) micro-finance institutions (MFI’s) have already been approved for funding to the amount of R69.6m. Four MFI’s conditionally approved. This includes funding for technical and capacity building support;

c. 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;

d. Each provincial office has four (4) staff members with two (2) officers deployed to implement outreach programs;

e. The website is fully functional with all the information about products and services, including the funding criteria. Please visit (www.samaf.org.za);

f. All brochures have been revised with new and up to date information and are disseminated through the provincial offices;

g. New banners have been developed with the approved samaf logo and colours, to be utilised when necessary at functions and exhibitions;

h. Our first newsletter Inkanyezi (meaning the STAR) has been released and distributed to the provincial offices to be distributed to the partner organisations..

5. Outreach as at March 2007PROVINCE DELIVERY

NETWORK INVESTMENTS ON-LENDING

DISBURSEMENTS ONLY

BORROWERS NO. OF SAVERS AMOUNT SAVED

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 7,950,000 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 124,643 Norther Cape 0 0 0 0 0 0 SUB-TOTAL 31 R55,200,000 R 9,059,000 4346 14353 R7,244,193 Disbursements - Capacity Building

R11,301,000

TOTAL R20,360, 000

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

6. PARTNERSHIPS

a. We have a proposal for integrated service delivery and roll-out with MAFISA (the agricultural fund) for implementation during 2007/8;

b. We have established good strategic relationship with the BANKSETA in order to ensure that we make use of qualified and accredited service providers;

c. 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 SACCO’s has been discussed and a model agreed to in order to provide this funding at arms length from SACCOL;

d. 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;

e. 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.

QUESTIONS

THANK YOU….