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1. Proposal for a bespoke Enterprise & Supplier
Development solution for the Southern African-
German Chamber of Commerce and Industry

2. TABLE OF CONTENTS
Enterprise and Supplier Development Proposal
• Introduction
• Deciding on investments
• Proposed investment structure
• Cadiz track record
• Additional benefits
• Conclusion & salient features
• Cadiz specific solutions/systems
2

3. Introduction
3

4. CONTEXT
The Chamber wishes to set up a fund which covers the following aspects:
Enterprise Development Fund
Supplier Development Fund
Establish a Business Foundation Centre
Other potential aspects to be considered are:
Preferential procurement
Master supplier database to ensure compliance with “empowered supplier” definition of Amended
Codes
Tender portal which delivers tenders to the market in an efficient manner
Overview
4

5. EXECUTIVE SUMMARY
Detailed Proposal
5
• CREATE BESPOKE ENTERPRISE DEVELOPMENT FUND
• AHK companies can invest into AHK ED Fund and earn Enterprise Development Points in terms of the existing and Amended Codes
• CREATE BESPOKE SUPPLIER DEVELOPMENT FUND
• AHK companies can invest into AHK SD Fund and earn Supplier Development Points in terms of the Amended Codes
• SD points will be earned only if the beneficial entity is in the supply chain of the AHK company
• Infrastructure needed to enable Supplier Development already exists and has been tested & approved
• CREATION OF BUSINESS FOUNDATION CENTRE USING EXISTING TRAINING SERVICES CENTRE
• Utilise existing TSC in Soweto to provide accessible and immediate business support
• Utilise skills capacity within AHK members to provide administrative, finance, technical, IT, operational assistance
• Create the ability for start up entrepreneurs to receive basic computer training and tender training
• PROVISION OF IMMEDIATE AND ANNUAL RECOGNITION OF BEE POINTS FOR THE INVESTOR
• Enterprise and Supplier Development Funds will provide immediate recognition of BEE points for AHK investors
• ANNUAL REVIEW OF THE FUND BY A REPUTABLE AGENCY
• Annually, after its year end, both funds will be reviewed by Empowerdex, a very reputable rating agency
• Annually, each AHK member will, at their year end, receive an ED and SD certificate which they will use in their own BEE verification process
• ACCESS STRONG INVESTMENTS
• Cadiz has the a long and well established track record of making successful loans to unlisted and unrated black owned businesses
• LOWER RISK OF INVESTING
• Investing with an asset manager with a proven track record of positive performance and low volatility
• Investing into a fund which allows risk to be pooled and diversified across a number of loan counterparties
• LOWER COST OF CONTRIBUTION/OWNERSHIP
• Cadiz already offers solutions in this space and can provide all the infrastructure needed; both asset and liability administration
• VERIFIED SOCIAL IMPACT MEASUREMENT
• Obtaining professional social impact reporting on Cadiz Enterprise & Supplier Development
• Possibility of additional outreach and mentoring programs together with integrated reporting via website
• ASSISTANCE WITH BEE QUERIES
• Knowledgeable staff who can deal with queries promptly and efficiently
• Ability to review, understand and react to legislative changes
• Close relationships with DTI and other major stakeholders in this field

6. AHK ENTERPRISE AND SUPPLIER DEVELOPMENT FUNDS
• FUND BASED SOLUTION PROVIDES SCALE BENEFITS
• Cadiz can offer an AHK Fund into which every AHK member can contribute
• Size of contributions can be from as little as R20,000
• This solution which is scalable for each member according to their needs
• The minimum fund size needed is R30m for Enterprise Development and R60m for Supplier Development
• TRACK RECORD OF ENTERPRISE DEVELOPMENT MANAGEMENT
• Cadiz has offered Enterprise Development solutions to the SA market for a number of years
• We have a significant pipeline of potential investments which we can make
• We have a track record of making very good secure investments
• Our investments have delivered significant amount of jobs, and have provided critically needed funding to Black owned companies
• EFFICIENT ADMINISTRATION PLATFORM
• Cadiz offers a very efficient investment platform for each investor
• Investors can invest according to their needs and their own financial deadlines
• Cadiz has a world class administration platform which can comprehensively deal with the investor complexity that this fund will have
• INVESTMENT ADMINISTRATION COMPLEXITY
• The underlying investments are likely to be loans (low, no or full interest bearing) and guarantees
• Equity investments can be included but are not efficient in terms of the BBBEE Codes & I would advise against using them
• Grants can be considered but again one should weigh up the cost/benefit of grants
• A portfolio of the above requires strong administrative capacity to deliver a unit price to each investor
• Assuming investors invest at different times & different amounts then the investment capability of a reputable asset manager is needed
• In addition, due to the nature of the investments, specific administrative expertise in that space is needed. Unlisted, unrated, untraded loans
require bespoke administrative systems for valuation purposes
• Valuation methodologies need to be fully developed and appropriate for the fund
• ACCEPTABLE POOLING VEHICLE
• The establishment of these funds must consider regulatory environment (specifically the Collective Investments Act)
• Use of a linked life company, with strong FSB oversight and specific legislation ensures full compliance with all relevant laws
• Additional factors such as financial advice and other aspects have all been carefully considered and a dedicated compliance team would ensure
that all investor facing documentations complies with relevant legislation
• Use of this vehicle also ensures that all tax related matters have been carefully considered and resolved
Understanding the administrative complexity
6

7. DECIDING ON THE INVESTMENTS
7

8. INVESTMENT CONSIDERATIONS
Considerations during Enterprise and Supplier Development
Source: DTI BBBEE Codes 8
• Enterprise & Supplier Development will target qualifying Black owned businesses in terms of the Amended
Codes (EME’s and QSE’s)
• Loan criteria will be developed in consultation with the AHK.
• Historically, for Enterprise Development our loan criteria were:
• Loan counterparty must have been in existence for 3-5 years minimum
• Loan size R3m to R10m
• Loan term 3 – 5 years
• Reducing balance
• Prime linked
• Historically Supplier Development loans are (generally) much smaller and shorter:
• Loan counterparty must have trading history with AHK company
• Loan term could be 1 month to 5 years (depending on the nature of the loan)
• Loan sizes R100,000 upwards
• Prime linked
• Interest paid at end on short term; otherwise reducing balance loans

9. ENTREPRENEUR SUPPORT AND TRAINING CENTRE
Leveraging off existing AHK infrastructure
Source: DTI BBBEE Codes 9
Technical Assistance to successful loan counterparties
• Once these Supplier and Enterprise Development funds are established significant number of entrepreneurs will be funded
• During the course of funding those entrepreneurs an evaluation of their business will be undertaken
• That evaluation will identify not only financial risks, but also business risks
• Where such risks are identified a program will be worked out to address those risks/weaknesses
• Funding for that will come from both funds (a specific % of the fund will be allocated to this annually)
• Individual programs will be worked out and implemented by Cadiz ASSSIT (a technical assistance fund we already have
established)
• The programs are designed to support the EME or QSE by remedying weaknesses within their businesses
• The programs will be part paid by Cadiz ASSIST and part paid by the loan counterparty (ensuring that they have skin in the
game)
Training for entrepreneurs
• AHK currently has a training centre in Soweto
• A portion of the fund return can be used annually to provide training, mentoring, and other support to entrepreneurs
• AHK members can contribute their resources on a set basis (admin/IT/finance/HR/technical etc)
• Courses for basic IT skills can be considered and offered
• Understanding and access to finance can be provided (business plans/tender training etc)

10. Proposed Investment Structure
10

11. HIGH LEVEL OVERVIEW
Conceptual investment framework
11
CADIZ ASSET MANAGEMENT
AHK Corporate A
2
1
Supplier
Development
Fund
Enterprise
Development
Fund
• Create Enterprise & Supplier Development
Funds
• ED funded by 2% of NPAT and SD by 4% of
NPAT (Amended Codes)
• Allocate a portion of Fund return to Cadiz
ASSIST to support EME’s and QSE’s
• Both Fund provides loans & guarantees to
qualifying Black owned businesses
2
Black owned
EME’s and QSE’s
A
1 2
Black owned
EME’s and QSE’s
B
1 +
3 3
Cadiz ASSIST
Technical
Assistance
• Allocate a portion of Fund return to
Cadiz ASSIST to support EME’s and
QSE’s
• Cadiz ASSIST will also fund
Entrepreneur Training Facility
• AHK Corporate A can provide
resources to support Training
Support Centre
• Entrepreneurs can obtain basic
entrepreneur development by
coming to the centre
3
Training Service
Centre
Black
Entrepreneur
A
Black
Entrepreneur
A

12. Supplier
Development
Fund
• Black owned EME’s and QSE’s apply
for funding from Supplier
Development Fund
• Funding is available for working
capital
• Additional mentoring & business
development opportunities will be
offered
5
• Corporates invest once off into
Supplier Development Fund
• Fund is rated annually by
Empowerdex in terms of the Revised
Codes of Good Practice
• Fund invests into black owned EME’s
and QSE’s in the supply chains of
participating corporates
• Corporates earn Supplier
Development Points for as long as
they remain invested
4
Black owned
EME’s and QSE’s
A
Secure, award winning
web based platform
2 1
4
5 3
AHK Corporate A
* TenderSure is a proudly South African product. It has been recognised as a Technology Top100
Finalist in 2011, 2012 and 2013 as well as the prestigious International Supply Chain Awards.
• Companies place tenders via award winning*
business-to-business platform
• Successful tenders with black owned EME’s
and QSE’s result in preferential procurement
points
• On-line platform assists corporates in
reducing operational constraints of tenders
and reduced tender fraud
• All tenders are secure, encrypted and fully
tailored to each company’s own
requirements
3
2
Master
Supplier
Database
• VendorSure provides a master supplier
database
• All suppliers are maintained on-line
• All supplier information is available for
scrutiny online
• Detailed information regarding BEE status,
geographic location, sector, size, skills, sector
participation etc. is available at a moment’s
notice
• Ability to extract detailed reports on suppliers
in a secure environment
• Live Empowered Supplier status monitoring
1
SUPPLIER DEVELOPMENT

13. Cadiz Track Record
13

14. IMPACT MEASUREMENT
CADIZ ASSET MANAGEMENT
Social Impact of Cadiz investments since 2008 (as at 31 December 2013)
30 September 2014
Since inception, 44,810 people have directly
benefitted with jobs from Cadiz high impact
investments
Beneficiaries are largely drawn from
historically disadvantaged groups
98% Black
82% female
105 570 people are dependant on these
beneficiaries for support
• The fund has created 44,810 jobs at a cost of R60,141 per job
• The Fund’s cost per job is very efficient when considered against other
public and private sector job creation initiatives
• Job Creation at an SME level is a key ingredient for sustainable growth in
South Africa

15. PERFORMANCE TO 30 JUNE 2014
15
CADIZ ASSET MANAGEMENT
Source: Cadiz Asset Management; Past performance is not a predictor of future returns. Returns since February 2008
Gross returns which need to be reduced by fees incl. VAT (3.67%) and taxation
0.74%
2.23%
4.31%
8.44% 8.33%
0.18%
1.96%
4.09%
6.63%
6.26%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
1 month 3 months 6 months 1 year since inception
CADEDF SA CPI

16. PERFORMANCE TO 30 JUNE 2014
16
CADIZ ASSET MANAGEMENT
Source: Cadiz Asset Management
Widespread take up increasing over time
Western Cape
40%
Gauteng
2%
Durban
0%
Gauteng
24%
Eastern Cape
0%
Pretoria
19%
Gauteng
3%
Petermartizburg
0%
Western Cape
6%
Orange Free
State
2%
Western Cape
4%
• Number of investors has grown steadily to over 200
companies; with marked year-on-year growth
• Radio campaign has created widespread acceptance
for the offering
• Prospects for the future look positive
• Excellent opportunity to penetrate corporates
• Good regional distribution
0
10
20
30
40
50
60
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Investors per quarter

17. CURRENT INVESTORS
With over 200 current investors Cadiz Enterprise Development Investment offers value to every sector
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Big Ben Construction (Pty) Ltd Schoeman & Louw Melkery Novare Actuaries and Consultants (Pty) Ltd Chemical Credit Corporation (Pty) Ltd
Suzi Products CC Construction Maintenance Services (Pty) Novare Equity Partners (Pty) Ltd Dartcom (Pty) Ltd
EDF Correction Surplus Units Core2Africa Networks (Pty) Ltd Novare Investments (Pty) Ltd Unitemp CC
Netbet (Pty) Ltd Heneways Freight Services (Pty) Ltd Byers and Associates Security Services CC Carfind (Pty) Ltd
Aurecon South Africa (Pty) Ltd ICKOBREWS LOGISTICS (PTY) LTD Finbond Mutual Bank Echo Public Relations t/a Sonic State
Kamboo Marketing (Pty) Ltd MVB Accountants and Auditors P'ship Ovenstone Trading CC Heyns and Partners Inc
Bondi Distributors cc Filtec Automation CC National Airways Corporation (Pty) Ltd Tricom Africa
SYSDBA (Pty) Ltd Olifantskop Feeds (Pty) Ltd Blake and Associates (Pty) Ltd Farmacres Debt Management (Pty) Ltd
Southern Cross Chain (Pty) Ltd Sectional Poles (Pty) Ltd Blake Connect (Pty) Ltd UV Tooling cc
Clear Channel Business Technology Information Security Architects (Pty) Ltd Wild and Marr (Pty) Ltd Treif Distributors (Pty) Ltd
Hytorc Industrial Tools SA (Pty) Ltd Erasmus-Scheepers Attorneys Simplicit - E Gaming Solutions (PTY) Ltd Efficient Select (Pty) Ltd
Hestico (Pty) Ltd Evergreen Latex CC Glashoff Maughan Consulting (Pty) Ltd Efficient Group Ltd
RX South Africa (Pty) Ltd Powertech Industries (Pty) Ltd Pay At Services (Pty) Ltd Access Office Solutions (Pty) Ltd
Electroparts (Pty) Ltd Indawo (Cape) (Pty) Ltd Cape Theme Parks (Pty) Ltd Dismed Pharmaceuticals (Pty) Ltd
Master Drilling Exploration (Pty) Ltd Bellam CC Tectight Enterprise Technologies (Pty) Ltd Jonwin Pty Ltd
Cape Lime (Pty) Ltd Central Welding Works (Pty) Ltd Pyrotechnical Marketing (Pty) Ltd MacPlant Plastics (Pty) Ltd
Porex RX (Pty) Ltd Milmet Marketing CC On Time Labour Hire Resource Marketing
Dartcom (Pty) Ltd M&J Engineering (Pty) Ltd Platinum Hospitality (Pty) Ltd Delport Van den Berg Incorporated
Convista Consulting (Pty) Ltd Connector and Wire Services CC Woodburn Mann (Pty) Ltd De Vries Associate
Digiata Technology (Pty) Ltd Praysa Trade 1165 (Pty) Ltd t/a Digicape Laser Transport Group Frasers BDE Consulting Engineers (Pty) Ltd
BT Comm. Services SA (Pty) Ltd Rennie Farms (Pty) Ltd Laser Transport Group Pickfords Branch Engineering (Pty) Ltd
SYSDBA (Pty) Ltd Beniesa Transport (Pty) Ltd Laser Transport Group Stuttaford Pilog Data (Pty) Ltd
Pilog Data (Pty) Ltd Rennie Farms (Pty) Ltd Laser Transport Group Magna/Thomson Cape Bag Pty Ltd
Ardeer Engineering (Pty) Ltd Rabie Property Administrators (Pty) Ltd Ocean Breeze Food Merchants CC Design Technologies
Tafelberg Furniture Stores Accountability Group (Pty) Ltd ACI Worldwide Cornastone (Pty) Ltd Unigrain (Pty) Ltd
Zidela Wines (Pty) Ltd TreasuryOne (Pty) Ltd Ideco Biometric Security Solutions (Pty) Ltd Andy Cab Canopies (Pty) Ltd

18. CURRENT INVESTORS
With over 200 current investors Cadiz Enterprise Development Investment offers value to every sector
18
Chemical Credit Corporation (Pty) Ltd Transfix Transformers SA (Pty) MH Cloete Enterprises (Pty) Ltd Digiterra (Pty) Ltd
Dartcom (Pty) Ltd Macadams International (Pty) Ltd Euphoria Telecom (Pty) Ltd Solethu Energy (Pty) Ltd
Unitemp CC Urbantonic Denver Technical Products (Pty) Cargill Sugar RSA (Pty) Ltd
Carfind (Pty) Ltd John Bean Technologies (Pty) Ltd VW Overberg (Pty) Ltd Lemco Structural Steel (Pty) Ltd
Echo Public Relations t/a Sonic State Radium Engineering (Pty) Ltd Proloss (Pty) Ltd Smec South Africa (Pty) Ltd
Heyns and Partners Inc Drilling Technical Services (Pty) Ltd Laurhel Motors (Pty) Ltd Muratie Wine Farm (Pty) Ltd
Tricom Africa Master Drilling South Africa (Pty) Ltd Real People (Pty) Ltd PMA Housing and Civil (Pty) Ltd
Farmacres Debt Management (Pty) Ltd FoxP2 Advertising (Pty) Ltd Risk Benefit Solutions (Pty) Ltd Surtees Railway Supplies (Pty) Ltd
UV Tooling cc Specialised Dispense Systems (Pty) Ltd Independent Claims (Pty) Ltd Surtees Engineering (Pty) Ltd
Treif Distributors (Pty) Ltd African Power Trading (Pty) Ltd Roga Plastics CC African Rail & Traction Services
Efficient Select (Pty) Ltd Superlift Crane Hire Merlin Project Services (Pty) Ltd Unitemp CC
Efficient Group Ltd Colour Display Marketing (Pty) Ltd East Cape X-Ray CC Inzuzu IT Consulting (Pty) Ltd
Access Office Solutions (Pty) Ltd The Eventful Group (Pty) Ltd TV Precision Engineering CC Isiqina Computer Services (Pty) Ltd
Dismed Pharmaceuticals (Pty) Ltd Clarotech Consulting (Pty) Ltd Molo Afrika Speech Technologies Sizwe Africa IT Group (Pty) Ltd
Jonwin Pty Ltd DR HR Morkel Incorporated Camako Trans CC Koba IT Solutions (Pty) Ltd
MacPlant Plastics (Pty) Ltd Astellas Pharma (Pty) Ltd Rotex Motorcycles (Pty) Ltd Tekanyo IT Services (Pty) Ltd
Resource Marketing Krohne (Pty) Ltd Profile Media (Pty) Ltd Setsibi IT Support Services (Pty) Ltd
Delport Van den Berg Incorporated The Urban Artroom (Pty) Ltd Profile Data Technology (Pty) Ltd Merwida Wynkelder (Pty) Ltd
De Vries Associate Tabateq CC Turner & Townsend (Pty) Ltd Prosep Chemicals SA CC
BDE Consulting Engineers (Pty) Ltd Kayamandi Development (Pty) Ltd Wind Prospect Africa (Pty) Ltd Kanu Commercial Body Construction
Branch Engineering (Pty) Ltd Phumelelani Nathi Holdings (Pty) Ltd Upperedge Products (Pty) Ltd Goudini Wynkelder (Pty) Ltd
Pilog Data (Pty) Ltd Pathogen and Environ. Solutions (Pty) Relate Technologies (Pty) Ltd Grindrod Bank Ltd
Cape Bag Pty Ltd Sanspar Engineering Sales (Pty) Ltd Megafreight Services (Pty) Ltd Tulpak (Pty) Ltd
Design Technologies Analyze Consulting Services CC Netbet (Pty) Ltd Nuclear Packaging (Pty) Ltd
Unigrain (Pty) Ltd Admeter South Africa (Pty) Ltd Genric Insurance Company Ltd ACT Logistics (Pty) Ltd
Andy Cab Canopies (Pty) Ltd

19. INVESTMENT ABILITY
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CADIZ ASSET MANAGEMENT
Source: Cadiz Asset Management
Proven ability to invest into BEE companies
• Invested more than R100m over the past 2
years
• More than 15 individual loans/drawdowns with
7 different counterparties
• Flexible terms to suit the needs of the
counterparties
• Ability to meet investor needs
(ICT/Transport/Construction/Financial Services)
• 100% success with capital and interest
repayments
SME working
capital
finance
27%
Inner city
rejuvenation
27%
Transport
10%
SME
Microfinance
10%
Cash
10%
IT sector -
SME lending
9%
IT sector -
training /
internet
services
5%
Waste
Management
2%
Loan Portfolio

20. Conclusion & Salient Features
20

21. CADIZ AS YOUR COMPLETE PARTNER
• A partnership with Cadiz offers:
Immediate turnkey solution for Enterprise & Supplier Development and Preferential Procurement
Access to a tried and tested model which has been widely accepted in the market including the DTI
Access to a scarce investment capability set in the unlisted investment market
Full use of Cadiz Life to ensure that all tax, legal and regulatory requirements are met
Flexible investment structure which suits the needs of all investors
Annual verification by Empowerdex of the funds, and issuance of Enterprise Development, Supplier Development
and Preferential Procurement certificates to investors by Empowerdex
Best practice reporting to all investors in accordance with all relevant legislation
Proven investment management track record and technical assistance capability
What does a partnership of this nature offer
21

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