The Franchise Association of South Africa (FASA) and the Township Entrepreneurs Alliance (TEA) have signed a Memorandum of Understanding (MOU) to establish the SMME Support Programme, one of the most significant public-private partnerships in South Africa’s small-business landscape.
The MOU is a coordinated national SMME support program operating in the franchise sector, delivered across all nine provinces and designed to work for entrepreneurs who have historically been locked out.
South Africa's SMME sector employs the majority of the country's working population and remains the most reliable engine of inclusive economic growth, yet structural barriers, fragmented support, limited access to finance and distance from established commercial networks have hampered the potential of millions of small business owners.
The franchise model is suitable to tackle this challenge on a large scale. It is a tried and tested system, based on the idea that a strong business model, when managed by capable individuals, can flourish anywhere. The FASA and TEA collaboration will bring this proven system directly to the communities that need it most.
Township Entrepreneurs Alliance (TEA)
TEA is a growth-focused platform dedicated to unlocking the growth of township-based businesses by connecting them to structured markets, investment pathways, skill development and scalable commercial ecosystem.
TEA works at the intersection of entrepreneurship, media and economic development to ensure that township businesses are not only visible, but also viable within the formal economy.
For township businesses, this partnership represents a practical shift from an informal existence to structured participation in national value chains. This means access to training, funding pipelines, franchise entry points and market linkages that significantly enhance long-term sustainability and growth prospects.
It also opens the door for township enterprises to transition to scalable, franchise business systems.
The SMME Support Program is not a one-time intervention or formal announcement. It is a structured, end-to-end system designed to identify, develop, fund and scale entrepreneurs across South Africa.
Key pillars of the program include:
- Identification and assessment of SMMEs operating in high-impact sectors, with tailored interventions based on the specific challenges and capabilities of each business.
- Skill development and upskilling pathways to equip entrepreneurs with technical, financial and operational knowledge for sustainable growth.
- A Youth Apprenticeship Program has been developed in partnership with the private sector to provide on-the-job training to unemployed young South Africans within SMME businesses.
- Access to affordable franchising systems offers entrepreneurs a real route into the formal franchise sector.
- Bespoke funding tools, developed with development finance institutions and impact investors, are specifically structured for SMME franchise entry.
- Extensive market access through FASA member franchise brands connects township businesses to national supply chains, customer bases and commercial infrastructure.
“We are delighted to announce this long-awaited partnership with FASA. This partnership is a direct response to the gap between the capacity of South Africa’s township entrepreneurs and the opportunities available to them. FASA members are ready to be part of the solution, not as brand charities, but as genuine commercial partners in a model that works for everyone.” Freddy McGatto, CEO FASA.
The MOU creates a structured and credible platform for franchisors, investors, development finance institutions and corporate partners to participate in something that is commercially strong and nationally significant.
“This partnership provides township entrepreneurs with more than access. It provides them with structure, credibility and a real entry point into formal economic systems. For TEA, this means being able to take businesses that already exist in our communities and connect them to scalable national platforms that turn potential into performance,” says Bulelani Balabala, founder and CEO of TEA. Tea.
Franchise brands gain direct access to a pipeline of business-ready SMME operators and high-density township market communities with significant purchasing power who have been consistently underserved by the formal economy. For investors, the program offers blended-finance instruments compliant with ESG reporting standards and supported by government co-investment incentives.
This change is not about ticking boxes. It's about building sustainable, profitable businesses in parts of the economy that have been waiting too long for a seat at the table.
For media enquiries, you can email TEA here or contact the project manager here. Click Here To contact FASA.
About FASA:
For media enquiries:
Faasa Tea
MFO Ursula Mashego, Head of Communications Tiniko Mabasa, PR Coordinator
060 504 8886 079 686 6125
mpho.mashego@fasa.co.za media@joinusfortea.co.za