SA Taxi has a constant requirement for further funding to provide new loans to commuter minibus owners. Companies based in South Africa, being an upper middle income country, would not normally qualify for support from GuarantCo.
However, given the pro-poor nature of the infrastructure being created and SA Taxi’s restricted access to the local markets due to the current financial crisis (particularly following the fall of African Bank), GuarantCo obtained special approval from its shareholders to continue to support the company’s financing requirements. GuarantCo’s participation enables SA Taxi to continue to provide affordable and dedicated financing for minibus taxi vehicles.
By maintaining and increasing their exposure to the company, GuarantCo and ABSA Bank provide a significant vote of confidence in SA Taxi and help preserve the company’s access to commercial finance .
GuarantCo’s support enables SA Taxi to have a material development impact, improving the lives and livelihoods of the taxi owners, drivers and others that work directly for the industry, as well as the commuters who depend on them. It is estimated that the new tranche will help create approximately 600 new SMEs Over 60% of non-private transport trips in South Africa are serviced by minibus taxis, and several million people rely on them to get to work, often travelling from townships into the urban centres.
The SA National Taxi Council estimates that each minibus taxi has significant beneficial impact on 300 people directly and indirectly.