Page 19 - demo Golden pond document

A2pay investment proposal 18

6.3. Eskom Wholesale Electricity

Overview:

A2Pay tendered for an Eskom Wholesale Electricity contract in 2015 and was awarded 1 of 10 contracts in
2016. Since being awarded the contract, only 6 License holders including A2Pay have been actively wholesaling
Eskom Prepaid Electricity to various distributers within the South African market. This contract has provided
the opportunity for a highly lucrative additional revenue stream for A2Pay.
Customers:

A2Pay was quick to bring 3 credible distributers on board and has successfully supplied them ever since. These
distributers supply consumers in both the formal (Online and Banking platforms) as well as informal market
(via vending devices in Spaza Outlets). The mentioned customer will typically prefund their A2Pay wholesale
wallet credit daily and A2Pay pays commission 30 days from statement received from Eskom.

Commercial Potential:

A key player in providing Electricity is facing tough economic conditions and many of their customers who
looking for an alternative supplier. A2Pay is well positioned to take advantage of this, due to the lucrative
margins being offered as well as the speed and reliability of the transactional system with minimal down time.
Growth has been significant since launch in 2017 however, there has been little focus in sourcing new
customers due to resources being fully dedicated to the current success of Jobs Fund programme and A2Pay
Financial Services.

A2Pay currently only vends for 2% of the Eskom Prepaid market and thus has a major opportunity to grow this
over the next 3 years. A2Pay commercial has conservatively budgeted a growth of 46% for the 19 month
period until March 2021 and a further 50% growth for the following year.