Sanlam said it had fulfilled all conditions to acquire the remaining 53.37 percent of Morocco-based SAHAM Finances for an undisclosed amount. Photo: David Ritchie/African News Agency (ANA)

CAPE TOWN – Sanlam has, for the fifth year, confirmed its sponsorship of the Franchise Association of South Africa (Fasa)’s Franchise Surveys. 

The surveys are an important barometer that track the success of this unique business system which in the latest survey shows an estimated turnover of R721 billion equivalent to 15.7 percent of the total country’s gross domestic product (GDP). Its 865 franchise systems support over 45 000 outlets operated by franchisees who in turn employ 369 573 people.

This contribution to the South African economy by the franchise sector has continued on an upward trajectory in spite of adverse economic conditions, socio-political factors and often challenging business regulations.

The Fasa, which has represented the sector for the past forty years, welcomes the forward-thinking intentions of President Cyril Ramaphosa and Finance Minister Tito Mboweni who promise a “new dawn” for the country, with the need for strong public/private partnerships. 

President Ramaphosa’s comment that “we should treat our entrepreneurs as heroes and stop treating our business people as enemies” is welcomed and appreciated by the thousands of entrepreneurs and businesses that make up the backbone of our country, said Vera Valasis, executive director of Fasa. 

“As a sector that is often overlooked as we operate universally over all sectors, we have, since those first franchises established themselves in the 1960’s, continued through the good and bad times to innovate and establish new businesses, develop skills and above all contribute to job creation. The fact that over 80 percent of our franchise brands are home- grown is testament to our commitment to growing the economy for the benefit of all its people.”