Minibus taxi financier Bridge Taxi Finance has announced that it will provide R175-million in financial relief to the 2 500 taxi operators that it finances.
With the support of its holding company Mokoro Holdings and shareholders, Bridge Taxi Finance says it will settle 50% of its clients’ monthly finance instalments on their behalf throughout the lockdown period.
“Rather than offer clients the false assistance of a so-called payment holiday, which will increase their indebtedness after the Covid-19 lockdown, Bridge Taxi Finance is ensuring that its clients will be able to survive the lockdown and thrive once they are able to operate again without the added burden of increased debt.
“We have chosen to rather direct R175-million straight to clients, effectively paying off their interest,” says Bridge Taxi Finance chairperson Vincent Raseroka.
During the Covid-19 lockdown, most of the taxi operators on Bridge Taxi Finance’s books have clocked up less than 50% of their normal mileage, and carried restricted loads of less than 50% capacity.
It is expected that the taxi industry will only resume full operation during Alert Level 1 of the lockdown, while the country is still at Alert Level 4.