Source(s) of financing AfDB: 87633102.86 Cofinanced: 119200685.5
Implementing Agency: --
Location: South Africa
The Project entails funding of a mass transit financial solutions provider that onlends to small and medium enterprises (SMEs) that may otherwise not be able to access financing. With the funding, SMEs will acquire fuel efficient, environmentally-friendly, quality vehicles (minibus taxis) to be used for mass transit across South Africa. The Project will catalyze funding for approximately 8,000 commuter transit vehicles, or nearly 7% of the current need in the country, thereby supporting nearly 600,000 safer daily trips
Nearly 6,700 SMEs will benefit from improved access to finance and higher profitability. 90% of SA Taxi clients do not qualify for the formal banking sector.21% of direct beneficiaries are women and 17% are youth (under 35 y/o).100% of clients are black-owned SMEs. In addition, 14,400 direct jobs are expected. Daily commuters will benefit from improved conditions including safety and wifi access during commuting times. The operation will result in lower carbon emissions and other environmental benefits. SA Taxi is vertically integrated and has developed a state-of-the-art refurbishment and maintance plant, characterized by: skills transfer, training, and innovation (i.e.patents, new machinery). SA Taxi extends full life insurance to clients and non-clients, thus further extending the benefits of a developed financial sector to vulnerable populations. The operation supports sustainable urbanization and is distintly pro- poor.