PERFORMANCE REPORT: 2ND QUARTER 2015/16 · PDF filePERFORMANCE REPORT: 2ND QUARTER 2015/16 ......

PERFORMANCE REPORT: 2ND QUARTER 2015/16 Presented to Portfolio Committee on Trade & Industry Parliament of the Republic of South Africa 11 November 2015

Presenter 1. Ms Philisiwe Mthethwa

Chief Executive Officer

2. Ms Hlengiwe Makhathini

Divisional Executive: Venture Capital

& Corporate Finance

3. Mr Setlakalane Molepo

Divisional Executive: SME & Rural

Development

4. Mr Mziwabantu Dayimani

General Counsel

2

3

Contents

3

Section Slide

1 About the NEF 4

2 Life to date Performance Update: 30 September 2015 9

3 2014 /15 Performance Milestones 10

4 Current Economic Overview & Strategic Considerations for the NEF 15

5 NEF Performance : 2nd Quarter 2015 18

6 Market Failures & NEF Investment Funds 24

7 Growing Black Industrialists 27

8 Recapitalisation: Funding the Funder 34

9 Detailed Life to date Performance Report: 30 / 09/ 2015 44

10 A sample of NEF Investees 57

About the NEF

4

NEF Mandate…

5

Established by the National Empowerment Fund Act No. 105

of 1998, the NEF is a driver and a thought-leader in promoting and

facilitating black economic participation through the provision of financial and

non-financial support to black empowered businesses, as well as by promoting a culture of savings and investment

among black people.

The NEF is an agency of the dti and is the only DFI exclusively mandated to grow

B-BBEE

5

6

Direct black equity control over the JSE’s average market capitalisation of R12.2 trillion as at 30 October 2015 (for Listed Companies), stood at 3% (R365 billion) for shares directly held by black South Africans.

To reach 25% of black control it requires an additional 22% worth R2.7 trillion at current estimated market capitalisation of the JSE.

This is a gap that still needs to be addressed and funded in order to achieve transformation of up to 25% of JSE market capitalisation.

Strategic Need for B-BBEE

Source: Who Owns Whom & JSE market data, 30 October 2015

Broad Based Black Economic Empowerment The Codes of Good Practice

7 7

Strategic Planning Framework… N

EF A

ct:

Obj

ectiv

es

The

dti

O

bjec

tives

Government Priorities:

1) Acceleration of economic growth and transformation,

creating decent work and sustainable livelihoods; 2) Infrastructure development to achieve social and

economic goals and rural development; 3) Skills and human resource development; 4) Build a developmental state and improve public service.

Sectors NEF • Tourism; Biofuels; Construction; Agri-processing; Transport; ICT & Media; Mining services; Franchising Industrial Policy Action Plan: • Automotives, components, medium

and heavy commercial vehicles • Plastics, pharmaceuticals and

chemicals • Biofuels • Strengthening linkages between

cultural industries and tourism • Business process servicing

NEF Sectors in line with national industrial objectives

8

“The Empowerment Dividend”

Broad Based Black Economic Empowerment Ownership, management control, employment equity etc.

Black Women Empowerment

Job Creation

Growth Sectors

Geographic Spread

Investment Return

The assessment of impact is not driven only by financial returns but by measurement in terms of “The Empowerment Dividend”

made up as follows:

NEF’s Performance and Investment Criteria…

Life to Date Performance Milestones Output Achievements

1 Approvals Benefited black entrepreneurs through approval of 688 transactions worth more than R6.6 billion across the country.

2 Disbursement Approximately R4.6 billion has been disbursed to these companies since inception.

3 Integrity Secured unqualified external audit opinions for 9 years running.

4 Supporting jobs To date the NEF has supported in excess of 82 900 jobs.

5 Industrialisation 24 strategic and industrial projects worth R27 billion, with the potential to support over 80 000 jobs.

6 A culture of savings & investment

In a transaction worth over R1 billion the NEF Asonge Share Scheme made available more than 12 million MTN shares to over 87 000 investors comprising black individuals and groups. 49% of investors were women.

7 Investor education

Reached over 24 000 people in villages and townships through 120 community seminars on how to save and invest, personal financial discipline, shares, dividends, bonds, the property and money markets.

8 Entrepreneurship training / incubation

Business skills training provided over 2 500 potential entrepreneurs who attended 105 seminars from 2012 to date.

9 National footprint Regional offices in all but one province. 42% of the number of approved transactions emanated from the regional offices and Pre-Investment Unit, year to date as at 30 Sept. 2015. Northern Cape office to start operating in Q4.

10 Collections Over R1 billion has been repaid by investees.

9

A High-Performing Organisation (2014/15 Performance Highlights)

Output Achievements

1 Approvals Approved 94 deals worth R895 million against a target of 96 deals worth R718 million

2 Commitments R879 million against a target of R619 million; 75 deals against target of 80

3 Disbursement R562 million against a target of R650 million

4 Supporting jobs Supported 33 763 job opportunities (of which 32 820 are new), bringing total job opportunities geared to be supported since inception in excess of 81 000

5 Unencumbered cash Cash that is immediately available to the NEF for new approvals is R735 million

6 Enterprise Development

Secured R6.3 million in the year. The Fund’s ability to attract more contributions adversely affected by changes in legislation. Since inception, approval at R50 million of total R53 million received.

7 Black Women Empowerment

47% of commitments made in year were towards businesses partially/wholly owned by women (target at 45%). Total women ownership of portfolio since inception at 26% vs target of 30% Through Rural Community Trust Investments, effective woman shareholding in rural areas is 60%

8 Collections Portfolio collections for the year at R440 million are 25% above 2014 receipts

10

Cash Collected

11

Over R1.5 billion collected cumulatively from loans disbursed across the country, in black-owned and managed businesses across virtually all sectors of the economy.

-

50 000 000

100 000 000

150 000 000

200 000 000

250 000 000

300 000 000

350 000 000

400 000 000

450 000 000

500 000 000

2010 2011 2012 2013 2014 2015

Receipts Amount

2010

2011

2012

2013

2014

2015

YTD collections at R139 million. Collections of over R280 million anticipated from three deals (ie Link Africa, Busa Med and Sizovuna ) by the end of the 2016 financial year. This is over and above normal instalments to be raised on the portfolio. Anticipating total collections for 2016 to surpass 2015 levels.

A High-Performing Organisation (2014/15 Performance Highlights) / cont…

Output Achievements

9 Industrialisation

Progressed 5 projects to the pilot, financial close and commercialisation stages in portfolio: 1. BusaMed Hospitals – 1st hospital now operational with 1st

patient admitted on 04 May 2015 2. Auto-Disposable Syringes (Kenako Medical) (BFS to FC) -

R177mn plant; only manufacturer of Syringes and Needles in SADC region

3. Tyre Energy Extraction – Accredited by REDISA as a recycler; and have fully secured offtakes for all products

4. KC Energy – 1 boiler fully operational generating revenue, approach from various interested parties to buy into the business

5. African Silica Holdings – in the process of obtaining offtakes from Rand Water

12


13

10 Pre-Investment & Regional Offices

• 1413 applications received (36% lower than 2013/12 (1917), but 259.5% increase from 2013/14 (393))

• 52 deals worth R321 million approved in year (40 Regions (R220m) & 12 Pre-Inv. (R101m)

• R28.4 million collected from the POIU portfolio, which is 78% of instalments raised

• Achieved >80% of new target to disburse funds in NC, FS, LP, MP and NW (ie R133.4 million vs target of R163 million)

11 Geographic Activity

Disbursements in the year represent only 44% towards Gauteng Since inception, Gauteng comprise 45% of invested portfolio.

12 Rural & Community Development

Rural deals since inception are geared to empower 30 communities and over 1.8 million individuals

13 Entrepreneurial Development

21 Business Today training sessions provided, and 89 entrepreneurs referred to incubation partners, with 16 being successfully incubated

14 Collections & litigation

Managed increased litigation pipeline of 38 transactions with a value of R247 million. Increased collections on deals in litigation - collections of R53 million against legal fees of R5 million


Output Achievements

15

Active Portfolio Management

Portfolio impairment improved to 18% ROI at 9.14% is within targeted rate of 8-10% Collection ratio at 84% vs target of 75% 18 successful exits at 1.31 times money back TWR facilitated 2 turnarounds, 1 Business rescue and 9 restructures (3 of which have been returned to POIU for normal portfolio monitoring)

16 Tracking Register

Overdue findings decreased by 13% from the previous year and overall total findings decreased by 50% in the same time period

17 IST Governance

IST governance framework continue to be entrenched through the steering committee as well as policy and SOP formulation 2 cost saving initiatives implemented (Voice over IS and Hybrid Cloud solutions)

18 Preferential procurement

Improvement in procurement from black-owned entities at 62.9% as compared to 49.8% in 2013/14

19 Media coverage AVE coverage of R42 million. 88% of the coverage was positive, 8% neutral and 4% negative in tonality.

20 Socio-Economic Development

39 Investor education interventions (incl 5 Industrial Theatre Programmes) in 8 provinces with reach to about 6000 people Implemented 7 social plans

14

Current Economic Overview & Strategic Considerations for the NEF

15

Economic Landscape

16

Global overview: • Global economy has been significantly impacted on by a continued

decline in Chinese economic growth affecting iron and steel manufacturing sectors

• Commodity prices continue to fall especially as a result of decreasing Chinese demand and oversupply.

• Modest to low growth in the USA and European markets Domestic overview: • The fall in commodity prices as a result of weak Chinese demand has

had a negative impact on the mining sector. • Locally, labour unrest and energy constraints add pressure on the

economy • Decline in economic activity in the Mining and Steel Manufacturing

sectors has led to widespread retrenchment announcements • Persistent US Dollar strength against a weakening Rand Subdued economic outlook has seen weakening growth rates. GDP is expected to be 1.5% (from initial forecasts of 2.0%) in 2015, and 1.6% in 2016.

17

Considerations for the NEF The economic climate calls for heightened post-investment monitoring: 1. Post-Investment Unit (POIU) reports that investee companies are

requesting: • Moratoria • Reduced instalments • Extension of loan tenures

2. Five of the seven companies transferred to the Turnaround, Workouts and Restructuring Unit are in the manufacturing and construction sectors which have experienced the knock-on effects of the decline in the steel manufacturing and mining sectors.

NEF Targeted interventions include: 1. Hybrid model of post-investment monitoring – The Funds work hand-in-hand with the POIU in a monitoring capacity shortly after funds have been disbursed 2. Training to support anticipated wide-spread retrenchments

• Investor education • Entrepreneurial training • Business planning

18

NEF Performance: 2nd Quarter ending 30 September 2015

19 19

The NEF’s strategic objectives Strategic Pillars Detailed objectives

1. Advancing BEE &

Growing Black Industrialists

To provide finance to business ventures established and managed by black people.

2. Maximising the empowerment

dividend

Invest in black empowered businesses that have high employment creating opportunities

Support the participation of black women in the economy

3. Optimising

non-financial support

Facilitate investment across all provinces in South Africa

Encourage and promote savings, investment and meaningful economic participation by black people

Advance black economic empowerment through commercially sustainable enterprises

Establish the NEF in the South African economy as a credible and meaningful DFI

4. Financial efficiency & sustainability Establish the NEF as a sustainable DFI.

Output Performance Measure or Indicator

2nd Quarter Milestones

2nd Quarter Reported Results

YTD

Achievement (Nov 2015)

Reason for variance

and corrective Action

Provide finance to black empowerment business by

investing in the form of loans, quasi-equity and

equity finance through funds and funding products, targeting black rural

enterprise, SMEs, corporate finance and venture capital.

Value of deals

approved by the NEF (R million)

R551 m

R336 m

R460 m

To date there are at least 28 deals worth

approximately R537 m in due diligence stage

to be packaged for final approval by respective

NEF Committees

Value of new commitments

(R million) R419 m R147 m R220 m

30 approved deals worth R325 m are in the pipeline are undergoing

Legal agreements

Value of new Disbursements

(R million) R357 m R265 m R307 m

The disbursement team will focus on this once commitments in the pipeline have been

concluded

20

Advancing B-BBEE Strategic Objective 1: To provide finance to business ventures established & managed by black people

Maximising the Empowerment Dividend Strategic Objective 2: Invest in black empowered businesses that have high employment creating opportunities.

21



2nd Quarter Reported

Results

YTD Achievement

(Nov 2015)

Invest in black empowered

businesses that have high employment

creating opportunities.

Number of jobs expected to be supported or created

Support 2 203 new or existing job

opportunities

1 330 (of which 961 are new)

1 831 (of which 1 242 are new)

Support the participation of black

women in the economy

Percentage of portfolio disbursement owned by women

40% 43% 35%

Percentage of committed deals partially/ totally owned by

women

45% 46% 47%

Facilitate investment across all provinces in

South Africa

Percentage of disbursements to be invested in EC, NC, NW,

MP, FS and LP

25% of disbursements to be invested

in EC, NC, NW, MP, FS and LP

A total of 28 deals worth R127 m is invested as follows: NC: 2 worth R9 m

FS: 4 worth R13 m

LP: 6 worth R46 m

MP: 6 worth R8 m

NW: 5 worth R32 m

EC: 5 worth R19 m

This is 48% of disbursements

YTD, a total of 36 deals worth R142 m is invested as follows: NC: 2 worth R9 m

FS: 5 worth R14 m

LP: 8 worth R51 m

MP: 8 worth R11 m

NW: 7 worth R38 m

EC: 6 worth R19 m

This is 46% of the YTD disbursements

Optimising Non-Financial Support

Strategic Objective 3: Black Economic Empowerment is advanced through commercially sustainable enterprise

22



2nd Quarter Reported Results

YTD Achievement

(Nov 2015)

The provision of non-financial support and

training for black-owned businesses and entrepreneurs

Number of Business Today Training

sessions provided

10 training sessions per year, with an average score of 60% required in the post-training

assessment

14 training sessions have been conducted, with an

average score of 69%

A total of 19 training sessions have been conducted, with an

average score of 79%

Number of entrepreneurs who

successfully complete business incubation

4 entrepreneurs in the final incubation stage

3 entrepreneurs have

made it to the final incubation stage

3 entrepreneurs have

made it to the final incubation stage;

82 referrals have been made to incubation centres

Number of Social Facilitation Sessions

for NEF investees

10 Social Facilitation Sessions 21 Social Facilitation

sessions y

24 Social Facilitation sessions

Conduct investor education seminars in provincial towns and

increase understanding by participants

Number of seminars held across the

country

16 Investor education seminars per year

21 Sessions completed, as well as 2 Industrial

Theatres

25 Sessions completed, as well as 4 Industrial

Theatres

23

Strategic Objective 4: Financial Efficiency and sustainability

23

Optimising Non-Financial Support

Output Performance Measure or Indicator 2nd Quarter Milestones

2nd Quarter Reported

Results

YTD Achievement

(Nov 2015)

Establish the NEF as a

sustainable DFI.

Percentage of portfolio impaired

19% 21% 21%

Target ROI before impairments (to be reviewed annually)

9-10% 9% 9%

Collections ratios 80% 96% 95%

Manage portfolio risk High risk clients: <35% High risk clients: <31%

High risk clients: <29%

Market Failures & NEF Investment Funds

24

Challenges / Market Failures

• Limited own capital; • Limited management skills, including financial,

marketing and technical expertise; • Lack of accurate and reliable financial information; • Poor quality of business plans; • Lower bargaining power and strong competition

from established businesses with entrenched market dominance;

• Inadequate access to affordable capital; and • Lack of access to local international markets.

25

The NEF has a comprehensive

solution for each of the

market failures outlined above.

26

Funding Across the Economic Spectrum Fund Focus Threshold

1 iMbewu Fund (SMEs)

SME Fund providing Entrepreneurship, Procurement & Franchise Finance

R250 000 – R10 million

2 Women

Empowerment Fund (WEF)

Achieve minimum 40% of enterprises owned and managed by black women

R250 000 – R75 million

3

Rural & Community

Development Fund

Supporting rural economic development through New Ventures, Acquisition, Expansion & Greenfields Finance

R1 million – R50 million

4 uMnotho Fund

Funding of New Ventures, Acquisition, Project Finance, Expansion, Capital Markets, Liquidity & Warehousing

R2 million – R75 million

5 Strategic Projects Fund

Early-stage investment in industrial / manufacturing transactions

Up to R75 million

5 specialist

funds

27

Growing Black Industrialists

SPF Mandate

28

Strategic Projects Fund (SPF) A unit of the NEF established with a mandate to increase

the participation of black people in early-stage projects

Aligned to national Government policy.

Seeks competitive opportunity for the South African

economy and the inclusion of black participation in

opportunities at the outset of projects, as opposed to doing

so during equity closure

Development and Economic Impact

• Creation of new manufacturing and industrial capacity

• Creation of new jobs as opposed replacement capital finance

• Investment of new fixed capital into economically depressed areas or poverty nodes

• Creation of an inclusive economy by increasing South African participation

• Increase RSA export earning potential and reduce import dependency

• Increase co-investment and linkage with foreign direct investment

29

Creating Black Industrialists

Strategic Industrial Sectors

RENEWABLE ENERGY

MINERAL BENEFICIATION

AGRO- PROCESSING

INFORMATION & COMMUNICATIONS

TECHNOLOGY INFRASTRUCTURE TOURISM

Biofuels Biomass Biogas Solar Wind Hydro

Mining & Mineral

Beneficiation

Chemicals Agriculture

Telecoms Broadcasting

Roads Dams and Bridges

Sewer and Bulk Services

B&Bs Hotels Guest

Houses (Women-owned)

Real Estate

Together with local & international partners the NEF has developed 20 strategic and industrial projects worth R27bn, with the potential to support over 80 000 jobs.

The NEF’s future equity rights will total R4.2bn at financial close.

30

Beneficiation Project Life Cycle

31

SPF Portfolio – NEF Equity Rights

32

Project Current NEF

Equity Total Project Size NEF Future Equity

Rights Province Sector

RMI 30% 15 000 000 000 2 250 000 000 Western Cape Mineral Beneficiation

SA Metals 29% 1 950 000 000 282 750 000 Mpumalanga Mineral Beneficiation

Coking Coal 85% 500 000 000 212 500 000 Limpopo Mineral Beneficiation

Silica 50% 1 500 000 000 375 000 000 Gauteng Mineral Beneficiation

Coconut Water 49% 50 000 000 12 250 000 Gauteng Agro-processing

Busamed Hospitals 49% 1 600 000 000 392 000 000 GP/FS/WC Healthcare

Milk for Life 49% 50 000 000 12 250 000 Limpopo Agro-processing

Link Africa 30% 1 000 000 000 150 000 000 KwaZulu Natal Infrastructure

Mkhondo Biorefinery 49% 800 000 000 196 000 000 Mpumalanga Renewable Energy

Tyre Energy Extraction 68% 50 000 000 17 000 000 Eastern Cape Renewable Energy

KC Energy 40% 150 000 000 30 000 000 KwaZulu Natal Renewable Energy

Tyre Manufacturing Research 100% 335 000 000 167 500 000 KwaZulu Natal Manufacturing

MIBT 49% 30 000 000 7 350 000 Gauteng Manufacturing

Kenako Medical 85% 200 000 000 85 000 000 Eastern Cape Manufacturing

Mabele Fuels 22% 2 155 000 000 237 050 000 Free State Renewable Energy

Inkomati Mineral Resources 31% 100 000 000 15 450 000 North West Mineral Beneficiation

Hollow Fibre Dialyser 49% 250 000 000 61 250 000 Gauteng Manufacturing

Kraalbos 0% - Western Cape Manufacturing

Textile Industry Research 100% - National Manufacturing

SA Luxury Emporium Group 49% 50 000 000 12 250 000 Western Cape Manufacturing

Jozini School 45% 25 000 000 5 625 000 KwaZulu Natal Infrastructure

Cape Point Film Studios 22% 715 000 000 80 080 000 Western Cape Infrastructure

iVac Bio 74% 55 000 000 20 350 000 Gauteng Manufacturing

Totals 26 565 000 000 4 621 655 000

SPF Achievements Since Inception

33

High risk investments - NEF only DFI with fully Venture Capital (VC) capability and offering focused on participation of black people in project development;

Equity investments - typically with 7-10 years investment horizon;

Circa R800mn approved to date which has leveraged R4bn in external funding;

78% of projects at financial close, construction or operational stage

3, 600 actual jobs created and 80,000 direct and downstream jobs to be created by the SPF

Portfolio

34

Recapitalisation & NEF’s Financial Position

35

"Fellow South Africans, we have to work more intensively to develop emerging or black industrialists. Many of the aspirant black industrialists complain about the difficulties they experience in obtaining industrial finance, supplier and retail markets, and technical production support. The National Empowerment Fund, the Industrial Development Corporation and the Small Enterprise Finance Agency will continue to provide finance to viable black-owned businesses to promote industrialisation. In addition, we encourage established businesses to support the development of black industrial businesses."

Presidential Injunction In the State of the Nation Address (SONA) on 13 February

2014, H.E. President Jacob Zuma stated as follows:

Dangers of not recapitalising the NEF:

1. Weakens public trust in Government’s commitment to B-BBEE.

2. Will result in a funding crisis for black entrepreneurs.

3. Has led to staff attrition and institutional memory leakage.

4. Threatens the potential collapse and closure of a high-performing organisation.

5. Undermines the historical obligation and importance of transforming the economy.

6. Emboldens private sector’s disregard for the transformation imperative.

7. Constitutes a political risk for the State.

1. In 2004 Government

promised to fund the NEF to the tune of R10bn “over the next five years”.

7. Efforts to obtain support from the Jobs

Fund in 2013.

8. Project Kopano initiated in June 2014: “business combination”

talks with IDC.

9. Current efforts: MTEF, IDC, UIF, PIC

& MTN Asonge Futhi.

2. Trust capital of R2,47bn awarded between 2004 & 2010, and R1bn raised from equity in

MTN through Asonge Share Scheme in 2007.

6. Temporary Moratorium from 1

May 2013 to 29 April 2014.

3. Operating expenses supported through the dti

transfers of R322mn over a 5 year period up to 2010.

4. Applications for recapitalisation

through the MTEF in 2012, 2013, 2014 &

2015.

5. Applications for reclassification & Limited Borrowing Rights in 2012 &

2013.

Journey of NEF Recapitalisation

36

37 37

NEF Capital Requirements

In order to meet the growing demand for business funding from black entrepreneurs

countrywide, the NEF requires an annual allocation of R2

billion over the next 5 years.

38

Project Kopano The NEF and IDC (supported by the dti and EDD) have been engaged in a process to find sustainable and long-term recapitalisation for the NEF. This project is referred to as “Project Kopano” and commenced in July 2014. The NEF was motivated by the need to respond to President Jacob Zuma’s State of the Nation Address of 17 June 2014, which had stated as follows: “The total assets of our Development Finance

Institutions amount to some R230 billion. However, their

impact on development is not sufficiently broad-based and

their investment programmes are not well coordinated. The

institutions will be repositioned in the next five years to

become real engines of socio-economic development.” The process assessed various structural options to coordinate and strengthen the investment programmes of the two DFIs.

39

Project Kopano – Option Analysis The options that were considered for the business combination are the

following: Continue as is – NEF remains a separate entity but products and services of the NEF

and IDC are rationalised to eliminate overlaps. The NEF remains a trust and IDC advances a facility to the NEF

Arms length subsidiary – the NEF’s assets and business is transferred to a

company which is a subsidiary of the IDC. NEF has a separate board, management and support structures. This option has various advantages including the fact that NEF continues as an independent entity focussing on BEE

Closely managed subsidiary – NEF re-established as IDC subsidiary. IDC Exco becomes NEF board. NEF management and support integrated into IDC. In this model the IDC manages the NEF and drives its strategic direction. This poses a risk of IDC strategy trumping the NEF BEE mandate

NEF as division of IDC – NEF ceases to exist and IDC takes over NEF business. IDC suggests that it creates a “targeted mandate” with its own brand. This will result in dilution of the BEE mandate and termination of some of NEF BEE products.

Complete merger into IDC – NEF terminated and IDC fulfils BEE mandate (similar to above option but no separate branding). The focus on BEE as sole mandate falls away.

Project Kopano The NEF and the dti have recommended that the second

option (arms length subsidiary) in the previous slide be implemented.

In this option the NEF remains focussed on B-BBEE and has an opportunity of increasing developmental impact as a result of recapitalisation from IDC.

The board provides guidance to NEF on direction and IDC focusses on its mandate of industrial development.

the dti as custodian of B-BBEE legislation and policy in the country continues to maintain oversight over NEF as implementation agent of such policies

The mandate of the NEF would continue as is, undiluted.

40

Projected Unencumbered cash position

41

Notes: • Actual cash to date

at R1.32 billion • R683 million

uncommitted cash at hand

• NEF projected to fully fund 2015/16 activities (assuming all settlements in pipeline materialise)

• To discharge 2016/17 strategy, R1 billion would be required as cash injection

NEF Capital

42

Cash Funds received from the Dti R 2 297 431 472

Investment in listed shares at cost R 171 000 000Total Trust Capital R 2 468 431 472

Accumulated Surplus (as at 31 Mar 2015) R 3 382 715 622

Net Asset Value R 5 851 147 094

43

Notes: 1. The decline in NEF mainly driven by self imposed funding and headcount moratoriums. The Board’s

targeted range to manage this ratio in long term is 54%-58%.

2. DBSA enhanced income lines (37.5% up) and managed costs down through the restructuring (27.8% down) to get 2014 results. These levels are potentially not sustainable.

3. IDC has been trending down over the years but still over 60%

4. Business Partner as a privately owned funding entity still has averaged about 55% over the period.

5. sefa’s 2013 ratio is reduced by grant funding transfers made in that year. Otherwise the income generation is not yet at level of adequately covering the cost base.

Efficiency Ratios

Entity 2014/15 2013/14 2012/13 2011/12 NEF 46.9% 49.2% 59.0% 56.4% DBSA 29.8% 56.9% 56.6% IDC 62.5% 67.6% 68.7% Business Partners 59.6% 55.7% 47.7% 55.7% sefa 151.1% 38.1% 96.0%

The efficiency/ cost to income ratio of the four DFIs and one private funder over a three year period is as follows:

Detailed Life to date Performance Update as at 30 September 2015

44

NEF Approvals & Disbursements by Value

45

0

1000

2000

3000

4000

5000

6000

7000

Apr-03 -Mar-04

Apr-04 -Mar-05

Apr-05 -Mar-06

Apr-06 -Mar-07

Apr-07 -Mar-08

Apr-08 -Mar-09

Apr-09 -Mar-10

Apr-10 -Mar-11

Apr-11 -Mar-12

Apr-12 -Mar-13

Apr-13 -Mar-14

Apr-14 -Mar-15

Apr-15 -Mar-16

NEF approved & committed deals by value since inception to 30 September 2015

Value Approved ( R million) Committed Facility Value ( R million) Disbursement Value

6697

4972

4615

46

NEF Approvals & Disbursements by Number

0

100

200

300

400

500

600

700

Apr-03 -Mar-04

Apr-04 -Mar-05

Apr-05 -Mar-06

Apr-06 -Mar-07

Apr-07 -Mar-08

Apr-08 -Mar-09

Apr-09 -Mar-10

Apr-10 -Mar-11

Apr-11 -Mar-12

Apr-12 -Mar-13

Apr-13 -Mar-14

Apr-14 -Mar-15

Apr-15 -Mar-16

NEF approved and committed deals by number since inception to 30 September 2015

Approvals Committed facilities

688

565

NEF Investment by Sector

47

Agro Processing, 6% Chemicals & Pharmaceuticals, 4%

Construction and Materials, 13% Distributors,

Dispatchers and Processors, 1%

Energy, 8%

Engineering, 5%

Financial Services, 1%

Food and Beverage, 5%

ICT, 3% Manufacturing, 8%

Media, 6%

Mining Industry, 3%

Motor Industry, 1%

Printing and Publishing

Services, 1%

Property, 4%

Retail, 5%

Services, 14%

Tourism and Entertainment, 3%

Transportation, 7%

NEF Invested Portfolio by sector by value since inception - 30 September 2015

48

Invested growth across all provinces

1. As a national Development Finance institution (DFI) the NEF is committed to ensuring that its products and services reach the entire nation.

2. Since the launch of the NEF Asonge Share Scheme in July 2007 the NEF has implemented various measures and interventions to strive towards an even, representative and equitable distribution of its services across the country.

3. As a result, the NEF’s invested presence in Gauteng has come down from above 60% of total disbursed funds in 2006, to 45% by 30 September 2015.

4. This is not as a result of a reduction of funding in Gauteng, but is a direct consequence of planned, targeted and increased funding in the other 8 provinces because they are integral to South Africa's economy, comprising 76% of the population.

49

Geographic spread of investments

GDP Source: StatsSA (November 2014); Gross Domestic Product, Third quarter 2013 (The GDP contribution by province has been updated with the most recent available statistics from Statistics South Africa, in order to be able to match the performance to the most current available statistics.

EC R414m

9%

FS R92m

2%

GP R2b 45%

KZN R782m

17%

LP R276m

6%

MP R184m

4%

NC R92m

2%

NW R92m

2%

WC R598m

13%

WC

NW

NC

MP

LP

KZN

GP

FS

EC 7.7

5.1

33.8

16.0

7.3

7.6

2.0

6.8

13.7

NEF Invested Portfolio by region by value (inception – 30 Sept ’15)

Gauteng, 9 Mpumalanga,

16

North West, 10

Limpopo, 12

Northern Cape, 8

Free State, 18

Western Cape, 5

Eastern Cape, 12

KZN, 15

Geographic spread of Incubation & Entrepreneurship Training

Entrepreneurial Training Seminars from April 2011 to date

Province Number of Training Seminars Conducted

Gauteng 9 Mpumalanga 16 North West 10

Limpopo 12 Northern Cape 8

Free State 18 Western Cape 5 Eastern Cape 12

KZN 15 Total 105

The NEF currently has working relationships with 3 business incubation centres across the country, which provide in-depth business support, training and in some instances assistance with access to markets, across various sectors of the economy. To date over 2500 businesses have been referred for incubation and entrepreneurship training to help take them to operational stage. At least 75% of the seminars were held in rural and township areas. These incubation centres were mainly established or supported through direct Government support, and their partnership with the NEF helps to maximise the impact that can be achieved through Government spending.

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51

Regional Offices 1. The NEF has regional office presence in all

provinces except the Northern Cape, which is envisaged to be operational in Q4.

2. This national presence ensures that the NEF reaches every area of the country including the remotest rural areas, where the poorest of the poor mostly reside.

3. The NEF always takes part in national (the dti, EDD & DSBD), provincial and local government roadshows, as well as various other stakeholder events, to take its message to the people.

4. It is as a result of this that the NEF has successfully funded business ventures through its Rural and Community Development Fund, whose objective is to unlock value in rural and township economies.

Geographic Spread – Investor Education Investor Education campaign has been rolled out in the Eastern Cape, Northern Cape, Free State,

Limpopo, Western Cape, North West, KZN, Mpumalanga and Gauteng. Attendees: over 24 500

participants to date.

z

NORTHERN CAPE

FREE STATE

LIMPOPO

KZN

EASTERN CAPE

MPUMA LANGA

NORTH WEST

GP

WESTERN CAPE

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Mafikeng, Lichtenburg, Rustenburg,

Hammanskraal, Vryburg, Taung

Klerksdorp, Potchefstroom,

Marikana, Lithabile

Kimberley, Prieska,Kakamas, Keimoes,Upinton,

Kathu, Barkley West, Kuruman

Saldanha, Langa, Bellville Nyanga, Mannenburg / Gugulethu, Worcester, Caledon, Cornville –

George, Kwanonqaba-Mossel Bay

Port Elizabeth, East London, King Williams Town, Mount Frere, Butterworth, Umtata,

Fort Beaufort, Grahamstown

Bloemfontein, Botshabelo, Welkom, Thaba Nchu, Qwaqwa,

Kroonstad, Ladybrand, Bethlehem

Seshego, Lebowakgomo, Lephalale, Bela-Bela, Thohoyandou, Giyani,

Phalaborwa, Tzaneen, GaKNkoane, Mokopane

Newcastle, Dundee, Ladysmith, Estcourt,

Pietermaritzburg, Port Shepstone, Newlands East,

Chatsworth, Umlazi. Kwa Mashu, Ulundi, Richards Bay,Harding, Gamalake

Springs, Alexander

Soweto, Diepsloot Ext 2, Soshanguve,

Mamelodi West, Krugersdorp Kagiso 2,

Sebokeng

Delmas Botleng, Secunda,

Ermelo, Piet Retief Emalahleni, Middleburg,

Mbombela, Hazyview, Carolina, Groblersdal

NEF booklet on how to save and invest

NEF Investment Process

53

* Please note that applications are not necessarily linked to enquiries

NEF INVESTMENT PROCESS

Since Inception - 30 September 2015

688worth R6.697billion

565worth

R 4.972 billion

Approx. 65 668 17 130

Enquiries Applications Approved transactions

Committed Facilities

R 4.615 billion*

Disbursements

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Women Empowerment

31 March 2011

31 March 2012

31 March 2013

31 March 2014

31 March 2015

31 Sept 2015

47% 21% 21.5% 21,5% 26% *43%

Investors 86 000 Amount R1,3 billion

Women by number 49%

Women by value 43%

Fund a Woman, Fund a Nation

*Percentage on annual disbursements

Job Creation Cumulative job opportunities created since inception:

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31 March 2012

29 000 jobs opportunities

31 March 2013


31 March 2014


31 March 2015

*81 000 jobs opportunities

31 Sept 2015


Geared to created 99 000 over the next 3 years *In 2014/15 the PRASA deal alone was geared to support 31 121 job opportunities

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Thank you Contact Details

www.nefcorp.co.za

WHERE TELEPHONE 1 Head Office,

Johannesburg 011 305 8000 or 0861843 633 / 0861 THE NEF

2 Eastern Cape 0861 633 327 / 0861 NEF ECP 3 Free State 0861 633 377 / 0861 NEF FSP 4 KwaZulu Natal 0861 633 596 / 0861 NEF KZN 5 Limpopo 0861 633 546 / 0861 NEF LIM 6 Mpumalanga 0861 633 678 / 0861 NEF MPU 7 Western Cape 0861 633 927 / 0861 NEF WCP 8 North West 0861 633 697 / 0861 NEF NWP 9 Northern Cape 0861 633 627 / 0861 NEF NCP

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A Sample of NEF Investees

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Infrastructure & Manufacturing BUSA MED

Location National

Project Development Stage Operational & Construction

NEF Investment to date R260 million

NEF Equity 49%

Project Promoter Goldenwood Pty Ltd

Projected Financial Close Requirement R1.6 billion

NEF Return Expected (December 2015) R196 million (IRR = 15%)

BusaMed is the first black-owned private hospital group to compete with the big three. The group’s vision is to be a consolidator of the fragmented health care market. This will be kick-started with the commercialisation of 4 hospital licenses with 630 hospital beds, spread over three provinces, Gauteng, Cape Town and the Free State. The aim is to develop centres of excellence, which will provide world-class services. The first hospital, a cardiology centre in the Western Cape (Strand) is currently operational. Ground has been broken for the second hospital in Gauteng, a sports science centre, and financial close should be reached soon on the last two in Harrismith and Bloemfontein.

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Infrastructure & Manufacturing LINK AFRICA

Location National

Project Development Stage Operational


NEF Equity 30%

Project Promoter Link Africa Pty Ltd

Projected Financial Close Requirement

R1.1 billion

NEF Return to Date

R50 million (IRR = 7%) R9 million (Expected 12/2015)

The business is positioned to deploy Last Mile Fibre Optic cables across the country. It employs patented technology which can be deployed four times faster at less than half the cost of normal fibre. The fibre is laid out inside existing sewer and other currently existing infrastructure as opposed to the normal method of digging up trenches to lay fibre optic cables. An initial capital investment of R300 million has led to the establishment of a well positioned South African Last Mile Fibre Optic Infrastructure Company, Link Africa.

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Renewable Energy Projects MABELE FUELS

Location Bothaville, Free State

Project Development Stage Financial Close


NEF Equity 11.76%

Project Promoter Mabele Fuels Pty Ltd


Jobs 16 700

The project intends to develop a fuel grade bioethanol plant, in Bothaville, in the Free State Province. With capacity to produce about 154 million litres per annum, the plant feedstock is grain sorghum. The production methodology involves a process utilising grain milling through to starch conversion to sucrose as well as fermentation and drying that ultimately culminates in the production of saleable bioethanol.

Development impact of Project A high job creator with an estimated cost per job relatively low

at approximately R149,700; Use of agricultural outputs in project creates opportunities for

community ownership through community trusts and/or employee ownership schemes;

Opportunity for rural socio-economic development; A green environmentally friendly alternative to the

conventional use of fossil fuels; Provides for greater fuel security in countries such as South

African with no oil reserves;

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MABELE FUELS Cont.

PROJECT WAITING FOR FINALISATION OF REGULATORY

FRAMEWORK

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Healthcare & Manufacturing KENAKO MEDICAL

Location Coega IDZ, Eastern Cape

Project Development Stage Financial Close


NEF Equity 70%

Project Promoter Kenako Medical Pty Ltd

Projected Financial Close Requirement R180 million

Jobs 108

Kenako intends to develop the sole manufacturing plant of normal and safety syringes in the SADC region. The plant will initially produce a total of 250 million syringes and 200 million hypodermic needles per annum. The NEF commenced with a R7.2 million feasibility study funding in 2013 and gave a hands on approach in assisting the Black Industrialist in bringing the project to bankability. Earlier this year the NEF made a further commitment towards the construction of the plant bringing the NEF’s total investment to R75million. .

Development impact of Project Specialised skills transfer for the operation and

maintenance to Kenako staff; Import Replacement: Kenako will be the sole

manufacture of syringes and needles in South Africa with a potential to replace 20% of imports into the South African and SADC syringe markets;

NEF’s equity to be warehoused for the future benefit of B-BBEE entities; Kenako is currently 100% black owned;

Strategic Sector Alignment with IPAP2 and the investment will be supporting a capable black industrialist;

Geographic Diversification: The project will be based at the Coega IDZ in the Eastern Cape, increasing investment in this economically depressed region.

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KENAKO MEDICAL Cont.

Support needed for the Project

Partial Designation of government procurement of syringes by Department of Health in order to secure sales for Kenako;

Allow for exceptions to the generic requirements for designation by ITAC in projects of strategic nature such as Kenako;

Expedite SAHPRA Regulation for medical devices in particular syringes to lower influx of poor quality imports;

Assistance in obtaining grant funding for international product certifications i.e. FDA, CE etc. ;

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KENAKO MEDICAL Cont.

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Mineral Beneficiation Projects SA METALS EQUITY

Location Witbank / Rustenburg

Project Development Stage BFS


NEF Equity 29%

Project Promoter

Global Remediation and Resources Recovery (Pty) Ltd (“GR3”)


Jobs 1 360

The SA Metals (Pty) Ltd (SAME) project aims to establish a US$200 million pig iron production plant in the North West or Mpumalanga Province. The project runs with a projected goal to produce approximately 500,000 metric tons (mt) per annum of Pig Iron together with Titanium and Vanadium slags as by products. Delays in securing feedstock supply and land lease agreements due to Evraz Highveld Steel & Vanadium (EHSV) being placed under business rescue.

Rural & Community Development Fund Portfolio Investment Impact

Note:

a Total project investment unlocked through investment by the Rural and Community Development Department

b Total Investment undertaken by the Rural and Community Development Department

c Total beneficiaries from the approved and invested portfolio undertaken by Rural and Community Development Department

d Portfolio average effective shareholding held in projects is 75.75% B-BBEE owned

e Investment has empowered these beneficiaries arranged in various legal entities, i.e. Trusts, Co-operatives, etc.

f Effective Historical women beneficiaries in a community structure through an investment undertaken by the NEF is 60%.

Project Value Amount Invested Area Population Effective Shareholdingin % Male Female

1 366 561 583 973 2 460 982 75.75% 1 006 937 1 454 045

a b c d e f

R'000

RCDF Portfolio Investment ImpactGender Breakdown

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Investee Stories Building the Economy, Sharing the Wealth

Pyratrade (Pty) Ltd – R15m

Pyratrade is a 100% black-owned castor oil processing plant located in Hammarsdale, KZN. The castor oil processing plant is designed to handle 60 tons per day. Products from the plant are: Castor Oil and Cake Meal (Fertilizer). WS Lloyds Limited is the 100% off-taker for the castor oil. The business is a start-up and will create 40 permanent jobs. The Department of Agriculture in KZN is in full support of the project and will assist with the identification of Land Reform Farms in order to plant castor beans for the project.

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Berlin Beef (R27 million)

The NEF invested a total of R27 million towards the establishment of a feedlot in Berlin Beef (Eastern Cape) for the supply of a high through-put abattoir in East London in terms of a 10-year off-take agreement, including upstream investment in the cattle supply region for improved breeding of cattle supplied to the Berlin Beef feedlot. The feedlot will have a standing capacity of 6000 heads of cattle and this capacity has more than doubled in the first year of operation. The project has adopted and complies with requirements of ISO 14001, a globally recognised standard specification that structures the implementation of an effective environmental management.

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Itera Trading (R5 million)

Itera Trading is based in Phuthaditjhaba in the Free State Province and has been operating since 2008. Itera Trading is a 100% black-owned, controlled and managed manufacturing entity operating in the Textile Industry. The clothing factory was established to service blue-chip retailers such as Ackermans and Mr. Price by providing denim related products for kids as well as adults. Through NEF funding Itera Trading will embark on an expansion programme to cater for the rise in demand for locally-produced products. The expansion will result in the retention of 119 jobs and create additional 67 jobs.

Bakwena Ba Mogopa Mineral Resources is a community owned operation located in the Bethanie area of North West on a 700 ha farm surrounded by gabbronorite reserves. The operation is involved in the quarrying of gabbronorite dimension stone blocks that are used mainly for their aesthetic appeal in construction, home decoration and monumental markets.

Bakwena Ba Mogopa Mineral Resources (Pty) Ltd (R35 million)


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Umlazi MegaCity is neighbourhood shopping centre that is 25% owned by the Umlazi community due to funding commited by the NEF a few years ago. The NEF committed about R51.8mat development stage of the centre seven years ago. Tis investment was used to warehouse 37% stake in the shopping centre for the community. The centre has over the years proved to be a sustainable business. It is anchored by Super Spar, Woolworths, Jet and Mr Price. The centre has excellent accessibility and enjoys good visibility from the M30 Mangosuthu Highway immediately opposite what was the Durban International Airport. It currently comprises 34,770m2 of gross lettable area, 783 parking bays and 60 taxi bays.

Umlazi MegaCity - (R51.8m)

Building the Economy, Sharing the Wealth

Investee Stories

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Rhino Ridge is a newly constructed lodge of contemporary design with overtones of organic forms utilizing natural finishes and materials. Rhino Ridge is part-owned by the local Mpembeni Community. The lodge offers 22 rooms nestled in natural bush high up on the ridge with commanding views of the landscape. The Lodge is situated on the western boundary in the first private concession within South Africa’s oldest proclaimed Game Reserve Hluhluwe uMfolozi Park, Northern KwaZulu Natal. Set in a 96 000 hectare park the Lodge enables guests to enjoy 4 star luxury at a private lodge for the first time within the park, offering spectacular scenery and excellent safari opportunities within the heart of Big 5 territory.

Rhino Ridge Safari Lodge (R20.5 million)


Investee Stories

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Investee Stories Some of the Franchises Funded to date

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Khehlas Investments (Pty) Ltd is a company that is 100% owned by Edward Mathabela. The company acquired a license to operate a Fish and Chips Co and Zebros franchise combo in the Cape Town Station. The outlet is strategically located because the station is a main transit depot in the heart of Cape Town where the main Bus Station and Taxi Rank are also located. The Station is estimated to see over 150 000 feet per day. This is in addition to approximately 150 000 professionals and residents who work in the immediate 1km radius of the location. The Fish and Chip Co and Zebro’s franchises are two of Taste Holdings’ (a publicly listed entity) portfolio of franchised quick-service restaurants.


OBC Soweto (R5.8 million)

NEF funded the establishment of a OBC Chicken Franchise in Soweto Power Park to the tune of R5.8 million. The business is 100% black owned. OBC Chicken is a full member of FASA since 2009 with its executive director currently serving on the FASA board of directors. OBC Chicken is one of South Africa’s fastest growing general retailers. The business has been in existence for over 20 years with a footprint of over 50 stores The business will be located at Soweto City, which is currently under construction near the Orlando Power Station. The retail outlet is estimated to start trading in February 2016.

Investee Stories


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Investee Stories Afripotego IT and Construction (Pty) Ltd previously trading as Ekurhuleni Women and Youth Empowerment (Pty) Ltd is the brainchild of Ms Tsakani Mudau, and was established in 2004 to empower women in the IT and Construction industries. She was invited on board by WDB Investment Holdings (WDBIH), which believes in investing in women for their self-sustainability. Afripotego IT and Construction is one of the eleven Regional Field Service Centres servicing National Lottery Machines. The company has supported TM Afrika Kopanang Business Enterprise since 2005 in supplying building material to Cashbuild clients, Women for Housing Project in Orange Farm, RDP houses in Bramfischer and Orlando East, as well as Hardware Stores in Soweto. The business is in the process of supporting TM Afrika Kopanang. Afripotego IT and Construction decided to diversify after seeing a gap or business opportunity in construction, transportation and the supply of building material.


Afripotego IT & Construction (Pty) Ltd R2.75 million

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Investee Stories Skhomo Technologies is a 100% black owned ICT consulting company with a vast experience in the Information and Communication Technology (ICT) sector. The company was founded in 2012 by Mr Vuyani Mawetu Matoti, an experienced entrepreneur who started Skhomo Technologies with own funds in 2012. Today, the company has a staff complement of 17 employees, and has successfully executed a number of ICT projects. Skhomo Technologies was appointed to supply, install and maintain thin client solution in community libraries, in Ekurhuleni, as and when required from 01 June 2015 until June 2017. In order to execute the awarded contract Skhomo Technologies approached the NEF for funding of R1 500 000 to purchase thin clients and install the system at various Ekurhuleni libraries.


ICT infrastructure (R1.5 million)

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Investee Stories Infancare Personal Products (Pty) Ltd is a 100% black owned and managed entity established by Mr Tebogo Shounyane. The primary nature of the company’s business is that of medical waste management. The business has its offices in Parow, Western Cape and targets hospitals, nursing homes, Laboratories, Funeral Homes, Tattoo Shops and municipalities for business. Infacare was awarded a contract by the City of Cape Town to install and manage 3140 sanitary units around the municipal area. The contract is for the supply and servicing of Sanitary Disposal Units in the facilities of the City of Cape Town (CCT), The contract was valued at R3 570 000 over a three-year period commencing on 1 July 2015. The NEF provided funding of R830 000 for the purchase of bins and working capital requirements of the business.


Sanitary Waste Management (R830 000)

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Investee Stories Vuka Business Consultants CC (VBC) is a 60% black-woman-owned business established in 2008. The business is 60% owned by Sesethu Loyilane and 40% owned by Raka Hope. VBC offers comprehensive construction design services which include construction of new homes, renovations, forensic assessment of homes, design and project costing. VBC was awarded a three year contract by the NHBRC to conduct forensic engineering services. The contract is a service contract for forensic engineering assessment of subsidy housing structures, beneficiary occupancy verification and geotechnical assessment sampling and analysis of soil integrity on which the houses were built. In order to successfully complete work under the contract, VBC approached the NEF for funding of R2.3 million.


Geotech assessment and forensic engineering (R2.3million)

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Investee Stories

Park Inn Polokwane is a development of the hotel that required R175.4million funding sought from the NEF, IDC and own contribution. 108 direct permanent jobs during the hotel operations and about 400 indirect jobs during construction will be created. Black equity ownership is 83%,and effective black woman shareholding is 30%. The hotel is a 3 star graded hotel with 161 rooms, centrally located in Polokwane. It is targeted at local, international business and leisure travellers. It will offer all amenities including restaurant, conference facility, spa and other related facilities typical of a 4* up-scaling hotel experience. The hotel will be managed by the owners together with Hotel Manager (Rezidor) through a management contract.


Amazin Hotels (R45.8 million)

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Africa Best 350 Limited (AB350) is based in the Eastern Cape with its core business being public transport services. The business transports over 5.7m of people per annum with a total of 112 routes spread across eastern part of the Eastern Cape. Currently, AB350 has 128 buses and employs 420 permanent individuals. AB350 is 100% black owned with 29% equity being held by black women. The NEF was requested to provide a R12.3 million funding facility in order to commission a new Bus Repair Centre (BRC) in Mthatha. The set up costs are in the order of R23.6 million. The investment rationale in BRC was based on the fact that: there’s no BRC in Mthatha, the closest being 430km away; 100% black owned and managed; Creation of 40 permanent jobs (direct) and 8 jobs (indirect); The BRC will partner with local FET & Technical colleges and be used as the host for students to gain experience.

AB350 (R12.3million)


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Investee Stories Gidani International (Pty) Ltd (GI) is founded by Prof Bongani Augustine Khumalo. GI is a lottery operator with cross-boarder reach having secured licences in Tanzania, Malawi and Lesotho The NEF allotted R48m in funds towards the acquisition of equipment that will be exported (as well as intellectual property) to Tanzania for the operations there. The NEF has supported this venture due to the following developmental Impact: Localization of equipment - Gidani has designed and scoped equipment for local manufacturing in Durban through Barrows and Pinnacle; Export Sector focus and as well as to support the export of locally-manufactured equipment and intellectual property. Given the regulatory framework of gaming, the only way to grow operator businesses is by supporting them to grow through other markets.

Supporting African integration through trade

GI (R48million)

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Investee Stories Colliery Dust Control (Pty) Ltd. develops and manufactures the components for integrated dust suppression systems used on continuous mining in underground coal mines. Colliery Dust Control is a South African based business and focuses on the design, manufacture and supply of integrated dust-suppression systems for various underground mining applications. The NEF provided funding to Business Venture Investment towards the full acquisition of the business. The main BEE partners are two black women, Ms Thembi Chagonda and Ms Babalwa Geza. Ms Chagonda is an HR specialist and her role is to drive CDC’s Transformational Agenda, whilst Ms Geza has an engineering background and is the company’s Deputy Managing Director. The company supports 24 fulltime jobs.


Colliery Dust Control (Pty)Ltd. (R41 million)

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