NCA = National Credit Act of 2006 2.
It was not feasible for a government trading entity to lend directly to the enterprising poor survivalists, as they have particular risks in terms of mobility, volatility, credit risks and other.
It was therefore considered that the viable method is to encourage the poor to either to establish their own savings and lending vehicles to deliver financial services in terms of getting loans and collecting deposits. It was further envisaged that other existing developmental micro finance institutions should play the role of lending to poor households.
samaf was therefore established in terms section 38 (1)(m) read together with sections 76(4)(b) of the PFMA of the dti.
samaf provides loans for on- lending, grants for a institutional capability and technical support to these FI's.
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Micro- survivalists (enterprising, working & hard core poor)Trading to put food on the table, educate their children and improve housing.
Provinces did not meet their service delivery targets for 2008/9 thus making samaf to miss its targets too.
Identifying market opportunities that will assist samaf's goals in supporting rural peri- urban communities.
To inculcate a culture of financial performance & discipline thus ensuring financial reporting systems are in place.
To ensure adequate people leadership; thus aligning people capabilities to the strategic objectives. Also inspiring people for higher achievement.
Activism and "dirtying of hands" to ensure managers can engage poor communities honestly, fairly and with respect, thus creating a' leadership that will support the execution of samaf's mandate.
We conducted a review of core skills & competencies required for samaf.
7.1 samaf has embarked on training of its staff and management in order to impart financial plus social plus development skills. Through an organizational change and development program (samaf Bokamoso) , employees have been extensively involved in defining the required work standards, required leadership behaviors and establishing the required performance standards. This is strengthened by appointment of financial expects to assist and audit FI books.
7.2 Disciplinary actions were taken against identified cases of poor performance, lack of adequate monitoring , fraud and corruption at all levels.
7.3 New loan agreements were re-drafted to ensure they are compliant with GAAP and IFRIS standards (AS27 & AC132).
The evaluation will cover the work done to date, lessons learnt, binding constraints (from a legal, regulatory and policy perspective), proposed solutions and benchmarking recommendations of other wholesale funds for improved effectiveness and efficiency.
insurance deposit cover for small FSC with less than R1m assets.
A proposed increase of R10 000 maximum micro-loan to R50 000.
the papers will be submitted during before the year-end March 2009.
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"Financing opportunities for community based Financial Intermediaries to benefit working poor and the enterprising communities".