Transaction Capital comprises two autonomous and decentralised divisions of scale, that are intentionally positioned within carefully chosen market segments to take advantage of demographic and socio-economic trends, enabling them to deliver both a social and commercial benefit:

A vertically integrated taxi platform utilising specialist capabilities and enriched proprietary data to judiciously deploy developmental credit, insurance, technology and allied business services to SMEs in the under-served taxi industry, thus ensuring the sustainability of a fundamental mode of transport.

Read the SA Taxi review

A technology-led, data-driven provider of customer management and capital solutions through a scalable and bespoke platform, thereby improving its clients’ ability to originate, manage and collect from their customers.

Read the Transaction Capital Risk Services review

Headline earnings ▲ 17% to R458 million

Headline earnings per share ▲ 17% to 80.6c

Return on equity ▲ 16.9%

Market capitalisation R7.3 billion as at 30 September 2016, up 30% compared to 30 September 2015

Total dividend cover 2.7 times, from 3.1 times

Total dividend per share ▲ 36% to 30c

Number of employees 3 260

To position its divisions to take advantage of opportunities arising from South Africa’s macro- and socio-economic context, Transaction Capital:
> Strengthen leading market positions and scale of its divisions by enhancing and refining their specialist capabilities to achieve deeper vertical integration in current market segments, and apply these capabilities to new complementary market segments.
> Judiciously invest equity capital, conservatively leveraged with local and international debt, into accurately assessed asset classes to achieve superior risk-adjusted returns.
> Leverage its specialist capabilities to manage credit risk that arises due to the nature of its chosen market segments, and to manage investment risk when allocating capital.
> Manage uncertainty and the cost of compliance due to the constant evolution of financial services regulations, which requires awareness of, preparation for and participation in legislative developments.
> Transaction Capital’s ability to differentiate itself through intellectual capital is a function of its people, who the group motivates, engages, develops and rewards to foster innovation, cultivate leadership and sustain a high-performance culture.

These activities enable Transaction Capital to sustainably create value for its shareholders over time.


Divisions occupy leading market positions, due to their specialist focus on narrow market segments.

1 in 4 of the national financed minibus taxi fleet is financed and insured by SA Taxi.

Transaction Capital Risk Services’ coverage of non-performing credit-active South African adults is at 95%.

The defensive nature of Transaction Capital’s divisions enables consistent and resilient earnings growth over time, generating superior returns.

Defensive and market-leading positioning enabled earnings growth since listing in 2012 of 24% on average per annum, despite a challenging and low-growth South African economic environment.

A conduit between local and international funders and SMEs, due to Transaction Capital’s ability to manage the higher risk associated with its chosen market segments to a level acceptable to funders.

Continue to enjoy uninterrupted access to both local and international funding pools, with a strong funding pipeline available. Established R2 BILLION zaA- credit-rated Domestic Note Programme.

Transaction Capital’s focus on under-served market segments creates broader stakeholder value and positions the group and its divisions as socially relevant.


Transaction Capital’s values are embedded throughout its divisions, providing the foundational principles that guide how it does business and how it interacts with its stakeholders.

goes beyond complying with laws, regulations and company policy, to having strong moral principles that inform decisions and actions regarding Transaction Capital's businesses and all its stakeholders.

means that Transaction Capital strives to always get better at what it does, which requires that its people take the time to improve themselves as individuals and as professionals, and being prepared for the next challenge.

requires an understanding and appreciation of diversity and different perspectives, and the dignified and equal treatment of all stakeholders.

is what enables Transaction Capital to keep ahead of its competitors, overcome challenges, deal with new and difficult situations, and discover new ways to address the needs of its stakeholders.


Transaction Capital’s vision recognises that its success ultimately depends on its stakeholders having positive regard for the group and its divisions, which requires that Transaction Capital meets their legitimate needs and expectations as determined through constructive mutual engagement.

Transaction Capital’s definition of success is when:

CLIENTS consider Transaction Capital’s divisions their first choice when choosing the specialised, innovative and differentiated services they provide.

How Transaction Capital’s vision is being achieved:

  • Improving and growing customer value propositions through deeper vertical integration within chosen market segments.
  • Ongoing client engagement identifies risks and opportunities which feeds back into improving customer value propositions.
  • Applying specialised competencies, operational capacity, experience and capital to meeting client needs strengthens Transaction Capital’s reputation and market leadership.

SUPPLIERS see Transaction Capital and its divisions as demanding but fair clients whose expertise, interpersonal skills, efficient administration, financial stability and long-term sustainability make them attractive business partners.

How Transaction Capital’s vision is being achieved:

  • Ensuring appropriate executive-level interface with providers of goods, services and professional counsel in all businesses.

FUNDERS regard Transaction Capital and its divisions as financially stable investments that provide exposure to niche market segments and exemplify the highest standards of risk management, transparency, disclosure, prudence, innovation, compliance, governance and ethics.

How Transaction Capital’s vision is being achieved:

  • Further diversifying investor base through new funding structures and channels through which to invest.
  • Enhancing funder relationships through ongoing engagement, informal feedback and formally researched funder needs.
  • Intentional positioning of divisions to maintain defensible positions under challenging economic conditions through effective risk management and mitigation, as evidenced by stable and improved credit ratings.

LAW MAKERS and REGULATORS experience Transaction Capital and its divisions as approachable, transparent and socially relevant corporate citizens that comply fully with the letter and spirit of all laws, regulations and codes.

How Transaction Capital’s vision is being achieved:

  • Oversight of group legal function with appropriate expertise at divisional level to closely monitor regulatory developments.
  • Ongoing engagement with regulators and appropriate representation on industry bodies, to gain early understanding of proposed legislation and appropriately positioning Transaction Capital for change.
  • Engaging with law makers and regulators to contribute to regulatory environments that benefit the industries Transaction Capital serves.

EMPLOYEES consider Transaction Capital and its divisions as leading employers that provide personal development, advancement and appropriate reward in exchange for their commitment and performance.

How Transaction Capital’s vision is being achieved:

  • Appropriate employee value propositions implemented in each business.
  • Providing work that is meaningful with a direct societal impact.
  • Competitive remuneration policies, with select employees participating in long-term incentive schemes.

EXECUTIVES and MANAGERS regard Transaction Capital’s strategy of empowering executives and devolving responsibility as intellectually stimulating and intrinsically rewarding, while demanding high quality and thought leadership.

How Transaction Capital’s vision is being achieved:

  • Diligently adhering to recruitment, assessment, development and succession policies.
  • Compensation aligned to both the specific performance of each division as well as group performance.
  • Devolvement of operational functions and accountability for performance to divisional executives is largely complete.
  • Executive and senior manager participation in long-term incentive schemes.

SHAREHOLDERS regard Transaction Capital and its divisions as well understood, respected, transparent and ethical specialised financial services investments that provide consistent growth in high-quality riskadjusted returns through innovative entrepreneurship, exceptional risk management and prudence.

How Transaction Capital’s vision is being achieved:

  • Maintaining stable earnings and book growth, while rationing capital for credit quality.
  • Devolving certain functions to divisions resulting in cost efficiencies and reductions.
  • Continual focus on developing and augmenting the specialist capabilities of divisions.
  • Maintaining strong relationships with investors through ongoing engagement, informal feedback and formally researched shareholder needs.

SOCIETY shares in the value Transaction Capital and its divisions create by providing services that are relevant to under-served market segments and answer social needs.

How Transaction Capital’s vision is being achieved:

  • Divisions are intentionally positioned within carefully chosen market segments, exposed to South Africa’s demographic and socio- economic trends, enabling them to deliver both a social and commercial benefit.
  • Maintaining focus on providing financial and allied services to market segments that are under-served due to perceived higher risk.
  • In SA Taxi, supporting the establishment, development and sustainability of small- and medium-sized enterprises, helping them to service society’s public transport needs in a safer and more efficient manner.
  • In Transaction Capital Risk Services, contributing to the effective functioning of the broader credit system and the rehabilitation of indebted consumers.


Providing specialised financial and allied services in selected higher-risk and under-served segments of the financial services sector.

Executing on Transaction Capital’s mission creates a compelling and unique investment case:

  • Divisions occupy strong market positions and are highly defensive, enabling them to withstand difficult economic conditions.
  • Ongoing replacement of the national taxi fleet stimulates demand for vehicles, finance, insurance and allied services in an industry that remains the cornerstone of South Africa’s public transport infrastructure.
  • Current economic environment stimulates demand for consumer credit risk services. Transaction Capital Risk Services can apply its strong balance sheet and extensive data to selective acquisition of the increased number of non-performing loan portfolios available for purchase from clients requiring an immediate recovery against their non- performing loans.
  • Deep vertical integration within chosen niched market segments enables Transaction Capital to apply its specialised expertise to mitigate risk, participate in margin and to provide a fuller service to clients, thus entrenching its competitive advantage.
  • Superior data and leading-edge technology and analytics capabilities differentiate offerings, inform business decisions and mitigate risk.
  • Decentralised expertise, robust processes and skilled people enable effective capital and credit risk management.
  • Sufficient capitalisation with equity that is geared conservatively to fund organic growth, and supports medium-term acquisition activity to yield an acceptable risk-adjusted return to shareholders.
  • Proven ability to raise debt capital efficiently from a diversified range of debt investors.
  • Track record of delivering predictable high-quality earnings with high cash conversion rates and strong organic growth prospects.
  • Experienced and specialised leadership with proven entrepreneurial, merger and acquisition, technical, financial and risk management skills.
  • Executives have extensive experience within their areas of specialisation, and apply this intellectual capital over a much smaller asset base than in larger organisations, with an accompanying expectation of higher performance.
  • Continual, focused group-wide investment in executive education, expertise and experience.
  • Experienced, diverse and independent directors at group and divisional level ensure impactful and effective governance.
  • Institutionalised governance, regulatory and risk management practices are embedded at both group and divisional level.
  • Decentralised divisions that are self-sustaining and sizable in their own right.
  • Organic growth supported by driving differentiated and new solutions deeper into existing market segments and leveraging capabilities to enter new adjacent market segments (local and international).
  • A focused acquisition strategy supported by a strong balance sheet.
  • Divisions are intentionally positioned within carefully chosen market segments to take advantage of demographic and socio-economic trends, enabling them to deliver both social and commercial benefit.


Transaction Capital drives organic and acquisitive growth within its divisions

by developing specialised capabilities and industry solutions to achieve deep vertical integration within existing market segments,

and developing and applying these competencies to create new positions within adjacent or new market segments,

thereby strengthening performance and market positioning

through in-depth insights from the continuous collection of diverse, accurate and valuable data sets to enable precise and proactive risk management,

robust capital management,

and effective people practices,

all facilitated by a technology-led, flexible and dynamic servicing platform.

The core components of Transaction Capital’s strategy:

Develop specialised capabilities and industry solutions to achieve deep vertical integration within existing market segments, and further develop and apply these competencies to create new positions within adjacent and new market segments, thereby driving organic growth.

Judiciously invest equity capital, conservatively leveraged with local and international debt, into accurately assesed asset classes to achieve superior risk-adjusted returns.

Generate in-depth insights from the continuous collection of diverse, accurate and valuable data sets to enable precise decisioning and proactive risk management, and leverage data, analytics and technology within a dynamic servicing platform to drive profitable growth.

Target quality assets operating within Transaction Capital's focused market segments that will enhance its capabilities, and whose business model and value can be enhanced through active management.

Develop, engage and reward employees and executives to engender a high-performance culture.

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