Impact Partner Content - Absa

As the Franchise Association of South Africa (FASA) prepares to host the first virtual conference since before the pandemic on the 25th and 26th August, aimed at reviewing, resetting and reviving the franchise sector, the narrative of the success of franchising in South Africa is one that inspires the possibilities of this business system gaining momentum not just in South Africa, but also in the rest of Africa. South Africa stands out as the only country in Africa that embraced the franchising model way back in the 1960s and built it into the formidable business sector that has created 800 business brands operating through over 48 000 outlets and employing around half a million people.

“The importance of franchising over the past forty years can be seen in many of the banks with dedicated franchise divisions, as franchises have always proved to be more resilient and successful than start-ups” says James Noble, Head of Wholesale, Retail and Franchise for Absa Business Banking, sponsor of FASA’s Franchising in Africa virtual conference. “As bankers, we have always worked closely with franchise brands, are able to audit their growth and ensure that new franchisees coming into their systems are well supported and are set up with all the necessary financial supports to be successful. The franchise industry, like many others, faces challenges in the various business categories that make up the sector. But the challenges forced businesses to think outside of the box and to become smarter at delivering their products and services, fast-tracking their e-Commerce strategies with online sales platforms and finding new avenues for growth.”

Finding solutions for future growth

Ever mindful of the enormous role that franchising plays in the South African economy and as the pandemic and recent events wreaked havoc in every sector, the FASA’s franchise conference on the 25 and 26 August 2021, sponsored by Absa, takes on even more importance and urgency to try and assess the fall-out and thrash out what needs to be done to get South Africa’s franchising sector back on its feet.

“While some of our sectors, such as the restaurant and liquor retail sectors are being hardest hit, surviving the crisis and rebooting becomes a precarious balancing act for all franchises that requires team work and a focused business approach,” says Pertunia Sibanyoni, Chairperson of FASA and CEO of InspectaCar. “But if there is one business sector that knows how to balance the scales of supply and demand, is innovative enough to change course and uses its collective power to weather the storm, it’s franchising.”

Collaborating with FASA and Absa, Elana Koral of Franchise Coaches, a sponsor of the conference, believes that the focus should be on what the future holds for this phenomenal business format that has the potential to transform the economic landscape of Africa. Koral finds that a company that is able to pivot and adapt easily is well primed to make it in Africa. “There could be service franchises or education franchises for example where, as a result of COVID-19, people have changed buying patterns and preferences. Franchises need to innovate now more than ever. There is also an opportunity for new types of franchises to service the market. Mobile operations have become popular ranging from professional services such as mobile physiotherapists and care-giving to mobile dog groomers and laundry services, etc.”

Female franchisees lead by example

The franchise business model is one that allows anyone to get into business for themselves but not by themselves and more women are finding a business home in the franchise world and paving the way for others to do the same. As the country celebrates Women’s Month this August, it is encouraging to see how many strong women are now heading successful franchises – a figure that stood at over 30% in the 2019 FASA survey.

Participating in FASA’s virtual conference will be some of the leading franchise consultancies, all of them headed by talented and experienced women.

Lindy Barbour, Director of The Franchise Firm believes that franchising offers a relatively low risk barrier to entry, especially for women starting out as entrepreneurs. “The benefits of skills transfer and the ongoing support of the franchisor make it far more attractive than pursuing an independent start-up. Add to that the fact that women set very high standards for themselves and are generally more detail-orientated, and you have a formula for success.”

Sasha-Lee de Bod, partner at Franchising Plus, has set their franchise consultancy a target to develop women’s roles in franchising by establishing a franchise portal for women. “Already, women play a far greater role in franchising than is generally known, and indications are that their involvement will become even stronger in future. We are determined to do our bit towards facilitating this and will shortly introduce a new section on our website named Women in Franchising.”

Lionesses of Africa to present their survey

Key to FASA’s virtual conference will be two significant surveys – one by Afreximbank that looks at the potential of franchising in Africa, and the South African Women Entrepreneurs Job Creators Survey conducted by Lionesses of Africa in collaboration with New York University and Absa.

Melanie Hawken, Founder and CEO of Lionesses of Africa, will, together with Research Director of Lioness Data, Dr Linda Zuze, present the key findings of the research which focuses on South Africa’s female entrepreneurs. “Given the role of female entrepreneurs as employers and as engines of economic growth across the continent, says Melanie Hawken, it is important to understand their strengths as well as the challenges that they confront, to learn how best to support them as business leaders, both during and after COVID-19.”

FASA is taking the lead in the recovery by bringing together the franchise community, both locally and internationally to this virtual conference. Over two days and running in two concurrent streams, franchising, its challenges and potential will be discussed, networked and rebooted to be ready when the world opens up again. This is a great opportunity for potential and existing business owners to engage with local and international industry experts to gain a better understanding of what the challenges and opportunities are in these challenging but exciting times in which we find ourselves.

To book your seat or for further information visit http://www.fasa.co.za/events

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