BANKSETA ANNUAL REPORT 2023

CHIEF EXECUTIVE OFFICER’S REPORT •

Various performance indicators for Programme 3 included in the annual performance plan affecting the usefulness of the reported performance information. The BANKSETA will be putting adequate controls and measures in place to ensure the above issues do not recur in the next financial year. Future Outlook BANSKETA management will be putting together plans under the guidance of the Accounting Authority to address the current internal control challenges that led to the unfavourable audit outcome. BANKSETA continues to maintain a strong pipeline of project commitments against the current reserves to improve spending on our discretionary grants. Improvements in our grants applications processes are to improve through the deployment of technology which should see us reducing red tape in the application and grant approval process. The BANKSETA has fully recovered from cyber security attack experienced during the third quarter of the period and migrated all its IT systems to a safer cloud environment. The partnerships BANKSETA entered during the year with other entities of Government are yielding mutual benefits to all parties and the country at large. We were able to reach an increased number of unemployed people through joint funding and pooling of expertise. Our current partnerships with the TETA, NEMISA, CapeBPO, Western Cape Economic Department, Alfred Nzo, local municipalities of Mafikeng, Ditsobotla and Ehlanzeni as well as SALGA are set to continue into the foreseeable future. We are looking at further partnerships at District Municipality level to realise and support the Government’s District Development Model. Economic Viability The BANKSETA’s financial statements were prepared on a going concern basis. While the economy continues to struggle to achieve decent levels of growth, management’s assessment indicates the banking sector will continue to show stronger growth in incomes buoyed by the present higher interest rates environment. Although there are rising risks of impairments provisions owing to consumers being under financial pressures, the sector remains resilient

showing no signs of contraction. These provide fundamentals for a steady flow of levy income to the BANKSETA into the foreseeable future. Acknowledgement and appreciation I extend my thanks for continued support and guidance during the year under review to the Department of Higher Education and Training, the National Treasury and the Auditor-General of South Africa. I appreciate the support received from the Board Chairperson and members of the Board for devoting time and energy to the business of the BANKSETA. Our various partners and stakeholders also played a key role in enabling the BANKSETA performance recorded in this report. I certainly cannot forget the difficult moments we went through during cyber security breach and appreciate the members of the South African Banking Risk (SABRIC) who reached out to the BANKSETA to provide support and guidance that helped recover from the incident. Finally, my recognition and appreciation to the BANKSETA staff who work tirelessly for us to meet the organisational performance recorded in this report. Their commitment and dedication to the mission and vision of the BANKSETA remains a valuable asset.

Mr Eubert Mashabane Chief Executive Officer

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