TO THE

PARLIAMENTARY PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS

15 October 2010

Cape Town

Presented by:

Jabulani Fakazi & Hennie Potgieter

BRIEFING ON THE RHLF ANNUAL REPORT 2010

TO THE

PARLIAMENTARY PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS

15 October 2010

Cape Town

Presented by:

Jabulani FakaziCEO

Key points Business Environment Impact performance 31 March 2010 Financial performance year ending 31

March 2010

Unqualified Audit Report from External Auditors – since inception

Internal Auditors found control environment acceptable and adequate

RHLF complied with all legislative and regulatory provisions

RHLF reported a surplus of R28,9 million RHLF achieved most of its impact targets

South Africa officially entered recession during May 2009, its first in 17 years,

High level of job losses – the estimate of job losses in 2009 calendar year was about 1 million jobs,

Over indebtedness. It is estimated that household debt represents on average between 70% and 80% of their disposable income,

Liquidity crunch was a major challenge in that RHLF intermediaries were finding it difficult to raise finance from the private financial institutions

Target for 2010: 37,400Achieved: 33,112 Average Loan size R 4,866

Average Loan size R 4,866

Impact performance 31 March 2010

Target for 2010: 78% for “Housing”Achieved: 84% That = 27,814 of the new loans was used for “housing”

68% 70%

Target for 2010: 20% to households earning R6000 or more pmAchieved: 21% to households earning R6000 or more pm

Target for 2010: 65% to households earning R3500 or less pmAchieved: 62% to households earning R3500 or less pm

Large number of small loans Ave

below R2000

68%

Target for 2010: 80% outside GautengAchieved : 88% outside Gauteng

RHLF Development Impact in Presidential Rural Nodes

Cumulative Disbursements since 1996 = R739 million

Cumulative Disbursements since 1996 = R739 million

Key Performance – Actual vs. Budget

Target for 2010: R9,879mAchieved: R11,164mSurplus including profit on disposal of Investment = R29,719m

Thank You