26 April 2005

Wesbank has commited R3.6-billion in financing towards South Africa's multi-billion rand taxi recapitalisation programme, which aims to make the country's roads safer by replacing about 97 000 minibus taxis with safer, more reliable vehicles.

Wesbank's decision follows the signing of a memorandum of understanding in February between national taxi body Santaco and four major financial institutions, including Wesbank, as part of a broader initiative to improve and integrate the country's public transport.

Other signatories to agreement were Absa, Nedbank, Standard Bank and Daimler Chrysler Services.

"We need to find creative and workable strategies for providing assistance to the taxi industry", Transport Minister Jeff Radebe said. "We are encouraged by this kind of commitment by Wesbank for the necessary financing mechanism to enable taxi operators to renew their taxi fleets."

The minister reiterated the importance of co-operation between the government, commuters, the taxi industry and financial institutions to ensure the effective regulation of the taxi industry.

"The key challenge is to ensure the sustainability of the taxi industry as a business", Radebe said. "[Wesbank's] financial support is a key step in achieving that sustainability."

The Department of Transport is expected to finalise the safety requirements for the new vehicles by the end of April.

Source: BuaNews

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