Proparco loans $10 million to SA Taxi, the primary supporter of South Africa’s minibus taxi owners
Proparco has granted a US$10 million (ZAR 124 million) loan in local currency to SA Taxi Development Finance Proprietary Limited (‘SA Taxi”), a subsidiary of JSE listed Transaction Capital Limited and one of South Africa’s leading provider of SME minibus taxi financing. This loan is intended to help the company sustain its growth and continue to put new and safer vehicles on the road to service the millions of commuters who use minibus transport every day.
The company has facilitated the creation of over 68 000 SMEs since it was founded in 1996 and currently finances approximately 30 000 minibus taxis.
16-seater minibus taxis are ubiquitous in South Africa and they are estimated to form 70% of all work and educational public transport trips. They are critical in providing the majority of the population with access to employment, health, education and other social services.
Proparco’s loan will help the company create or sustain approximately 360 minibus taxi SMEs providing approximately 650 direct jobs. As 100% of SA Taxi’s customers are black-owned and 20% woman-owned, populations who are typically underserved by traditional financiers, this loan will also advance the cause for financial inclusion. Finally, through SA Taxi’s commitment to replacing high emission vehicles with less emitting ones, CO2 emissions will be reduced.
Through this loan, Proparco reiterates its commitment to South Africa’s inclusive development. Last October, Proparco granted a €25 million loan to Calgro M3 to help the company build 49,000 units of affordable housing in priority urban development areas.
About SA Taxi
SA Taxi is a vertically integrated taxi platform utilising specialist capabilities, enriched proprietary data and technology to provide developmental finance and other services to empower SMEs and create shared value opportunities thus ensuring the sustainability of the minibus taxi industry.
For more information, go to: www.sataxi.co.za