312354048-MICRO-Finance-Strategic-Plan.pptx

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1. RATISSON FINANCE STRATEGIC PLAN 2016

2. CONTENTS 1. BACKGROUND Context Ratisson Finance Strategic foundations Ratisson Finance Corporate Direction Business Scenarios (Country, Financial Sector, Ratisson Finance 2. STRATEGIC CONTEXT Situation Assessment for Ratisson Finance Current Scenarios for Ratisson Finance Focus Goal for Ratisson Finance Future scenarios for Ratisson Finance Future Business Model 3. STRATEGY WORKINGS Critical Success Factors & Key Results Implementation Plans 4. NEXT STEPS

3. background RATISSON FINANCE STRATEGIC PLAN

4. Background: cONTEXT Ratisson Finance is a start up micro-finance company and has just submitted an application for a microfinance business license with the Reserve Bank of Zimbabwe. Prospects of successfully obtaining the license are high. Ratisson Finance ( Pvt ) Ltd is related to Brance ( Pvt ) Ltd, Farmers Warehouse ( Pvt ) Ltd, Stage Master and South Bay ( Pvt ) Ltd. All the companies are wholly owned by the Ratisso family. The company obtains its name from the word “ Ratiso ”, being the original surname of the Ratisso family. Ratiso means vision. Ratisson Finance has inherited some assets and liabilities from Brance ( Pvt ) Ltd. The shareholders have reduced equity in other companies and even closed some inorder to invest in Ratisson Finance. The shareholders are not keen to have their equity diluted at least in the initial stages of the business. They are willing to review this position in a few years time.

5. Background : strategic foundation [Purpose, Destiny and Values] Purpose : “To continually improve the livelihoods of the commuinities we operate in through hassle free access to credit and provision of customer focused service” Mission : “To create and continuously increase shareholder value through the provision of excellent service and innovative products to its customers and a conducive working environment in which every employee is encouraged and assisted to develop to their full potential” Values: : “Customer focus, Innovation and flexibility, Respect, Honesty, Integrity, Professionalism”

6. Play-offs Relegation Zone COMPETITIVENESS +VE INTERNAL HARMONY INTERNAL CONFLICT Premier League X Second Division Failed State Lagging Infrastructure development Political Instability Conflicting policy Increasing rates of unemployment 100% 0% 0% COMPETITIVENESS -VE 2015 2015 2016 Increased FDI Stable government International acceptance The country variables have been defined as the same as South Africa, being competitiveness and Internal harmony / conflict. These variable provide 3 feasible scenarios which have been described below from a Zimbabwean Context. 1)Premier League – This is the areas where the country’s competitiveness has improved significantly with increase FDI and international acceptance, in the next few years it is not felt that Zimbabwe will have reached this stage just from appreciating where things are starting from as such the chance of this occurring by 2016 has been rated as 0% 2)Second Division – In the second division the country is now in a place of internal harmony although competitiveness is still relatively low. In Zimbabwe’s case this is very unlikely scenario by 2016 with a 0% chance. It is not expected that Zimbabwe will be on its way to the premier league with competitiveness going up as reflected by continued economic deterioration, company closures, job losses and international isolation which is also further exacerbated by political instability. 3)Failed State – This is the worst state to be in as the country has both internal conflict and a lack of competitiveness. Zimbabwe is seen to have been in this state in 2008 at the peak of the economic and political crisis. The Country has been steadily moving towards the Second Division until the end of the inclusive government in 2013. Factors that may make us fail the playoffs and remain in the failed state status include lagging infrastructure development (affecting service provision), Political Instability, Conflicting policy and increasing levels of unemployment. The chance of remaining in this state in 2016 has been put at 100% . In defining the future corporate direction, time was taken to reconsider the country scenarios which also provided guidance in planning for Ratisson Finance. Background: Country Scenarios - Zimbabwe NOTES

7. MARKET +VE HIGH ECONOMIC GROWTH LOW ECONOMIC GROWTH Crisis Star Cash Cow Potential MARKET -VE Telecoms Mining (Non Precious Minerals) Financial Services Manufacturing Funeral Assurance Retail Tobacco All Other Insurance Agro Based Mineral Value Addition Mining (Precious Minerals) 2016 The industry variables have been defined as how positive the market is towards the industry and the amount of economic growth in the customer base that would be targeted by that industry. Four key scenarios have been identified and these are briefly explained below. 1)Crisis – This scenario is seen in a situation were a country has low economic growth and the market is also negative about the goods on offer. As an industry the financial services sector, manufacturing, NGOs and insurance are seen to be in this state, aspects of these though may also be in another state. The mining of non precious metals such as Chrome and Coal are also in this state due to low local and global demand. In the future Tobacco is most likely to end up in crisis as the global push for better health and a tobacco free society grows market attractiveness will diminish. Non Government to Government NGOs are also likely to remain in this realm. 2)Cash Cow – The Cash Cows are the industries that are doing well despite the low growth in the economy, these are consumables or necessities as such telecoms, retail and funeral assurance are all in this state. Tobacco and Mining of precious minerals are also in this state due to current global market attractiveness. Individuals and Public Administration are also in this sphere with an expectation that individuals will remain in this quadrant into the future. 3)Potential – This state is reserved for industries who are operating in a good economy but seem to lack market attractiveness, some new industries that evolve will fit in this category. Due to the current low economic growth of the country, only tourism is seen to be in this quadrant. In the future as the economy grows the mining of non precious minerals, Infrastructure Services and Government to Government NGOs may fall into this state. Informal to small businesses which have not been looked at in this model may also fit in this state in the future until they establish credibility . The manufacturing of agro based products and mineral value addition along with the financial services will move from crisis into this phase as some of the market attractiveness of these has a direct correlation to economic growth. 4)Star – The expectation is that all the industries in the cash cow sector, save for tobacco will become stars by 2015 considering the economic growth of a country now playing near the top of the second division. Mining (precious minerals) and funeral assurance are seen to be in this quadrant but will soon move to the potential quadrant and eventually crisis as the economy continue to deteriorate with no sound corrective action being implemented. Background: Industry Scenarios - Zimbabwe Potential Scenarios for Different industries were also plotted in order to define the operating space that Ratisson Finance must play in NOTES 2016 Tourism

8. BACKGROUND : corporate direction for 2016 Taking account of the operating environment and the expectations of the shareholders, Ratisson finance Board has defined a desired corporate direction for the company with a clearly Focus Goal and deliverables to 2016. AREA KEY DELIVERABLE FOR 2016 Financials Market share Productivity Human Capital

9. Prepared by BRIAN KUFAHAKUTIZWI Strategic Context: Ratisson finance Current Situation Assessment Key Areas Positives Challenges Composite Rating (0 – 100%) Funding Adequately capitalised. Variety of funding internal and external Funding is limited. Regulatory challenge. NGO have conditions they attach to funding so target market may not be our core business and terms may not be conducive No NGO backed funding on our book so far 50% Working ICTS N/A No system in place at all. No CRM for there to be 360 degree view of customers No MIS for important business reports Only 1 desktop in place – the two current managers use own laptops 0% Skills and Rewards Skilled and experienced top management Inadequate staff compliment Only two staff members No loans officers, receptionist and administration staff Difficult to segregate duties Reward system not market related Grading system not reflective of work demands and skills level 10% Target market growth Covering all target markets.(Micro small to medium scale enterprises) Company not yet exposed to the difficult market segments Book is skewed towards agri -trade (tobacco) sector. One client constitute greater than 90% of the book Not fully captured the female and rural market.(agriculture) 15% Delivery channel Collection arrangements. Quick turnaround time. Ambience of Head offices. No branch network. No systems in place - CRM Disbursement challenges in areas we do not have presence. Manual systems with a lot of paper work. No motor vehicles for client visits and for efficient service delivery 30% Product innovation Wide array of products to be introduced. Convenience in terms of disbursements. Not competitively priced in MFI market (working capital loans). Loan tenure for working capital is too short. 60% Commercial culture Daily performance tracking. Business cases. Productive staff performance tracking. Appraising potential partners and reviewing relationships. Focusing on core business. Lack of proper market penetration strategies. Inadequate performance tracking mechanisms (due to MIS) 60% Corporate governance Have an effective Board Good relations with regulator Compliance levels with regulator are satisfactory Basic risk mgt framework in place. Adherence to core client protection principles Compliance oversight is inadequate (internal perspective) Need for company rating . Shareholder interference in operations 65% Ratisson Finance has assessed its current positioning in each of these areas 9

10. Current Micro Finance Sector Scenarios – Zimbabwe Prepared by BRIAN KUFAHAKUTIZWI 10 MicroKing is the most dominant player in this sector at the moment. NOTES MARKET +VE Profitability No Profitability Intensive Care Unit Healthy Out Patient (Observation) High Dependency Unit MARKET -VE . Sedco . MicroKing . CBZ . Fidelity . FMC . BancABC . FBC . Imali . KCI . Homelink . WDSCU . Zambuko . Metbank . Yambukai Based on two key variables (profitability and the level of market attractiveness) four key scenarios have been identified and these are briefly explained below. 1)Intensive Care Unit – This scenario is were the organization has little to no profitability and is also perceived negatively by the market it wishes to serve. Financial institutions in this quadrant are good candidates for curatorship. No micro finance institution is sitting in this quadrant as the micro finance industry is on a boom at the moment. 2)High Dependency Unit – This scenario is associated with saturation and houses institutions that have a significant level of liquidity / profitability but have not been able to turn this into market attractiveness. In the current state SEDCO is felt to be sitting in this quadrant to some extent due to its low key approach to promotion. 3)Out Patient (Observation) – This scenario reflects the institutions that have managed to create market appeal but are still hampered by lack of liquidity. These institutions are outpatients and will continue to go and see a doctor until the seemingly chronic but somewhat manageable condition is addressed. This group can easily slip into ICU if not managed properly or can be cured and move to the next quadrant. At the moment Homelink, KCI, Imali, FBC , Zambuko , WDSCU, Metbank , FMC and BancABC are felt to all be in this scenario. 4)Healthy – This scenario is where the financial institution has both liquidity and a positive market perception. The chance of a healthy institution going into ICU are low unless there is an uncontrollable external force such as indigenization. Currently MK, CBZ, Fidelity and FMC are perceived to be in this quadrant. . Ratisson . untu

11. Prepared by BRIAN KUFAHAKUTIZWI Strategic Context : ratisson Focus Goal 2016 “ Penetrate the local market offering sustainable and innovative microfinance solutions . ” In line with Ratisson’s Strategic Foundations, current positioning and 2016 objectives , we have adopted this Focus Goal: 11

12. Strategic Context: Ratisson 2016 Scenario Prepared by BRIAN KUFAHAKUTIZWI 12 In line with the focus goal Ratisson reviewed and adopted its future projections of where it would need to be positioned by 2016 for the focus goal to be achieved. NOTES Based on the desired 2016 state, Ratisson Finance will consolidate its position in the healthy quadrant. This placement has been given a 40 % chance while remaining in the state of Outpatient has been given a 40 % chance . An 20% chance exist that Ratisson Finance may slip into the Intensive Care quadrant if Premier Tobacco defaults on its facility with Ratisson. The desired state for 2016 has been driven by the predetermined factors and the country context that Zimbabwe will be in the year 2016 and that Ratisson will need to focus on penetrating new markets, capturing clients from competitors and growing the appetite for Micro Financing so as to grow the size of the cake. MARKET +VE Profitability No Profitability Intensive Care Unit Healthy Out Patient (Observation) High Dependency Unit MARKET -VE . Sedco . MicroKing . CBZ . Fidelity . FMC . BancABC . FBC . Imali . KCI . Homelink . WDSCU . Zambuko . Metbank . Yambukai . Ratisson . Ratisson 40% 40% 2 0%

13. Template Source: www.businessmodelgeneration.org Strategic Context: RATISSON Business Model Canvas Prepared by brian kufahakutizwi 13 In line with the set focus goal, Ratisson will need to do business in a certain way and as such a picture of the future business model has been defined. Ratisson will focus on maintaining and growing its client base with a specific focus on real estate owners, the middle and upper levels of the informal sector, SMEs, Women in both rural and urban areas, people in the agricultural sector and the youths in the age bracket 15 to 35. Value to these clients will be delivered through smart lending with speed which will entail providing clients with quick turnaround, easy access, competitive pricing, variety and service delivery while managing the risks associated with lending to these target sectors. To sustain the value, relationships with clients will need to be deep and broad (intimate, long term and mutually beneficial) where customers become ambassadors of the brand. This value and relationships will be delivered through own and partner (CABS) branches, mobile banking, Community based Business associations and kiosk type mobile branches that will go to where the clients are. To deliver this value, the business will focus on market and product development, after loan service and financial literacy training for clients as well internal skills development so that staff will be technically competent with the minds of bankers and hearts of social workers. To support this process the business will need appropriate funding, support from the shareholder and adequate infrastructure. Key partnerships with development partners, Government agencies, credit bureaus, rating agencies and Apex bodies will be required along with supportive relationships with other Brance subsidiaries as well as the support services from Consultant. This offering to the client will cost money through staffing, ICT, Marketing (including CSR), operating costs and the Cost of Funding which must be offset by revenues from Interest Income, Pure Grants and Non funded income from commissions, consultancy, business advisory service and deposits taking. Description Customer segments Value proposition Customer relationship Channels Key activities Key resources Key partners Revenue streams Cost structure Middle and upper levels of informal sector. SME Special bias to women In urban and rural areas (agriculture) Youth (15-35) Agriculture sector Smart lending with speed which will be defined by: Quick turnaround. Easy access Competitive Pricing. Variety (innovation) Service Managed risk Outreach Branch Network Mobile banking CABS Business Associations (community based) Mobile branches(kiosk) Long term Intimate Loyalty Deep and broad Mutually beneficial Customers become ambassadors of the brand. Interest Income Pure grants Non funded income: Business advisory service. Consultancy. Commissions Skills development Market development Product development After loan service Financial literacy programs. Branch network through (Real estate agents) Donor community (Development partners) Brance subsidiaries Government Agencies Credit bureaus Rating agencies Apex bodies (ZAMFI) The key cost drivers being: Staff Costs ICT Costs Marketing Costs (includes CSR) Operating costs Cost of funding Working ICT systems Technically equipped and motivated people with an understanding of the market.( individual with minds of bankers and hearts of social workers) Infrastructure(branches etc) Support from Consultant Appropriate funding.

14. Ratisson finance Strategic Plan (2016) Strategy Workings Prepared by brian kufahakutizwi 14

15. ratisson’s Strategic Objectives - 2016 15 Key Performance Area Target Activities KPI Financial management Adequate capitalization Securing lines of credit Cost management Portfolio growth Access additional capital from the shareholder Establish optimum capital structure for the business Set up background structures and begin company profiling to ensure readiness for developmental finance from NGOs, Government facilities and international development institutions. Setup structures to ensure readiness for a deposit taking microfinance license in five years time Implement appropriate cost structure and align costs to income Evaluate new projects adequately before implementation Grow book size to $   Return on equity 28% Debt to captal ratio 57% Return on assets 26% Net profit percentage 21% Cost to income ratio 70% Corporate Governance and Risk Management Compliance with all internal, legal and regulatory compliance provisions. Ensure 100% compliance with regulatory/legal/internal policy provisions Conduct regular internal checks Establish policies and procedures Recruit resource to handle compliance and recoveries tasks Benchmark corporate governance standards against international benchmarks on microfinance Set up background structures and begin company profiling to ensure readiness for developmental finance from NGOs, Government facilities and international development institutions. Setup structures to ensure readiness for a deposit taking microfinance license in five years’ time   Reviewed Credit committee charter in place by 31 August 2015 Reviewed Audit Committee Charter in place by 31 August 2015 Reviewed Risk management and Compliance Committee Charter in place by 30 September 2015 Credit Policy in place by 30 September 2015. Positive audit rating – ongoing. 100% adherence to risk tolerance levels 100% compliance on all key ratios PAR > 1 day 7% PAR > 30 days 5% Risk coverage ratio of 70% Systems and processes Develop seamless service-oriented architectures and processes. Develop policies and procedures on credit and security, compliance, recoveries, HR manual, operational policies and procedures manual Develop and implement service level agreements for all outsourced services – IT, consultancy, payroll etc. Adequate resourcing of staff Standardized outreach program methodologies for all selected markets Create an internal blacklisting system Develop a HO/branch ambiance checklist Develop and implement a Business Recovery Plan Reviewed policies and procedures by October 2015 Robust /efficient system by 31 March 2016 99% system uptime Standardized outreach programs by 31 December 2015. Functional credit scoring system by 31 December 2015 Web based database by 31 December 2016.   Leadership and Human capital Resource the organizational structure Human capital development Develop an incentive scheme for all staff in line with strategy Effective performance monitoring Review and redesigning structure to ensure efficient implementation of strategy Technical training for all staff at all levels Incentive scheme reviewed by 31 December 2015 Increased productivity as measured by income per head. Optimal staffing levels 100% submission of appraisal documents 99% staff satisfaction index (Motivated staff) Ratisson Finance specific programs every quarter. Products and Market Development Achieve proper market segmentation Penetrate our chosen markets Diversification of revenue streams Develop and maintain client database Profile all successful clients Develop new products in line with market segments Define target markets Implement efficient and appropriate delivery channels Grow loan book to $ Defined market segments by December 2015 Develop 1 more product per quarter Customer satisfaction index of 85% by December 2016   Corporate communications Effective stakeholder relations Coordinate the dissemination of information to stakeholders Open regular communication with customers – interactive website for Ratisson Finance, whistleblower channels. Embark on social responsibility activities Conduct promotional road shows/campaigns Signage at the new offices (no 1 college road) Design and print corporate brochures and business profiling. Harmonious relations – ongoing Feedback from stakeholders through availed channels Customer satisfaction index of 855 (Surveys will be done) Sustainable corporate social responsibility initiatives Brochures in place and distributed to stakeholders.

16. Objective Implementation Plan :Funding 1 Focus Area Funding and profitability Accountability Managing Director Objective Name Raise adequate funds for on lending and ensure profitability How will we achieve this Objective Activities and Tasks Timings Costs Responsible Support Inform Consult 1 Raise long term funding from external & internal sources, June 2013 4.5 m, 10m Dec 2013. On-going TBA MD FM,OM, Board Financial Partners 2 Ensure utilisation of availed lines of credit to the limit On-going TBA OM FM,BDM, OM MD Financial partners 3 Reduce cost of funding from average of 35% August 2015 to 18% by Dec 2016 On-going TBA FM OM MD Board 4 Cost containment On-going TBA FM HODs MD Board 5 Ensure revenue growth in line with target On-going TBA MD FM, OM Board 6 Scout for non funded income – commissions from money transfer agencies, grants and fees for advisory services Monthly TBA MD FM, BD, OM, Board Partners How will we Track the Objective Performance Indicator Frequency of Measure Unit of Measure Target Alarm ROCE Monthly % % % Cost of funding Monthly % % % Cost to income ratio Monthly % % % Prepared by brian kufahakutizwi 16

17. Objective Implementation Plan : Working ICTS 2 Focus Area Working ICTS and systems Accountability Managing Director Objective Name Deploy relevant and robust ICT solutions and systems How will we achieve this Objective Activities and Tasks Timings Costs Responsible Support Inform Consult 1 Implement systems, Monitoring of system performance and ensure proper documentation. March 2016 TBA Operations Manager MD Risk and Compliance board committee Tech partners 2 Implement MIS(ERP,BI, CRM -360 degree view) June 2016 TBA Operations Manager FM, MD Risk and Compliance board committee Tech Partners 3 Maximize utilization of availed systems June 2016 TBA Operations Manager FM, BDM. MD Tech partners 4 Acquire MFI system March 2016 TBA MD Operations Manager Board Tech Partners 5 Disbursements over Ecocash , telecash and E-Wallet platforms Dec 2016 TBA Operations Manager FM, BDM MD Tech partners 7 Fully resourced DRS Dec 2016 TBA Operations Manager FM MD Tech Partners How will we Track the Objective Performance Indicator Frequency of Measure Unit of Measure Target Alarm System related complaints. TBA % 20% 25% System uptime TBA % 99.9% 98% Prepared by BRIAN KUFAHAKUTIZWI 17

18. Objective Implementation Plan : Skills and Rewards 3 Focus Area Skills and Rewards Accountability Managing Director Objective Name Attract and retain highly efficient skills in the right places How will we achieve this Objective Activities and Tasks Timings Costs Responsible Support Inform Consult 1 Develop and implement effective staff wellness initiatives for the company to increase staff engagement levels December 2015 TBA MD HR Committee Board FM 2 Refine the incentive system in line with international best practices to reward performance December 2015 TBA HR Committee MD Board HODs, FM 3 Review and resource structure in line with strategy December 2015 TBA MD HR Committee, HODs Board HODs 4 Review job descriptions December 2015 TBA MD HODs, MD HR Committee, Board Consultants 5 Conduct a job regarding exercise December 2015 TBA HR Committee MD, HODs Board HODs, Consultants 6 Implement an effective training program for both front and back offices. June 2016 TBA MD HODs HR Committee External Consultants 7 Develop and Implement a staff rotation system December 2016 TBA MD HR Committee Board HODs, BMs 8 Ensure effective implementation of performance management system On-going TBA MD HODs HR Committee Consultants, 9 Ensure effective leave day management system. On-going TBA MD HODs HR Committee FM How will we Track the Objective Performance Indicator Frequency of Measure Unit of Measure Target Alarm Critical staff retention. TBA % 95% 90% Staff cost to income TBA % 35% 40% Customer satisfaction TBA % 65% 60% 18

19. Objective Implementation :Target Market penetration 4 Focus Area Target market penetration Accountability Managing Director Objective Name Thrive for market leadership and explore opportunities for growth How will we achieve this Objective Activities and Tasks Timings Costs Responsible Support Inform Consult 1 Customer needs analysis and market segmentation in order to offer appropriate products On-going TBA BDM OM MD Marketing consultants 2 Create partnerships and associations to increase outreach December 2016 TBA BDM OM MD Marketing Consultants 3 Scout for project activities with NGOs and development partners On- going TBA BDM FM, OM MD Legal advisors, board 4 Reduce exposure to Premier Tobacco Auction Floors to 40% of total book June 2016 TBA MD OM Board Shareholder 5 Develop client retention strategies – Loyalty programs September 2016 TBA OM BDM MD Marketing consultants How will we Track the Objective Performance Indicator Frequency of Measure Unit of Measure Target Alarm Market share TBA % 28% 20% Customer retention rate TBA % 85% 70% Prepared by BRIAN KUFAHAKUTIZWI 19

20. Objective Implementation Plan : Delivery Channel 5 Focus Area Delivery channels Accountability Managing Director Objective Name Ensure appropriate, relevant and efficient delivery channels How will we achieve this Objective Activities and Tasks Timings Costs Responsible Support Inform Consult 1 Scan the market for possible branch locations June 2016 TBA BDM FM, OM MD Board 2 Establish satellite branches for selected regions June 2016 TBA BDM FM, OM MD Board 3 Implement an outreach framework with business membership organisations Ongoing TBA OM BDM MD Associations 4 Develop a mobile banking strategy for Ratisson. December 2016 TBA OM BDM MD Board 5 Develop interactive website and CRM module December 2015 TBA BDM OM MD Consultant 6 Standardise information meetings October 2015 TBA BDM OM MD FM 7 Zone catchment areas for loan officers and future branches. Feb 2016 TBA OM BDM MD Clients How will we Track the Objective Performance Indicator Frequency of Measure Unit of Measure Target Alarm Average profitability per channel TBA % 35% 20% Case load per Loan officer TBA Number 150 200 Location coverage TBA % 70% 60% Prepared by BRIAN KUFAHAKUTIZWI 20

21. Objective Implementation Plan: Product Innovation 6 Focus Area Product Innovation Accountability Managing Director Objective Name Provide profitable, appropriate and relevant products How will we achieve this Objective Activities and Tasks Timings Costs Responsible Support Inform Consult 1 Develop and package product offering. December 2016 TBA BDM MD OM Consultants 2 Conduct monthly product performance monitoring Monthly TBA BDM FM MD, OM Consultants, Clients 3 Develop and pilot 3 new products annually. (Housing Development loans, Energy Loans, Asset Finance, order finance, Dairy Finance etc.) Annually TBA BDM MD OM Consultants 4 Product Diversification – Develop advisory & Training services package June 2016 TBA BDM OM MD -Consultant 5 Review business conditions Quarterly TBA BDM OM MD, Board Clients, Consultants How will we Track the Objective Performance Indicator Frequency of Measure Unit of Measure Target Alarm Average product profitability TBA % 38% 20% Client retention Quarterly % 85% 70% Prepared by BRIAN KUFAHAKUTIZWI 21

22. Objective Implementation Plan: Commercial Culture 7 Focus Area Commercial Culture Accountability Managing Director Objective Name Promote a culture focused on performance and strategic cost management. How will we achieve this Objective Activities and Tasks Timings Costs Responsible Support Inform Consult 2 Business management soft skills On-going TBA MD FM HR Committee Consultants 4 Training on sales at all levels On-going TBA MD HODs HR Committee Consultants 5 Market, Product and project viability analysis before launch On-going TBA FM BDM, OM MD Consultants 6 Standardization of processes and systems On-going TBA OM FM MD Consultants 7 Develop incentive scheme and performance awards December 2015 TBA Incentive and Awards committee HR Committee MD Consultants 8 Ensure quick turnaround (max 5 days on all loans) On -going TBA OM BDM MD FM How will we Track the Objective Performance Indicator Frequency of Measure Unit of Measure Target Alarm Staff achieving targets at each level TBA % 80% 60% Cost: Income ratio TBA % 60% 70% Prepared by BRIAN KUFAHAKUTIZWI 22

23. Objective Implementation Plan : Strong Corporate Governance 8 Focus Area Strong Corporate Governance Accountability MD Objective Name Ensure 100% compliance with internal and external regulations How will we achieve this Objective Activities and Tasks Timings Costs Responsible Support Inform Consult 1 Devise monitoring and evaluation tools for checking adherence to client protection principles On-going TBA OM BDM Regulators . Partners, Board MD, Consultants 2 Engage a external rating agent December 2016 TBA MD Risk and Compliance committee, FM, OM Regulator Board 3 Develop and implement internal compliance function June 2016 TBA OM Consultant, MD Risk and Compliance committee 4 Develop credit policy December 2015 TBA OM Consultant MD Risk and compliance Committee 5 Establish relationship with two credit bureau December 2015 TBA OM MD Board Risk and compliance Committee 6 Develop and adopt social performance monitoring tools Sept 2016 TBA BDM FM MD -Consultant Risk and compliance Committee 7 Develop and implement appropriate social corporate responsibility programs December 2016 TBA BDM Consultant FM , Board MD 8 Develop recoveries function and create/maintain an internal blacklist. On-going TBA MD OM FM, Board External recoveries agents 9 Ensure adherence to covenants set by financiers and trading partners On -going TBA FM OM Board , MD Company secretary, or Legal advisors How will we Track the Objective Performance Indicator Frequency of Measure Unit of Measure Target Alarm Compliance to regulations. TBA % 100% 90% PAR greater than 30 days TBA % 5% 7% 23

24. 80% of staff achieving targets at each level 60% Cost: Income ratio 100% Compliance to regulations. 5% PAR greater than 30 days Average product profitability 38% Strong corporate governance Ensure 100% compliance with internal and external regulations Funding Raise adequate capital and ensure profitability Product innovation Provide profitable, appropriate and relevant products Delivery channels Ensure appropriate, relevant and efficient delivery channels Target market growth Thrive for market leadership and explore opportunities for growth Commercial culture Promote a culture focused on performance and strategic cost management Working ICTS Deploy relevant and robust ICTs Establish satellite branches/kiosks for selected regions Implement an outreach framework with business membership organisations Develop interactive website and CRM module Establish standardised information meetings Rezone catchment areas for branches and loan officers. Financial management workshops for managers and executives Business management soft skills Develop partnership with development organisations Training on sales at all levels Market, Product and project viability analysis before launch Standardization of processes and systems Develop incentive scheme and performance awards Ensure quick turnaround (max 5 days on all loans)) Average profitability of 35% per channel 150 Case load per Loan officer 70% Location coverage Devise monitoring and evaluation tools for checking adherence to client protection principles Engage a external rating agent Develop internal compliance function Develop and implement credit policy Establish relationship with two credit bureau Develop and adopt social performance monitoring tools Develop and implement appropriate social corporate responsibility programs Intensify recoveries efforts and create/maintain an internal blacklist. Ensure adherence to covenants set by financiers $767k loan book . 28% ROCE 17% Cost of funding $848k lines of credit 20% system related complaints. 99.9% system uptime 95% critical staff retention. 80 % customer satisfaction. 2 5 % staff cost to income 2% market share. Skills and Rewards Attract and retain highly efficient skills in the right places STRATEGIC OBJECTIVES Ratisson Finance Strategy@Work Summary 2015 - 2016 (Who are we, Where are we going and how will we get there?) Key Results Key Results Activities Activities Customer needs analysis and market segmentation in order to offer appropriate products Identify and create associations to increase outreach Identify and develop project activities with NGOs and development partners Reduce exposure to Premier tobacco to 10% of total book. Develop client retention strategies – Loyalty programs Development of systems and ensure proper documentation. Implement MIS(ERP,BI , CRM -360 degree view) Maximize utilization of implemented systems (Admin systems, Coretalk ) Acquire MFI system Ensure IT training for all staff Commence disbursements over mobile based payment platforms like Ecocash Fully resourced DRS Raise long term funding from external & internal sources, Dec 2016. Ensure utilisation of availed lines of credit to the limit Reduce cost of funding from average of 35 % Aud 2015 to 17% by Dec 2016 Cost containment Ensure revenue growth in line with target Customer focus Timely provision of relevant & adequate information Respect Honoring & acknowledging diversity and uniqueness of individuals Honesty and Integrity Upholding the virtue of absolute honesty in our conduct Innovation and Flexibility Continuous personal & organizational development through pioneering and innovation Professionalism Each one of us is committed to building winning relationships PURPOSE “To continually improve the livelihoods of the communities we operate in through hassle free access to credit and provision of customer focused service” MISSION “To create and continuously increase shareholder value through the provision of excellent service and innovative products to its customers and a conducive working environment in which every employee is encouraged and assisted to develop to their full potential.” FOCUS GOAL 2016 “ Penetrate the local market offering sustainable and innovative microfinance solutions “ Develop and implement effective staff wellness initiatives to increase staff engagement levels Develop and implement incentive system in line with international best practices to reward performance Develop and resource structure in line with strategy Review job descriptions Conduct a job grading exercise Implement an effective training program for both front and back offices. Develop and Implement a staff rotation system Ensure effective implementation of performance management system Ensure effective leave day management system. 24 Develop and package product offering. Conduct monthly product performance monitoring Develop and pilot 3 new products annually. (Housing Development loans, Energy Loans, Asset Finance, order finance, Dairy Finance etc.) Introduce start-up entrepreneurship loans Product Diversification – Develop advisory & Training services package Set and continuously review business conditions

25. Prepared by BRIAN KUFAHAKUTIZWI Areas with Biggest Business Impact Good leadership System Inadequate funding Macroeconomic situation Capacity to serve markets.(Skills, synergy development) Product innovation Daily trackers and performance monitoring. Performance management Delivery channels (brand awareness) Customer service/seamless Market penetration Compliance to regulatory functions. Advisory services Transformation agenda/ Social Performance The following areas are believed to have the most impact on the success of Ratisson Finance. 25