Investor Presentaiton

Reasons for the change in the investor base Reasons for the Change in Investor Base Supply Side - Easy access, deep & liquid financial markets Inventors able to sell & buy with ease No restriction on foreigners holdings No tax on foreigners' holding of bonds Primary dealer panel with a wide distribution network (5 international and 4 local banks). Government fiscal position Transparency and disclosure of government Impact of Change in Investor Base Advantages: Local investors able to absorb sell off by foreigners Good auction demand with domestic and local demand Diversified funding sources markets - access new Issued in the international Islamic bond market. US$500 million due in June 2020 • Investor composition Middle East and Asia 60% allocated to Demand Side Broad base of foreign & domestic investors attracted by diverse range of funding instruments investors Easy money policies in advanced countries Higher yields in EMDCs national treasury Department: National Treasury REPUBLIC OF SOUTH AFRICA Disadvantages: - Relatively high component of Foreign investors leaves SA vulnerable to volatile capital outflows - Volatile capital flow impact the currency. Types of foreign investors in domestic bond market unknown • Euroclear non disclosure of holders 7

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