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ESG Case Study: South Africa’s SA Taxi Attracts New Set of Investors

One of the largest developments in global capital markets over the last several years has been the rapid rise in institutional investors’ appetite for ESG (environmental, social & governance) investments.  According to the Bloomberg Sustainable Finance Market Outlook, in 2021, more than $1.6trn in sustainable debt instruments were issued, setting a new record and bringing the total market to over $4trn globally. The leap in this market in 2021 reflects an 87% annual growth rate since 2013. Some African companies are following this trend, and finding that they can do well by doing good. That is what happened when SA Taxi issued its landmark R900m [approximately $55m] series of social bonds. By agreeing to a far-reaching set of social goals, the JSE-listed company was able to improve their cost of capital, and attract the attention of a new set of institutional investors who seek ESG investments.’s Teresa Clarke weighs in on the new financing mechanism.