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A2pay investment proposal 15

6.2. A2Pay Financial Services

Access to financial capital and financial integration has up until now remains a critical stumbling block for
South African traditional traders in this market. It is common knowledge that the South African Spaza trader
is heavily marginalised at the moment by rampant foreign competition, an unregulated market, lack of
buying power and collective clout, as well as limited access to funding, technology and business tools have
negatively impacted the number of SA traders in the market. Of the 140,000 documented Spaza shops at
least 70% are owned now by foreign groups. The breakdown of Informal Traders is given below per region.

A2Pay’s Jobs fund programme essentially readies a traditional trader for financial inclusion through a
combination of the business tool and technology platform, the training/coaching, wrapped neatly into the
PATHWAYS CAREER PROGRAM. This offers the strongest and most viable combination for sustainability of
SA’s traditional traders, and therefore job creation and financial inclusion.

In partnership with the SASME Fund, A2Pay, through their solid relationship with the merchant along with
a detailed trading history is now able to facilitate the disbursement of capital down to the traditional trader.
A pilot was conducted and fully tested and audited by Sizwe Ntsaluba Gobodo Grant Thornton. Based on
the results thereof SASME fund has provided a loan of R25 million to be used for disbursements to the Spaza
market.