AfDB backs Tanzania in drafting a franchise policy.
Over 100 SMEs successfully franchised in project’s first year.
Tanzania launches the Franchise Association of Tanzania (FATA).

Tanzania has embarked on a small business formalization project that will in effect increase its Real National Income. Dubbed, the Africa Franchising Accelerator Project (AFRAP), the initiative is backed by the African Development Bank (AfDB) and implemented by the Tanzania Private Sector Foundation (TPSF).

According to the project outcome report, in it’s first year, AFRAP has already achieved formalization of some 101 small and medium enterprises across Tanzania.

The goal of the project is to support and nurture local enterprises to grow through the franchising model, states Onesmo Ngelleshi, the Project Coordinator at Tanzania Private Sector Foundation (TPSF). “To date, we have been able to capacitate and transform over 100 businesses in terms of their systems, structures and procedures.”

“The businesses have been incubated to transition from informal operations into structured, franchise-ready businesses,” Ngelleshi details.

In this first phase, the AFRAP has created more than 3,000 direct and indirect jobs backed by an initial incubation investment of $800,000. “The project’s core objective is to position franchising as a practical enterprise development tool to drive job creation, SME growth, and private sector–led transformation,” he added.

Speaking to press on the sidelines of the project progress briefing, the TPSF official was keen to note that women accounted for more than 60 percent of supported business owners, and the remaining 40 percent was dominated by youth.

The said percentage participation is inline with the project objectives i.e. to increase financial inclusion for women and youth. According to project officers, follow up field visits provided evidence of change at the enterprise level.

“Project beneficiaries have moved to structured, scalable businesses…” said Nancy Furahini, Contract and Procurement Officer for CNS Group, one of the project beneficiaries.

CNS Group, provides human resources, compliance and investment advisory services to businesses and has been instrumental in helping the project formalize small businesses. “Beyond the numbers, the project has helped us reflect on our performance, reassess our operations, and restructure for growth,” she went on to detail.

Other than helping other businesses, she was happy to note that, thanks to the project, CNS Group has itself streamlined its operations and repositioned itself for sustainable growth.

According to the overall project performance brief, institutionally, the AFRAP project has successfully laid the foundation stones for a sustainable franchising ecosystem in Tanzania.

Key achievements include the establishment of the Tanzania Franchise Association (TAFRA), the development of national franchise guidelines, and the completion of a feasibility study for a dedicated franchise fund, reads the brief.

“Consistent results across sectors and locations indicate that the AFRAP model is reliable and can be scaled,”

In his comments, Shekha Nasser, CEO and Founder of Shear Illusions, said, most importantly, the projects successful results are replicable, meaning they can be duplicated across the EAC and beyond; “positioning franchising as a practical tool to advance Africa’s private sector.”

“One way this might be achieved is through the set up or revival of national franchise associations, which would boost intra-African franchise trade and support the African Continental Free Trade Area,” he said.

“Through AFRAP, we have learned a lot about human resources and how to manage people and orders,” he added.

Crediting the AFRAP project, he said Sheer Illusions, a renowned brand in beauty products, natural cosmetics, and hair care retailer is already receiving online orders from as far as the Middle East and Hungary.

“These are customers that we didn’t have access to in the past,” Nasser revealed.

In so doing, AFRAP is advancing Tanzania’s national development priorities including private sector growth, employment and overall economic expansion.

Notably, the project also aligns with the African Development Bank’s strategic focus on industrialisation and regional integration.

Also Read: Half of Africa’s $3.6 trillion GDP in 2026 will come from just 5 countries

Eco-friendly franchising, Africa’s major trend in 2026

At the dawn of the new millennium, the African economy needed a second wind to survive the multiple global crises that threatened growth, franchising has evolved as a growth and expansion solution to Africa SMEs.

The sentiment is shared by the Canadian Africique Franchise, an independent organization that helps African SMEs to franchise.

According to Tarek Yazidi, the organization’s President and CEO, “Franchising in Africa is making great strides, but still lacks mediation and clear and objective information.”

“Overtime, franchising has become a proven business model that offers several advantages to entrepreneurs in Africa,” he notes.

According to the expert, in response to global climate change and changing consumer behavior, eco-friendly franchises are emerging as a major trend in 2026.

“More and more consumers are favoring brands that are committed, transparent, and environmentally responsible,” he details.

A sustainable franchise represents both an economic opportunity and a strategic choice that is aligned with current global challenges which the pundit says it is why the sector is trending.

*Consumers are now highly aware of the environmental impact of their purchases,” he adds.

That been the case, companies are urged to take note that consumer awareness is reflected in the growing strong preference for local products, short supply chains, reduced packaging, and an attraction towards recycled materials.

To respond to this trend, eco-friendly franchise networks should offer innovative and responsible company ethos that will build loyalty among what he described as ‘increasingly demanding customers.’

He goes on to list eco-responsible franchises that cover a wide range of sectors, including retail (bulk stores, zero waste, organic products), soft mobility (bike repair and rental), housing (energy renovation, renewable energy), responsible food service, and eco-friendly business services.

“This diversity allows franchisees to choose a project aligned with both their values and their local market,” Yazidi details.

He further reassures stakeholders that contrary to popular belief, “…a sustainable franchise can be highly profitable benefiting from a strong brand image, clear differentiation, and higher customer loyalty.”

For SMEs and other larger companies looking to franchise, the expert says there are benefits including reduced energy and raw material costs coupled with incentives linked to the ecological transition.

However, he cautions that “…succeeding in an eco-friendly franchise requires a consistent and authentic approach.”

“It is essential to choose a credible brand, understand local expectations, communicate transparently, and avoid any form of greenwashing,” he warns.

“Genuine commitment is now a key factor in winning over consumers,” he sums up.