Jailed taxi driver Zola Tongo said he was recruited by Shrien Dewani to organise the contract killing of his wife Anni Dewani.

The 28-year-old bride was found dead from a single gunshot wound to her neck, in the back of Tongo's abandoned car, after it was ambushed during a late night tour of a dangerous township.

Tongo, who is serving 18 years in prison for his role in Mrs Dewani's death in November 2010, told Cape Town's High Court the murder was presented to him as a "business opportunity" and "a job that would make his business grow".

Speaking through an interpreter, he explained that the Bristol-based businessman approached him shortly after the newlyweds arrived in Cape Town for their honeymoon and told him that "somebody needed to be taken out of sight" and that "he wanted somebody to be killed".

"I told him I am not involved in such things," said Tongo. "But I said I could refer him to others who could possibly do it."

Dewani promised to pay £1,350 for her murder and £282 "when the job was done."

The men exchanged numbers and the following day – the morning of Mrs Dewani's murder - Tongo took Dewani to change a large amount of cash, after which he presented the taxi driver with a detailed plan for the killing.

"He [Dewani] wanted a car to be hijacked, and they must be robbed, then they must drop me along the way and they must also drop him along the way. And they must kill the woman," Tongo explained.

Tongo was put in touch with two gunmen, Xolile Mngeni and Mziwamadoda Qwabe, who agreed to carry out the hit in the Gugulethu township.

He revealed that the men met up with Dewani to finalise the details just hours before Tongo was due to collect the couple from their hotel and drive them to a restaurant.

It was then that they had agreed the location where the hit men would lie in wait to ambush the vehicle and kill Anni.

Tongo has always claimed it was Dewani who masterminded the staged carjacking.

Xolile Mngeni, who admitted killing Anni Dewani on her honeymoon and was sentenced to life for her murder, died in prison on October 18. He was suffering from an incurable form of brain cancer.

Tongo will continue giving evidence tomorrow (28 October).

Dewani denies five charges including murder and kidnapping and maintains that he and his wife were victims of a carjacking.