Latest news with #R300m
IOL News
24-04-2025
- Business
- IOL News
R408 million allocated for taxi industry relief raises eyebrows
The Department of Transport has allocated R408 million to disburse Covid-19 relief funds to the taxi industry. Image: Picture: David Ritchie Independent Newspapers The Transport Department has announced the allocation of R408 million in its 2025-26 budget for disbursement as Covid-19 relief funds to the taxi industry. This was disclosed by Transport Minister, Barbara Creecy, when she was responding to Build One South Africa (Bosa) leader Mmusi Maimane, who asked about the once-off gratuity allocated in the budget tabled in Parliament. Maimane asked the purpose of the allocation, its rationale, intended beneficiaries and criteria to determine its distribution. In her written response, Creecy said Cabinet approved a once-off relief fund to the tune of R1.135 billion in 2021 to mitigate the negative impact of Covid-19 on the taxi industry. She said due to a number of challenges in the taxi industry, not all operators accessed the relief funds. 'As at March 2023, approximately 56 623 operating licences on the system were still not paid,' she said. Creecy also said Cabinet approved the extension on 3 August 20223 to allow the balance of R708m to be paid to outstanding taxi operators. 'In this regard an amount of R300m was allocated in the 2023-24 financial year and the balance of R408m has been allocated in the 2025-26 financial year to allow for the conclusion of the disbursement.' She explained that the relief funds were granted to all legal operators in the taxi industry with valid operating licences and that were in operation at the start of the national lockdown. 'The taxi relief fund was approved as an ex-gratia payment to assist taxi operators to mitigate the hardship caused by the Covid-19 restrictions since the taxi industry was unable to access other relief response packages that were established for other sectors at the height of the pandemic,' said Creecy. Maimane said the allocation to the taxi industry raised serious concerns over transparency, accountability, and the government's spending priorities. 'For a multibillion-rand industry that pays zero tax, this allocation is highly questionable,' he said. Maimane also said the government was handing over monies to an industry that did not contribute its fair share to the country's tax base while ordinary South Africans struggled under the weight of VAT increases, high fuel prices, and rising costs of living.
TimesLIVE
23-04-2025
- Business
- TimesLIVE
Taxpayers still paying Covid-19 relief funds to taxi industry: Barbara Creecy
Transport minister Barbara Creecy has revealed that the department is still disbursing Covid-19 relief funds to the taxi industry. This was disclosed in a written parliamentary response to Build One SA (Bosa) leader Mmusi Maimane's question. Creecy said R408m in a 'one-off taxi gratuity' was allocated in the 2025/26 financial year budget to allow for the conclusion of the disbursement of the 2021 relief fund, which was intended to mitigate the affect of Covid-19 on the taxi industry. 'Due to a number of challenges in the taxi industry, not all operators managed to access the relief fund,' Creecy said. 'As of March 2023, about 56,623 qualifying operating licences on the system were still not paid. Cabinet approved an extension on August 31 2023 to allow that R708m, which was the balance on March 31 2023, be paid out to outstanding taxi operators. In this regard R300m was allocated in the 2024/25 financial year and the balance of R408m has been allocated in the 2025/26 financial year to allow for the conclusion of the disbursement.' In 2021 the cabinet approved a R1.135bn one-off payment to help taxi operators during strict Covid-19 restrictions, when the industry couldn't access other forms of relief. Creecy said the relief is granted to all legal taxi operators with valid operating licences who were in operation during the national lockdown.
Zawya
27-02-2025
- Business
- Zawya
AfDB, Standard Bank partner for $0.19bln SMME funding and trade growth
In a move set to boost South Africa's small, medium, and micro enterprises (SMMEs), the African Development Bank Group (AfDB) and Standard Bank Group have entered a landmark financial agreement. The deal involves a R3.6bn investment in a social bond and a $200m Risk Participation Agreement for Standard Bank of South Africa Limited. This partnership is aimed at increasing Standard Bank's lending capacity, thereby improving access to finance for South Africa's SMMEs—key players in driving economic growth and job creation in the country. The agreement also has broader goals of expanding trade within South Africa and across the African continent. Inclusive economic development The social bond investment promotes inclusive economic development, particularly for SMMEs with a turnover below R300m and loan sizes under R40m. This financing will support up to 4,000 businesses, helping them scale operations, create jobs, and contribute to economic resilience. Kenny Fihla, deputy chief executive officer of Standard Bank Group and Chief Executive Officer of SBSA, welcomed the investment, stating: "This landmark partnership strengthens our ability to support SMMEs, the backbone of South Africa's economy. With approximately 3.2 million SMMEs accounting for 60% of jobs, ensuring access to finance is crucial. This initiative aligns with our Sustainable Finance Framework and our commitment to financial inclusion." In addition to the social bond, the $200m RPA enhances trade finance across Africa, focusing on Low-Income Countries and Transition States. This agreement enables local banks to increase lending by sharing risk, bridging the trade finance gap and promoting intra-African trade. Broader economic impact Leila Mokaddem, director general for Southern Africa at the African Development Bank, highlighted the broader impact: "This collaboration marks a significant milestone in our long-standing partnership and is a testament to our shared commitment to supporting SMMEs' growth and enhancing trade finance across Africa. "Expanding financial inclusion and trade opportunities empowers businesses to drive economic transformation and regional integration. The Standard Bank Group remains a strategic partner in our shared vision for economic development on the continent." This initiative aligns with the African Development Bank's Ten-Year Strategy (2024–2033), which prioritises industrialisation, regional integration, and improving the quality of life in Africa. It also supports Standard Bank's Sustainable Finance Framework, reinforcing both institutions' commitment to fostering green and inclusive growth. 'We are proud of this transaction, demonstrating our commitment to sustainable financing. By supporting businesses, we create long-term economic opportunities and financial resilience,' stated Ahmed Attout, director of the financial sector development department at the African Development Bank. Fihla reaffirmed the significance of the collaboration: "By providing much-needed capital, we are helping enterprises overcome challenges and thrive. This partnership illustrates the power of collaboration in driving meaningful economic and social change in Africa.'
