1. Corporate Plan 2013/14
Portfolio Committee - EDD
Thakhani Makhuvha
Chief Executive Officer
17 April 2013

2. Organisational Framework
2
Mission: To provide simple access to finance with support in an efficient and sustainable manner to survivalist,
micro, small and medium enterprises throughout South Africa.
Vision: To be the leading catalyst for the development of sustainable Survivalist, Micro, Small and Medium
enterprises through the provision of finance.
Direct Lending
 Working Capital
loan,
 Asset finance,
 Term loans,
 Revolving loan,
 Bridging loan,
 Short-term trade
finance
Wholesale Financing
 Business Loans –
(RFIs/MFIs/Co-
ops/FIs),
 Equity Investments –
Specialised Funds,
 Credit Guarantee
Scheme,
 Land Reform
Empowerment Fund
Values: Kuyasheshwa, Passion for development, Integrity, Transparency, Innovation
Enabling/Support
Human
Capital
Management,
IT
Systems,
Stakeholder
Relations
&
Communications,
Finance
and
Procurement
Corporate
Governance
Board
of
Directors,
sefa
Management,
Risk
&
Compliance,
Interna
Controls,
Audit
&
fraud
prevention
and
Legal
Product
Portfolio
Distribution
Channels
sefa’s Regional Offices, RFIs, MFIs, Co-ops, Commercial Banks, Specialised Funds,
Provincial Development Corporations (PDCs), Post Office, & Post Bank
Customers SMMEs and Co-operatives
R500 R5m
Capacity Building
 Pre Post loan
mentoring
Institutional
Strengthening
 Board
representation
 Management and
Technical support
Mandate: To promote the establishment, survival and growth of SMMEs and thus contribute towards poverty
alleviation and job creation.

3. Target Market
sefa’s target market consists of survivalist, micro, small and medium
businesses as defined in Schedule 1 of the National Small Business Act of
1996 (as amended in 2003 and 2004) with specific focus on:
• Services (including retailing, wholesaling and tourism);
• Manufacturing (including agro-processing);
• Agriculture (specifically land reform beneficiaries and micro-farming
activities);
• Construction (small construction contractors);
• Mining (specifically small miners).
Targeted Group
• 30% youth-owned enterprises.
• 45% priority rural provinces.
• 40% women-owned businesses.
• 70% black-owned businesses. 3
Segment Loan Thresholds
Survivalists and
microenterprises
R500 and R50k
Small enterprises R50k to R1m
Medium
enterprises
R1m to R5m

4. Strategic Objective 1
4
Project Timeline
Enhance a pre-loan support programme in partnership with seda 30 September 2013
Pilot a partnership with SAICA in 3 provinces:
Gauteng
Mpumalanga and KZN
31 May 2013
31 December 2013
Pilot and roll-out a partnership with Shanduka Black Umbrellas 30 June 2013
Develop a Direct Lending guarantee product 30 November 2013
Review of current intermediary portfolio (consolidate, recapitalise
or exit)
28 February 2014
Develop and implement Co-operative financing strategy 30 June 2013
Establish 2 partnerships with provincial DFIs 30 September 2013
Improve the uptake of the Credit Guarantee Scheme 30 June 2013
Investigation into rural expansion in partnership with chain
stores (for example Spar, Government Feeding Schemes)
31 March 2014
Strategic Objective 1
Increase access and provision of finance to SMMEs and thereby
contribute towards job creation

5. Strategic Objective 2
Develop and implement a national footprint for effective product
and service delivery (Direct Lending)
5
National Distribution Network – 2013/2014
Province Regional Office Branch offices
Gauteng Johannesburg Pretoria
Western Cape Cape Town George
Eastern Cape East London Port Elizabeth
Kwazulu Natal Durban Pietermaritzburg
Free State Bloemfontein Welkom
Mpumalanga Nelspruit Hazyview
North West Rustenburg Mafikeng
Limpopo Polokwane Louis Trichardt
Northern Cape Kimberley Upington

6. Intermediary Offering Reach Target Date
Retmil General SME financing Free State
Northern Cape
Existing
30 September 2013
Opportunity Finance Microfinance KZN (Expansion) Existing
Transnet Supply Chain National 30 June 2013
Anglo Junior Mining Financing National 30 September 2013
Cape Capital Trade Financing Western Cape
Free State
Gauteng
Existing
31 March 2014
31 March 2014
Capital Harvest Agriculture Production
Finance
Western Cape
Free State
Northern Cape
Existing
31 December 2013
30 June 2014
sNF Enterprise
Development
NAFCOC /FABCOS National 30 June 2013
Kuyasa Microfinance Western Cape (Expansion) Existing
Grikwaland Wes
Ko-operatief- GWK
Co-operative Northern Cape 30 September 2013
Strategic Objective 2 Continued….
Develop and implement a national footprint for effective product
and service delivery (Wholesale Lending)
6
Wholesale plans to identify market and sector needs by province and profile existing
intermediaries to extend their reach in relation to niche offerings.

7. Strategic Objective 3
7
Strategic Objective 3
Build an effective and efficient sefa that is a sustainable
performance driven organisation
Activity Timelines
Align the Divisional plans and individual
performance contracts to the approved
Corporate Plan and Corporate balanced
scorecard.
31 May 2013
Improve IT platform, integrate IT systems and
acquire support technology (Risk, Internal
Audit, HR).
31 December 2013
Develop and implement Management
Information and Client Relationship
Management Systems
30 September 2013
Implement Service Level Agreement Systems
between Divisions.
30 June 2013
Review Procurement processes and finalise
Preferred Supplier List.
30 June 2013
Implement a robust skills development and
talent management strategy
30 September 2013

8. 8
Activity Timeline
Establish and implement quarterly learning
forums
30 June 2013
30 September 2013
31 December 2013
31 March 2014
Establish an integrated Knowledge Resource
Centre
31 December 2013
Develop and implement a knowledge sharing
MOU with 2 local and international DFIs.
31 December 2013
Standardise and version controlled sefa templates
(e.g. Credit packs, legal documentation, etc.)
30 June 2013
Include specific development and learning
objectives as part of Individual performance
contract
31 May 2013
Encourage innovation within sefa by leveraging of
IDC and market research.
31 December 2013
Strategic Objective 4
Build a learning organisation

9. 9
Strategic Objective 5
Build a sefa that meets all legislative, regulatory and good
governance requirements
Action Timeline
Review and update Credit Policies 30 June 2013
Review the Risk management framework
incorporating the Risk Monitoring Plan
31 May 2013
Implement an approved pricing model 30 June 2013
Employ Human resources for the Risk and
Compliance division
31 July 2013
Review and updated business continuity and
disaster recovery plans.
30 June 2013
Business unit Risk assessment to be
conducted per division and high risk
monitoring to be conducted
31 March 2014
Conduct 2 Risk awareness workshops across
all levels of work
30 September 2013 and 31 March 2014
Compliance Monitoring on the top 10
regulations as identified in the compliance
universe
31 March 2014

10. Strategic Objective 6
10
Strategic Objective 6
Build a strong and effective sefa brand emphasizing accessibility
to SMMEs
National Roadshow Schedule
Province Area 1 Area2 Month
Gauteng Alexandra Sandton April
Western Cape Cape Town Vredenburg May
Limpopo Polokwane Thohoyandou June
Free State Bloemfontein Qwaqwa July
Northern Cape Kimberley Kuruman August
Eastern Cape East London Motherwell September
Mpumalanga Nelspruit Bushbuckridge October
KZN Durban Imbali November
North West Rustenburg Jouberton February

11. 11
Products & Services
- Wholesale
Product Description
Business Loans Partnership with Non Bank Financial
Intermediaries for on-lending to SMMEs (eg sefa
provides loan to SEF, who lends money to micro
enterprises)
Specialised Funds/ Joint
Ventures
Partnership with mainly private sector entities for
on-lending to SMMEs (e.g. sefa’s partnership with
Anglo to provide finance to small mining
contractors)
Credit Guarantee Scheme sefa provides guarantees to banks, enabling loans
to small businesses that do not otherwise have
sufficient collateral/security to support facilities.
Land Reform
Empowerment Fund
(LREF)
Facility through which sefa lends money to
commercial banks and other reputable
agricultural lenders for on-lending to land reform
beneficiaries

12. 12
Products & Services
- Direct Lending
Product Description
Revolving/Bridging Loans To facilitate short term capital requirements or
bridging finance for delivery of contracts or
orders (eg a small business gets a contract to
supply stationery, but needs finance to buy the
stock)
Asset Finance For acquisition of fixed assets (eg a small
business needs a new machine. sefa provides a
loan, repayable over 5 years)
Term Loans To finance longer term business expansion
requirements and specific capital
acquisitions (similar to asset finance, but not
necessarily linked to a specific machine)
Working Capital To finance purchase of stock, overheads, etc (eg
sefa provides a shorter term loan (3 years) to a
small shop to buy stock needed to expand)

13. 13
Products and Services
- Non Financial Services
Product Description
Post-loan Business
Support Programme
This service is only provided to SMMEs that have
benefitted from facilities provided by sefa and its
financing partners as a risk mitigating intervention
(e.g. sefa provides a mentor to a small business to
assist with specific aspects of running the
business)
Institutional
Strengthening Grants
Aimed at providing institutional strengthening and
technical assistance to Financial Intermediaries
(eg grant funding provided to an intermediary to
assist it in improving its systems)

14. Selected Corporate Targets
14
Product
2013/
2014
2014/
2015
2015/
2016
2016/
2017
2017/
2018
Approvals R815.0m R1 072.7m R1 297.8m R1 500.0m R1 760.0m
Disbursement R737.5m R955.3m R1 166.5m R1 354.0m R1 579.0m
No. of Jobs created 18 311 22 489 27 508 33 204 38 909
No. of SMMEs
financed
15 129 18 832 22 702 28 428 34 156

15. Funding and pricing strategy
• sefa’s pricing strategy will be developmental in nature.
• The pricing will be affordable to small businesses, incorporating an
appropriate discount for developmental impact, whilst ensuring the
sustainability of the institution.
• Continued support via grant funding is required to offer some of the
products (e.g. Credit Indemnity)
15

16. Cost Effectiveness
16
Product 2013/
2014
2014/
2015
2015/
2016
2016/
2017
2017/
2018
Disbursement R737.5m R955.3m R1 166.5m R1 354.0m R1 579.0m
Outstanding loan
book at year end
R950.2m R1 387.4m R1 819.3m R2 245.3m R2 662.2m
Operating
expenditure
R325.6m R334.7m R354.4m R381.4m R406.2m
Cost of
disbursement
Per rand
R0.44 R0.35 R0.30 R0.28 R0.25
Cost to income
ratio *
(Excl Grant)
185% 169% 142% 122% 108%
* The Cost to income ratio includes the cost of disbursement as well
as the cost of managing and monitoring the existing loan book

17. Delivery Network
17
Existing sefa
offices
Existing Retail
Financial
Intermediaries
Existing Micro-
finance
intermediaries
Planned sefa
branch/ satellite
offices (branch
office is a small
staffed office.
Satellite office is
a desk in eg.
seda/Post Office,
manned at
specific times.)
Cities/towns

18. Thank You