WOMEN’S ENTERPRISE DEVELOPMENT INITIATIVE Creating A Better World By Investing in Women Entrepreneurs 1 1

Our Mission: Our Mission: Our Objectives WEDI is an enterprise growth initiative that is committed to assisting enterprise development agents to create and employ innovative methods to develop exceptional enterprises. Our Objectives Sustainable, quality job creation Job creation Wealth creation (poverty reduction) Greater utilisation of women in the economy Creation and support of competitive SMEs Provide a vital link between private enterprises and public/private SMME development agents CONFIDENTIAL © The WEDI Fund 2009 2 2

A Hybrid Approach Mk ROI & Social Impact Objectives: Human capacity building via the transfer of knowledge and skills in successful enterprise management & growth Generate superior enterprise development returns for investors (both social and financial)‏ Economic empowerment via viable and sustainable SME growth Assist in the creation and development of new and existing enterprises that create at least 2000 new sustainable jobs over life of fund Challenge & overcome existing norms that impede innovation and growth of SME’s CONFIDENTIAL © The WEDI Fund 2009 3 3

The Existing Challenges The primary challenges existing in South Africa today to successful SME development are. Failure of the market to develop a hybrid approach to SME financing that incentivises Fund Managers to create jobs Lack of skill amongst EDA’s Market Fragementation Failure to successfully target women CONFIDENTIAL © The WEDI Fund 2009 4 4

What Can Be Done TODAY? University of Tokyo Model Research and better analyse the impact of existing spend Change compensation structure for Fund Managers Develop the capacity of Fund Managers to (i) engage in low-value equity investing; (ii) successfully target women Provide more capacity building for enterprises themselves that is WITHIN THE FUNDING MODEL Develop an SME University University of Tokyo Model CONFIDENTIAL © The WEDI Fund 2009 5 5 5 5

A different approach to TAP SMME TAP Develops entrepreneurs via soft and hard skills training Deal flow & relationship support Incubates businesses through short to long-term investment horizon Provides analysis, assessment & support in milestone achievement Collaboration across enterprises within and outside of organisation Pre & Post-funding project support, monitoring and risk management FUNDING VEHICLE CONFIDENTIAL © The WEDI Fund 2009 6 6 6

Summary & Conclusion: Business case for investing in SMME’s is sound: Support and develop hybrid organisations A better understanding of low-value equity investing A proper analysis of current status of SME funding in South Africa Cut down on market fragmentation and create an international centre of excellence by developing a pilot for an SME University Build capacity of EDA’s Better meet the needs of women-run SME’s CONFIDENTIAL © The WEDI Fund 2009 7 7

Contact Us First Floor, North Block The Crescent Office Park 3 Eglin Road, Sunninghill (+2783) 288 - 9702 (+2711) 802 - 3429 fax www.wedisa.co.za CONFIDENTIAL © The WEDI Fund 2009 8 8

Creating A Better World by Investing in Women Entrepreneurs WEDI Creating A Better World by Investing in Women Entrepreneurs CONFIDENTIAL © The WEDI Fund 2009 9 9