SPF Framework Pitch Deck v2.2-compressed

The South Africa Sustainability Plus Facility (SPF) gender powered capital market SDG solutions

Table of Contents 01 Problem & Solution 02 Opportunity 03 The SPF Sustainability Plus Facility 04 The Ask

Problem Gender inequality has made growth and COVID 19 economic reconstruction & recovery even harder. The pandemic response is a tremendous opportunity for countries to make up for lost time and pursue gender equality with scalable capital market solutions. Capital markets move billions & trillions in a day.

Gender inequality is Problem Women care driving poverty loading & job COVID 19 economic shedding rather than growth impact In SA COVID 19 is More young reversing gender Youth unemployment women surged to > 56% unemployed parity gains. Women: Utility demand outstrips Women supply (Eskom) carry the • Are 66% of job losers burden • Do 2-3 x more unpaid care Corruption rising work • Declined by 10% in small business ownership 2008- 2017 Source: Gender inequality and the COVID-19 crisis: Evidence from a large national survey during South Africa’s lockdown, 2020 & World Bank SA Gender Equality Assessment, 2018

Solution In a realistic “best-in-region” scenario in which the progress of all African countries matches the African country that has shown most progress toward gender parity, the continent could add $316 billion or 10 percent to GDP in the period to 2025 (Source: MGI Power of Parity in Africa, 2019) Advancing women’s equality can drive growth. Repositioning gender equality as forefront in tacking SA’s biggest problems through innovative inclusive capital market solutions can deliver significant growth dividends for the population & planet alike in pursuit of economic recover & SDGs. Advancing women’s equality can deliver a significant growth dividends Rwanda has tripled women’s representation in middle management. Botswana has cut maternal mortality by about 58 percent. Egypt has tripled its score, and Guinea and Liberia doubled their scores, on legal protection of women.

The Opportunity o South Africa has the highest GPS (0.76) in the continent (MGI, 2019) o South Africa has the most gender bond ready commercial market (FSD Africa & UNW, 2020) followed by Kenya and Nigeria o Despite COVID-19 having worsened the burden of care for women, investment in women is not strongly reflected on the SA COVID-19 Economic Reconstruction and Recovery Plan (ERRP), whereas gender responsive planning could be used to move SA from care crisis to opportunity

The Opportunity Surfaced by the 2021 South Africa Gender Bond Landscaping Study Findings Green Plus Gender South Africa has issued 70% As an ESG linked bond that has SA government has committed 40% of of Africa’s Green bonds since 2012 & there is more demand taken off in Africa, green bonds infrastructure procurement to WOBs. than supply may offer new insight on evaluating & pricing The majority of SA green bonds are sustainability linked to infrastructure. Commissioned by UN Women for the South African Government

Green Bonds in South Africa Comparison Participation Green First Certified South Africa accounted for over 70% (or US$ 1.5B) of Green Bonds Bond Issuanc Climate Bonds issued in African countries between 2012 and 2020. Green Bonds have Country Amount Use of Proceeds been targeted for deployment were there’s a strong commercial basis s (US$m) e Amount (cost saving or financial return on investment). South African issuers No.# (US$m) include municipalities and corporates Kenya 1 41 Sept. 1 41 Buildings 360 2019 Namibia 1 5 Dec. Energy, buildings, 200 2018 transport, water, 138 117 waste, land use, adaptation & resilience Seychell 1 15 Oct. Land use & 97 74 es 2018 marine resources Nigeria 4 136 Dec. 2 71 Energy, transport, DBSA Sta nda rd City of Ned ban k Gro wthpo int City of 2017 water, land use Ban k Joh ann esbu rg Ca pe Town Morocco 4 136 Nov. 1 117 Energy and Type: MDB Corporate Municipal Corporate Corporate Municipal 2016 buildings None None Green Green 10 Green Green 10 South 6 1,556 Apr. 2 Energy, buildings, Standard: Bond Bond Bond Bond Africa 2012 193 transport, water, Principles Principles Principles Principles 7, 5, 3 10, 7, 5 waste 10 Tenor (yrs): Total 17 2,107 6 422 1. Prior to June 2020, called the Green Bond Segment STRICTLY PRIVATE AND CONFIDENTIAL

Gender Bonds in Africa ● According to the Study by LHGP, gender bonds are “bonds that support the advancement, empowerment and equality of women” ● No widely accepted definition ● As at March 2020, 13 gender-labelled (excluding Social Impact Bonds) bonds were in issue globally in three forms: ● SDG labelled gender bonds ● Financial inclusion gender bonds ● Corporate behaviour gender bonds ● None of the gender-labelled bonds above were issued in Africa

SA Gender Bond Landscape Finding Gender can ride and heighten the wave of green bond & other sustainability investments. For SA it will be more impactful to position gender as a catalyst and driver of sustainability investment leveraging a range of capital market instruments than to pursue a stand alone start up bond instrument.

The Sustainability Plus Facility Gender powered capital market SDG investment solutions

Introducing SPF gender powered capital market SDG solutions

The SPF Components Commercial Concessionary Technical Investments Finance Assistance Women empowered & SDG Focused on development Grants for gender powered project linked investments qualified by outcomes that empower& identification, development and the use of proceeds aligned to improve welfare of women & ecosystem building across the girls; in addition to men 2x criteria commercial & concessionary investment spectrum

2x Criteria Used by DFIs who have collectively invested $7 billion from 2018-2021 (double the target) & aim to double that Investment needs to meet one these 5 Criteria: o 51% female founded and/or owned o 20-30% women in decision making (board, senior mgmt. investment committee) o 30-50% women in workforce depending on quality of jobs o Product/ service disproportionally benefits women o 30% of financial institution proceeds or portfolio company meeting 2x criteria

SPF Capitalization $100 m $ 200 m $200 m Round 1 Round 2 Round 3 Capitalized at $500 m (1/2 billion) by a government levy of 0.5% on the import of non-green infrastructure inputs (materials, technology etc) over three years for commercial and concessionary investments. Technical assistance capitalized by grants between SA development Banks and G7 countries investing in SA gender responsive green growth.

SPF Investment Strategy Scaling what works today. Exploring what will work tomorrow. What works for women, girls & planet works for all Stream 1 : WOBs (85%) commercial investments 90% scaling Credit lines to Fintechs, 85% Funds, DFIs, Banks lending to WOBs infrastructure suppliers & actors Stream 2: Care (90%) Use of proceeds 15 or 10% Outcomes innovation concessional finance inclusion Care for people & planet; as part of the ERRP. Aged care; health; childcare; education, climate etc Other priorities Commercial Experimental Concessionary 4IRSA - scalable digitally 4IR – South Africa believes that the digital economy is the 4th Industrial Revolution and has their growth strategy pegged to it enabled SDG linked women powered investments & projects

SPF Structure (schematic) Impact Investing Social impact Technical Assistance Profit Purpose Project Commercial Concessional Technical Fund Fund Assistance. Investments in capital markets Financially viable & sustainable Technical Assistance that surfaces, (including gender bons) that yield profit/ contributions through capital markets strengthens and/or scales gender exclusively focused on SDG outcomes return & SDG impact (use of proceeds) powered SDG impact projects

The Ask Endorsement Sponsorship Marketing Use of your brand as a promoter Contributing $100 k to development the Referrals to other partners of the SPF concept SPF framework either as a silver (20%); gold (50%) contributor or platinum sponsor (100%) in exchange for the first right of investment refusal

What sponsorship buys Benefits v The international and national position of lead gender lens finance innovator v A seat at SA government lead partner table wrt to solving the nation’s most pressing challenges v Access to intellectual property from this SOW • Develop structure & mechanisms including detailed measurement & reporting framework • Determine size of funds, use of proceeds, issuers, certifiers etc • Assess launch and implementation risks • Package investment case and mini- prospectus • Investor road show • Capital raising • Launch and operationalization v First right of refusal on SPF investments at Facility and investee levels

As advised by Triple C Advisory & ZeniZeni Dr Khetsiwe Dlamini (Author) is the Executive Director of Triple C Advisory which is an African originated female owned gender lens advisory firm based in South Africa and worked in association with ZeniZeni Sustainable Finance Advisory on the Landscape Report

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