ZAR 140 million guarantee covering a further ZAR 200 million loan from ABSA Bank.
ZAR 140 million (USD 10.1 million)
Total transaction amount
USD 14.5 million
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 positive effect on the SMEs, the drivers and others that work directly for the industry, as well as the commuters who depend on them, often travelling from townships into the urban centres. GuarantCo’s involvement helped to support an estimated 16,000 long-term jobs.
SA Taxi Group has acted a catalyst for the successful implementation of the South African government’s Taxi Recapitalisation Programme objectives, as the largest provider of end user finance into this industry and exclusively finances new taxi vehicles that are compliant with the Taxi Recap. SA Taxi Group is therefore assisting government in the provision of safe, accessible, affordable public transport.