2007 / 2008 Annual Report - Eastern Cape Development Corporation

EASTERN CAPE DEVELOPMENT CORPORATION 2007/08PROGRAMME PERFORMANCEENTERPRISEFINANCE3.2 Sub-programme 2: General Loans3.2.1 Sub-programme 2: General Loans performance in 2007/2008Measurable ObjectivesPerformanceMeasurePlannedPerformanceActualPerformance% Deviation Reason for deviationTo provide financialassistance tosustainable businessenterprisesValue of GeneralLoansR34.0 mil R42.5 mil(disbursedR27.8 mil)+25 Strong demand for generalloans, however disbursementsare lagging approvals due tothe inherent limitations of thesecuritisation process.3.2.2 Sub-programme 2: General Loans trends in performance from 2005/06 to 2007/08Measurable ObjectivesPerformanceMeasure2005/6(actualapproval)(R’000’s)2006/7(actualapproval)(R’000’s)2007/8(actualapproval)(R’000’s)CompoundAnnualGrowth%Reason for deviationTo provide financialassistance tosustainable businessenterprisesValue of GeneralLoans43 200 29 000 42 500(disbursed27 800)_Good level of approvals,but disbursementslagging due to theinherent limitationsof the securitisationprocess.3.3 Sub-programme 3: Micro Finance3.3.1 Sub-programme 3: Micro Finance performance in 2007/08Measurable ObjectivesPerformanceMeasurePlannedPerformanceActualPerformance%DeviationReason for deviationTo providefinancialassistanceto sustainablebusiness enterprisesValue of MicroLoansR4.0 mil R6.6 mil(disbursedR2.6 mil)+65 R6.0 mil approved to MFI’s in rural areastowards the end of the financial year,but disbursements lagging due to thebulk of approvals being made during thelast quarter of the financial year.3.3.2 Sub-programme 3: Micro Finance performance from 2005/06 to 2007/08Measurable ObjectivesPerformanceMeasure2005/6(actualapproval)(R’000’s)2006/7(actualapproval)(R’000’s)2007/8(actualapproval)(R’000’s)CompoundAnnualGrowth%Reason for deviationTo provide financialassistance tosustainable businessenterprisesValue of MicroLoansN/A 800 6 600(disbursed2 600)+725 New focus on ruraldevelopment and microlending implementedtowards the end of thefinancial year28