JOHANNESBURG - The South African National Taxi Council has acquired a 25 percent stake in SA Taxi for R1.7 billion, following several years of a mutually-beneficial working relationship.
SA Taxi finances entrepreneurs who operate minibus taxis that may not otherwise have access to credit from traditional banks, with a view to helping improve the safety of public transport in South Africa.
Together SANTACO and SA Taxi have granted loans and offered affordable insurance premiums to operators to create jobs and broaden financial inclusion in the country, among other initiatives.
"This transaction provides broad-based participation and a framework for wide-reaching initiatives that will grow and support the sustainability of the minibus taxi industry at every level into the future," a statement on the deal said.
The proportional ownership structure, held by SANTACO and broad-based provincial bodies, will ensure that ownership and associated economic benefits of this investment accrue to all levels by way of a trust.