Norsad Capital Supports The Growth Of Bridge Taxi Finance With A ZAR 150 Million Term Facility
22/02/2022
Norsad Capital, an impact investor offering tailor-made debt solutions to mid-market growth companies in Sub- Saharan Africa, has provided a ZAR 150 million long-term debt facility to Bridge Taxi Finance to support the growth of new, affordable, and safe minibus taxi vehicles in South Africa. Bridge Taxi Finance is one of the leading non- banking lenders to the South African minibus taxi industry.
Transportation is a key element towards soft & social infrastructure. In South Africa, minibus taxis are the principal form of transport and one of the leading economic levers, accounting for over 15 million trips per day nationwide resulting in over 70% of public transport passengers using this mode of transport. Majority of commuters are typically unable to afford vehicles and live in distant or remote areas inaccessible by trunk-route public transport, for these commuters’ minibus taxis are the primary source of transport and an essential need for their livelihoods.
Bridge Taxi Finance is a wholly owned subsidiary of Mokoro Holdings. Mokoro Holdings consists of vertically integrated companies focused on the exclusive importation of minibus vehicles, impact vehicle finance, day-to-day tracking with client management, vehicle repairs and services centre. Whilst growing the overall public transport fleet in the country, the new vehicles financed by Bridge Taxi Finance will replace older, fragile, and more polluting vehicles, in- line with South Africa’s taxi recapitalisation programme.
Bridge Taxi Finance plays a vital role in supporting public transport and increasing access for disadvantaged groups to grow their contribution in the economy. Furthermore, this funding will empower new entrepreneurs to create true personal growth by allowing these clients to acquire and run their own vehicles.
Zubair Suliman, Investment Director at Norsad Capital and transaction lead said: “We are excited to partner with Bridge Taxi Finance in supporting the growth of one of the main pillars of the South African economy. Norsad Capital’s impact funding is earmarked towards further growth of the new taxi vehicle fleet resulting in modern, safer, and dependable transport for the millions of commuters daily. We can calculate this funding will impact a minimum 215,000 lives directly bringing us closer to both Norsad’s objective to impact 100 million lives in Africa and our purpose of building a better Africa.”
Thomas Cutten, Executive: Debt Capital Markets at Bridge Taxi said: “Norsad has been a pleasure to work with, showing incredible dynamism and responsiveness. Partnering with Norsad we will be able to further service this dynamic and systemically important aspect of the African economy that is not only an industry in and of itself, but facilitates industry, commerce, and education. We look forward to working with Norsad as we continue to grow and facilitate the provision of reliable, safe, environmentally responsible and cost- effective transport to the South African commuting public”
About Norsad Capital
Norsad Capital is an impact investor providing tailormade debt solutions to mid-market growth companies in Sub- Saharan Africa. With a track record spanning over 32 years, Norsad Capital has invested in 150+ companies across the continent.
About Bridge Taxi Finance
Bridge Taxi commenced its operations in 2013 and has evolved to become one of the dominant financiers of minibus taxi vehicles in South Africa. It is one of the leading minibus taxi financiers deploying an integrated approach by covering vehicle importation, trading, financing, servicing, and repairs. For more information visit: https://www.bridgetaxifinance.co.za/
