ANNUAL RESULTS
for the year ended 31 March 2013
Select Committee
Economic Development
4th
Cape Town
Establishment
• First year of operations was characterised with a focus on implementing the merger,
including organisational change management, human capital integration, IT systems
and processes and the development of enterprise-wide policies and procedures.
• These processes have laid the foundation for sefa to deliver on its key strategic
objectives.
Target market
Introduction
Target market consists of those small businesses not served by the existing formal
banking and finance sector within the following categories:
• Survivalists and microenterprises –loans of between R500 and R50 000
• Small enterprises – loans between R50 000 and R1 000 000
• Medium enterprises – loans between R1 000 000 and R5 000 000
• Lending strategy is informed by IPAP, NDP, NGP, MTSP and other imperatives and
legislation
2
Khula Direct Pilot
(pre-merger)
Khula Direct Pilot Results
• Pilot phase capitalised with R55m (R50m for on-lending and R5m
for capacity building)
• 3 Pilot branches
– Tshwane,
– East London
– Cape Town
•
•
•
•
•
R23.4m Approvals
R12.7m Disbursement
98% Collection Rate
0% Impairments
Implementation challenges
– Credit skills and capacity
– Concentration on bridging loans
• The pilot project preceded the sefa business model
Product Portfolio
Performance
•Loan Product Portfolio Mix
•sefa Delivery Structure
9 Regional Offices
6 Financial Intermediaries
8 Equity and Specialised Funds
Head Office - Centurion
5 Commercial Banks
13 Microfinance Institutions
10 Fin. Service Co- operatives
Support for Co-operative Enterprises
Financial
Non-Financial
sefa:
sefa and other partners:
Business Loans/On-lending funds
Institutional strengthening to
Financial Co-operatives (grants)
Funding channels via the regional
office network and wholesale
partnerships
 sefa - mentorship funded through direct
lending
 Companies and Intellectual Properties
Commission (CIPC) - registration of cooperatives
 Co-operative Banks Development
Agency (CBDA) - regulating and
supervising Financial Co-operatives
including Co-operatives Banks
 Seda - for business support and training
of Co-operatives (this function to be
taken over by Co-operative Development
Agency when it becomes operational)
Loan Products Performance
Provincial Analysis - Approvals
Provincial Analysis - Disbursements
Performance against Target
and Development Impact
Development Impact of Loan Product Portfolio
Micro
SME Wholesale
Direct Lending
Total
SME financed
27 111
1 132
119
28 362
Jobs Created
18 977
792
83
19 853
R 30 249 820
R 42 933 824
R 8 951 598
R 82 135 242
Women
R 109 729 389
R 73 303 492
R 15 694 336
R 198 727 216
Black
R 173 063 121
R 177 474 106
R 39 573 499
R 390 110 726
>R250k
R 169 812 919
R 48 057 397
R 8 780 840
R 226 651 155
R 75 029 636
R 129 122 216
R 12 288 174
R 216 440 027
Youth
Rural
Disbursements to SMME via all Loan Products/ Channels
Impact Indicators
Development Impact Indicators
Indicator
Target
Actual
Facilities disbursed to youth-owned - 25-35 years old
30%
16.5%
Facilities disbursed in priority rural provinces
45%
45.4%
Facilities disbursed to women-owned businesses
40%
39.8%
Facilities disbursed to black-owned businesses
70%
78.1%
Facilities less than R250K disbursed to end-users
40%
45.4%
Loan Products Performance
Approvals
Disbursements
No.
of
created
No. of SMMEs
financed
Jobs
2011/12
2012/13
Full Year
Full Year - Actual
2012/13
Full Year Targets
ex- Khula and exsamaf
R211.1m
sefa
sefa
R439.6m
R560.0m
R143.0m
R198.0m
R451.0m
50 103
19 853**
13 196
59 910
28 362**
11 812
** Method of calculation – only accounts for sefa direct contribution to the intermediary institution
Outreach and stakeholder Participation
 Roadshows
sefa led Roadshows together with Seda, SARS, NYDA, IDC, dti, EDD, Provincial Development
Corporations and Local Government LED units and local Chambers of Commerce
19 Towns in 8 Provinces
Community/ National Radio Stations
Message – raising awareness of sefa products and other government SMME services
Stakeholder Feedback
 Access to sefa office (visibility and accessibility in small towns)
 Loan/ Disbursement process (Turnaround times, Document requirements)
 Interest Rates
 Access to loans, < R50k (Micro-finance Institutions
 Customer Channels
 Online Enquiries – 887
 Call Centre - 6203
 Regional Office Offices- 2426
Success Stories
Success Stories - Microfinance
• Ms Vuyiswa Bheyi, started her
fruit and vegetable enterprise
through loan financing from
Tetla Development Services, a
sefa funded Microfinance
Institutions
• She is self-employed and able
to provide for her family.
• Many other micro enterprises,
especially rural women and
youth are provided with an
opportunity to participate in
the economy
Success Stories – Retail Financial Intermediary
• Mr Mqwathi, the owner of SSS
security services received
term loan R1,8 million and
revolving loan facilities from a
Free State retail financial
intermediary (Retmil).
• SSS security employs 1,500
staff members in the Free
State and North West
Provinces
Success Stories - Direct Lending
• Ms Magdeline Paledi, the coowner of MMJV, obtained a
bridging facility of R3 million.
• The bridging facility enabled
the Joint Venture to honour the
contract received from Anglo
American.
• The funding assisted in the
development of a village school
in Burgersfort
Success Stories – Direct Lending
• sefa provided a bridging loan
of R3 million to Mr Wilson
Khetisa Matete of BBT
construction based in
Mangaung, Free State.
• The funding enabled BBT to a
service large construction
contract amounting to R10
million for the construction
and maintenance of roads in
the Botshabelo and
Bloemfontein areas.
• The enterprise employs 165
staff.
Success Stories – Co-operatives
Pam Govender is a Member of K.Ladies Financial Cooperative. She is
an entrepreneur and owns a construction company (Alpha Trading )
and employs four people. Her business obtains loans from K.Ladies
because of being a member. Her business is involved in making gates,
repair bridges etc.
The picture on the right demonstrates the work done by Alpha Trading
in Ladysmith, KZN.
Pam was one of the winners of 2013 City Bank micro-entrepreneurs.
K.Ladies assisted her to register for the competition.
Beauty Gcilitshana of Khayelitsha , a member
of Flash , started her fruit and vegetable stall
to feed her family in 2010. She is currently
employing two employees. She has bought a
van for her business, renovated her house
and sends her kids to school. She is very
happy with the SACCO’s services.
Ms. Rachidi M.Hellen is a member of Mankotsana
Financial Co-op based in Limpopo .She received a loan
from the co-operative in 2012 to extend her house. She
has now achieved her goal of having a decent house. The
picture below shows the house at the time of the
extension.
Flash is one of biggest Financial
Co-ops funded by sefa and has
approximately 9000 members who
are SMMEs.The members are Flash
Vendors who sell electricity and
airtime.
sefa approved a total amount of R4 million i.e. R2 million on-lending loan and
R2 million capacity-building grant. A total amount of R3, 723,665 was disbursed.
The current exposure to sefa stands at R276, 335.
Success Stories – Youth
• On Point Manufacturing a steel fabrication and
engineering design enterprise was awarded an
order to manufacture conveyor belt components for
a platinum mine.
• The business operates from Steelpoort in the
Sekhukhune district in Limpopo.
• The owner, Mr Dumetsi Masha, received R600 000
loan from sefa.
• Miss Lungile Nkosi, the owner of Lee 0108 Trading
Enterprise, operates a slimming clinic in Centurion,
Gauteng.
• The clinic provides a non-invasive slimming
treatment.
• sefa provided R520 000 loan for the business.
Human Capital Management
Human Capital Management
Establishment Profile – 31 March 2013
Male
Female
Level
Total
Black
Coloured
Indian
White
Black
Coloured
Indian
White
Executive
2
0
1
0
1
0
0
0
4
Manager
13
0
0
1
13
0
1
3
31
Professional
27
1
0
5
39
4
2
3
81
Administrative
8
0
0
0
25
4
2
1
40
Support
2
0
0
0
5
0
0
0
7
Total
52
1
1
6
83
8
5
7
163
•
•
Black representation constituted 92% and female employees 69% of sefa staff.
Human capital management activities included:
• The establishment and approval of the organisational structure
• Transfer and placement of employees into the new organisation
• Implementation of change management programmes
• Integration of the ex-SAMAF and ex-Khula regional offices
• Development of sefa integrated human capital related policy framework.
• Addressing on-going merger related challenges
Financial Performance
Statements of Financial Position as at 31 March 2013
GROUP
COMPANY
2013
2012
1 Apr 2011
2013
2012
1 Apr 2011
R'000
R'000
R'000
R'000
R'000
R'000
909 998
725 792
571 793
808 767
517 682
346 184
21 303
24 431
22 108
22 695
21 764
21 939
ASSETS
Cash and cash equivalents
Trade and other receivables
Tax receivable
Loans and advances
Investments
Investments in subsidiaries
Investments in associates
60
-
8 446
303 060
249 485
296 859
26 409
47 871
68 502
-
-
-
211 576
162 245
8 323
212 397
26 409
47 871
68 502
141 604
139 674
142 452
604 914
576 005
559 663
108 982
99 909
98 622
Investments in joint ventures
53 037
48 702
53 955
7 047
7 264
48 012
Deferred tax asset
75 193
39 617
35 469
113 338
74 453
56 859
171 435
195 264
187 508
171 435
195 264
187 508
12 280
1 385
2 005
1 699
1 550
Investment properties
Equipment
12 401
1 535
2 005
Intangible assets
1 874
1 817
-
TOTAL ASSETS
2 179 684
1 910 519
1 806 308
1 625 832
1 269 061
1 192 803
Share Capital
308 300
308 300
308 300
308 300
308 300
308 300
Reserves
756 901
618 885
605 163
254 725
145 412
173 958
1 065 201
927 185
913 463
563 025
453 712
482 258
4
2
1 065 201
927 189
913 465
563 025
453 712
482 258
136 784
132 878
122 048
101 911
22 150
26 083
5 518
199
944 542
794 131
703 852
Outstanding claims reserve
11 073
27 043
55 412
Deferred tax liability
15 628
13 225
6 456
10 535
11 332
Total liabilities
1 114 483
983 330
892 843
1 062 807
815 349
710 545
TOTAL EQUITY AND LIABILITIES
2 179 684
1 910 519
1 806 308
1 625 832
1 269 061
1 192 803
-
EQUITY AND LIABILITIES
Equity attributable to ow ners of the parent
Non-controlling interest
Total equity
-
-
-
-
Liabilities
Trade and other payables
Tax payable
Shareholders loans
Unearned risk reserve
-
-
944 542
16 354
-
5 157
774 462
13 580
-
684 462
-
Statements of Comprehensive Income
for the year ended 31 March 2013
GROUP
COMPANY
2013
2012
2013
2012
R'000
R'000
R'000
R'000
116 759
113 738
101 693
97 492
Other income
3 663
8 091
1 774
12 105
Grant income
48 870
5 000
48 870
5 000
(21 929)
7 077
(21 929)
7 756
Income
Revenue
Net fair value gain on financial and other assets
147 363
133 906
130 408
122 353
Expenses
Personnel expenses
(85 157)
(36 999)
(85 157)
(36 991)
Investment property expenses
(33 193)
(45 214)
(33 193)
(45 214)
Movement on impairments and bad debt provisions
(68 542)
(71 187)
(29 353)
Bad debts written off
(10 476)
(30 870)
Other operating expenses
(76 194)
(71 565)
(70 099)
(27 786)
(126 199)
(42 046)
(129 228)
(27 404)
Operating loss
Profit from equity accounted investments, net of tax
Profit/(loss) before tax
Income tax income/(expense)
Net loss for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
8 696
-
28 979
19 301
(97 220)
(22 745)
32 806
(14 469)
36 110
(64 414)
(37 214)
(93 118)
-
-
(129 228)
-
(64 414)
(37 214)
Owners of the parent
Non-controlling interest (I/S)
(64 410)
(37 215)
Total comprehensive loss and loss for the year
(64 414)
Loss and total comprehensive loss attributable to:
(4)
-
1
(37 214)
(93 118)
(10 413)
(27 404)
(1 142)
(28 546)
(28 546)
Assets
Income
Income is mainly
derived from:
• Property rentals,
• Dividends,
• Interest
Expenses
Building sefa
The Way Forward
Building sefa – The Way Forward
 Improving Organisational
Efficiencies
 Improving Turnaround Times
 Improving the sefa Balance Sheet
 Cost to Income
 Post Investment Monitoring (Mentorship
and collections)
 Strengthen Human Capital
Management
 Policies, procedures, processes and
systems
 Stabilizing the labour relations
environment (Co-operation with the
union)
 Organisational Change management
and culture (embedding the merger)
 Performance Management
 Skills Development (Developing sefa’s
core competencies)
Building sefa – The Way Forward (Cont)
Investment in target programme
initiatives
Youth (Fund/ Scheme)
Micro-Enterprise Supplier Credit
 Fresh Produce Markets
 Construction (Building Material)
 Clothing and Textiles
 Retail (Wholesale and Manufactures)
Geographic enterprise development
Initiatives
Co-operatives
Bakery Enterprises (Rural Women)
 Structured financing packages for Co-ops
On-lending financial support for Financial
Savings Co-operatives
Investing in strategic partnership
seda, SAICA, Provincial Development
Corporation,
Private Sector (supplier development
THANK YOU