Investor Presentaiton

Macroeconomic Developments GDP Growth and Current Account Deficit 8 6 Per Cent 4 2 0 -2 Growth (% y/y) Avg growth: 4.9% -Current account deficit (%GDP) Avg growth: 2.3% Growth is lower since crisis Weaker consumer (weak employment growth, higher inflation) Private investment subdued (low confidence, electricity constraints) Unemployment 25.5% in Q2 2014 Current account deficit remains wide despite rand weakness - Due to import volumes growing faster than export volumes and unfavorable terms of trade Flexible rand has helped support export competitiveness But electricity constraints limiting the adjustment of the CAD Strike activity worsened export performance further in 2014 Inflation remains within the target band, but close to upper range Pass through relatively muted - Wage increases are major risk -6 -8 2000 2001 Source: IMF WEO, October 2014, NT calculations Note 2014, 2015 are forecasts. National Treasury's latest forecasts will be released with Medium Term Budget Policy Statement 22 October 2014 First average represents average growth / CAD from 2004 - 2008. Second average represents average growth/CAD from 2011 - 2015 national treasury Department: National Treasury REPUBLIC OF SOUTH AFRICA 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -4 Avg CAD: -5.2% Avg CAD: -4.9% 2014* 2015* 3

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