Mar 24

Written by: Pete Simms
Wednesday, March 24, 2010 

SA Taxi has unveiled an innovative refinancing solution for all taxi owners operating converted panel vans who cannot afford to pay for the safety conversions to ensure their vehicles are complaint before the 1 September 2010 deadline. Deputy Minister of Transport, Jeremy Cronin, announced on Friday that taxi owners and financial institutions were granted a six months grace period in which to fix the estimated 2,353 illegally converted minibus taxis on South African roads.

While SA Taxi committed in August last year to footing the safety upgrade bill for the 484 panel vans on its books, many other financial institutions have refused to pay for the conversions on the grounds that the vehicles in question were unwittingly financed as the government’s eNatis documentation was incorrect.

“As a pioneer in the financing of taxis across South Africa, we want to ensure that all of these owners are offered the opportunity of having their vehicles inspected and rectified without being placed at a financial disadvantage. They will obviously have to meet our credit and affordability criteria but we are certain that the majority will be able to continue operating with only minor interruptions to their normal business routine,”stated Martin Bezuidenhout, CEO of SA Taxi.

In terms of SA Taxi’s proposition, eligible taxi owners are invited to apply for refinancing whereby their converted panel vans will undergo the SABS-approved safety upgrade before the 1 September deadline without incurring increased monthly premiums.

Says Bezuidenhout: “Through this offer, SA Taxi will ensure that these entrepreneurs are able to keep their vehicles and businesses operational whilst ensuring that taxi commuters are offered safe and affordable transport.”

Notes to editor

SA Taxi Finance (Pty) Ltd (“SA Taxi”) is South Africa’s leading provider of finance to the taxi industry, having financed the businesses of almost 20 000 taxi operators over the past 12 years.

 To fulfill it s role, SA Taxi employs its own equity as well as raising funding through appropriate structures, including Moody’s Aa2ZA rated debt instruments which have been issued directly to leading financial institutions.

SA Taxi views its societal role as an enabler of affordable, safe transport to the 15 million commuters who travel the roads of South Africa in taxis every day and a contributor to the financial empowerment of taxi owners who in turn are providers of employment to over 400 000 drivers, rank managers and providers of associated services.