IDFC PRESENTATION TO
SMALL BUSINESS DEVELOPMENT
PORTFOLIO COMMITTEE
IDFC LEGISLATIVE
MANDATE, MISSION & VISION
IDFC STRUCTURE
IDFC
SPECIALISED
BUSINESS UNITS
Business
Finance
Properties
SUBSIDIARIES
Ithala SOC
Limited
Ubuciko Twines
& Fabrics
OBJECTIVE OF INSTITUTION
Goal 1: Financial Sustainability and Viability
Goal 2: Developmental Effectiveness
Goal 3: Operational Excellence and Good Corporate
Governance
Goal 4: Forge Strategic Partnerships
Goal 5: Knowledge Management
REPOSITIONING STRATEGY – THE BACKGROUND
REPOSITIONING STRATEGY – THE BACKGROUND
REPOSITIONING STRATEGY - PHASES
• The overarching
corporate strategy
consists of 3-phases
over a 5-year time
horizon.
• Phase 1 seeks to
remediate the
business;
• Phase 2 builds on the
revised business
platform;
• Phase 3 extends
Ithala’s focus and
widens its set of
activities.
IDFC STRUCTURE
BUSINESS FINANCE – MODEL OF OPERATION
Value Proposition
Delivery Model
• Financial support
• Non-financial support
• Business Centres
located in 5 out of 11
districts in KZN
Partners
• Provincial Government
• Service providers
Core Activities
• Origination
• Technical evaluation
• Post Investment
Management
• Business support
Target Customers
• SMME’s
• Co-operatives
Cost Structure
65% - 55 employees
15% - professional services
20% - other
Funding
• Interest Income
• Service charges
• Government Grants
BUSINESS FINANCE – KEY INFORMATION
PROPERTIES – MODEL OF OPERATION
Value Proposition
• Premises
• Implementing Agent
Partners
• Eskom
• Municipalities
• Provincial Government
Delivery Model
• Property development
• Property portfolio
(retail, industrial and
SMME)
Core Activities
• Leasing
• Bulk services
• Project management
Target Customers
•
•
•
•
Retailers
Industrialists
SMME’s
Government Departments
Cost Structure
15% - 210 employees
40% - Bulk services,
20% - Rates & Taxes
10% - Maintenance
Funding
• Rental Income
• Service recoveries
• Management Fees
PROPERTIES – KEY INFORMATION
 Financial:
• Profitability: Profit of
R126m in 2013/14.
•
Investment: The property
portfolio is valued at
approximately R1.8 billion
and yields approximately
5% on average per annum
ITHALA SOC LIMITED – MODEL OF OPERATION
Value Proposition
•
•
•
•
Deposits
Personal Loans
Home Loans
Insurance
Partners
• Service providers
• Insurance
Underwriters
Delivery Model
• Branch network
Core Activities
• Deposit taking
• Lending
• Insurance
Target Customers
• Retail market
Cost Structure
• 50% - 444 employees
• 30% - 49 Branches
• 20% - Other
Funding
• Interest Income
• Service fees
• Deposits
ITHALA SOC LIMITED – KEY INFORMATION
SMME & COOPERATIVES
IMPACT ON SMME &
COOPERATIVES
2013-14 CLOSE-OUT SUMMARY
Approvals
Business Type
R'000
Gender
R'000
Age
Sector
SMME
795,125 Male
587,373 Adult
614,251 Manufacturing
123,659
Co-operatives
19,525 Female
141,926 Youth
200,400 Agriculture
112,867
Both
85,261
Trade & Services
183,712
Construction & Tourism
374,887
Co-operatives
Total
Business Type
Advances
R'000
SMME
Co-operatives
814,650
R'000
814,650
Gender
428,734 Male
2,781 Female
Both
R'000
Age
Sector
258,900 Adult
302,061 Manufacturing
129,455 Youth
129,454 Agriculture
43,152
Trade & Services
Construction & Tourism
Co-operative
Total
19,525
431,515
Districts:
Ethekwini, Ugu, Umgungundlovu, UThukela, UMzinyathi, Amajuba, Zululand,
UMkhanyakude, UThungulu, ILembe, Sisonke
R'000
46,466
109,328
95,407
176,095
4,219
431,515
No. of Business
Financed
2013-14 CLOSE-OUT SUMMARY
Business Type
Gender
Sector
SMME
209
Male
115
Adult
147
Manufacturing
12
Co-operatives
17
Female
80
Youth
79
Agriculture
31
Both
34
Trade & Services
21
Construction & Tourism
65
Total
226
Business Type
No. of Jobs
Facilitated
Age
226
Gender
128
Age
Sector
SMME
4,339 Male
2,914
Adult
3,530
Co-operatives
73
1,262
Youth
882
Female
Both
236
Manufacturing
144
Agriculture
991
Trade & Services
437
Construction & Tourism
Co-operatives
Total
Districts:
4,412
4,412
Ethekwini, Ugu, Umgungundlovu, UThukela, UMzinyathi, Amajuba, Zululand,
UMkhanyakude, UThungulu, ILembe, Sisonke
2,767
73
4,412
SMME PORTFOLIO – MIDLANDS REGION
VACANCY
%AGE
TOTAL
UNITS
UNITS
OCCUPIED
UNITS
VACANT
Ezakheni Handicraft
240.00
240.00
0.00
0.00
8
8
0
Ladysmith Handicraft
290.00
290.00
0.00
0.00
8
8
0
Madadeni Handicraft
515.01
475.37
39.64
7.70
14
13
1
Mondlo Handicraft 1 & 2
749.50
460.25
289.25
38.59
21
14
7
Mpumelelo Handicraft 1 & 2
3,099.54
2,689.21
410.33
13.24
32
28
4
Nqutu Handicraft PH 1 & 2
656.21
656.21
0.00
0.00
10
10
0
Osizweni Factory Units A & B
576.00
432.00
144.00
25.00
14
10
4
Osizweni Handicraft A & B
727.30
556.50
170.80
23.48
18
14
4
TOTAL SMME MIDLANDS
6,853.56
15.38
125
105
20
5,799.54 1,054.02
SMME PORTFOLIO – NORTHERN REGION
VACANCY
%AGE
TOTAL
UNITS
UNITS
OCCUPIED
UNITS
VACANT
Esikhawini Factory Units 1 - 3
1,163.00
937.00
226.00
19.43
28
23
5
Esikhawini Motor Trade
1,000.00
1,000.00
0.00
0.00
7
7
0
Hlabisa Factory Units A & B
Kwa Msane F/Unit & Motor Trade
756.00
732.00
738.00
732.00
18.00
0.00
2.38
0.00
20
13
19
13
1
0
Mbazwana Factory Units PH 1&2
600.00
500.00
100.00
16.67
10
9
1
1,056.85
458.00
542.00
324.00
750.85
333.00
542.00
324.00
306.00
125.00
0.00
0.00
28.95
27.29
0.00
0.00
36
11
6
14
20
4
6
14
16
7
0
0
Nseleni Factory Units PH 1
294.00
294.00
0.00
0.00
6
6
0
Sundumbili Factory Units 1 & 2
Sundumbili Motor Trade
570.00
600.00
529.00
600.00
41.00
0.00
7.19
0.00
12
4
11
4
1
0
Ulundi Factory Units PH 1 & 2
2,052.00
1,779.50
272.50
13.28
29
26
3
TOTAL SMME NORTHERN
10,147.85
9,059.35
1,088.50
10.73
196
162
34
Mkuze Factory Units
Ncotshane Factory Units A & B
Ngwelezane F/Units 2 & 3
Nkandla Factory Units
SMME PORTFOLIO – SOUTHERN & CENTRAL REGION
Bhongweni Factory Units
Impendle Factory Units
Kokstad Factory Units
Kwadabeka Factory Units
KwaMashu Motor Park PH 1 - 4
Magabeni Factory Units
Mpophomeni Handicraft
Mpumalanga Factory
Mpumalanga Factory Units F34
Mpumalanga Motor Centre
Ndwendwe Factory Units
Plessislaer Factory Units 1&2
Seaford Industrial Park
Umlazi Industrial Park PH 1
Umlazi Industrial Park PH 2
Umlazi Industrial Park PH 3
Umnini Plaza North
Umnini Plaza South
Micro & Small Vacant Land
272.00
324.00
1,695.00
294.00
4,059.00
268.00
190.00
75.00
706.00
292.00
430.00
2,506.00
216.00
2,685.00
2,010.00
3,048.00
980.00
980.00
0.00
262.00
27.00
814.00
269.00
3,073.00
48.00
38.00
75.00
495.00
292.00
430.00
2,166.00
27.00
2,520.00
1,775.00
2,520.00
784.00
784.00
0.00
TOTAL SMME SOUTH & CENTRAL
21,030.00 16,399.00
REGION
10.00
297.00
881.00
25.00
986.00
220.00
152.00
0.00
211.00
0.00
0.00
340.00
189.00
165.00
235.00
528.00
196.00
196.00
0.00
VACANCY
%AGE
3.68
91.67
51.98
8.50
24.29
82.09
80.00
0.00
29.89
0.00
0.00
13.57
87.50
6.15
11.69
17.32
20.00
20.00
0.00
TOTAL
UNITS
10
7
9
10
53
7
5
1
13
4
1
21
5
20
38
66
1
1
2
UNITS
OCCUPIED
9
1
4
9
43
2
1
1
7
4
1
15
1
18
33
54
1
1
1
UNITS
VACANT
1
6
5
1
10
5
4
0
6
0
0
6
4
2
5
12
0
0
1
4,631.00
22.02
274
206
68
SMME PORTFOLIO – SUMMARY
TOTAL SMME PORTFOLIO
38,031.41
31,257.89
6,773.52
VACANCY
%AGE
TOTAL
UNITS
UNITS
OCCUPIED
UNITS
VACANT
17.81
595
473
122
473 of the 595 units were occupied as at the end of July 2014.
Thank
yo
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