MAFISA: Confidential, not for circulation or quotation
                     Presidential Announcement
  DEPARTMENT:
   AGRICULTURE
  REPUBLIC OF 
  SOUTH AFRICA       
                            Re-establish the agricultural credit scheme in the 
                            Department of Agriculture 
                                                         
                      Provide capital to increase support to agricultural activities 
       For A                in the communal land areas as well as other small–scale 
   United and               agriculture. 
  Prosperous 
   Agricultural       Leave the Land Bank to deal with the commercial sector
      Sector
                      Make R1 billion immediately available to start the scheme
                      Work with the financial institutions to implement the 
                            provisions in the financial services charter relevant to the 
                            development of small-and medium-farming enterprises
                        
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                                           MAFISA: Confidential, not for circulation or quotation
                Why the Reversal ?
  DEPARTMENT:
   AGRICULTURE
  REPUBLIC OF 
  SOUTH AFRICA                                               Pre-1997
                  Commercial                                                                           Land Bank
                        Banks
     For A                                                Agricultural 
  United and                                              Credit Board
  Prosperous 
  Agricultural 
    Sector
                          Agricultural                     Agricultural                    Agricultural 
                                Coops                            Coops                           Coops
                     Enterprises             Farmers            Enterprises          Farmers             Farmers
                                                                                                                           3
  
  
                                             MAFISA: Confidential, not for circulation or quotation
                 Why the Reversal ?
  DEPARTMENT:
   AGRICULTURE
  REPUBLIC OF 
  SOUTH AFRICA                                                  1998-2004
                   Commercial                                                                                Land Bank
                         Banks
     For A 
  United and 
  Prosperous 
  Agricultural 
     Sector
                                              Agricultural Companies
                          Rural Micro-Finance                                         Rural Micro-Finance 
                                 Institutions                                                Institutions
                        Enterprises             Farmers                 Farmers           Farmers             Enterprises
                     Farmers             Farmers             Farmers           Farmers            Farmers             Farmers
                                                                                                                                  4
  
  
                                             MAFISA: Confidential, not for circulation or quotation
               Why the Reversal ?
  DEPARTMENT:
   AGRICULTURE
  REPUBLIC OF 
  SOUTH AFRICA                                                  Post 2004
                   Commercial                                                                                Land Bank
                         Banks
     For A 
  United and 
  Prosperous 
  Agricultural 
     Sector
                                        MAFISA: Micro-Agricultural 
                                    Financial Scheme for South Africa
                        Enterprises             Farmers                 Farmers           Farmers             Enterprises
                     Farmers             Farmers             Farmers           Farmers            Farmers             Farmers
                                                                                                                                  5
  
  
                                           MAFISA: Confidential, not for circulation or quotation
                Global Microfinance Experience
  DEPARTMENT:
   AGRICULTURE
  REPUBLIC OF 
  SOUTH AFRICA
                • Asia
                       – BRI of Indonesia
                       – BRAC of Bangladesh
                       – BAAC of Thailand
     For A      • Latin America
  United and 
  Prosperous           – Bancosol of Bolivia
  Agricultural 
    Sector      •
                   Africa
                       – Rural Banks
                       – Cooperative Banks
                • Europe
                       – DGRV of Germany
                       – Rabo Bank of the Netherlands
                       – Agricole of France
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