Investor Presentaiton

10 R million Issuance strategy focused on long-end to reduce refinancing risk Structure of debt maturity profile and Yield Curve R 150 R 120 R 90 R 60 R 30 RO 2014/2015 2017/2018 2020/2021 2023/2024 2026/2027 2029/2030 2032/2033 ■Domestic Bonds Foreign bonds 2035/2036 2038/2039 Maturity 2041/2042 ...... 2044/2045 2047/2048 2050/2051 9 8 6 Per cent 5 151 153 163 175 R208 186 183 R186 158 157 R213 144 138 141 138 4 1 5 10 15 20 20 III 25 25 30 50 Years Change in bps[rhs] -Apr-13 -Oct-14 Source: National Treasury national treasury Department: National Treasury REPUBLIC OF SOUTH AFRICA R2048 35 128 300 200 100 Basis points Domestic Debt Issuance concentrated on the long end of curve: Issuance from 2008 to 2011 was concentrated in the short end due to high investor risk aversion Limited supply on short end due to high refinancing risk Recently increasing domestic and foreign demand for long dated paper Foreign Debt Issue only to finance foreign currency commitments Issuance (tenure, yield, timing etc.) dependant on: - prevailing market conditions at time of issuance Only two 30 year bonds issued in past three years. Desire to push out maturity where appropriate 2014 issuance: - dual tranche 12 year, €500 million and 30 year US$1 billion. 5.75 year, US$500 million Islamic bond (Sukuk) Elevated borrowing costs since April 2013 Yield curve has remained steep since May 2013 due to: - Risky emerging market assets sell-off Issuance at the long-end of the curve - Monetary policy tightening 0 Fixed-rate bonds yield curve has moved by 156 basis points on average since April 2013, Inflation- linked bonds by 58 basis points 5

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