TransactionCapital has found itself in the wrong place at the wrong time — financing minibus taxis amid rocketing fuel prices and a stagnant South African economy. Moneyweb JSE
Transaction Capital has found itself in the wrong place at the wrong time — financing minibus taxis amid rocketing fuel prices and a stagnant South African economy. Shares in the financial services provider plunged by a record 41% in Johannesburg after it said earnings in its SA Taxi business hadn’t yet returned to pre-pandemic levels. It flagged that a first-half earnings per share loss was likely and said the industry remained under strain.
28bn equity raise Still, the Johannesburg-based company, which started out buying distressed debt books before growing into a broader lending business, doesn’t have bonds or loans maturing until 2025, according to data compiled by Bloomberg. And the minibus taxi industry in South Africa isn’t going anywhere. Due to the lack of reliable and affordable public transport, about 250 000 of these taxis the country’s roads, helping millions of people to get to work every day.
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