Presentation to the Portfolio Committee

on Agriculture and Land Affairs

12 October 2005

George Mothoa & Sandile Luthuli

PURPOSE

To report to the Committee on :

Progress made Prospects Challenges

SUMMARY OF COMMITTEE CONCERNS

Inequitable Provincial Spread

Portfolio Mix

Capacity Building

Provincial Spread - Actual Investments

0%

10%

20%

30%

40%

50%

60%

70%

Mar-04 0.8% 0.0% 0.0% 23.6% 5.6% 8.9% 0.0% 3.5% 57.5%

Mar-05 8.1% 0.0% 0.4% 29.6% 3.7% 6.0% 3.4% 4.6% 44.1%

Sep-05 7.4% 0.0% 0.4% 30.0% 3.2% 5.1% 12.0% 4.7% 37.3%

Mar-06 7.4% 6.4% 1.5% 25.7% 2.7% 9.8% 10.3% 4.0% 32.1%

EC FS GP KZN LP MP NC NW WC

PORTFOLIO MIX EQUITY SHARE vs. MORTGAGE

70%

30%

64%

36%

63%

37%

66%

34%

0%

20%

40%

60%

80%

100%

March 04 March 05 Sept 06 March 06

Equity Share Mortgage Scheme

FINANCIAL REVIEWActual

March 04

Actual

March 05

FY Budget

March 06

Total Operating Income 4 555 706 4 260 700 5 832 857

Total Operating Expenses 3 076 400 4 801 645 3 282 913

Investment Interest Income 13 386 896 11 478 821 5 188 074

Net Operating Income 14 866 202 10 937 876 8 861 734

Grants Received 0 10 000 000 0

Net Income for the year 14 866 202 20 937 876 8 861 734

0

20,000

40,000

60,000

80,000

100,000

120,000

Annual 20,989 10,200 14,517 30,493 37,300

Cumulative 20,989 31,189 45,706 76,199 113,499

2001 2002 2003 2004 2005

DISBURSEMENT ACTIVITY

DEVELOPMENT IMPACT

Shareholders/Owners Created Jobs Created/Preserved

Male Female Total Male Female Total

2001 53 35 88 172 114 286

2002 81 111 192 95 119 214

2003 104 184 288 201 326 527

2004 491 283 3 074 551 350 926

2005 577 455 1 032 592 472 1 064

2 374 2 992

PROJECTS IN THE PIPELINE

Brandvlei ABSA GP 1,870,000 Sept to Nov '05

TSB/Siyathuthuka ABSA MP 17,000,000 Sept to Nov '05

Doringrug Development Trust Nedbank EC 1,750,000 Sept to Nov '05

Gwe Gwe DBSA EC 5,000,000 Jan to Mar '06

Mtentu DBSA EC 1,200,000 Jan to Mar '06

Bambanani RMB GP 9,000,000 Jan to Mar '06

Mr. Van Der Walt ABSA FS 12,000,000 Jan to Mar '06

Honsek Broedery ABSA FS 5,000,000 Jan to Mar '06

Cut Flower RMB FS 7,000,000 Jan to Mar '06

Fruit Farm RMB FS 5,000,000 Jan to Mar '06

Asrivier Boerdery RMB FS 1,700,000 Jan to Mar '06

Lourend Piggery RMB MP 2,000,000 April to June '06

Rocktail Bay Lodge DBSA KZN 5,000,000 April to June '06

Manzengwenya DBSA KZN 3,100,000 April to June '06

Kwa Dapha DBSA KZN 5,000,000 April to June '06

enKovukeni DBSA KZN 1,800,000 April to June '06

Crystal Holdings RMB KZN 12,000,000 April to June '06

AB Packers ABSA WC 1,500,000 April to June '06

95,050,000 Total

Project Name RFI Province

Loan Amount Expected Date of

Submission

PROVINCIAL OUTREACH STRATEGY

Pursue opportunity out of Provincial Growth and Development Strategies

Develop Provincial Network

Provincial DLA and DOA Directors

Provincial and Regional Bank Managers

NEW INITIATIVES

Multi Channel Approach

Financial Channel Partners

Corporates Channel Partners

NEW INITIATIVES

Public Sector Channel Partners IDC DBSA Land Bank Provincial Development Corporations Eskom, Transnet, Telkom

Strategic Partnership SEDA

CHALLENGES

Limited Funding – Recapitalisation

Provincial LRAD Disbursements Pattern

Contacts in priority Provinces

Funding for Capacity Building depending on Setas

Thank you!