JOHANNESBURG – Transactional Capital reduced its highest interest rate on future loans to 26.5%, down from 28.5% in an effort to retain stability in the taxi industry.
Through its SA Taxi business, the group agreed to assist its clients by lowering the interest rate after some factions in the minibus taxi industry embarked on mass protect action in June this year.
Taxi operators complained to the government for the lack of funding and subsidies, original equipment manufacturers for vehicle price increases, financial institutions for insufficient or costly finance and insurance products, fuel companies and retail malls for inadequate infrastructure to accommodate minibus taxi ranks.
David Hurwitz, chief executive of the group, said they were aware of their role in supporting the overall sustainability of an industry that drove entrepreneurship and job creation.
“Encouragingly, a direct outcome of the protest action has seen deeper collaboration between SA Taxi and industry leadership, who are working together to achieve sustainable benefits for the industry.
“Initiatives include discussions with OEMs to procure larger quantities of vehicles to be sold directly through SA Taxi’s dealership, which will enable it to hold retail prices as low as possible,” said Hurwitz.
Hurwitz also said that SA Taxi and industry leadership were lobbying government to channel funding into the taxi industry, which would support the favourable recapitalisation of the national fleet.