Franchising sector urged to deepen partnerships to boost jobs and economic growth

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FASA CEO Mr Freddy Makgato

Collaboration between government, financial institutions, skills bodies and the private sector dominated discussions at the Franchise Association of South Africa (FASA) National Conference & Expo 2026, where delegates examined how franchising can play a stronger role in job creation and economic growth.

The conference, held at the Birchwood Hotel & OR Tambo Conference Centre in Ekurhuleni on 19 February under the theme “Building the South African Economy Through Franchising”, drew franchisors, franchisees, funders, small business representatives, policymakers and aspiring entrepreneurs.

Alderman Nkosindiphile Xhakaza, Executive Mayor of the City of Ekurhuleni

According to FASA Head of Communications Mpho Mashego, the event was intended to encourage coordinated action across the franchising ecosystem.

“The objective of the conference was to facilitate meaningful engagement between government, funders, skills bodies and the private sector to unlock growth opportunities within franchising,” said Mashego. “Collaboration remains central to expanding access and ensuring the sector contributes meaningfully to job creation.”

FASA CEO Freddy Makgatho told delegates that franchising continues to offer a structured pathway into business ownership, but said broader participation will depend on improved cooperation between stakeholders. He indicated that the association plans to strengthen engagement with government departments, financial institutions and sector education and training authorities (SETAs) to create a more supportive operating environment.

Ekurhuleni Executive Mayor Alderman Nkosindiphile Xhakaza said municipalities also have a role to play in fostering enterprise development. He pointed to regulatory processes and infrastructure support as areas where local government can enable business growth.

Sharing their journeys in the franchising sector: Ricky Walton, Founder of SheerGuard SA, Lindiwe Shibambo, Founder and Managing Director of Maid4U and John Nicolakakis, CEO of Roman’s Pizza.

Several panel discussions focused on barriers facing prospective franchisees, including access to finance, training and mentorship. Representatives from Absa Business Banking, the Small Enterprise Development and Finance Agency (SEDFA) and Services SETA outlined funding and skills development initiatives aimed at supporting small and medium-sized enterprises. However, participants acknowledged that entry costs, compliance requirements and limited collateral remain significant constraints for many entrepreneurs.

A separate session on inclusive growth examined how franchising could better integrate women, youth and township-based businesses. Business leaders and sector representatives highlighted the need for improved business readiness programmes, mentorship networks and more accessible financing models to widen participation.

The programme also addressed innovation and future-readiness within the sector. Banking and industry representatives discussed the role of artificial intelligence and digital systems in improving operational efficiency and competitiveness. Nedbank Chief Economist Nicky Weimar provided an economic outlook, noting that franchise expansion will be influenced by broader domestic reforms and global economic conditions.

The event was well supported by all industry stakeholders

An exhibition running alongside the conference featured franchise brands and service providers engaging with prospective investors and franchisees, reflecting continued interest in the sector despite economic headwinds.

While organisers described strong engagement and optimism among delegates, several speakers stressed that translating that momentum into measurable job creation will require sustained policy certainty, accountable governance and practical, long-term partnerships between the public and private sectors.

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