With over 680 franchised businesses and more than 30,000 franchise outlets operating in 14 business sectors, the franchising industry employs more than 300,000 people directly. The sector has displayed immense growth, despite the difficult economic environment in the country and contributes towards 15,3% of South Africa’s Gross Domestic Product (GDP), says Chris Van Zyl, Group Chief Executive Officer at The Franchise Co.
“South Africa’s franchise sector is globally competitive, especially when franchising’s economic output is measured as a share of a country’s overall GDP, where South Africa emerges in the top five. This places us in the same category asFrance, Australia, New Zealand and the Netherlands, according to data from the World Franchise Council,” explains Van Zyl.
He says as the South African franchising sector continues to evolve and attract entrepreneurs, which has a direct correlation to the country’s economy, it's innovation and ability to attract foreign direct investment, could help improve a better quality of life for the country’s citizens.
Globally, approximately 2 million franchised businesses sustain over 19 million jobs, as claimed by the World Franchise Council. In South Africa, the brunt of the success enjoyed by franchises is carried by the fast-food sector and restaurant category, the most common types of a franchise.
According to Allied Market Research (AMR), South Africa’s fast-food market size was valued at R40.25 billion in 2018 and is expected to reach R73 billion by 2026, registering a Compound Annual Growth Rate of 7.9% from 2019 to 2026.
“South Africa is the largest food service market in sub-Saharan Africa with a large and highly competitive hospitality industry. With competition driving innovation, South Africa is at an optimum position to leverage the booming franchise market to further grow the economy and become a catalyst for the recovery of other industries, suppliers, employees and communities. As the country recovers from the onslaught of COVID-19, AMR’s figures highlight the potential financial growth the franchising industry is yet to yield and the immense role it will continue to play in advancing South Africa’s socio-economic agendas,” concludes Van Zyl.
The Franchise Co. offers franchisees an opportunity to invest in the following food brands: Blacksteer, ChesaNyama, Mike’s Kitchen, Nyamalicious, Yami Pizza, Yami Rib and Burger, Yummy Fish and Chips and Zebro’s.