Celebrate Inaugural World Franchise DAY As Govt Commits TO Franchise Development

Franchising represents a sustainable growth option for South Africa, offering significant benefits in terms of job creation, entrepreneurial development and decentralisation through knowledge, transfer of skills and economic empowerment. There are an estimated 2.6 million entrepreneurs running 3.2 million SMMEs who contribute 2 to 3 million formal full-time jobs in SA. They contribute 40% towards GDP.

The Franchise Association of South Africa (Fasa), a long-standing member of the World Franchise Council, is proud to represent the African continent on the international franchise stage and in overseeing franchising for the past 46 years in Southern Africa.

Says Fred Makgato, Fasa’s CEO, “We salute the 727 franchise systems in over 14 sectors and their 68,463 franchisees contributing 15% (R999tn) to the country’s GDP and directly employing around 500,000 people.

"To mark this global event, the association will be holding a celebratory event for its members and the franchise community on the 11 June 2025, sponsored by Old Mutual, to shine a spotlight on the entrepreneurial energy of its franchisors and to also showcase its successful franchisees.”

Government partnership key to franchising growth

Franchising plays a significant role in the South African economy, yet there is still room for growth, as it serves as a catalyst for economic development. Government initiatives, such as social, commercial, tandem and micro- franchising (albeit within the legal structures) should consider franchising to contribute to South Africa’s future economic growth.

"The future for South Africa holds immense potential for driving innovation, stimulating job creation, and fostering sustainable development across the country," Ayabulela Njingolo, accountant and business developer at OBC Group and Fasa Chairman for 2025/2026. "With the right support from key stakeholders, particularly government and private institutions, the franchising model can unlock growth, especially for youth and emerging entrepreneurs.

“Success will hinge on the ability to adapt to economic shifts, embrace technological innovations, and align with evolving consumer values."

Fasa identified three critical areas of development which include:

• Serious commitment to private/public collaboration in relation to access to market;
• An affordable and responsive funding approach; and
• Training and development with the focus on entrepreneurship.

To this end, an MoU was recently signed between Fasa and the Department of Small Business Development (DSBD) and the newly formed Small Enterprise Development and Finance Agency (Sefda) to benefit the industry by ensuring that potential and deserving franchisees are funded through the funding mechanism and structured by government for entrepreneurship development.

Together, Fasa and the Department have committed to:

• Fast-tracking financial applications for Fasa members
• Cutting through the red tape that slows down funding access
• Delivering focused training to SMMEs with franchising potential
• Offering ongoing support to help emerging franchisees succeed

“With government committing billions to transformation through small business development, we are happy that they have finally acknowledged that the franchising business format is an ideal way to roll out viable business enterprises based on the tried-and-tested universal franchising principles – not only on the commercial front but in terms of using franchise business principles to roll out public/private partnerships to address service delivery,” said Njingolo.