PRESENTATION TO PORTFOLIO COMMITTEE

1

• PRESENTATION TO PORTFOLIO COMMITTEE
• BY
• SITEMBELE MASE CEO samaf
• ON
• DATE 10 October 2007

2
INTRODUCTION

• FORMATION letter from National Treasury to the
  dti
• April 2006 launched
• Policy intervention on
• Poverty alleviation
• Employment
• Entrepreneurship
• Access to finance

3
Framework

• Empirical evidence of successfully inteverntions
  in india, bangladesh, chile ,bolivia ,kenya
  ,uganda and others.
• More than 40 years of interventions.
• Not a social grant for destitute but for the
  working and enterprising poor engaging in
  economic activities.
• Must facilitate asset building and integration of
  the working poor into mainstream banking and
  financial markets
• Fund is structured as wholesale loan and capacity
  grant (the spear and the sharpner)

4
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.

5
MISSION

• To provide competitive, professional and
  customised wholesale financial services to
  intermediaries that reach deeper and broader.

6
MEETING THE DEVELOPMENT MANDATE
7
FINANCIAL PERFORMANCE
8
DELIVERY NETWORK

9
Graph 7.1
10
Graph 7.2
11
Graph 7.3
12
Demographics 7.4
13
HR ISSUES

• 46 staff member were employed
• 12 HO
• 34 Provinces
• Salaries are paid as per Public Service Act
• No performance bonuses have been paid
• Employment Equity
• 35 women senior management

14
Challenges

• 1. Qualification
• Due to
• Grant payment of 3.8 mil
• Expenses of R273,000 with insufficient audit
  evidence
• Non-consolidation of funded institutions (P.O.)
  into samaf group financial statements in
  accordance with IAS 27 (AC 132)
• The standard considers samaf to have a financial
  and legal control on the entities that we funded

15
Challenges continue

• 2. Efficiency and Effectiveness
• samaf has operated within budget although the
  actual transfer to Partner Organisations has been
  low and the approvals were high
• The approval for transfers was 55.2 million vs.
  R65 million budgeted
• This is as a result of lack of capacity and
  quality reports from the intermediaries thus
  resulting in slower draw downs
• LEGAL STATUS of samaf

16
Improvement plan

• 1. Strategy structure alignment-
• New and improved functions have been introduced
  to enable samaf to operate efficiently
• Due diligence and Portfolio management
• IT for integrated and reporting requirements
• Outreach functions are being rationalised for
  better performance
• Note
• These amendments have been submitted for approval

17
Improvement plan continues

• 2. Improvement in Governance
• Appointment of Credit and Risk committee
• Implementation of Risk Management Framework
• Implementation of the Performance Management
  System
• Implementation of improved business process ,
  policies and procedures
• Identification and acquisition of an appropriate
  IT/MIS reporting system
• Improvement in the capacity building programme
  for Financial Intermediaries (PO)

18
THANK YOU