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You are here: Home / cat / AFRAP Helps Tanzanian SMEs Transition into Franchise-Ready Businesses

AFRAP Helps Tanzanian SMEs Transition into Franchise-Ready Businesses

Dated: May 14, 2026

The Africa Franchising Accelerator Project (AFRAP) has successfully supported 101 small and medium enterprises in Tanzania to transition from informal operations into structured and franchise-ready businesses, according to an African Development Bank project completion mission conducted in April 2026. The project, valued at $800,000, has contributed to the creation of more than 3,000 direct and indirect jobs while strengthening private sector development and enterprise growth across the country.

The completion mission confirmed that AFRAP achieved its core objective of promoting franchising as a practical enterprise development model capable of supporting job creation, business expansion, and private sector-led transformation. Women represented more than 60 percent of the supported business owners, while youth participation also remained significant throughout the programme.

Field visits carried out during the assessment highlighted tangible changes among beneficiary businesses. Many enterprises evolved from informal and small-scale operations into more structured, scalable, and system-driven businesses with improved operational efficiency and growth strategies.

Beneficiary businesses reported that the project’s integrated training and capacity-building support helped improve business management systems, streamline operations, and prepare enterprises for long-term sustainability. CNS Group, a company providing human resources, compliance, and investment advisory services in Tanzania, stated that the programme enabled the business to reassess its performance, restructure operations, and position itself for future growth and franchising opportunities.

The project also contributed to the institutional development of Tanzania’s franchising ecosystem. Key achievements included 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 aimed at supporting future expansion of the sector.

Project coordinators noted that the consistent results achieved across different sectors and geographic locations demonstrate that the AFRAP model can be replicated and scaled beyond Tanzania. The initiative is being viewed as a practical approach for strengthening Africa’s private sector and supporting broader economic development goals across the continent.

The project further highlighted the potential role of franchising in advancing intra-African trade and supporting the African Continental Free Trade Area (AfCFTA). Stakeholders indicated that the establishment or revitalisation of national franchise associations in other African countries could help facilitate regional franchise trade and business collaboration.

Several beneficiaries also reported improved access to international markets and digital business opportunities as a result of the project. Shear Illusions, a Tanzanian retailer specialising in beauty products and natural cosmetics, stated that AFRAP support helped the business strengthen human resource management, improve order processing systems, establish an online presence, and expand customer reach to markets including the Middle East and Europe.

The African Development Bank noted that AFRAP aligns with Tanzania’s national priorities related to job creation, economic inclusion, and private sector growth. The project also supports the Bank’s broader strategic priorities focused on industrialisation, regional integration, and sustainable economic transformation across Africa.

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