Seen Here: Andre Beck – Head of the Franchising Sector at Standard Bank South Africa. Photo Credit: Supplied
JOHANNESBURG – Franchising is rapidly becoming one of Africa’s most powerful engines for economic growth, job creation and entrepreneurship, with industry leaders calling for greater investment and improved access to funding to unlock the sector’s full potential across the continent.
As African economies continue to evolve, franchising is increasingly being recognised as a scalable business model capable of formalising informal businesses, empowering entrepreneurs and strengthening regional trade.
According to Standard Bank, the sector is playing an increasingly important role in driving inclusive economic development while creating sustainable opportunities for small business owners.
A major contributor to economic growth
In South Africa alone, the franchising industry contributes approximately 15% of the country’s Gross Domestic Product (GDP), highlighting its significance within the national economy.
Across the rest of Africa, franchising continues to expand, supporting hundreds of thousands of jobs while enabling entrepreneurs to build successful businesses through proven operating models.
Andre Beck, Head of Franchising for Business and Commercial Banking at Standard Bank South Africa, believes the model has enormous potential to transform economies across the continent.
“Franchising is playing a critical role in formalising informal economies, enabling job creation and unlocking access to capital for entrepreneurs,” Beck said.
“The opportunity now is to replicate this success across the continent by improving access to funding and enabling more entrepreneurs to participate.”
Retail and food sectors driving expansion
The report identifies the retail and food service industries as two of the fastest-growing franchise sectors in Africa.
Changing consumer behaviour is reshaping both industries, with convenience, affordability and technology becoming key drivers of business success.
Retail businesses are increasingly embracing digital transformation through online shopping, click-and-collect services, home delivery, artificial intelligence and personalised customer experiences.
Consumers are also becoming more value-conscious, driving demand for discount retailers, private-label brands and bulk purchasing options.
At the same time, growing awareness around health and sustainability is encouraging retailers to expand their ranges of organic, plant-based and locally sourced products while investing in environmentally responsible packaging.
Food service franchises are experiencing similar shifts.
Quick-service restaurants, takeaway outlets and delivery-focused businesses continue to outperform traditional dine-in establishments as consumers seek speed, convenience and value.
Technology has become central to the customer experience, with mobile ordering, delivery platforms and virtual kitchens transforming how food businesses operate.
Seen Here: Joret Olivier, Executive Head of Enterprise Banking for Africa Regions & Offshore at Standard Bank. Photo Credit: Supplied
A proven pathway for entrepreneurs
Beck says franchising offers aspiring business owners a structured route into entrepreneurship by reducing many of the risks associated with starting an independent business.
“Franchising offers a proven and structured pathway for entrepreneurs to enter the formal economy with reduced risk,” he explained.
“Across Africa, we are seeing how well-supported franchise models can accelerate job creation, skills development and sustainable business growth.”
He added that expanding successful franchise models into underserved communities could significantly boost economic participation and employment.
Cross-border growth gaining momentum
Africa’s increasing economic integration is creating new opportunities for franchise businesses to expand beyond their home markets.
With improved regional trade and rising consumer demand, many brands are now looking to establish operations across multiple African countries.
According to Standard Bank, this trend is expected to accelerate as urbanisation continues and the continent’s consumer market expands.
Research by McKinsey projects that Africa’s consumer class will reach approximately 1.1 billion people by 2030, creating enormous opportunities for businesses capable of scaling across borders.
The continent’s franchise industry is already estimated to be worth nearly $94 billion, underscoring its growing economic significance.
Regional integration unlocking opportunity
Joret Olivier, Executive Head of Enterprise Banking for Africa Regions and Offshore at Standard Bank, believes franchising will play a central role in Africa’s long-term economic integration.
“Africa’s economic future will be driven by businesses that can grow across borders,” Olivier said.
“Franchising is uniquely positioned to achieve this, given its replicable and adaptable model.”
He said stronger regional ecosystems and improved access to finance would enable more entrepreneurs to benefit from the continent’s expanding markets.
Challenges remain
Despite the sector’s impressive momentum, franchising continues to face several obstacles.
Businesses must navigate rising operating costs, inflation, supply chain disruptions, infrastructure limitations and increasingly competitive markets.
Rapid changes in consumer expectations require constant innovation, while regulatory inconsistencies and limited access to specialised financing continue to slow expansion in some African countries.
Environmental challenges—including climate change, water scarcity and increasing sustainability requirements—are also placing additional pressure on businesses to balance profitability with long-term resilience.
Collaboration key to future success
Standard Bank believes overcoming these barriers will require stronger collaboration between governments, financial institutions and the private sector.
By improving access to capital, supporting entrepreneurs and creating an enabling business environment, Africa can unlock the full potential of franchising as a driver of inclusive economic growth.
As the continent’s economies become increasingly connected, franchising is expected to play a pivotal role in creating jobs, strengthening small businesses and expanding opportunities for entrepreneurs across Africa.
With a rapidly growing consumer market, increasing urbanisation and rising demand for trusted brands, the future of franchising on the continent appears brighter than ever, positioning the sector as one of Africa’s most promising engines of sustainable economic development.
