SA Taxi just secured R1.9 billion ($100 million) in loans to aid taxi operators. The company, owned by JSE-listed Transaction Capital, is vertically integrated into the minibus taxi industry and the South African National Taxi Council (SANTACO), a national body that fights for the wishes of its minibus taxi operators members, owns twenty-five percent of SA Taxi.
The company recently penned a $100 million loan agreement with the African Development Bank. According to SA Taxi, this money, made up of a senior loan of R190 million and associated facility of R1.4 billion, will offer the needed step up to industrialization via enhanced urban mobility for working-class SA citizens.
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The loan will help the firm to trigger the empowerment of taxi operators who battle restricted access to finance from regular financiers.
Lorenzo Cardoso, Chief Financial Officer and Director of SA Taxi had this to say, “The funding transaction entered into with the African Development Bank is instrumental to SA Taxi’s medium and long term strategy. The tenor and size of the transaction will contribute towards the continued success of SA Taxi to empower SMEs and create opportunities that ensure the sustainability of the minibus taxi industry.”
Post credit: Tech Financials.
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