SA Taxi were seeking to syndicate a ZAR 1,700 million senior tranche out of a total ZAR 1,925 million loan programme. A reduced risk appetite in the international and local market meant that an initial ZAR 635 million was placed with the DFI community. The financing was arranged by FMO and Transcapital with participations from GuarantCo and ICF. Investec Bank participated with a further ZAR 120 million of mezzanine financing.

South Africa, being an upper middle-income country, would not normally qualify for support from GuarantCo. However, given the pro-poor nature of the financing and SA Taxi’s inability to access the local markets following the financial crisis, GuarantCo obtained special approval from its shareholders to support the financing.

The South African taxi (minibus) industry employs an estimated 150,000 taxis and many more individuals, directly and indirectly. The industry is a critical part of the country’s transportation network, especially in the disadvantaged suburban areas. 78 percent of all non-private journeys in Africa are made in minibus taxis.

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 and affordable public transport.