In a statement, Bridge Taxi Finance said it had decided to settle 50 percent of its clients’ monthly finance instalments on their behalf throughout a nationwide lockdown imposed by the government from March 27 to try and limit Covid-19 infections, which has restricted business activity including in the public transport sector.

During the Covid-19 lockdown, most of the taxi operators on Bridge Taxi Finance’s books have clocked up less than 50 percent of their normal mileage, and carried restricted loads of less than 50 percent of capacity.

"Rather than offer clients the false assistance of a so-called payment holiday, which would 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," the financier said on Monday.

Founded in 2013, Bridge Taxi Finance provides affordable credit facilities to South African entrepreneurs in the minibus taxi industry, which accounts for over 70 percent of all public transport trips.

Its concession in response to the coronavirus pandemic will provide relief to the 2,500 taxi operators the company finances.

“This direct cash injection equates to a benefit of over R450 million in interest over the credit lifetime on the accounts of the customers currently on our books," company chairman Vincent Raseroka said.

Bridge Taxi Finance said it had committed a further R12 million to the provision of sanitisers to be retro-fitted into clients’ taxis and for the ongoing monthly sanitation of vehicles.

African News Agency