The roll out of the investment of R500 million pledged by SA Taxi at the fifth South African Investment Conference hosted by President Cyril Ramaphosa in Johannesburg in April this year is gaining momentum and has already created more than 3 000 jobs.
The investment was announced as one of the pledges worth billions of rands that contributed to bringing the total value of investment pledges over a five-year investment mobilisation period to R1.51 trillion, thereby exceeding the initial target of R1.2 trillion set by President Ramaphosa.
Chief Government and Industry Officer at SA Taxi Holdings, Matsidikanye Moswane, said more than R350 million of the funding that was provided by the developmental credit provider, Transflow, has already been spent.
“The investment is being used to enable financial inclusion by extending developmental credit to small and medium enterprises (SMEs) that may otherwise not have access to credit from traditional financiers,” Moswane said.
“By providing debt funding through Transflow, the Development Bank of Southern Africa (DBSA) is empowering under-serviced and emerging SMEs to build their businesses, which in turn creates further direct and indirect employment opportunities. To date this has helped create 1 620 direct jobs and 2 700 indirect jobs,” he said.
Moswane said the SA Taxi, whose headquarters are based in Midrand, Gauteng, but has a national customer base, finances entrepreneurs who operate minibus taxis that may not otherwise have access to credit from traditional banks, contributing to job creation, and enabling and improving the safety of public transport in South Africa.
“SA Taxi is an independently owned commercial business. It is the first financial service provider to focus solely on the taxi industry. We make a vital contribution to a market sector that has a stimulating effect on the national economy at many different levels.
“Each taxi creates 1.8 new jobs related to the industry. We focus exclusively on building entrepreneurs through the medium of the taxi industry which comprises an estimated 250 000 taxis that are on the roads in South Africa,” Moswane said.
He said SA Taxi has to source the money it lends to its clients from foreign and domestic direct investment.
Source: South African Government News Agency