2007 / 2008 Annual Report - Eastern Cape Development Corporation

EASTERN CAPE DEVELOPMENT CORPORATION 2007/08PART 3PROGRAMME PERFORMANCEENTERPRISEFINANCE1 Strategic goals2 Budget• To create a development investment portfolio producing:- a quality development investment portfolio; with- a market related sustainable return; which- would create sustainable jobsProgrammeSub–programme1: Contractor’sFinanceSub–programme2: General LoansSub–programme3:Micro FinanceSub–programme4: StructuredFinanceBudgetApprovals(R’000’s)ActualApprovals(R’000’s)50 000 26 900(disbursed 26 900)34 000 42 500(disbursed 27 800)4 000 6 600(disbursed 2 600)32 000 22 150(disbursed 13 050)% Deviation Reason for deviation-46 Slow roll-out of infrastructure expenditure+25 Strong demand for loans, however actual disbursementslagging due to the inherent limitations of thesecuritisation process.+65 Approval to MFI’s in place but actual disbursementslagging due to the bulk of approvals being made duringthe last quarter of the financial year.-30 Product drive and awareness gained momentum towardsthe end of the financial year.3 Outputs and service delivery trends3.1 Sub-programme 1: Contractor’s Finance3.1.1 Sub-programme 1: Contractor’s Finance performance in 2007/8Measurable Objectives Performance Measure PlannedPerformanceTo provide financialassistance to contractorsValue of Contractor’sLoansActualPerformance%DeviationReason for deviationR30 mil R20.1 mil -33 Slow roll-out by governmentof construction programmesAs above Performance Guarantees R20 mil R6.8 mil -66 As above3.1.2 Sub-programme 1: Contractors’ Finance trends in performance from 2005/06 to 2007/08Measurable Objectives Performance Measure 2005/6(actual)(R’000’s)To provide financialassistance to contractorsAs aboveValue of Contractor’sLoansPerformanceguarantees2006/7(actual)(R’000’s)2007/8(actual)(R’000’s)CompoundAnnualGrowth %Reasons for deviationR38.5 R15.0 R20.1 -27 Slow roll-outby governmentof constructionprogrammesR20.6 R16.0 R6.8 -42 As above27