DESIGN PHASE EXECUTIVE SUMMARY MAY 2002 Design Phase

DESIGN PHASE EXECUTIVE SUMMARY MAY 2002 Design Phase Executive Summary 9 May 2002

Agenda Item Resp. Time 1. Project Approach Wendy Pienaar 5 min 2. Lender and Consumer Survey Summary Wendy Pienaar 5 min 3. Business Development Support Assignment Alicia Greenwood 15 min 4. Curriculum Framework Assignment Brent Davids 15 min 5. Selection Assignment Wendy Pienaar 5 min 6. The Way Forward Wendy Pienaar 5 min 7. Breakout Instructions Heather Watson 5 min Note: slides represent Accenture's recommendations based on findings from research and stakeholder consultation 2

Overview of Design Phase Assignments Over a period of approximately 9 weeks, the project team has been tasked with 3 assignments Assignment Description Curriculum Development Assignment § Develop a Stakeholder Capacity Plan to increase awareness, interest and understanding of skills development legislation and this project § Identify core and generic skill needs of micro-financiers and borrowers § Develop a Curriculum Framework § Create an Implementation Plan for curriculum framework § Establish Curriculum and Consultative Forums Business Development Support Assignment § § Selection Process Assignment § Develop Selection Criteria and Selection Processes (micro financiers, borrowers) § Develop a Profile for training providers § Develop Contract Outlines for micro financiers and training providers to be involved in the process going forward Develop BDS Consultation Reports Identify existing BDS programmmes Review of Best Practices Develop a BDS Strategy The project team has adopted a consultative approach involving as many stakeholders as possible 3

Agenda Item Resp. Time 1. Project Approach Wendy Pienaar 5 min 2. Lender and Consumer Survey Summary Wendy Pienaar 5 min 3. Business Development Support Assignment Alicia Greenwood 15 min 4. Curriculum Framework Assignment Brent Davids 15 min 5. Selection Assignment Wendy Pienaar 5 min 6. The Way Forward Wendy Pienaar 5 min 7. Breakout Instructions Heather Watson 5 min 4

Lender Survey Methodology Aim § § Clarify the key behaviours and skills required for the micro finance industry Identify key skills gaps and approaches to close these gaps Identify areas of priority training requirements Provide the basis for more detailed skills and competency framework development Assessment tools evaluated Web-based survey Approach Sample of respondents obtained Survey live from 2 to 10 April (8 days) Survey questions formulated English and Afrikaans Targeted audience telephoned and sent e-mail reminders Web-based survey and back-end database created Response rate strategy formulated 5 Reports drawn from database and data analysis conducted

Respondents Demographics A response rate of between 14% - 25% was obtained for the different survey areas. As expected, the majority of respondents were male, white and had at least a matric or more Gender % Educational Level % Male 79 Secondary School (Matric) 32. 7 Female 21 Secondary School (Other) 5. 4 College 11. 9 Race Groups % Asian 0. 5 Technikon 13. 4 Black 4. 4 University 21. 3 Coloured 2. 9 15. 3 White 92. 2 University / Technikon Post Graduate § The majority of the survey respondents were white males (79. 4%) § Almost a third of the respondents had at least a matric level of education (32. 7%) § More than a third of the respondents (36. 6%) had received undergraduate and postgraduate qualifications § Asians, Blacks and Coloureds made up 7. 8% of the total population Respondents were predominately managers/owners 6

Organisation Type Short-term micro-financiers made up the majority of the respondents Type of Organisation # Resp % of Resp Short-term micro financier 166 82. 4 11 Long-term micro financier 17 8. 3 6 Banks - - - NGO 5 2. 5 4 RFI 6 2. 9 2 Retailer 1 0. 6 1 Housing 7 3. 4 5 204 100% n/a Total Average # Branches Type of Organisation § The majority of respondents were from short-term micro financiers and numbered 166 in total § The number of branches ranged from 1 to a maximum of 120 with an average of 5 branches for all micro financierss § None of the banks responded to the survey, despite having been included in the survey sample Additional surveys were sent to type of organisations that did not have a high response rate 7

Operating Model The biggest reason for success was stated as having well trained staff, whilst the biggest challenge was not being able to retain customer’s cards & PIN’s Success Factors Biggest Challenges Top 5 reasons for success in the industry 1. Trained staff Top 5 challenges faced by micro financiers 1. Card & PIN used for collateral 2. Good service 2. Regulation of entire industry 3. Effective credit control 3. Debt recovery 4. Committed management 4. Education of clients 5. Personal relationships built on trust 5. Minimisation of bad debt Success for micro financiers is largely attributed to combining effective management with well trained staff, offering good service 8

Training Analysis Less than a third of respondents currently run training programmes while less than half of respondents indicated that they plan to implement training in the future Formal Training Programs Current Micro financiers using formal training programmes Yes 30. 58 % No 69. 41 % Future Micro financiers planning to implement training programmes Yes 41. 97 % No 58. 02 % Approach to Training approach used Very effective Effective Somewhat effective Not effective § Classroom training 8. 33 % 19. 04 % 14. 28 % 46. 42 % § Distance learning 2. 8 % 16. 90 % 21 % 59. 10 % § Coaching 16. 57 % 21. 90 % 4. 1 % 27. 39 % § Mentoring programmes 14. 51 % 19. 35 % 11. 29 % 70. 96 % On the whole, current training approaches do not appear to be very effective 9

Business Development Support Marketing / industry Information is cited as the number one requirement for future BDS initiatives Future BDS initiatives BDS Delivery Mechanisms The top priorities and requirements for future business development support initiatives are: % The most popular methods of delivering business development support are through: % 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 78 74 74 74 57 51 43 43 39 31 8 1. 2. 3. 4. 5. 6. 7. 8. 28 25 23 17 13 11 1 0 Marketing / industry information Business process improvements Business planning Business analysis Management reporting Financial / accounting Administration HR / staff planning Internal auditing Network / referrals Technology assistance Telephonic advice Advice centres Classroom training On-the-job Seminars Training via email Mentoring Training via the internet Future BDS initiatives should be centred around strategic business management and should be available through multiple distribution channels for maximum exposure 10

Skills Methodology For ease of interpretation and comparison, the original survey point scales were normalised to a 100% scale Level of Importance 0 = not applicable 1 = not important 2 = important 3 = very important 4 = critical Skill Level Training Received New Scale 0% = not applicable 25% = not important 50% = important 75% = very important 100% = critical 0 = no experience 1 = beginner 2 = skilled 3 = expert 0% = no experience 33% = beginner 67% = skilled 100% = expert Yes/No % ‘Yes’ • ‘Level of Importance’ was answered on a scale from 0 to 4. This score was divided by 4 and converted to a % • ‘Skill Level’ was answered on a scale from 0 to 3. This score was divided by 3 and converted to a % • ‘Training Received’ – all ‘Yes’ responses were added and converted to a percentage of total responses Percent Response Original Scale 100 90 80 70 60 50 40 30 20 10 0 Skill Area Importance Skill Level Very important Skilled Important Beginner Not important Training Not applicable/no experience Skill 11 Critical/expert

Summary Management Skill Areas Risk management is perceived to be the most important skill area by micro financiers Summary of Skill Areas 100 90 80 70 Percent 60 50 40 30 20 10 te gy dm in St is af tra f M tio C an n om ag pl em ai nt en P t ro Se ce rv du ic re e s Pr ov id er s M ar ke tin g SM M E lie C Bu si nt A ne ss S tra te gi e e ra St g in nd Fu h as s t na nc en Fi e ge m ia M an a om pl C at o eg ul Le ga l & R C C ry lie nt S er vi nc ce t m en ag e an M oo k an B Lo R is k M an ag em en t 0 Importance (%) Skill Level (%) • The top 5 areas of importance are ‘risk management’, ‘loan book management’, ‘client service’, ‘legal and regulatory compliance’ and ‘cash management’ • SMME lending is seen as the least important skill area by micro financiers, possibly because so few micro financiers lend to SMMEs • It is not surprising to see risk and loan book management as the top skill areas • The importance of client service may be driven by the highly competitive industry and the need to acquire and retain customers • The r-squared of training vs. skill level is 0. 58 indicating that 58% of the variation in skill levels is attributable to the number of respondents who have received training, whilst the other 42% of the variation is determined by other factors (for example: experience) % Received Training High importance areas with low skill levels and a low % of trained respondents should be high priority areas for future training initiatives 12

Skills – Risk Management The overall importance of risk management is 84% whilst the reported skill levels average 64% and 21% of respondents have received training in this area Risk Management 100 90 87 84 83 83 80 Percent 70 63 68 62 61 60 50 40 30 20 10 0 Fraud Management Risk Management Importance (%) Risk and Return Analysis Skill Level (%) Client Credit Limits % Received Training § Overall, risk management is rated as the most important skill area by micro financiers § The importance of the four risk management skills were similarly rated by micro financiers (83%-87%), as were the levels of expertise (61%-68%) § The fewest respondents had received training in fraud management (16%) § Most respondents had received training in ‘risk and return analysis’ (24%) § Client credit limits are an important skill, as this limits the danger of borrowers becoming over-indebted and unable to repay their loans. The training received in this area is 21% and suggests a priority area for training There appears to be a need for training in fraud management and client credit limits 13

Consumer Survey Methodology Aim § To identify the learner needs of consumer borrowers in the micro finance industry in South Africa § To determine the most suitable methods for improving basic money-management skills and making borrowers aware of various issues in the industry § To determine whether significant differences for learning requirements exist between borrowers in different provinces Approach Wise Staffing was used to conduct field research Willie Oosthuizen contacted 5 micro lenders in each major city around the country Survey conducted Thursday 28 th March and Tuesday 2 April Cokes were offered as incentives to maximise response rates 14 373 borrowers’ responses were obtained and collated

Summary of Findings 1. 74% of all respondents can read English, a finding consistent across the provinces 2. 76% of all respondents watch SABC TV, 37% listen to Radio Metro and 22% read Drum magazine, all of which are national media 3. In addition to the commercial media, notice boards [47%], pamphlets [45%], posters [33%] and unions [51%] are the most common communication methods used by borrowers across the nation 4. Newspaper [35%] and radio [30%] are the preferred means of communication across the provinces (except in Cape Town where computers were more favourable than radio) 5. 42% of borrowers are aware of their admin fees, 28% compare costs between micro lenders, and 76% would like help with budgeting 6. Most people use loans for recurring expenses (transport [38%], food [38%], education [35%] and funerals [32%]) 7. The main reasons borrowers use micro financiers are speed, simplicity and because thr borrowers failed to meet banks’ requirements 8. Borrowers are generally not aware of all their rights, a finding consistent across all the provincers 15

Communication Method Newspaper [35%] and radio [30%] are the preferred means of communication across the provinces (except in Cape Town where computers were more favourable than radio) Cape Town Joburg Bloem Durban PE Sample Size (n) 145 109 58 40 21 Newspaper 52% 37% 12% 15% 5% Radio 4% 67% 12% 48% 33% Computer 23% - - Television 6% 1% - 28% - Pamphlets - - 14% 3% Commercial Communication Media Preference – Total Sample - Language Computer TV Pamphlets Newspaper Radio • Although many respondents watch TV (at least 76%) it is not a preferred communication method ØThis could be due to respondents watching at irregular intervals, or perhaps not owning their own televisions and only watching at work • The response rate in Bloemfontein was low for all media possibly because respondents did not understand the questions • Pamphlets do not appear to be an effective means of communicating with borrowers ØThis finding may be due to people not knowing where to get pamphlets from, or the irregularity in the distribution of information pamphlets The Sowetan and the Argus would reach a large percentage of the population and is a practical means of delivery (newspapers are cheap and can be kept). Radio Metro would also reach a large audience, although listening times have not been tested 16

Loan Knowledge & Budgeting 42% of borrowers are aware of their admin fees, 28% compare costs between micro lenders, and 76% would like help with budgeting % of All Respondents Replying “Yes” Cape Town Joburg Sample Size (n) 145 109 58 40 21 I know how much interest I pay 91% 81% 55% 75% 95% I know how much my admin fees are 47% 39% 57% 28% - I compare costs between Micro financiers 19% 42% 16% 30% 52% I know how to budget 92% 75% 74% 60% 90% I want help with budgeting 86% 70% 74% 53% 86% Response Bloem Durban PE 90% 81% 81% 76% 70% 60% 50% 42% 40% 30% 28% 20% 10% 0% Interest Amount Admin Fees Compare Costs Budget Ability Budget Help • Only 42% of respondents were aware of the admin charges on their loans • Only 28% of all respondents compared costs between micro financiers • It is interesting that 81% of borrowers said they knew how to prepare a budget, yet 76% said they would like information about how to budget their finances ØThis could possibly be attributed to the fact that they do not actually know how to budget, or what a budget really is Micro financiers need to make admin fees explicit, and borrowers need communication about shopping around for the best deal and how to budget their finances 17

Loan Usage Most borrowers use loans for recurring expenses (transport & food [38%], education [35%] and funerals [32%]) Why do you use a Micro financier and not a bank? Total Sample Size (n) 373 It is easier than using a bank 35% It takes less time to approve a loan than at a bank 20% I do not meet the requirements for a bank loan 17% I don’t know how bank loans work 4% I am blacklisted and can’t get a loan at the bank Recreation & Sport Agriculture Business Use Transport Pay off other loans 4% It is cheaper [interest] than the banks Loan Use - Total Sample 2% Home Extensions Medical Expenses Food Clothing Furniture Education Funerals • Most respondents felt that micro financiers are quicker and easier than banks Ø Many borrowers said they need money in a hurry, therefore micro financiers are the lenders of choice for them § Only 17% of borrowers used micro financiers because they didn’t qualify for a bank loan – most respondents therefore prefer micro financiers for reasons of convenience • These findings showed no significant differences across the provinces Borrowers need communication on how to calculate their recurring monthly expenses and to save enough money each month in order to avoid the debt spiral. Borrowers also need information on how bank loans work and what is required to obtain a bank loan 18

Knowledge of Borrower Rights There a number of rights that borrowers are not aware of, a finding consistent across all the provinces Borrower Rights Cape Town* Joburg Bloem Durban PE Sample Size (n) 145 109 58 40 21 I know I have 3 days to cancel my loan 3% 49% 43% 63% 19% I know I should get a copy of the loan agreement 94% 85% 76% 58% 81% I know I must not sign any blank documents 5% 91% 69% 68% 81% I know my lender must not keep my bank card, PIN or ID doc 96% 25% 34% 58% 33% I know I can settle my term early 10% 82% 62% 50% 86% I know what happens when I’m blacklisted 98% 92% 71% 90% 95% I know I must not borrow more half my salary 90% 75% 62% 65% 90% I know I can be placed under administration 85% 18% 21% 38% 33% • Most borrowers have little knowledge about their rights, specifically: Ø 3 days to cancel a loan Ø signing of blank documents (Cape Town only 5% were aware) Ø retention of bank cards, PIN #’s and ID documents Ø early settlement Ø administration § Despite fairly wide knowledge of some rights, all rights need to be communicated to all borrowers in order to increase awareness * The results for Cape Town were surprisingly high. A possible reason is that the question was incorrectly asked by the interviewers or interpreted incorrectly by borrowers The ultimate target is for all borrowers to know about all their rights through preffered media 19

Agenda Item Resp. Time 1. Project Approach Wendy Pienaar 5 min 2. Lender and Consumer Survey Summary Wendy Pienaar 5 min 3. Business Development Support Assignment Alicia Greenwood 15 min 4. Curriculum Framework Assignment Brent Davids 15 min 5. Selection Assignment Wendy Pienaar 5 min 6. The Way Forward Wendy Pienaar 5 min 7. Breakout Instructions Heather Watson 5 min 20

Focus of BDS assignment The business development support (BDS) section researches the most appropriate opportunities for delivering BDS to micro financiers in South Africa Report Definition Approach Consultation report § BDS ideas in the South African context § Consulted with sample of stakeholders around learner support mechanisms § Included stakholders who are: Ø Donor-funded vs. private businesses Ø Operating in isolated centres vs. those who have national reach Ø Micro finance specific vs. general business BDS review report § An assessment of certain current BDS initiatives in South Africa § Interviewed sample of stakeholders providing BDS in South Africa § Assessed BDS content and delivery mechanisms § Assessed relevance to micro financiers Best practice BDS report § Report detailing best practices, guiding principles and lessons learnt as identified from existing BDS initiatives worldwide § Reviewed and assessed worldwide BDS case studies ØIncluded studies from range of countries (mostly ‘ 3 rd world’ countries) § Researched worldwide BDS best practice and guiding principles ØIncluded BDS success factors, as well as barriers to success BDS strategy § Recommendation for a strategy to establish a BDS initiative aimed at micro financiers in South Africa § Considered global best practices and lessons learnt § Utlised current South African initiatives were applicable § Identified key decisions to be made regarding recommendation § Identified next steps required to pursue recommendation Only some of the key findings have been included for today’s session 21

What is BDS? BDS refers to the provision of information, knowledge, skills and advice on the various aspects of a business. Providers Family Friends Customers Accounting / Business auditing Networks Accountants Services Inspection & testing Needs Technical information Technology Micro financiers Accounting Computer services Local Govt. Parastatals Banks Personnel Finance Security Training Markets Business space National Govt. Finance companies Laws / Regulations Linkages Courier delivery Consultants Production Transport Legal services Administration Consultancy Repair / maintenance Web-site design & mgmt. Clubs NGOs Associations Universities / Colleges 22 • Includes all external non-financial support to enterprises that • Increases operational capacity • Provides access to markets • Improves management skills • Improves financial efficiency • Provides access to networks and information • Examples of BDS services include: • Training / skills development • Legal services • Accounting / auditing • Advertising • Network brokering • Business consultancy • etc. Ref: Microenterprise Best Practices, Development Alternatives Inc, 1999

BDS Success Criteria Best practice research indicates that successful BDS initiatives understand the markets they serve and provide demand-driven services 1. BDS services must be demand-driven Ø Ensures a greater, more positive impact, and encourages clients to pay for the services they value 2. BDS services must be provided to the right clientele Ø The main objective of a BDS is to facilitate growth, profitability and competitiveness of SMMEs. The BDS must therefore be provided to SMMEs who exhibit good entrepreneurial characteristics and can make good use of the services 3. The SMME community must have a strong sense of ownership in the BDS Ø The best business providers generally work in the environment, resulting in commitment and strong ownership 4. The BDS centre must achieve maximum outreach Ø Maximum impact can be achieved by strengthening private sector service providers, creating better networks between service providers, and promoting informal systems of learning 5. The BDS centre and its service providers must achieve financial sustainability Ø The institutional and financial sustainability must be achieved by controlling costs to maintain competitive and to increase profits 23

Barriers to BDS Success Provision of BDS can be complicated and some international initiatives have not been successful § Not charging for services often results in poor commitment from the users Ø There must be a balance between free and paid-for services § Relying solely on private market finance can be detrimental Ø Businesses may be reluctant to incur the costs of setting up BDS initiatives, as their competitors may be just as likely to benefit Ø Provides a rationale for donor support justified on a cost-benefit basis, rather than on the return on investment that individual businesses usually make § Support services are often too generalised Ø Often supply-driven and delivered in a top-down fashion, rather than from a SMME demand perspective Ø Training should be business-oriented, and not viewed as an extension of the basic general educational system § Support services are sometimes not accessible by the target users Ø Must be delivered via a suitable, convenient medium 24

Overview of BDS Initiatives An assessment of a sample set of SA BDS initiatives illustrated that excellent progress has been made in supporting SMMEs § There are many BDS initiatives targeting SMMEs in general Ø Ø Ø § Strengths: Ø Ø § Different delivery mechanisms are used Different levels of information are provided Different levels of support are provided In some cases, shared services are provided Both donor-funded and self-sustainable models are used Large volumes of general business information are available A large amount of support is available A large network of service providers is in place across the country A web-based BDS initiative is being successfully run Lessons learnt: Ø Ø Ø Require sector-specific expertise and support Face-to-face approach is very successful Charging for services results in more buy-in and commitment from users Closer interaction with affiliates required Limited resources for industry research Poor client satisfaction / client impact assessment processes 25

Rating of SA BDS Initiatives A comparison of some SA initiatives illustrate a wide variety of capabilities and reach Internet Delivery mechanisms Nature of BDS support Shared services Mastermind Alliance Support services Business Beat Brain Affiliates / Ntsika LBSCs Business Place Ntsika MEA Info only General business content Relevance of content to Micro financiers Mastermind Alliance Telephone MEA Brain Affiliates / Ntsika LBSCs Business Beat Business Place Khula Brain In-person Single location Micro financespecific content Reach There are very few BDS initiatives which specifically target micro financiers 26 Ntsika Khula National coverage

BDS Delivery Media Highest priority should be given to those BDS delivery media which can be accessed by the majority of the target audience Large Telephone Radio Newsletters TV Size of target audience • Technological capability of MFs • Geographic location of MFs (urban / rural) Videos CDs Large no. of users accessed, with low implementation effort Internet e. Mail One-on-one’s Mentoring Roadshows Small Low Ease of delivery High • Cost to design, develop and implement • Time to design, develop and implement 27

BDS Delivery Solution Supporting the internet/call centre portal with an ‘on-the-ground’ service provider network will ensure that the needs of the entire target audience are catered for BUSINESS DEVELOPMENT SUPPORT Basic Information And Advice Specific Information And Support Call centre Internet Portal MICRO FINANCIERS Variety of information sources, catalogues and library items BDS RESOURCE CENTRE 28 SERVICE PROVIDER (SP) NETWORK

BDS Delivery Solution The revenue model supporting the BDS delivery solution is dependent on the types of services and information it will eventually provide e. g. Training manuals e. g. Best practice analysis Research Information Sources Of Revenue e. g. Outsourcing of payroll function Services e. g. Internal audits Shared Services Accreditation of SPs Access to portal e. g. Access to restricted information e. g. SPs pay for accredited status / Franchising of SPs A business case must be developed and agreed to ascertain the full financial benefits of setting up the BDS initiave 29

Options for BDS Delivery Solution The BDS model can either be implemented as an end-to-end solution, or the various components can be implemented independently Option 1 Option 2 Option 3 BDS resource centre only Service provider network only BDS resource centre and SP network Advantages § Easy to develop and manage § Supports MFs who have minimal technical capability (telephone is minimum requirement) § 24 x 7 availability § Few players involved, therefore low political impact § Latest, up-to-date information § Relatively cheap § Supports MFs who have minimal / no technical capability § Contributes to development of local SMMEs, and of the community § SPs provide sector / community specific research § Caters to full spectrum of MFs (low – hi tech) § Continous feedback loop re. support, training and services needs § SPs provide sector / community specific research § BDS resource centre supports SPs § Contributes to development of local SMMEs, and of the community § 24 x 7 availability Disadvantages § No network of SPs for walk-in clients (rural areas) § No community or sector-specific information is easily accessible § § § Many political players involved § Governance structure may be complicated § Selection and management of SPs may be complicated Recommendation Selection of credible SPs may be difficult Information and skills may be dated No central information support for SPs Complicated management of SPs 8 – 5 availability A full implementation is recommended to ensure efficient support for the MFs and the SPs, and for superior information provision 30

Role of the BDS Centre The BDS centre will be a hub for all information relating to the microfinancing industry, and will coordinate activities between the micro financiers and the service providers INFORMATION MF-specific information * Phone / fax Call Centre Library of books, CDs, videos General business information Training catalogues Online access Portal maintenance Accreditation of SPs Monitoring of SPs Client database Research Access to electronic databases Links to intl. contacts Online chatrooms Internet Portal ACTIVITIES Newsletters Coordinate events / training Coordinate client feedback Marketing Social responsibility FRONT-OFFICE BACK-OFFICE BDS centre MF = Microfinancier * Best practice 31

Roleplayers: BDS Centre Currently in SA, no organisation offers the full range of capabilities required to run the proposed BDS centre, although a number of players play in different areas Call Centre / Internet Portal BRAIN § Call centre § Internet portal § Both managed and maintained by BRAIN Information Local resources: e. g. MFRC, MEA, MLA § Micro financier-specific information § Not available online International resources: e. g. CGAP, ILO, etc. § Online source of micro financier-specific information BRAIN § Online databases § Links to general business information (280 links) § No micro financier-specific information BANKSETA § Micro financier training curriculum and material Willie Oosthuizen (Mastermind Alliance) § Micro finance manual - book and CD § Currently designing an internet portal Ebony Consulting etc. § Micro financier training curriculum and material Providers 32

Role of the Service Providers The SPs should be sustainable businesses, and will be accredited and monitored by the BDS centre SERVICES ACTIVITIES Conduct training Mentoring / counselling BDS Referrals Business linkages Workshops Provide feedback to BDS* Market within community Leverage BDS information Manage events programs Walk-in clients Office based in city or town, across SA* Communityspecific market research* Provide services (charge / free)* Manage training programs Assess client needs* Shared services (e. g. payroll) Business Incubator Conduct local research* Affiliated Service Provider § Accreditation to be based on various criteria e. g. service offered, service delivery track record / credibility, cost of delivery, geographical reach, etc. § “Accredited status” to be reviewed annually, or as required * Best practice 33

Roleplayers: Service Providers There are many service providers located around South Africa, providing a diverse range of services Local Business Service Centres (LBSCs) § Accredited by Ntsika § Diverse range of operations, services and size of organisations § Minimal reporting responsibility to Ntsika § Many have poor reputation in marketplace BRAIN affiliate members § Accredited by BRAIN § Main accreditation criteria are: – Must have internet capability – Must have existing client base § No rigorous monitoring by BRAIN § No reporting responsibility to BRAIN Business Beat service providers SERVICE PROVIDERS § Managed by a formal reporting process Many other examples exist: The Business Place, Mastermind Alliance, Ebony Consulting etc. To ensure credibility and sustainability, very specific accreditaion criteria must be enforced on the SPs providing services to micro financiers 34

Role of the Micro Financier The MFs will experience a ‘pull’ and ‘push’ of information from the various resources BDS CENTRE LOCAL SP Receive newsletters via email / post Receive in-person training Receive information via email / post Internet Receive incentives Receive specific local research Phone Conduct online training / research Browse portal for updates Chat online Provide feedback* Receive shared services Walk-in Receive incentives Go on site visits Fax Many different incentive schemes exist to encourage MFs to use all the resources available Micro financiers – Urban and Rural MF = Micro financier * Best practice 35 ‘Walk-in’ for assistance

Approach to Tiered Rollout PHASE 1 PHASE 2 Establish Preproject decisions Establish BDS resource centre ? ? ? 4 months PHASE 3 Establish PHASE 4 Establish 1 st tier 2 nd tier 3 rd tier Service Providers 3 months (Phases 1 and 2 could be conducted in parallel) Pietersburg Nelspruit Pretoria KEY Johannesburg BDS Resource Centre 1 st Tier SPs Upington Bloemfontein Durban 2 nd Tier SPs 3 rd Tier SPs East London Beaufort West Cape Town Port Elizabeth 36

Challenges to implementing BDS Model Comprehensive design of processes and of roles and responsibilities is required to ensure efficient operation of the BDS initiative Challenges Actions Resource centre employees must be adequately skilled § Recruit call centre operators with micro finance industry experience Defining a satisfactory business case for the BDS model § Identify the revenue model, sources of income and sources of costs of the initiative Existing information must be taken into account § Identify and assess existing information § Identify gaps in existing information Micro financiers must be adequately incentivised to utilise the portal § Interview micro financiers to assess most suitable form of incentivisation Service providers and affiliates must be credible § Define and communicate management and accreditation of affiliates processes and trusted in the community Agreement has to be reached between all the involved parties prior to development of a support centre and network § Issues to be resolved include: Ø Who will sponsor the project? Ø Who will finance the project? Ø Who will be accountable for the project? Ø Who will manage the various components of the BDS solution? 37

Agenda Item Resp. Time 1. Project Approach Wendy Pienaar 5 min 2. Lender and Consumer Survey Summary Wendy Pienaar 5 min 3. Business Development Support Assignment Alicia Greenwood 15 min 4. Curriculum Framework Assignment Brent Davids 15 min 5. Selection Assignment Wendy Pienaar 5 min 6. The Way Forward Wendy Pienaar 5 min 7. Breakout Instructions Heather Watson 5 min 38

Focus of the Curriculum Framework Assignment The curriculum development assignment focuses on understanding the skill needs of micro financiers and development of a plan to close the skill gaps Stakeholder capacity building plan * § Develop a plan to increase awareness, interest and understanding of skills development legislation and BANKSETA Micro finance project § Identified more than 122 different stakeholders § Interviewed 48 stakeholders § Created a Communication Plan, Stakeholder Matrix and Capacity Building Plan Unit standards and micro-lender qualifications review § Assess required unit standards and qualifications § Assessed existing banking unit standards and unit standards developed by some of the training providers as an input into the survey Learner needs analysis and profiles* § Assess existing skills and capabilities, identify gaps and future focus areas § Developed a survey for lenders and borrowers § Conducted the surveys § Developed a Lender and Consumer Needs Analysis Establishment of curriculum and consultative forum* § Identify and appoint stakeholders to participate in consultative forum § Through stakeholder interviews, members for the 2 forums were appointed § Launched the 2 forums and held numerous meetings with each Curriculum framework for micro financiers § Develop and agree framework with Curriculum Development Team § Reviewed training and curriculum best practices § Used the results from the survey to develop a curriculum framework that was reviewed by the Curriculum Development Team and other stakeholders Skills programmes plan § Develop approach and plan to implement skills development iniatives § Assessed the need for a skills programme or learnership based on requirements of micro financiers Delivery channel plan § Identify most appropriate channels to deliver skills development initiatives § Tested the most appropriate delivery mechanism for the different skill areas and included in the curriculum framework * These deliverable are contained in other reports. This report focuses on the Curriculum Framework 39

What is a Curriculum Framework? A curriculum framework provides the guiding principles within which the methodologies and delivery methods of a training programme are defined Includes guidelines around: § Purposes, goals and objectives of learning* § Learning outcomes* § Methodology for selecting, structuring and delivering the training content* § Processes to facilitate learning* § Process to assess the learners § Methods of evaluating intentions, outcomes and methods § Planning and execution of the management of the setting in which the curriculum is implemented (e. g. full-time, part-time, lectured, distance, combination) CURRICULUM FRAMEWORK METHODOLOGIES Case studies Lectures Videos, etc. DELIVERY METHODS Face-to-face learning Distance learning IMPLEMENTATION PLAN Prototype Pilot Roll-out Ref: Skills Development, Ian Bellis, 2001 * Completed in project design phase 40

Curriculum Framework Success Factors Best practice suggests that the fostering of a “learning organisation” culture will aid in the successful delivery of training initiatives • Curricula must have a clearly defined vision, mission and goals • Training should be modular and outcomes based • Training content must be relevant to the trainee, and be based on trainee needs • Training standards, systems and models must be clearly defined • Curricula should offer a choice of training content and delivery mechanisms • Training must be prioritised, addressing the most pressing needs first • Training should be delivered at a convenient time, and in a convenient manner • Registering for training should be easy for the trainee • Feedback must be obtained from trainees to continuously improve programs • Skills-based learning and people interfacing skills should ideally be facilitated through a face-toface delivery channel to cater for questions and problem-solving A curriculum framework should be flexible enough to incorporate a number of different means for developing and delivering training Ref: Training from Scratch, Nancy Kuhn, 41

Curriculum Framework Barriers to Success Significant barriers to success exist, which may significantly undermine the successful adoption of the curriculum by the micro finance industry • Lack of a cohesive approach to the deployment and delivery of training and development initiatives • Lack of ownership and buy-in for training and development • Lack of incentives to take advantage of the learning initiatives and to generate demand for training • Often supply-driven and delivered in a top-down fashion, rather than from the target audience needs • Training should be business-oriented, and not viewed as an extension of the basic general educational system • Training services are not always accessible to the target audience • Must be delivered via a suitable, convenient medium • Geographic dispersion must be taken into account when planning the delivery of curriculum content 42

Training Delivery Principles Two main types of training delivery have been proposed, namely distance learning and face-to-face delivery Description Advantages Disadvantages DISTANCE learning § Knowledge-based § Delivery media include videos, internet, CDs, etc. § Controlled, consistent content • Effective for large groups or multiple locations § Does not required trainer/trainee travel § Can contain large amounts of material § Accessible at learner’s convenience § Require suitable infrastructure to run training (e. g. computers for CBTs) § May be difficult to disseminate § May be difficult to update material (CDs or videos, does not apply to internet) § Limited bandwidth may result in slow delivery FACE-TOFACE learning § Skills-based § Delivery media include classroom, mentoring, apprenticeships, etc. § Easily customised and revised § Quick to develop § Minimal development costs § Trainees can ask specific questions § Slow learning rate § Inconsistencies from class to class § Scheduling often presents difficulties § Difficult to control and monitor Micro financiers may be reluctant to make use of long-term classroom type learning due to work pressures. It is therefore important that consistency of training content is provided through both distance and face-to-face channels 43

Training Delivery Channels – face -to-face learning There are three key face-to-face delivery channels: classroom, workshops and seminars Channels Classroom Training Workshops Seminars Advantages § Instructor adapts to specific audience § Group or applied problem-solving needs applications § Quickly developed § Content may be unique or tailored to group needs § Actual tasks can be simulated § Encourage collaboration, networking, § Allow exchange of ideas, elaboration of and sharing of war stories content, feedback § Conveys common message § Experts present information to large groups of people in one location § Allows for networking § Reinforces culture, etc. § Motivational, depending on the presenter Disadvantages § Content is potentially unstable/changing § Content is one-time message § Resource availability may be a factor for § High risk of doing competency wrong regional delivery § Practice opportunities linked to casestudy materials, not necessarily linked to actual job § Content is a one-time message § Individual feedback may be limited When to use § In large groups at regional training sites § Instructor as an expert, facilitator, and role model § 80 -100 hours per hour of delivery Cost / Development time § Low development cost § R 350 per hour of development time § Can be conducted to solve a group § Disseminate common information from problem; develop group process skills "the" experts to a large group at a regional training site § Small groups at local office or regional site § One-time message § 80 -100 hours per hour of delivery § Low development cost § R 350 per hour of development time Recommendation Should be used where skills levels are Should be used to develop “hotlow and perceived importance is high – skills” for the industry and to especially where skills-based learning disseminate best practices is called for 44 § 80 -100 hours per hour of delivery § Low development cost § R 350 per hour of development time Should be used to disseminate topical and industry best practice information and develop “Hot skills” for the industry

Training Delivery Channels – face -to-face learning Coaching and mentorship are cheaper alternatives for face-to-face, but may lack consistency of approach and may fail due to lack of sustained support Channels Coaching Mentoring Role Play Advantages § § Inexpensive to develop High transfer of knowledge Directly relevant to trainee’s job Trainee’s interact with coworkers § § Disadvantages § § Training may be inconsistently delivered Difficult to control/monitor Requires workers to be teachers Can disrupt regular workflow § Training may be inconsistently delivered § Difficult to control/monitor § Requires workers to be teachers § Can disrupt regular workflow § Training may be inconsistently delivered § Difficult to control/monitor When to use § On-the-job training § In small groups at regional training sites § 15 -60 hours per hour of delivery § Low development cost § R 350 per hour of development time § 15 -60 hours per hour of delivery Cost / Development time § Low development cost § R 350 per hour of development time Inexpensive to develop High transfer of knowledge Directly relevant to trainee’s job Trainee’s interact with coworkers § Student demonstrates a skill in a simulation of the real situation § Apply knowledge and skills by demonstrating § Encourage collaboration, networking, and sharing of war stories § Immediate feedback is provided Recommendation Could be used to disseminate skills and Subject matter experts could be used Could be used where people knowledge obtained from seminars, to consult on best practice and up to workshops and experience to staff date views on “Hot Topics” and members who are new to their role or to problem solving the organisation. Coaching could also be used as a means of informal assessment of learners 45 interaction skills are required e. g. in Client service scenario where the learner may need to develop practical techniques of how to deal with difficult clients

Training Delivery Methods – distance learning Simulation training, CBT’s and Videos could be used as complimentary as well as parallel delivery methods to face-to-face channel methods Methods Simulation Training CBT Video Tape Advantages § Student demonstrates a skill in a simulation of the real situation § Immediate performance feedback § Consistent delivery; learner controlled; flexible completion times/places § Individualized feedback § Easy to track performance § Available on demand § Individualised self-paced instruction § Content relatively stable § Can contain large amounts of information § § § Disadvantages § Can be expensive to develop § Long development cycle § May require high-tech equipment to run § Can be costly to update and produce § Require necessary hardware to run training § Updates require burning new CBTs § Expensive to produce and update § Requires necessary equipment to run training § Updates require development of new videos When to use § When in-depth problem-solving, decision § Individually at local office / home -making and application of skill is required Leverage "experts" time Consistent delivery Reduce travel costs to meetings, etc. Capture a "real" event Content relatively stable Interaction or feedback is not necessary § Flexible delivery times; could be viewed at home § In large groups and / or multiple locations § Individually at local office / home § 300 -600 hours of development per hour § 300 -600 hours of development per Cost / hour of delivery Development time of delivery § High development cost § R 372 per hour of development time § 300 -600 hours of development per hour of delivery § High development cost § R 372 per hour of development time Recommendation Should be used for very complex Should be used extensively as a parallel medium to emulate face-toface delivery. Should be used where the practicing of skills is required 46 Should be used extensively as a parallel medium to emulate face-toface delivery. Should also be used where emulation of behaviours or skills are required § High development cost § R 350 per hour of development time decision-making and problem solving skills areas such as finance and risk management to accurately reflect a work scenario

Training Delivery Methods – distance learning Manuals, multimedia and the internet could be used as complimentary as well as parrallel delivery methods to face-to-face delivery methods Methods Paper-based/Electronic Manuals Interactive multi-media Internet Advantages § § § Consistent delivery Portable Learner-controlled Available on demand Expert interaction not required for elaboration § Reduced travel costs § Combination of sound, graphics, text § Allows participants to learn at their own and video on a computer pace through an internal Internet site § Safe practice of skills § Reduces need for trainers § Simulate actual tasks § Material is easily updated / customised § Stable content § Interactive and motivational § Training can occur on demand, at point of need § Reaches large audience Disadvantages § § § Can be expensive to develop § Relatively long development cycles § Expensive to update § Limited bandwidth may result in slow response times When to use § Learner-controlled training that can be completed at point-of-need § Individually or in a small group § Instructor-led or self-study § When the content does not require much facilitation or interaction § Individually at local office / home Cost / Development time § 80 -120 hours of development per hour of delivery § Medium development cost § R 350 per hour of development time § 300 -600 hours of development per hour of delivery § High development cost § R 350 per hour of development time Recommendation Should be used to supplement face-toface delivery as well as a parallel medium for distance learning Should be used as a parallel medium to emulate face-to-face delivery. Should be used where the practicing of skills is required or 47 Should be used to supplement face-toface delivery as well as a parallel medium for distance learning Should be used as the primary Minimal feedback opportunities Expensive to revise content Generally low completion rates Content is potentially unstable Requires literate learners

Guiding Principles guiding the delivery of training to micro financiers were developed, taking into account global best practice § Training design and delivery should be modular § Training must be relevant to the learner, and impact their performance at work § Training development must be prioritised based on micro financier needs § Training development must be flexible, and be easy to update when required § A combination of experiential and situational methodologies should be used § A combination of face-to-face and distance learning channels should be used § Content should be available over multiple delivery channels Within these guiding principles, an approach to the development, delivery and management of training has been defined 48

Strategy for Delivering Training A central coordinating body, or training centre, is required to ensure efficient planning, design and delivery of training to micro financiers LEARNING AND TRAINING DEVELOPMENT DISTANCE LEARNING FACE-TO-FACE LEARNING Call centre Internet Portal MICRO FINANCIERS • Downloadable training material • Access to training catalogues • Schedule of training courses TRAINING CENTRE TRAINING PROVIDER NETWORK The training centre and the proposed BDS centre should be one entity, to ensure economies of scale 49

Strategy for Delivering Training The training centre is responsible for the development, management and delivery of the training curriculum to the micro financiers CALL CENTRE Phone / fax INFORMATION Training curriculum ACTIVITIES List of training providers Catalogue of training material Online access INTERNET PORTAL Register for workshops / seminars Conduct online training Manage learner database List of subject matter experts (SMEs) Order videos, CDs, manuals etc. Review and update curriculum Register for face-to-face training FRONT-office Coordinate trainee feedback Certification of learners Research new content / delivery mechanisms Portal maintenance BACK-office Training Centre The training centre could be outsourced by BANKSETA 50

Incentives A significant risk to the successful delivery of training to the micro finance industry is the perceived lack of real business benefits § Involvement of micro finance practitioners in the development of the content of the training materials will the create a sense of ownership of the programme Ø Buy-in for the benefits of the training initiatives will be generated through a needs-driven strategy Ø The creation of micro finance best practices will be generated through practitioner involvement in the project and in so doing generate demand for the training § Monetary incentives in the form of skills development grants will afford micro financiers the opportunity to claim back on their skills levies paid. Qualifying employers can access up to 60% of their annual contributions for skills development under the sector grant scheme Ø Planning grants – through the registration of a skills development facilitator as well as the submission of a workplace skills plan Ø Implementation grants– through the submission of a skills development implementation report Incentives in the form of skills development grants would be the main monetary incentives for micro finance businesses 51

Approach Overview Over the past nine weeks, the project team has been actively collecting data and consulting stakeholders on learner skills and business needs Research Best Practice Qualitative Interviews with Stakeholders Curriculum Development Team Workshops Curriculum Framework Consultation with External Subject Matter Expert Consultative Forum Workshops Web-based Electronic Survey Learner Needs Analysis 52

Curriculum Content Overview The curriculum content has been developed through the application of best practice models, consultation with industry experts and stakeholders, and the learner needs analysis § The majority of South African micro finance businesses are small to medium sized businesses and it is with this in mind that the overall modular approach to the training needs of micro financiers was taken Ø The contextual learning needs of a micro finance business were looked at from a small to medium sized business perspective, where every aspect of the business was seen as a training module Ø International business school models were applied to source the various training modules that would be appropriate to a small to medium-sized financial services business Ø Several industry practitioners and stakeholders were approached for their input on the training requirements of a micro finance business. Responses from these interviews were used to add micro finance industry-specific topics to the curriculum Ø Existing unit standards for the banking industry were used Ø An external subject matter expert was consulted on the overall approach and content of the curriculum framework Ø Workshops with the Curriculum Development Team and the Consultative Forum were held to validate the approach and high level content 53

Risk Management Outline Risk management had the highest rating of importance in the learner needs analysis survey The Risk Management skills area consists of four modules: Module Definition Fraud Management The ability to minimise fraudulent transactions in your business through the establishment of effective fraud prevention policies and procedures Risk Management Identification and analysis of risk to the business. This includes managing the impact of interest rate changes and specific client risks Risk and Return Analysis Identification and analysis of risk to the business in relation to the expected returns from loans made Client Credit Limits Setting of standard credit limits for clients Recommended delivery channels and training methodologies Substantial faceto-face initiatives to develop foundational skills in Risk Management Supported by mentoring programmes, coaching, seminars and workshops Supported by distance learning initiatives such as CBT, Manuals and web-based learning Classroom based courses should be run to development this important skill area, supported by coaching and electronic material 54

Risk Management – Survey Findings The overall importance of risk management is 84% whilst the reported skill levels average 64% and 21% of respondents have received training in this area Risk Management 100 90 87 84 83 83 80 Percent 70 63 68 62 61 60 50 40 30 20 10 0 Fraud Management Risk Management Importance (%) Risk and Return Analysis Skill Level (%) Client Credit Limits % Received Training § Overall, risk management is rated as the most important skill area by micro financiers § The importance of the four risk management skills were similarly rated by micro financiers (83%-87%), as were the levels of expertise (61%-68%) § The fewest respondents had received training in fraud management (16%) § Most respondents had received training in ‘risk and return analysis’ (24%) § Client credit limits are an important skill, as this could limit the danger of borrowers becoming over-indebted and unable to repay their loans due to reckless lending. The training received in this skill is 21% and suggests a priority skill for training There appears to be a high need for training in fraud management and the setting of client credit limits 55

Risk Management - Delivery Recommendations The management of risk is fundamental to the running of a micro finance business Module Learning Outcome Delivery Channel Fraud Management Manage fraud within a micro finance business Face-toface § Classroom Training could be used at the § Case Studies on South African fraud could be developed beginning of the learning process to develop foundational knowledge of fraud management § Seminars and workshops could be used to showcase latest findings and trends in fraud management from experts in the industry and be offered on an ongoing basis § Coaching could be used to disseminate knowledge to new recruits into a business and could be used as a basis for informal assessment § Mentoring programmes could be used to reinforce the foundational learning from classroom training Distance Learning § Electronic Information Exchanges and BDS through interviews with micro financiers who have been victims of fraud § Electronic and paper-based manuals with methods to manage and combat micro finance targeted fraud could be used to help establish content and situational knowledge of fraud management principles § Manuals could be supplemented by Instructional videos depicting real life examples of how fraud has successfully been managed within micro finance businesses in South Africa § Guest speakers from the micro finance industry could be used in classroom training, seminars and workshops to convey a sense of how fraud is practically managed in a business Face-toface § Seminars and workshops could be used to § Risk and return Analysis Manuals could be developed, establish practical skills in risk return analysis § Coaching could be used to disseminate Risk and return analysis skills § A CBT with a practical Ms Excel-based tool to simplify and Risk and Return Analysis Identify and apply appropriate criteria for calculating repayment ability in relation to expected returns from loans made Distance Learning Type of Channel Web portal, could be used to disseminate training materials cheaply throughout the country § BDS call centre / support centre could be used to purchase training materials from § Electronic Information Exchanges and Webbased training, could be used to disseminate content information cheaply throughout the country § BDS call centre / support centre could be contacted to arrange for manuals and CBT’s 56 Training Method based upon a typical micro finance business model standardise the calculation and analysis of risk and return could be developed in consultation with micro financiers § A Case study of how analysis could be applied within a micro finance business to accurately predict risk and return could be developed and could also include a business simulation model to show § A Business simulation model, showing the application of risk and return principles could be developed so that learners can practice and develop skills that can be directly transferred into their business

Risk Management - Delivery Recommendations The management of risk is fundamental to the running of a micro finance business Module Learning Outcome Delivery Channel Risk Management Structure a risk management policy and procedure for a micro finance institution Face-toface § Classroom Training, could be used at the § Electronic and paper-based manuals with guidelines on beginning of the learning process to develop foundational knowledge of risk management policies and procedures § Seminars and workshops could be used to showcase latest findings and trends in risk management from experts in the industry and be offered on an ongoing basis § Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment § Mentoring programmes could be used to reinforce the foundational learning from classroom training how to establish a sound risk management policy for a micro finance business could be developed. Examples of established risk management procedures could be included in the content and serve as a basis for application within the learner’s business environment § Case Studies developed through consultation with micro financiers could be used to depict good and bad applications of risk management policies and procedures § Guest speakers could be used to talk about how they set up a risk management policy and procedures for their business and what practical difficulties they had in developing and implementing Distance Learning § Electronic Information Exchanges and BDS Face-toface § Seminars and workshops could be used to § Electronic and paper-based manuals with guidelines on showcase latest findings and trends in credit limit setting from experts in the industry § Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment Distance Learning § Electronic Information Exchanges and Web- credit limit setting within a micro finance business could be established. Principles of credit limit setting and management could be included in the content to build foundational and contextual knowledge of why the skill is important to a micro finance business § A CBT could be developed with scenarios on client credit limit setting and possible associated risk stemming from incorrect limit setting § Case Studies on credit limit setting could be developed through consultation with micro financiers to show benefits of sound credit limit setting principles Client Credit Limits Set standardised credit limits for clients Type of Channel Training Method Web portal, could be used to disseminate training materials cheaply throughout the country § BDS call centre / support centre could be used to purchase training materials from based training, could be used to disseminate content information cheaply throughout the country 57

PIENAAR: hidden Loan Book Management Outline Loan book management was rated as the second most important skill in the survey The Loan Book Management skills area consists of five modules: Module Definition Loan Repayments The ability to effectively record loan data, collect all instalments due and correctly issue receipts Loan Book Reconciliation The ability to reconcile loan repayments with the loan book Bad Debt Recovery Process The effective operation of procedures, systems and practices to recoverdue loan repayments and bad debts Interest Calculation Ability to calculate interest on different loans in your business Debt Collector Appointment and Management Appoint and manage debt collection agents Recommended delivery channels and training methodologies Substantial faceto-face initiatives to develop foundational skills in Risk Management Supported by mentoring programmes, coaching, seminars and workshops Supported by distance learning initiatives such as CBT, Manuals and web-based learning This key skills needs to be developed through classroom-based learning, supported by coaching and electronic material 58

PIENAAR: hidden Loan Book Management – Survey Findings Percent The overall importance of loan book management is 82% whilst the reported skill levels average 68% and 28% of respondents have received training in this area 100 90 80 70 60 50 40 30 20 10 0 Loan Book Management 91 88 77 Loan Repayments 87 74 72 70 64 Loan Book Reconciliation Importance (%) 84 Bad Debt Recovery Processes Skill Level (%) 58 Interest Calculations Debt Collector Appointment and Management % Received Training § ‘Loan Repayments’ achieved the highest level of importance (91%) in the entire survey, which is not surprising due to the nature of the industry. As expected, the skill levels are high in this area (77%) and 40% of respondents have received training in this area § The appointment and management of debt collectors is viewed as the least important skill, with low skill levels and only 18% of respondents had received training in this area. This could be attributable to the fact that most micro financiers collect debts themselves § Training and skill levels are quite low in ‘bad debt recovery processes’ indicating a priority for training Staff need to be trained on how to manage the bad debt recovery process, as well as the appointment and management of debt collectors 59

PIENAAR: hidden Loan Book Management Delivery Recommendations Loan book management is a core business function for a micro financier Module Learning Outcome Delivery Channel Loan Repayments Set up a policy and procedure for recording loan data, collecting all instalments due and correctly issuing receipts Face-toface § Seminars and workshops could be used to § Electronic and paper-based manuals could be used to showcase latest findings and trends in loan repayment management from experts in the industry and should be offered on an ongoing basis § Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment help establish content and situational knowledge of loan repayment principles and included guidelines on the setting of policies and procedures for the loan repayment function § Case Studies could be developed in consultation with micro financiers to show various loan repayment procedures and policies and to highlight possible pitfalls of inappropriate loan repayment practices Distance Learning § Electronic Information Exchanges and BDS Face-toface § Classroom Training could be used at the § Electronic and paper-based manuals could be developed beginning of the learning process to develop foundational knowledge of loan book reconciliation § Seminars and workshops could be used to showcase latest findings and trends in loan book reconciliation from experts in the industry and should be offered on an ongoing basis § Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment to show the standard steps to be followed when reconciling a loan book. This manual should be developed in consultation with micro finance practitioners to ensure relevance § A CBT could be developed to show the process to be followed to reconcile the loan book with repayments done. Scenarios could be included, showing possible solutions for common errors in loan book reconciliation Distance Learning § Electronic Information Exchanges and BDS Loan Book Reconciliation Reconcile loan repayments with the loan book Type of Channel Training Method Web portal, could be used to disseminate training materials cheaply throughout the country § BDS call centre / support centre could be used to purchase training materials from 60

PIENAAR: hidden Loan Book Management Delivery Recommendations Loan book management is a core business function for micro financiers Module Learning Outcome Delivery Channel Type of Channel Bad Debt Recovery Process Set up procedures, systems and practices to recoverdue loan repayments and bad debts Face-toface § Classroom Training, could be used at the § Electronic and paper-based manuals could be used to beginning of the learning process to develop foundational knowledge of loan book reconciliation § Seminars and workshops could be used to showcase latest findings and trends in bad debt recovery process management from experts in the industry and should be offered on an ongoing basis § Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment help establish content and situational knowledge of loan repayment principles and be supplemented by Instructional videos § Case Studies could be developed in conjunction with micro finance practitioners to Distance Learning § Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country § BDS call centre / support centre could be used to purchase training materials from 61 Training Method

PIENAAR: hidden Loan Book Management Delivery Recommendations Loan book management is a core business function for micro financiers Type of Channel Training Method Module Learning Outcome Delivery Channel Interest Calculation Calculate interest on different loans in a micro finance business Face-toface § Seminars and workshops could be used to § Electronic and paper-based manuals could be developed showcase latest findings and trends in loan book reconciliation from experts in the industry and should be offered on an ongoing basis § Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment Distance Learning § Electronic Information Exchanges and BDS in consultation with a cross-section of micro financiers who are involved in different types of lending e. g. Housing, short -term and term lending to develop appropriate models of interest calculation for the industry § A CBT could be developed with a practical, standardised tool in MS Excel to calculate interest and repayment schedules for various types of loans Face-toface § Seminars and workshops could be used to § Electronic and paper-based manuals could be used to showcase latest findings and trends in dent collection appointment and management from experts in the industry • Coaching could be used to disseminate knowledge to new recruits into a business and be used as a basis for informal assessment Distance Learning § Electronic Information Exchanges and BDS help guidelines on the appointment of debt collection agents for a micro finance business. Both micro financiers and debt collection practitioners could contribute to the development of this manual § Case Studies could developed in conjunction with micro financiers and debt collection agencies. The case study could show the various operating models of collection agents and how they would best suit the needs of their micro finance business. Success as well as failure stories could be depicted. Debt Collector Appointment and Management Appoint and manage debt collection agents portal, could be used to disseminate training materials cheaply throughout the country § BDS call centre / support centre could be used to purchase training materials from Web portal, could be used to disseminate training materials cheaply throughout the country § BDS call centre / support centre could be used to purchase training materials from 62

Cash Management Outline According to the results from the survey, cash management has the third highest rating of importance The Cash Management skills area consists of two modules: Module Definition Cash Management Procedures The policies and procedures to manage daily cash floats and cashing up to ensure effective control Security Policies and Procedures Setting up policies and procedures for limiting the amount of cash on the premises and securing the premises against robberies, theft and fraud Recommended delivery channels and training methodologies Predominantly Internet –based and paper-based training materials Supported by coaching, seminars and workshops The development of Industry best practices could be used to develop industrywide policies and procedures for the containment of physical risk for micro financiers 63

PIENAAR: hidden Cash Management Survey Results The overall importance of cash management is 81% whilst the reported skill levels average 65% and 24% of respondents have received training in this area Cash Management 100 90 80 Percent 70 82 79 67 63 60 50 40 30 20 10 0 Cash Management Procedures Importance (%) Skill Level (%) § Security of cash appears to be important to micro financiers (82%) since most micro financiers deal with a large amount of cash on their premises. 29% of respondents had received training in this skill and the reported skill levels were 67% § ‘Security policies and procedures’ were also rated quite high, however fewer respondents said they had received training in this skill (18%) § The overall management of cash was less important (59%) to respondents Security Policies and Procedures % Received Training There appears to be a need for training in the security policies and procedures pertaining to cash management 64

Cash Management - Delivery Recommendations The management of cash is core to the running of a micro finance business Module Cash Management Procedures Security Policies and Procedures Learning Outcome Delivery Channel Develop policies and procedures to manage daily cash floats and cashing up to ensure effective control Face-toface § Face to face training methodologies not Distance learning § Electronic Information Exchanges and Set up policies and procedures for limiting the amount of cash on the premises and securing the premises against robberies, theft and fraud Type of Channel indicated due to the nature of the subject being predominantly policy and procedure setting based Web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country § Training materials could be purchased from BDS call centre / training centre § Face to face training methodologies not Face-toface Distance learning indicated due to the nature of the subject being predominantly policy and procedure setting based § Electronic Information Exchanges and Web-based training, could be used to disseminate latest trends and best practice information on the setting of security policies and procedures Training materials could be purchased from BDS call centre / training centre 65 Training Method § Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures as well as disseminate industry best practices § Seminars held by industry experts could be arranged to update micro finance practitioners on the latest trends in cash management procedures to contain physical risk § Coaching could be used to disseminate the latest cash management best practices within businesses § Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures § Seminars and workshops held by security industry experts could be arranged to update micro finance practitioners on the latest trends in containing physical risk for micro finance businesses § Coaching could be used to disseminate the latest trends in physical risk containment practices

PIENAAR: hidden Cash Management - Delivery Recommendations The management of cash is core to the running of a micro finance business Module Cash Management Procedures Security Policies and Procedures Learning Outcome Delivery Channel Type of Channel Develop policies and procedures to manage daily cash floats and cashing up to ensure effective control Face-toface § Face to face training methodologies are not Distance Learning § Electronic Information Exchanges and Set up policies and procedures for limiting the amount of cash on the premises and securing the premises against robberies, theft and fraud recommended due to the nature of the subject being predominantly policy and procedure setting based Distance Learning § Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures Web-based training, could be used to disseminate latest trends and best practice information cheaply throughout the country § Training materials could be purchased from BDS call centre / training centre § Face to face training methodologies not Face-toface Training Method indicated due to the nature of the subject being predominantly policy and procedure setting based § Electronic Information Exchanges and Web-based training, could be used to disseminate latest trends and best practice information on the setting of security policies and procedures § Training materials could be purchased from BDS call centre / training centre 66 § Electronic and paper-based manuals could be used to help establish content knowledge of how to develop policies and procedures

PIENAAR: hidden Client Service Outline Client Service was rated as the fourth most important skill area in the learner needs analysis survey The Client Service skills area consists of five modules: Module Definition Client Request Resolution Ability of staff to deal with client requests for loan information, dispute resolution and requests for rescheduling of loans Product and Service Knowledge The level with which staff are able to successfully provide product and service information to clients Client Acquisition and Retention Strategies Ability to identify innovative ways of acquiring and retaining customers on an ongoing basis Client Education and Coaching Educating and coaching clients in skills to handle their finance so that they can meet their commitments and not incur excess debt Client Service Improvement Ability to identify ways to improve service to clients and to act on problem areas Foundational skills development through classroom training Supported by case studies and manuals Followed up by coaching and mentoring workshops A programme on Client Service could be run that covers the skills and knowledge components of client service 67

PIENAAR: hidden Client Service – Survey Results The overall importance of client service is 82% whilst the reported skill levels average 65%, and 24% of respondents have received training in this area Client Service 87 85 70 81 79 71 60 Percent 100 90 80 70 60 50 40 30 20 10 0 Client Request Resolution Product and Service Knowledge Importance (%) Client Acquisition & Retention Strategies Skill Level (%) 77 65 Client Education and Coaching 57 Client Service Improvement % Received Training § ‘Client request resolution’ and ‘Product and service knowledge’ are seen as the most important skills for client service, and the skill levels are relatively high § Client service improvement is rated the least important of all the client service skills, and the skill levels are correspondingly low § Client acquisition & retention was rated fairly high, although experience would suggest this to be the most important skill for micro financiers given the pressures of increased competition on their businesses. Only 19% of respondents had received training in this skill ‘Client acquisiton & retention’ is an important skill and training in this skill could receive a high priority due to the low level training received 68

PIENAAR: hidden Client Service Delivery Recommendations With increasing competition, client service will become one of the differentiators in the micro finance industry Module Learning Outcome Delivery Channel Client Request Resolution Effectively deal with client requests for loan information, dispute resolution and requests for rescheduling of loans Face-toface § Role plays could be used to support classroom based § Electronic and paper-based manuals could be training. Scripts for different client requests could be created and different roles enacted by trainees § Coaching could be used to disseminate knowledge to new recruits into a business and to provide ongoing training to staff on managing client requests. A client resolution scorecard could be created by the staff which is reviewed weekly and successes tracked used to educate on the basic request resolution processes and frequently asked questions. These could include Client Resolution Job Aids and Process posters to assist staff members § Case Studies would form the basis of the role plays and be based on real examples collected from branches or reported at the MFRC Distance Learning § Electronic Information Exchanges and BDS Web Face-toface § Classroom Training, could be used at the beginning of Distance Learning § Electronic Information Exchanges and BDS Web Product and Service Knowledge Provide product and service information to clients Type of Channel Training Method portal, could be used to disseminate training materials cheaply throughout the country and advise members of news § BDS call centre / support centre could be used to purchase training materials from a central point the learning process to develop basic knowledge of micro financing products and services. This training must include ways of communicating this information to clients. § Coaching could be used to disseminate knowledge to new recruits and to provide training on any new products or services portal, could be used to disseminate training materials cheaply throughout the country and advise members of news § BDS call centre / support centre could be used to purchase training materials from a central point 69 § Electronic and paper-based manuals could be used to educate staff members and new recruits on basic products and services offered by the business. A job aid and/or “pop quizz” on product features could also be used to ensure information is internalised

PIENAAR: hidden Client Service Delivery Recommendations With increasing competition, client service will become one of the differentiators in the micro finance industry Module Learning Outcome Delivery Channel Type of Channel Client Acquisition and Retention Strategies Identify innovative ways of acquiring and retaining customers on an ongoing basis Face-toface § Classroom Training, could be used at the beginning § Case Studies on different company’s strategies of the learning process to develop basic acquisition and retention strategies for managers § Seminars and workshops could be used to showcase latest best practices for acquisition and retention I. e further research on Customer Lifetime Value and presentations from experts in the field § Coaching could be used to disseminate knowledge to staff could be used as supporting material § Electronic and paper-based manuals could be used to help establish basic acquisition and retention knowledge Distance Learning § Electronic Information Exchanges and BDS Web Face-toface § Seminars and workshops could be used to train Distance Learning § Electronic Information Exchanges and BDS Web Client Education and Coaching Educate and coach clients in skills to handle their finance so that they can meet their commitments and not incur excess debt Training Methodology portal, could be used to disseminate training materials cheaply throughout the country and advise members of news § BDS call centre / support centre could be used to purchase training materials from a central point learners in techniques on how to educate and coach clients § Role plays could be used to support transfer of skills techniques in education and guiding clients § Coaching could be used to disseminate skills and techniques to new recruits into a business and to train on new approaches or methods portal, could be used to disseminate training materials cheaply throughout the country and advise members of news § BDS call centre / support centre could be used to purchase training materials from a central point 70 § Electronic and paper-based manuals could be used to help establish the “how” and the “what” to communicate to clients

PIENAAR: hidden Client Service Delivery Recommendations With increasing competition, client service will become one of the differentiators in the micro finance industry Module Learning Outcome Delivery Channel Type of Channel Client Service Improvement Identify ways to improve service to clients and to act on problem areas Face-toface § Seminars and workshops could be used to § Electronic and paper-based manuals could be showcase latest findings and trends in client service improvement from experts in the industry § Role plays could be used to help staff identify ways to improve service § Coaching could be used to disseminate skills and techniques to new recruits into a business and ensure ongoing development takes place. This skills lends itself to ongoing coaching and guidance used to help establish basic client service principles and behaviours § Video could be used to illustrate international or local examples of good client service Distance Learning § Electronic Information Exchanges and BDS Web portal, could be used to disseminate training materials cheaply throughout the country and advise members of news § BDS call centre / support centre could be used to purchase training materials from a central point 71 Training Method

PIENAAR: hidden Finance Outline (1) Finance has nine skill areas that require development The Finance skills area consists of nine modules: Module Definition Cost Management Ability to understand cost management data and cost management reports required to run a micro finance business Management Report Preparation The ability to prepare and interpret management reports on client trends, overdue loans, bad debt and other information essential to managing the business Financial Statement Preparation The ability to prepare and /or read the financial statements and form an opinion of the financial health of the business. Business Ethics Alignment Applying business practices that will contribute in setting an image of the micro finance industry as part of the formal financial services sector, always acting in the interest of clients and the community Budgeting and Financial Planning The ability to prepare budgets and conduct financial planning in a business (debt, cashflow, payments etc) 72

PIENAAR: hidden Finance Outline (2) Finance has nine areas that require development The Finance skills area consists of nine modules: Module Definition Internal Audit Ability to examine the business’s accounting records, processes, systems and administration to ensure compliance and to prevent fraud Accounting Packages The ability to use computer-based accounting packages Cash Flow Management Having an understanding of the amount of cash needed to fund the demand for loans at different times of the month and year (e. g. In December, the demand for loans may increase due to Christmas) and ongoing operations Tax Calculation The ability to calculate tax calculations (e. g. employees and provisional tax). Foundational skills development through classroom training Seminars, workshops and coaching Case studies, simulations and CBT In the past, there has been a lack of focus on internal auditing by micro financiers, a trend which could open such businesses to internal fraud 73

PIENAAR: hidden Finance Survey Results The overall importance of finance is 78% whilst the reported skill levels average 61% and 29% of respondents have received training in this area Finance 100 90 80 Percent 70 83 82 67 82 64 82 65 60 79 62 78 62 77 57 77 65 61 66 48 50 40 30 20 10 0 Cost Mgt Report Prep Financial Business Budgeting Statement Ethics & Financial Prep Alignment Planning Importance (%) Skill Level (%) Internal Accounting Cashflow Tax Audits Packages Mgt Calculations % Received Training § As expected, the financial functions of micro financiers are very important, with many skill areas achieving an 80% importance level § A cause for some concern is the low level of skills reported in the preparation of financial statements (65%), despite the finding that 42% of respondents had received training. This suggests that past training has not been effective § ‘Tax calculations’ were rated as the least important skill, with skill levels and training far below that of the other finance skills. Perhaps this function is performed by tax consultants or accountants and not by micro financiers themselves. There is a need for training in this area in order to enable micro financiers to understand the tax implications of business operations Training could be offered across all finance skill areas to the relevant people who fulfill financial functions in micro finance organisations 74

Davidsb: PIENAAR: Finance Delivery Recommendations hidden Module Learning Outcome Delivery Channel Cost Manage ment Understand cost management data and cost management reports required to run a micro finance business Face-toface Distance Learning Manage ment Report Prepara tion Prepare and interpret management reports on client trends, overdue loans, bad debt and other information essential to managing a micro finance business Type of Channel § Classroom training could be used at the beginning of the learning process to develop foundational knowledge of cost management § Mentoring programmes could be used to reinforce the foundational learning from classroom training § Seminars and workshops could be used to showcase latest findings and trends in cost management from experts in the industry § Coaching could be used to disseminate knowledge to new recruits into a business § Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country § Training materials could be purchased from BDS call centre / training centre Training Method § Case studies could be developed in consultation § § with micro financiers where a learner would need to perform a profitability analysis (cost drivers) – identify the major costs of 3 different micro finance businesses and ways of reducing their costs Practical exercises could be developed where the learner would need to prepare a cost budget for their micro finance business Specific computer application training for cost management reporting Electronic and paper-based manuals could be used to help establish content and situational knowledge of costing accounting and cost management principles A CBT could be developed which would take learners through the micro finance case studies and practical exercises as mentioned above Face-toface § Classroom training, could be used at the beginning of the § Electronic and paper-based manuals could be learning process to develop foundational knowledge of cost management § Mentoring programmes could be used to reinforce the foundational learning from classroom training § Seminars and workshops could be used to showcase latest findings and trends in cost management from experts in the industry § Coaching could be used to disseminate knowledge to new recruits into a business developed which incorporate the interpretation and understanding of exception reports, warning signs of potential problems, reasons for rising costs and for declining revenues § A CBT with a simulation of how to put together management reports for a micro finance business could be developed and be based upon § Case studies could be used to impart contextual and situational knowledge and solutions Distance Learning § Electronic Information Exchanges and Web-based training, could be used to disseminate content information cheaply throughout the country § Training materials could be purchased from BDS call centre / training centre 75

Davidsb: PIENAAR: Finance Delivery Recommendations hidden Module Learning Outcome Delivery Channel Financial Statement Preparation Prepare and /or read the financial statements and form an opinion of the financial health of the business Face-toface Type of Channel § Classroom training could be used at the beginning of the learning process to develop foundational knowledge of Income statements, balance sheets and cash flow statement preparation § Mentoring programmes could be used to reinforce the foundational learning from classroom training § Seminars and workshops could be used to showcase latest findings and trends in financial statement preparation from experts in the industry § Coaching could be used to disseminate knowledge to new recruits into a business Training Method § Electronic and paper-based manuals could be used to help establish content and situational knowledge of how to read and interpret financial statements as well as develop an understanding of the interdependencies between the different types of financial statements § An interactive CBT could be developed where the learner would “prepare” financial statements for a hypothetical micro finance business § Case Studies could be developed and used to compare financial statements from several micro-finance businesses and could form the basis of an analysis of relative financial ‘health’ of the businesses Distance Learning Business Ethics Alignment Apply business practices that will contribute in setting an image of the micro finance industry as part of the formal financial services sector, always acting in the interest of clients and the community § Electronic Information Exchanges and Web- Face-toface § Seminars and workshops could be used to § Case Studies of micro-finance business practices could showcase latest findings and trends in business ethics alignment from experts in the industry § Coaching could be used to build and perpetuate the application of business ethics in the microfinance industry Distance Learning § Electronic Information Exchanges and Web- be developed and be used to depict implications of not applying ethical business practices. The case study could involve learners making value judgments and giving feedback on what they would do in the given situations § Electronic and paper-based manuals could be used to help establish content and situational knowledge of business ethics for the micro-finance industry based training, could be used to disseminate content information cheaply throughout the country § Training materials could be purchased from a BDS call centre / training centre based training, could be used to disseminate content information cheaply throughout the country § Training materials could be purchased from BDS call centre / training centre 76

Davidsb: PIENAAR: Finance Delivery Recommendations hidden Module Learning Outcome Delivery Channel Type of Channel Budgeting and Financial Planning Prepare budgets and conduct financial planning in a business (debt, cash flow, payments etc) Face-toface § Classroom training, could be used at the beginning of the § Case Studies could be used to develop an learning process to develop foundational knowledge of budgeting and financial planning § Mentoring programmes could be used to reinforce the foundational learning from classroom training § Seminars and workshops could be used to showcase latest findings and trends in budgeting and financial planning from experts in the industry § Coaching could be used to disseminate knowledge to new recruits into a business Distance Learning § Electronic Information Exchanges and Web-based understanding of what should be included in a budget and how to calculate budget entries. In addition, the case study could help the learner identify strategies to maximise cash flow while at the same time ensuring timeous payment by customers § Electronic and paper-based manuals could be used to help establish content and situational knowledge of how to plan what finances a hypothetical micro finance business will need in the future based on past expenditures as well as develop an understanding of the differences between cash and credit training, could be used to disseminate latest trends and best practice information cheaply throughout the country § Training materials could be purchased from BDS call centre / training centre 77 Training Method

Davidsb: PIENAAR: Finance Delivery Recommendations hidden Module Learning Outcome Delivery Channel Type of Channel Internal Audit Examine the business’s accounting records, processes, systems and administrati on to ensure compliance and to prevent fraud Face-toface § Classroom training could be used at the beginning of the learning § Case studies could be developed from process to develop foundational knowledge of internal auditing practices § Mentoring programmes could be used to reinforce the foundational learning from classroom training § Seminars and workshops could be used to showcase latest findings and trends in cost management internal auditing practices be used to disseminate knowledge to new recruits into a business Distance Learning § Electronic Information Exchanges and Web-based training, could be actual micro-finance businesses and be used to assimilate do’ s and don’ts of internal auditing § The case studies could be supplemented by a CBT which could take the learner through the steps on how to conduct an internal audit § Electronic and paper-based manuals could be used to help establish content and situational knowledge of how to conduct an internal audit and could include topics such as: Ø What constitutes an audit Ø The importance of conducting an internal audit Ø Computerised accounting packages vs. manual accounting methods Ø How to prepare a full audit for reporting purposes Ø Audit a hypothetical micro financier’s business and identify problems § Learners could be asked to complete an assignment in which they conduct a mock internal audit of their own microfinance business used to disseminate latest trends and best practice information cheaply throughout the country § Training materials could be purchased from BDS call centre / training centre 78 Training Method

PIENAAR: hidden Module Finance Delivery Recommendations Cash Flow Management Delivery Channel Use computerbased accounting packages Face-toface § Classroom training, could be used at the beginning of the § Electronic and paper-based manuals could learning process to develop foundational knowledge of accounting packages. (Existing training courses which are currently being presented by software vendors could be incorporated into the curriculum) § Seminars and workshops could be used by accounting package vendors to showcase latest trends in accounting packages Distance Learning Accounting Packages Learning Outcome § Electronic Information Exchanges and Web-based training, be developed and distributed by Software vendors for their specific packages. Topics that could be included in the manual: Ø Manual vs electronic accounting methods Ø Introduction to basic accounting principles § Case studies could be used to show the application of accounting packages in micro finance businesses Face-toface § Classroom training, could be used at the beginning of the § Case studies could be developed where learning process to develop foundational knowledge of cash flow management § Mentoring programmes could be used to reinforce the foundational learning from classroom training § Seminars and workshops could be used to showcase latest findings and trends in cost management from experts in the industry § Coaching could be used to disseminate knowledge to new recruits into a business Distance Learning § Electronic Information Exchanges and Web-based training, learners can analyse the cash flow positions of various micro-finance businesses and give input on how to optimise cash flow for “ailing businesses” § Electronic and paper-based manuals could be used to help establish content and situational knowledge of cash flow management principles Topics that could be included : Ø Predicting the amount of cash needed based on customer behaviour and past loan history Ø Identifying ‘busy’ times of the year and month and budgeting accordingly § A business simulation CBT could be sourced or developed which would help build skills in effective cash flow management Understand the amount of cash needed to fund demand for loans Type of Channel could be used to disseminate content information cheaply throughout the country § Training materials could be purchased from a BDS call centre / training centre could be used to disseminate content information cheaply throughout the country § Training materials could be purchased from BDS call centre / training centre 79 Training Method

PIENAAR: hidden Finance Delivery Recommendations Module Learning Outcome Delivery Channel Type of Channel Tax Calculation Calculate tax calculations (e. g. employees and provisional tax) Face-to-face § Classroom training, could be used at the beginning § Assignments could be used where learners are of the learning process to develop foundational knowledge of tax calculations and principles of South African tax § Mentoring programmes could be used to reinforce the foundational learning from classroom training § Seminars and workshops could be used to showcase latest findings and trends in cost management from experts in the industry § Coaching could be used to disseminate knowledge to new recruits into a business Distance Learning § Electronic Information Exchanges and Web-based required to : Ø Prepare hypothetical tax returns for a micro finance business Ø Complete a VAT claim for a hypothetical business § Electronic and paper-based manuals could be used to help establish content and situational knowledge of tax calculation principles. Topics that could be included : Ø Understanding the different types of taxes applicable to a micro financiers business Ø Learning how to calculate PAYE for a number of different employees Ø Understanding the process of registering for tax purposes training, could be used to disseminate content information cheaply throughout the country § Training materials could be purchased from BDS call centre / training centre 80 Training Method

PIENAAR: Hidden Recommendations on Skills Programmes / Learnerships A skills programmes should be instituted initially, with scope to develop a learnership in the future as soon as a formal qualification in micro finance is developed and capacity has been built for training providers § No qualification in micro finance exists at present, leaving the learner without a specific goal / qualification to work towards § The approach to the training of micro finance related topics has been very fragmented, with little agreement between providers on content, methodologies and guiding principles Ø In the past, training has either been very generic in nature or very specific to a particular business § There is a distinct lack of existing micro finance specific accredited education and training institutions to offer the formal training components of the learnership Ø Capacity needs to be developed within the training industry to cater for the specific training needs of micro financiers Ø Capacity building may take a number of years before training providers are proficient in the delivery of micro finance specific training content § Modules within identified skills areas could form the basis of a skills programme, which could be seen as credits towards a qualification in micro finance A skills programme comprising several modules should be developed and micro financiers can select the courses according to their needs 81

Recommendations on Skills programme Several skills programmes, made up of modules could be implemented. The overall guiding principle should be flexibility of learning, based upon needs Purpose § Provide micro finance practitioners with a wide choice of industry specific and generic training to promote professionalism through building knowledge and skills in the industry Focus § Skills programmes Modules e. g. within Risk Management, Fraud Management is a module and could form the basis for a credit towards a qualification § The Skills programme will initially be focused on developing skills in competency areas identified as being high priority. These areas have been identified in the learner needs analysis as Risk Management, Loan Book Management, Client Service, Legal and Regulatory Compliance, Cash Management and Finance Once these skills programmes have been rolled out, the rest of the skills areas can be developed as part of the skills programme Orientation § Skill areas e. g. Risk Management, Client service, Loan book Management Learning Activities § Sequencing of learning High level recommendations of the sequencing of learning events should be formulated e. g. Business strategy should come before funding Ref: Skills Development, Ian Bellis, 2001 Relevance, importance and necessity of the Skills programme should be driven through micro finance business needs and demand 82 A combination of distance learning and face-to-face learning activities will need to be coordinated through a central body. The proposal is that this be a centralised BDS / Training centre

Overall Conclusions Skills programmes, made up of prioritised modules could be implemented as flexible learning offerings to the micro-finance industry § The implementation of the training should be pushed through in the form of modular-based skills programmes § The overall guiding principle should be that of a learning organisation approach § The delivery of training materials should be through a combination of different delivery channels and should be offered in parallel through both distance and face-to-face methods § Use should be made of the 80 / 20 principle when implementing the Skills programme Ø The 20 %of learning that will deliver 80% of the value should be prioritised in the roll-out § Extensive use should be made of South African, micro finance industry specific content for case studies and other training materials § Extensive marketing of the Skills programme should be done to increase awareness Learning initiatives should be prioritised by industry skills needs 83

Next Steps Prioritised skills areas should be agreed upon and developed first § Final agreement on the prioritisation of skills areas should be reached by the project steering committee § More in-depth content knowledge for each skills area should be identified through consultation with a wide range of industry experts § Expression of interest communications need to be developed and should be expressly geared towards service providers who are able to deliver on the development of agreed prioritised skills training materials § Training providers who were identified by the project team as well as those who responded to the expression of interest should attend a detailed briefing session on the express requirements for the development of training materials for the prioritised skills areas Ø Development timelines, level of detail, materials content quality assurance standards, guidelines for delivery methods of training materials such as CBT, videos and manuals should be outlined in the briefing sessions Ø Feedback from attendees should be obtained and recorded for RFP purposes § An Request For Proposal (RFP) should be sent out to all interested training provider parties § Unit standards should be developed from the skills programmes once the detailed design of the curriculum has been established 84

Agenda Item Resp. Time 1. Project Approach Wendy Pienaar 5 min 2. Lender and Consumer Survey Summary Wendy Pienaar 5 min 3. Business Development Support Assignment Alicia Greenwood 15 min 4. Curriculum Framework Assignment Brent Davids 15 min 5. Selection Assignment Wendy Pienaar 5 min 6. The Way Forward Wendy Pienaar 5 min 7. Breakout Instructions Heather Watson 5 min 85

Focus of the Selection Assignment The Selection Assignment focuses on selecting micro financiers and training providers for participation in the Micro Finance Skills Project Selection Criteria Determine the criteria for selecting micro § Initial criteria identified financiers and training providers to participate in § Criteria workshopped with Curriculum Development each of the following areas of the Micro Finance Team (CDT) Skills Project: § Final criteria decided on Ø Prototype Ø Pilot Ø Phase 1 Selection Processes Determine the high level processes for selecting § Reviewed best practice procurement processes micro financiers and training providers to § Tailored processes to align with project participate in the project § Developed a ‘process flow’ for selecting micro financiers and training providers Capacity Plan Identify the gaps between the training required by micro financiers and the current capacity of training providers § § Contract Develop the high level content of an agreement for micro financiers and individual learners and a contract for training providers § Identified terms of agreement for individual learners § Identified areas to be included in an agreement between trainers and trainees § Identified legal clauses to be incorporated into contract 86 Developed an excel spreadsheet for trainers to complete Reviewed spreadsheet with CDT Sent spreadsheet to 96 potential training providers Received completed profiles and consolidated into one database § Identified gaps in terms of current capacity and ‘learner needs analysis’

Selection Criteria – Micro Financiers Micro financiers should be based in Gauteng, belong to an association or franchise and be willing and able to participate in the project Criteria for selecting the first 200 micro financiers for Phase 1 of the Micro Finance Skills Project Criteria Examples of criteria for selecting micro financiers Reasons § Legal, regulated lending operation Registered with the MFRC § Can be identified as a micro financier Based in Gauteng § Focused proximity § Reduction in cost § Easier to manage Either a consumer or SMME lender § Maintain focus § Develop curricula specific to each type of lender Association membership/ franchisee § Use existing loyalties and communication channels § Maximise participation by sponsorship and recommendation from association/franchiser Willing and committed Gauteng § Must be committed to completing training § Must be willing to participate in prototype, pilot or phase 1 as the need arises 87 Consumer and SMME micro financiers will be the focus of the first phase of the project

Project Targets In line with the project targets, a total of 200 consumer and SMME micro financiers will be selected to participate in the project 88

Selection of Micro Financiers – Assumptions The following guiding principles are recommended for selecting micro financiers Guiding Principles § 75% of the participants during the first year will be consumer micro financiers, as they make up the majority (in terms of numbers) of micro financiers in the industry The remaining 25% of participants will be taken from SMME lenders in order to maintain focus by developing two curricula for the first phase 67% of participants will be managers, as they are assumed to have the greatest impact on their organisations and all courses are applicable to managers § § Supporting notes to the following two slides: Note Assumption a § Staff and managers were chosen in the ratio of 2 managers for 1 staff member § 10% of the micro financiers to participate in the first year should be selected to develop the prototype § We assumed that managers and staff would both have valuable feedback in terms of developing the training prototype b § Staff and managers were chosen in the ratio of 2 managers for 1 staff member § 15% of the micro financiers to participate in the first year should be selected to participate in the pilot § The assumption is that both staff and managers need to be tested and give feedback in terms of the relevance of the training material and delivery channels developed during the prototype c § Staff and managers were chosen in the ratio of 2 managers for 1 staff member § 75% of the micro financiers to participate in the first year should receive training during phase 1 of the project § It is assumed that managers would have a greater impact on their organisation than a single staff member, and would pave the way for their staff to receive training in the future (phases 2 and 3) § During phase 1, the training developed during the prototype and pilot stages will be delivered to both managers and staff to check the functionality on a larger scale 89

Selection of Micro Financiers – Consumer In order to have a representative sample in the project pilot, both managers and staff need to be selected from the different types of micro finance institutions Recommendations for the number of Consumer Micro Financiers to participate Prototype # Participants Pilot Phase 1 10 Managers 5 Staff a 15 Managers 7 Staff b 75 Managers 38 Staff c § Registered with the MFRC § Based in Johannesburg and § Based in Gauteng selected provinces for testing § Willing and committed to develop training § Willing and committed to undergo purposes prototype training Selection Criteria § Willing and committed to participate § Member of an association or franchise in the training pilot § Member of an association or franchise Reason for selecting § Test training prototype (course content § Test delivery and roll-out approach § Micro financiers selected from Gauteng and delivery channels) and ensure that it § Test whether delivery channels are for ease of coordination and cost is aligned to consumer micro financiers’ functional outside of Johannesburg containment during phase 1 needs § Delivery of training to phase 1 micro § Give feedback to curriculum § Micro financiers developing the prototype developers on what works well and financiers can ‘spread the word’ about the project what needs improvement and build awareness with colleagues A total of 150 managers and staff from consumer micro financiers will participate in the first year of the Micro Finance Skills Project a; b; c see previous “Selection Assumptions” slide 90

Selection of Micro Financiers – SMME In order to have a representative sample in the project pilot, managers and staff need to be selected from the different types of micro finance institutions Recommendations for the number of SMME Micro Financiers to participate Prototype # Participants Selection Criteria Reason for selecting Pilot Phase 1 5 Managers 3 Staff a 8 Managers 4 Staff b 20 Managers 10 Staff c § Registered with the MFRC § Based in Johannesburg and selected § Based in Johannesburg provinces for testing purposes § Willing and committed to develop § Willing and committed to undergo training prototype § Willing and committed to participate in training § Member of an association (e. g. Khula) the training pilot § Member of an association (e. g. Khula) § Test training prototype (course content § Test delivery and roll-out approach § Undergo training to uplift skills and delivery channels) and ensure that § Test whether delivery channels are it is aligned with SMME micro functional outside of Johannesburg financiers’ needs § Give feedback to curriculum developers § Micro financiers developing the on what works well and what needs prototype can ‘spread the word’ about improvement the project and build awareness with colleagues A total of 50 managers and staff from SMME lenders will undergo training in the first year of the Micro Finance Skills Project a; b; c see previous “Selection Assumptions” slide 91

Next Steps The following next steps must be completed for the prototype stage, pilot phase and phase 1 of the project Prototype Pilot Phase 1 1. Approach associations and franchises asking for them to contact and put forward names of potential participants to assist with the development of a prototype 2. Contact potential participants and hold a briefing session describing roles, responsibilities, and expectations of them and the project 3. Develop the prototype with training providers and test with micro financiers 4. Participants to sign an agreement which outlines their role in completing the prototype development 1. Approach associations and franchises asking for them to contact and put forward names of potential participants to participate in the pilot phase 2. Contact potential participants and hold a briefing session describing roles, responsibilities, and expectations of their involvement in testing content and delivery channels across the country 3. Participants to sign an agreement which commits them to participating in the pilot 4. Test the training program with the pilot group of micro financiers and rectify any problem areas 1. Approach associations and franchises asking for them to contact and put forward names of potential trainees 2. Contact potential trainees and hold a briefing session describing roles, responsibilities, and expectations 3. Participants to sign an agreement which commits them to undergoing training 4. Roll out training to consumer and SMME micro financiers 92

Selection Criteria – Training Providers Since few micro finance specific training providers exist, potential providers must be able to tailor existing materials to suit the industry’s training needs Criteria for selecting training providers to participate in phase 1 of the Micro Finance Skills Project Criteria Intend to register with BANKSETA ETQA if not already accredited* Examples of criteria for selecting training providers Reasons § Quality measures automatically in place § Required by BANKSETA Electronic communication Multiple delivery channels § Different courses/modules require different delivery channels § Providers must either currently have multiple channels or capacity to develop them Geography § Ability to deliver training to all provinces Learner records and training reports § Trainers will be required to keep records of learners § Trainers will need to deliver training feedback reports § Check general training credentials Sound training track record § Identify any past micro finance experience, where applicable § Few providers currently train micro financiers Ability to develop micro finance specific training in § Training needs to be relevant to micro financiers and will need to be developed by consulting with conjunction with micro financiers 93 Registration Geographical reach Textbooks and manuals Computer based training Workshops On-the-job training Videos CD - ROM *This has been identified as a gap in the capacity plan

Selection of Training Providers. Scoring Model Training providers could be assigned a score according to the number of criteria that they meet Illustrative Accreditation Criteria Micro Finance Experience Score Accredited with ETQA Not accredited but will meet criteria 5 2 Criteria Score Has experience training micro financiers Has experience in generic skills Has no experience yet Channels Skill Areas 5 2 0 Criteria Has experience in 10 -14 skill areas Has experience in 5 -10 skill areas Has experience in less than 5 skill areas Score Uses all key channels frequently Has capacity to use all key channels Does not have capacity to develop key channels 5 2 0 Criteria Trains in all provinces Can train in all provinces Cannot train in all provinces 5 2 0 Definition of Scores Geography Criteria Score 5 2 0 5 = highest possible score 2 = medium score 0 = lowest possible score Interpretation of % Received Example of Score Received Max Score = 25 75 -100% = Highly Recommended 50 -75% = Recommended 25 -50% = Requires improvement before consideration 0 -25% = Not recommended for further consideration Score Received = 11 % Received = 44% The above illustration is for trainers who will be providing micro finance specific training. A similar scoring model could be developed for other trainers 94

Training Provider Capacity Profile An electronic profile form was sent to 96 training providers for them to complete, in order to understand their current capacity The following areas were tested by the profile: § Accreditation with an Education & Training Quality Assurance (ETQA) body § Provinces that could receive the training § Current courses offered § Training delivery channels (current and future) § Relevant past experience (references) The following sources were used to identify training providers (96 in total): § BANKSETA Expression of Interest Advert (Saleem Sheik) § List of Accredited Training Providers (Frank Groenewald) § Project stakeholder list (Accenture) § National HR & Training Directory Response rate: § A total of 96 training providers received the profile forms via emailed § 37 training providers completed the survey and returned it § The response rate was 39% § According to Markinor, a response rate of 20% for electronic surveys is considered a good response The response rate was double the rate the market researchers consider to be good for electronic surveys 95

Capacity Plan – Capacity Building Required A number of gaps were identified in the training providers’ capacity, and providers will need to undergo capacity building where required Capacity gap Only 5 % of training providers are currently accredited with the BANKSETA ETQA Capacity building required § The BANKSETA requires training providers must qualify for accreditation with the BANKSETA § Training providers will have to apply to the BANKSETA and register as accredited training providers § Training in the finance industry has not had a focus on micro finance-specific skills to date Not all of the skill areas tested receive § New materials may have to be developed that are relevant to micro financiers § Training providers will need to develop micro finance-specific training materials during the a significant amount of training prototype and test these with micro selected financiers providers’ focus Traditional, paper-based training delivery is most frequently used by the profiled training providers § Many of the modules identified by the curriculum framework require hi-tech, electronic delivery channels § Training providers that do not have the required channels will have to develop them in order to be selected as providers of training to the project § One way of doing this is by forming an alliance with another company that has the required channel, as opposed to developing the channel from scratch In addition to the gaps identified by the electronic profile, training providers will also need to track learner participation and provide feedback on training delivered, as part of a formal assessment and feedback process 96

Capacity Plan – Accreditation and Micro Finance Experience Only 43% of training providers are accredited with an ETQA and 5% are accredited with the BANKSETA. Micro finance training experience is limited Number of Training Providers Registered with an ETQA Services SETA # Accredited Providers 1. 2. 3. ETDP SETA BANKSETA HEQC SETA ISETT Total 8 3 2 2 1 16 A total of 16 training providers (43%) are registered with an Education and Training Quality Assurance body (ETQA) 10 training providers (27%) are in the process of becoming accredited 11 training providers (30%) are not accredited with an ETQA Experience of Training Providers in the Micro Finance Industry # of Providers who have offered training 14 1. 2. # of Micro Finance Specific Courses Offered 76 A total of 14 training providers (38%) have offered specific micro finance training In total, these 14 training providers have offered 76 micro finance specific courses Training providers will eventually be accredited with the BANKSETA ETQA and micro finance specific training will be developed, so these are not limiting factors 97

Capacity Plan – Skill Areas For each skill area tested, at least one training provider responded that they focused much of their time on that skill area Frequency of scores achieved by training providers % of Trainers’ Focus* Client Funding Business Staff Risk SMME Loan Service Complaint Finance Marketing Cash mgt service strategy mgt financing book mgt providers procedures Client Legal & admin regulatory 75 -100% 5 6 6 4 3 5 3 3 4 3 2 2 1 1 50 -75% 11 6 5 7 7 4 6 5 4 4 3 1 25 -50% 5 8 10 14 14 10 9 9 9 12 9 7 9 12 0 -25% 10 8 8 5 6 9 10 7 10 8 7 14 14 14 No response 6 9 8 7 7 9 9 13 10 10 15 10 10 9 % scores >= 50% 43% 32% 30% 27% 24% 22% 19% 16% 11% 5% § Some skill areas have a number of training providers who currently focus on them § However, some skill areas have very few training providers who currently focus on them < 20% of training providers focus on these skill areas The content of the existing training material must be assessed for relevance to the micro finance industry *Focus refers to the amount of time spent developing materials and delivering training in each skill area 98

Capacity Plan – Delivery Channels Traditional, paper-based training delivery is most frequently in use, and electronic channels will need to be developed by many training providers 4 Summary of weighted average scores by channels used 3. 41 Ø 1 = not currently in use Ø 2 = not currently in use but have capacity Ø 3 = currently in use sometimes Ø 4 = currently in frequent use 3. 22 3 Score 1. The score was calculated as a weighted average of the responses 3. 76 2. 65 Capacity gap 2. 49 2. 32 2. 27 2. 22 2. 14 2. 08 2 1. 81 1. 73 1. 62 1. 27 1 V T g ne ss ni n si Bu d tr as e -b eb W ai ia e tim ed an g ch ra ct iv e m ul ni io at El ec t ro C ni c In te fo r m is in D n ex le e nc ta as b te r om pu ar ai tr ed c ni ro ec t El ng ng ni de o s s m Vi an u al n at io m ul Si to rin hi n M en oa c g g s ar C in m Se or ks ho ps om ro W ss la C M an ua ls 0 2. All areas in the dotted oval represent a deficit in terms of the capacity of training providers to utilise them as delivery channels 3. The channels where a gap currently exists represent hi-tech, electronic channels. This may pose a problem where these channels have been identified as the primary means of delivering training in a particular module 4. There are no channels where training providers have no capacity to develop them should their be a need Training of the different modules will not be hampered as training providers indicated that they have the capacity to develop all the channels identified for training delivery 99

Capacity Plan – Geography The training providers surveyed have the capacity to train micro financiers in all the provinces Summary of provinces that trainers are able to provide training in Province All Western provinces Cape Gauteng Kwazulu Mpumalanga Eastern Cape North Western Province Northern Cape Northern Free State Province # Training Providers 22 28 27 27 26 25 24 24 24 22 % of Sample 59% 76% 73% 70% 68% 65% 62% 59% 1. The Free State, Northern Province and Northern Cape are the most isolated provinces, but more than half the training providers said they are able to deliver training there 2. Most trainers said they are able to delivery training in the Western Cape, Gauteng and Kwazulu/Natal 3. 59% of the trainers said they can provide training in all 9 provinces % of trainers able to train micro financiers by province 62% 65% High representation of trainers Medium to high representation of trainers 62% 73% 59% 73% 76% 68% Medium representation of trainers There is no gap in terms of where the trainers are able to deliver training 100 70%

Next Steps The following next steps must be completed for the prototype stage, pilot phase and phase 1 of the project Prototype Pilot 1. Advertise project in national publications 2. Invite trainers to submit proposals and attend a briefing session 3. Modify and apply the BANKSETA procurement process to select the final trainers 4. Decide upon number and structure of training providers based on options provided 5. Trainers to sign a contract with the BANKSETA 6. Develop and test (with micro financiers) the content and delivery channels for training 7. Training providers to undergo ‘capacity building’ where necessary 1. Deliver training to pilot group 2. Test whether training content functions properly through the identified channels 3. Understand what works well and what needs improvement 4. Finalise training content and delivery 101 Phase 1 1. Deliver training to micro financiers

Agenda Item Resp. Time 1. Project Approach Wendy Pienaar 5 min 2. Lender and Consumer Survey Summary Wendy Pienaar 5 min 3. Business Development Support Assignment Alicia Greenwood 15 min 4. Curriculum Framework Assignment Brent Davids 15 min 5. Selection Assignment Wendy Pienaar 5 min 6. The Way Forward Wendy Pienaar 5 min 7. Breakout Instructions Heather Watson 5 min 102

Implementation Best Practice Approach Best practice implementation includes the design, building, testing and deployment of a new business solution in a series of incremental releases DESIGN DEVELOPMENT IMPLEMENTATION PROTOTYPE PILOT Illustrative ROLL OUT Detailed design Mobilisation Experiments Implementation Early, Focused Investigation Experiments Implementation Focused Investigation Implementation Project Management Communication Parallel execution of design, capability diagnosis and development results in a solution that is more likely to be innovative and differentiated 103

Agree withfindings and recommendations BDS Solution Curriculum Recommended Implementation Approach DETAILED DESIGN PROTOTYPE PILOT ROLL OUT Select trainers Select micro financiers for prototype Select micro financiers for roll out Detailed design of curriculum, including the development of skills programmes within the curriculum Prototype: Training Program Key decisions Pilot: Training Program Roll Out Phase 1 Training Program Detailed design of BDS resource centre Prototype: Resource centre High level design: 1 st tier Service Providers Pilot: Resource centre Protype: 1 st tier SPs Pilot : 1 st tier SPs Roll Out : Resource centre Roll out: 1 st tier SPs Consultative Forum Sessions Month 1 Month 2 Month 3 Project Management Communication 104 Month 5

Issues and risks Some of the issues and risks which the implementation programme will face includes: Issues and Risks Mitigating Actions Failure to make key decisions § Strong, high level sponsorship of the project is required § Where possible, critical decisions must be made prior to initiation of project Dependencies on other projects e. g. Ø Unit Standards Programme Ø Marketing and PR Programme § Upfront identification of all dependencies is essential § Clear understanding of the nature of dependency is required § Dependencies to be incorporated into the project plan and timeframes Lack of momentum for the duration of the project § Strong, high level sponsorship of the project is required § Minimal deviations from project plans and timeframes should be allowed § Regular communication sessions should be held with all stakeholders Stakeholder disenchantment with programme § Regular communication sessions should be held with all stakeholders, detailing Ø Project approach Ø Progress Ø Estimated completion Ø Issues, risks, constraints Ø Key decisions to be made etc. 105

Next Steps The curriculum and BDS projects are currently at different stages in their development, thereby requiring different immediate actions § Curriculum Ø Findings and recommendations must be agreed to before proceeding further Ø The Consultative Forum and a group of micro financiers need to be involved in reviewing the recommendations further Ø Trainers and micro finance test groups to be assessed and selected Ø Legal contracts and agreements to be drawn up Ø Communication program to be conducted to all involved stakeholders Ø Training content and delivery methods to be developed and then tested through prototype and pilot § BDS Centre Ø The Consultative Forum and a group of micro financiers need to be involved in reviewing the BDS recommendations further Ø Business case for BDS solution to be developed Ø Critical “pre-project decisions” to be made • Who will sponsor of the project? • Who will finance the project? • Who will be accountable for the project? • Who will be the involved parties in the BDS solution? • Who will manage the various components of the BDS solution? • Will current infrastructure be utilised, or will new infrastructure be developed? Ø Project to be launched The BDS decisions should be made as soon as possible, so that an integrated approach to delivering the two initiatives can be achieved 106

Agenda Item Resp. Time 1. Project Approach Wendy Pienaar 5 min 2. Lender and Consumer Survey Summary Wendy Pienaar 5 min 3. Business Development Support Assignment Alicia Greenwood 15 min 4. Curriculum Framework Assignment Brent Davids 15 min 5. Selection Assignment Wendy Pienaar 5 min 6. The Way Forward Wendy Pienaar 5 min 7. Breakout Instructions Heather Watson 5 min 107

Breakout Instructions n Break-away 1 Group 1 - Curriculum framework – skills transfer, delivery and learners (H. Watson/ Accenture) Group 2 - Business Development Support (Accenture) Group 3 - Selection (Accenture) n Break-away 2 Overall project approach and objectives, including scope and beneficiaries (S. Babb/ SDS Consortium) 108

Breakout Instructions n Break-away 1 1. Review details of Accenture presentation pack 2. Provide input and recommendations for assignments as per instructions 3. Ask questions n Break-away 2 1. Review the overall Micro Finance Skills Project approach and objectives 2. Provide input to scope and beneficiaries of the project 3. Ask questions Be an active participant! 109

BDS Breakout Objectives § Agreement on BDS definition § Agreement on BDS success criteria § Review on recommended BDS model § Discussion on roles and responsibilities of BDS roleplayers § Review of next steps for BDS solution 110

BDS Facilitator Guide § Setup Ø We have organised proxima’s for each room – please take your laptop Ø Please make sure the you have the copy of the breakout session presentation loaded up and have written the objectives down on a flipchart Ø Prepare 3 -4 questions per objective, and id relevant slides per objective for you to review § Session Ø Introduce yourself Ø Review the overall objectives I. e. information sharing!!!! Ø Review the list of objectives for your particular session Ø Begin at the first one and summarise our findings using the slides Ø Prompt the audience by asking your questions Ø Write down their input and move onto the next objective Hide slide 111

Curriculum Framework Breakout Objectives § Review and agree curriculum skill areas § Agreement on the prioritisation of skill areas § Review delivery channels and methods § Provide input to the proposed strategy for the delivery of training materials § Provide input to the next steps for the Curriculum Framework 112

Selection Breakout Objectives § Provide input to the proposed selection criteria Ø Training providers Ø Micro financiers Ø Individual learners § Review training provider capacity profiles § Provide input to the approach for the prototype, pilot and phase 1 sections 113

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