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.