Our operations as at 30 September 2017


  • June 2017 protest action
  • Immediate assistance to clients reducing the top interest rate to 26.5%
  • SA Taxi and industry leadership have formed accretive partnerships and are     jointly engaging industry participants to achieve sustainable industry benefits
    • New vertically integrated businesses under consideration
    • Expanding SA Taxi’s insurance business (comprehensive vehicle cover, instalment protection, passenger liability, credit life) and reduced cost of claim
    • In November 2017, Moody’s awards a Aaa.za rating to Transsec 3 senior notes and SA Taxi issued R505 million; >3 times oversubscribed

    Download a PDF that contextualises South Africa’s taxi market and SA Taxi’s impact .

    Our portfolio:

    21% women owned
    100% black owned
    Vehicles financed & insured ̴ 29 000
    Average age of vehicle: 4.3 YEARS

    Resulting in for 2017:

    ̴ 1.5 billion kms travelled by SA Taxi’s fleet on ̴6 500 routes covering over ̴ 800 000 km in 2017
    ̴ R270 million collected per month
    Credit loss ratio 3.2%; improved from 3.4% in HY17

    Societal relevance

    SA Taxi operates on the premise of developmental or empowerment financing, filling a critical funding gap by supporting entrepreneurs who would otherwise remain outside the formal economy, thus also contributing to job creation.

    Its focus on financing SMEs delivers both a commercial and social benefit through a shared value approach in a critical pillar of South Africa’s public transport sector.

    SME empowerment and economic transformation

    100% black owned SMEs
    21% women owned SMEs
    17% under the age of 35 years
    R2.9 billion loans originated creating 7 480 SMEs in 2017
    R18.6 billion loans originated creating 64 689 SMEs since 2008

    Public transport infrastructure

    R18.6 billion of end-user finance since 2008, enabling the replacement of aged and unsafe minibus taxis with new, safer and more reliable minibus taxis

    Sustainable job creation

    1.8 direct jobs per taxi vehicle
    >116 000 direct jobs created by SA Taxi's fleet since 2008
    ̴ 600 000 indirect jobs enabled by the minibus taxi industry
    >13 400 direct jobs created by SA Taxi's fleet in 2017

    Environmental sustainability

    SA Taxi enables replacement of aged and less efficiant vehicles with new and reduced-emission vehicles

    The typical minibus taxi is a 16-seater, typically white in colour with the most common model being the Toyota Quantum Sesfikile. Taxis operate an unscheduled service on fixed routes managed by taxi associations.

    Taxis will typically depart from fixed terminals but stop anywhere along their route to pick up and drop off passengers. Passengers hail taxis using hand signals to indicate where they are travelling. Taxi ranks are hives of activity and market places establish themselves around the ranks to service the commuters.

    Regional taxi councils determine the fares for each route considered to be affordable for the lower income population of the country. Fares are paid in cash and in some areas of the country the taxi owner employs a conductor to manage fares whilst in others, passengers themselves manage the cash by passing it to the driver.

    SA Taxi has developed its own innovative developmental credit philosophy and strategy. This approach is built on the proprietary data and industry knowledge amassed over many years. This niche capability evaluates each taxi owner as a small business and not solely on their individual credit score, enabling it to extend credit in this niche, under-served market segment.

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    SA Taxi Direct dealership was established in 2015, selling both new and pre-owned premium taxis. Due to strong relationships with Toyota, SA Taxi is allocated approximately 70 new Toyota Sesfikiles per month to sell alongside the pre-owned vehicles.

    This channel offers SA Taxi greater returns on the entire vehicle deal and provides a profitable and reliable marketplace for sale of refurbished vehicles due to the following factors:

    Margin off sale
    SA Taxi is able to realise a considerable margin on the sale as the transaction occurs on their own dealership and the pre-owned vehicles have been through Taximart.
    Better credit risk screening
    Since SA Taxi has greater control and line of sight of the interaction that occurs at the point of sale, it is able to ask the required questions to achieve a better credit risk screening.
    Insurance take up is higher
    SA Taxi’s accredited sales agents provide customers with key insights on the value of insuring their vehicle, resulting in a higher insurance take up.

    Taximart was established in 2009 to refurbish primarily repossessed minibus taxis in the secondary market and improve SA Taxi’s recoveries.

    Taximart services include repair and maintenance which is completed timeously ensuring that owners’ vehicles are back on the road as soon as possible.

    The ability to refurbish and resale has enabled SA Taxi to reduce their loss ratios as by recovering a significant percentage of the loan value of repossessed vehicles. This is achieved through reducing costs, improving turnaround times, improving product quality and providing higher returns than auction prices. Taximart has also led to reduced insurance cost of claims.

    Efficiencies created through Taximart arise from the following:
    • Economies of scale;
    • Focus on a narrow product line
    • Bulk procurement power; and
    • Time saved by controlling the entire process in-house.

    Training is paramount with dedicated Toyota, Nissan and Mercedes training centres having been established, where staff are equipped with the necessary knowledge and knowhow to give effect to our vision of quality and efficiency.

    SA Taxi originates its loans and allied services through three key distribution channels: affiliated dealers, non-affiliated dealers and SA Taxi's own retail channel. SA Taxi’s retail dealership achieves higher returns and provides a profitable and reliable marketplace for the sale of new and refurbished pre‐owned vehicles.

    • ̴R650 million annual vehicle turnover in SA Taxi retail dealership

    • ̴8% average retail margin per vehicle
    • SA Taxi has reduced its loss ratios through reducing refurbishment costs and improving both turnaround times and product quality. The efficiencies created through SA Taxi’s own facility arise from economies of scale and its focus on specific vehicle types, allowing for specialisation, bulk procurement power and time saved by controlling the entire process in-house.

      >20 000m2 combined auto body repair and mechanical refurbishment centres

      SA Taxi’s ability to refurbish and refinance recovered vehicles enables it to participate in the liquid pre-owned market, ensuring retention of asset value.

    • >73% recovery rates on repossession, refurbishment and resale

    In 2015 SA Taxi launched a point-to-point taxi offering which includes financial services. The taxi owner-drivers are also given access to the stand alone ancillary services such as insurance and maintenance as well as the Zebra Cabs’ own taxi platform.

    The Zebra Cabs platform was developed to further support the taxi owner-drivers and their respective SMEs focusing on all owner-drivers financed through SA Taxi as well as those looking for an alternative taxi platform, provided they meet the standards set by Zebra Cabs in terms of the vehicle type and background checks.

    The target market for point-to-point is similar to the minibus taxi market as the target customer is an existing or aspiring vehicle owner with limited access to traditional finance.

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    All financed vehicles are required to have comprehensive insurance. SA Taxi has designed its highly competitive comprehensive insurance products that are sold through its insurance cell captive entity established in partnership with Guardrisk Insurance Company.

    Expanding client base:

    • >R550 million gross premiums per year
    • >85% of SA Taxi’s minibus owners insure with SA Taxi1
      1100% of taxis financed by SA Taxi are fully insured.
    • R231 million SA Taxi financed: annualised new written premium
    • R52 million non SA Taxi financed: annualised new written premium

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