Detailed Report - Nedbank Group Limited

9.EmpowermentFinancingConsistingoftwoelements,TargetedInvestmentsandBEETransactionFinance,thisisthesecondpillarofouradditionalfocusareasaspartoftotaltransformationofourbusiness.Table9:EmpowermentFinancingCategory¹2011verified2010verified2009verifiedTargetedInvestments(Rm) R10,590 R5,681 R2,319TransformationalInfrastructure R2,781 R1,906 R559AffordableHousing R3,729 R2,033 R982BlackAgricultureloans R164 R70 R20BlackSMEFinancing R3,916 R1,672 R759BEETransactionFinancing(Rm) R7,349 R6,570 R1,362Note:¹2011measurementscompliestorecommendedstandardsdevelopedaspartoftheFSCodeTransformationalInfrastructureGautengOnline(“GOL”)istheimplementationofanetworksolution,providingInternetServiceProtocol(ISP)to2,200schoolsinGauteng.Eachschoolwillhave25learners.Itisafiveyearcontractthatincludestheimplementationoftheschoolcomputerlabs,theITinfrastructureandmobileeducationfacilities.TheaimofGOListoempowerlearnersandeducatorsintermsoftheGautengDepartmentofEducation’sguidelinesoneLearning.TheseguidelinesareincludedintheWhitePaperoneEducation.CityofJohannesburgMetropolitanMunicipalityAlllongtermfundingfortheCityisgenerallyforinfrastructurepurposesaspertheMFMA.Theloansweremainlyrequiredforthesoccerworldcup(i.e.completion/paymentsrelatedtostadiums–SoccerCityandEllisPark),waterandsanitationinfrastructure,electricityandroad/transportinfrastructureliketheBRTetc.Allofthefollowingloansqualify:R570mil–purchaseofbonds(matures2015)R1bil–longtermloanR315mil–longtermloanuMhlathuzeR188m,10yeartermThisloanwasutilisedsolelyforcapitalprojectsaspartoftheongoingIntegratedDevelopmentPlantomeettheinfrastructureservicedeliveryprogrammefortheMunicipality.AspertheIDP,thegeographicalbreakdownofspendwas24%oneconomicdevelopmentnodes(RichardsBayIndustrialDevelopmentZone),59%inpoorlyservicedsubregionalanddistrictnodes(basicallyruralandsemirural)and17%inthedevelopedareasofRichardsBayandEmpangeni.AfurtherbreakdownofthisspendfromtheIDPfor2010showsthat10%isintendedforstormwaterandroadsinfrastructure,25.5%forwaterinfrastructure,25%forelectricityinfrastructure,11%forsewageinfrastructure,19.5%foranewciviccentre,2.5%formunicipalvehiclesandassociatedequipmenttoensureserviceprovision.Theremaining6.5%iscategorizedunder“other”butincludesitemslikerefurbishmentofhostels,anewfirestation,cemeteryextensionandSMMEdevelopment.eThekwiniR500m,5yearterm(KwaZuluNatal)NedbankGroupTransformationReport2011–FinalDraft.52