ABSA's answer to South Africa Electricity Crisis - Project Ugesi

South Africa is in the midst of an electricity crisis that threatens the country’s medium to long term growth potential. Government urged all households to reduce their electricity consumption by a minimum of 10% coupled with a newly introduced tax levy and a proposed 60% electricity price hike by Eskom. Absa Home Loans recognized that South African’s households are having a tough time with increasing interest rates, fuel costs and the increased cost of living. So having to come up with cash to install energy saving or energy security products to achieve the 10% target may be challenging.

Absa’s solution will take the form of offering customers the ability to finance energy efficient products, which will reduce their usage of electricity and dependence on electricity supply. These products can be financed through the customer taking a Further Advance or using the equity on their home loan.

The purpose of this communication is to outline the relevant value proposition and process to be followed when financing a further advance for this special initiative.

The primary target market for this energy solution initiative is focused on existing Absa Home Loan customers.

Timing:

This initiative will be effective from 1 April 2008 until further notice.

Project Ugesi Value proposition:

For the customer to benefit in the reduced fees they must use the campaign panel attorneys.

• 50% discount on attorney registration fees when taking up a Further Advance.

• Option for early access to funds is still available and this can be discussed with the attorney.

• The Absa endorsed service providers, namely Home Comfort and SCS, are offering all Absa customers a 10% discount on their products. Customers are however free to use other service providers. Absa would still be willing to finance the option. The discount will however not be applicable them.

• Easy access to funds, using the applicants Home Loan (Further Advance, Flexi Reserve, MultiPlan, etc)

• Customers who have their HOC insurance policy through Absa will not be charged additional for a solar geyser (terms and conditions apply). They will however have to advise Absa that this was installed, in order to qualify for an increased pay-out benefit should a claim arise.

• Absa Home Loans service providers offer the following energy efficient and energy security products to the Absa customers at a 10% discount:

o Free site evaluation and consultation
o Solar Water Heating (Solar Geysers)
o Aerated Shower Heads
o Solar Pool Heating
o Water Under floor Heating
o Digital control for Under floor Heating
o Floor Insulation
o Roof / Ceiling Insulation
o Windows Insulation with Safety Film
o Battery Back-ups (UPS)
o Generators

NOTE: Absa does not endorse these products. Customers are not obligated to use this supplier. Customers are also advised to use SABS approved or test approved Solar Water Heater suppliers. The list is available at http://www.eskomdsm.co.za/swh_7_supplier.htm

For more info on applying for this ABSA further advance, email vania@bondapply.com