Triodos Microfinance Fund and Triodos Fair Share Fund have provided a $10m loan to Bridge Taxi Finance in South Africa, which provides affordable credit facilities to entrepreneurs in the minibus taxi industry. The loan supports Bridge Taxi Finance in its growth ambition.

South Africa’s minibus taxi industry is vital for the country’s economy, accounting for over 70% of all public transport trips and is the most widely used form of public transport in Africa. Every day, over 15 million South Africans make use of a 16-seater minibus taxi to get to and from work, school, hospital, and others social activities. Most of them are living on a low income.  

An efficient public transport system is a core enabler of a country’s economy, critical to development. However, the minibus taxi financing landscape is a niche market with very few financial players opting to enter due to the perceived risk of its client base. As a result, entrepreneurs – many of whom are first-time taxi owners – have been historically excluded from accessing finance to start their taxi operating business. Also, there are roughly 200,000 minibus taxis on the road, the majority of which are old, unsafe and legislation requires them to be replaced.

Triodos said that Bridge Taxi Finance fulfils this financing gap by providing a full suite of services that includes vehicle finance, day-to-day tracking, advice and management, and vehicle repairs and services.   

“Bridge Taxi Finance’s impact is two-fold: it fosters job creation by providing opportunities for entrepreneurial people to start a business. Furthermore, the company encourages the replacement of older vehicles with newer, less environmental damaging vehicles with better fuel economy, better passenger safety and lower carbon emissions.”