ZAR 150 million partial credit guarantee for ZAR 200 million additional financing for SA Taxi.
ZAR 150 million (USD 15 million)
Total transaction amount
ZAR 200 million (usd 23.5 million)
To meet additional growth in demand for its specialist leasing product, SA Taxi has an on-going financing requirement. Reduced risk appetite in the international and local market meant that an initial round of funding was placed with the DFI community. Through this additional financing, GuarantCo was able to support Absa’s first transaction with the Company. The financing was arranged by Transcapital.
In South Africa, the taxi industry is the most widely used component of the public transport system accounting for 79 percent of commuter trips. For these commuters, the taxi industry is an irreplaceable basic essential service.
Access to commercial finance for a lending firm to micro and small entrepreneurs is onerous. By GuarantCo’s guarantee a mitigate is provided for the lenders’ risks. By maintaining and increasing their exposure to SA Taxi, GuarantCo and ABSA Bank provided a significant vote of confidence in SA Taxi and helped to preserve the company’s access to commercial finance.