Transaction Capital CEO on COVID-19 & its impact on SA’s taxi industry
South Africa taxi owner, Transaction Capital is not paying an interim dividend as it braces itself for the future impact of Covid-19 on cash-flow. The company also believes that it is in a good position for the transition into normal operating activities once the lock-down restrictions are eased. Transaction Capital CEO, David Hurwitz joins CNBC Africa for more.
Wed, 13 May 2020 12:05:48 GMT
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AI Generated Summary
- Transaction Capital announces no interim dividend payment in preparation for COVID-19 impact on cash flow.
- Company implements payment relief program for clients in April, with over 20% of clients continuing to make payments.
- CEO David Hurwitz emphasizes the importance of maintaining client relationships and proactive support in navigating the challenges of the pandemic.
Transaction Capital, a prominent player in South Africa's taxi industry, is facing the challenges posed by the COVID-19 pandemic head-on. The company has announced that it will not be paying an interim dividend as it prepares for the future impact of the virus on its cash flow. Despite the current uncertainties, CEO David Hurwitz believes that Transaction Capital is well-positioned to navigate the transition back to normal operations once lockdown restrictions are eased.
Hurwitz highlighted the company's proactive approach to supporting its clients during these difficult times. Transaction Capital rolled out a payment relief program for the month of April, offering clients some reprieve amidst financial uncertainties. Surprisingly, more than 20% of the company's clients continued to make payments despite being given the option to defer.
During the CNBC Africa interview, Hurwitz also touched upon the challenges of maintaining cash flow in the taxi business. He emphasized the importance of maintaining client connections and providing support where needed. Hurwitz explained that despite the economic downturn, many clients still relied on Transaction Capital's services, showcasing the resilience of the taxi industry.
Transaction Capital's CEO remains optimistic about the future, expressing confidence in the company's ability to weather the storm and emerge stronger on the other side. By focusing on client relationships, implementing strategic payment relief initiatives, and maintaining a proactive approach to challenges, Transaction Capital is poised to overcome the obstacles presented by COVID-19.
As South Africa continues to grapple with the impact of the pandemic, companies like Transaction Capital are taking proactive measures to support their clients and ensure business continuity. The resilience of the taxi industry, coupled with strategic decision-making at the corporate level, will play a crucial role in driving recovery and growth in the post-pandemic landscape.
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