Samaf South African Micro-Finance Fund

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Samaf South African Micro-Finance Fund Powered By Docstoc
					          PRESENTED BY

MR.SITEMBELE MASE : CEO samaf

              TO
2007 AFRICA SMME CONFERENCE
              Content page
•   Socio-economic landscape
•   Socio-economic challenges in S.A.
•   Government policy response
•   samaf mandate
•   Market segmentation
•   Milestones and contribution
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
 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
    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
                                     Market
                                  segmentation
First Economy



                               Commercial             Middle
                                 Banks                Class


                                                 Salaried working
                                                  class, and self
                                                 employed (small
                                                                           Existing State          Credit Unions,
                                                     business)
                Commercial                                                   Agencies              Cooperatives
               Micro Lending                                                  (Khula)
Second Economy    Industry
                                            Economically Active Poor)




                                                                          De
                                               (Micro Enterprise)




                                                                          ve
                                                                           lop
                                                                               me
                                                                                 nta
                                                                                    lM
                                                    Very Poor




                                                                                       i cr
                                              (Survivalist Enterprise)




                                                                                           oF
                                                                                             ina
                                                                                             nc
                                                                                               e
                                            ‘Hard Core’ Poor/ Destitute
            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.
          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)
 Delivery Network
Province        Delivery   Approvals/Com   On-lending      Capacity
                Network    mitted          Disbursements
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             4     R 5,200,000     R   240,000     R 310,000
Natal
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
Delivery network continues ……
Total distribution of funds
         Number of borrowers & savers
                    2006/7

Provinces       Borrowers            No. of savers
                              352                3 810
North West
                              310                    330
Eastern Cape
                              469                    684
Free State
                             1 093                   556
Gauteng
                              142                4 801
KwaZulu Natal
                              440                1 965
Limpopo
                              699                1 157
Mpumalanga
                              841                1 050
Western Cape
                                0                     0
Northern Cape
                            4 346              14 353
TOTAL
              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?
THANK YOU

				
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