Securing the future of the minibus-taxi operator

The South African National Taxi Council (Santaco) earlier this week acquired a 25-percent stake in SA Taxi, which provides a comprehensive financial, insurance and allied services offering to minibus-taxi operators.

The deal is worth R1,7 billion and follows a long-term, mutually beneficial working relationship between the two parties. Of the R1,7-billion purchase price, approximately R1,2 billion will be funded jointly by Standard Bank and Futuregrowth Asset Management. The remainder will be facilitated by SA Taxi in the form of vendor funding.

SA Taxi will use approximately R1 billion of the R1,2 billion funding to settle interest-bearing external and shareholder debt. The remainder will be retained by SA Taxi to fund growth.

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.

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.

This dividend income will support relevant infrastructure and other developmental projects designed to create sustainable value for the industry and commuters.