Discusses opportunities for U.S. franchisers and legal requirements in the market
Last Published: 8/5/2019

Franchising opportunities for U.S. business, such as restaurants and retail shops, are plentiful in Eswatini.   Franchises in Eswatini are mostly South African, or come to Eswatini by way of a South African entity that has purchased master franchise rights to the region, e.g. Kentucky Fried Chicken, John Deere, Bandag Tyres, FedEx, and DHL. 

In the past, South African buyers have allegedly taken advantage of foreigners' ignorance of Eswatini's political independence, and illegally set up franchises in Eswatini without having proper licensing for the country.  Swati business people are thus often suspicious of new franchises in the country. Master franchise deals exclusively for Eswatini or for the region are not subject to restrictions beyond the requirements of any other business arrangement.

There are several urban centers that could support a variety of franchise types.  Swati business people are very interested in cutting their own deals with U.S. and other foreign firms for franchising rights instead of going through South Africa.

Uneasiness with South African dominance in regional franchising extends across southern Africa and can be an important impetus to U.S. firms, not only to sell Swati franchising rights directly to Eswatini-based buyers, but to consider a Swati franchiser for the broader region. 

There are Emaswati interested in becoming regional franchisers and who can command the resources necessary to do so.  The disadvantage of Eswatini-based franchising is the lack of a strong manufacturing base.  In certain ventures, South Africa's ability to more readily provide needed supplies gives it an advantage.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.