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Franchising for petrol stations

The National Empowerment Fund (NEF) has made R50 million available in affordable loans to suitable BEE candidates who will be identified within a period of two years. Engen, in turn, will provide the financial surety and the business support necessary for the new members of its retail service station network to thrive. This joint initiative was launched yesterday, 27 July 2010 and is aimed at increasing black entrepreneurial ownership of Engen service stations.
(L - R): Minister Dipuo, Teboho, Cynthia Seeko, NEF CEO Philisiwe Buthelezi and Engen CEO Rashid Yusof.
NEF chief investment officer, Frencel Gillion, says franchising remains a key means for gaining access to economic opportunities whilst reducing investment risk, due to the training, marketing and general entrepreneurial support typically provided by franchisors. "NEF franchise funding, generally limited to R5 million with an investment horizon of five to seven years, is available to black entrepreneurs who have pre-qualified with franchisors."

"This is the first deal of its kind in the petroleum industry, and we see it as an important move towards fostering empowerment in a sector that, by its nature, presents high barriers to entry," he adds.

"At present, 40% of Engen's service stations are black-owned and the goal is to increase this," says Portia Mpofu, Engen's BEE and government relations manager. This is where the NEF will play a strategic role. "The company has identified viable sites that are pumping a monthly average of more than 250 000 litres of fuel and have a Quickshop turnover of +- R250 000."

Deposits reduced

Potential black entrepreneurs will be required to put up between 10% and 20% of the purchase price and the NEF will provide financing for the balance. Engen will stand surety for half of the average R5 million purchase prices, and will cover training, evaluation and business support costs. Commonly, Engen requires that entrepreneurs put up considerably more than the aforementioned 10%-20% of the purchase price.

"Lowering the level of their contribution is aimed at making service-station-ownership more accessible for black entrepreneurs. As a market leader, the company takes its role as a change agent seriously," notes Vukile Zondani, GM, Engen Sales & Marketing.

First station opened

The first of the new NEF-financed Engen franchises is now open in City Deep in Johannesburg and further deals are in the pipeline.

"This is a perfect example of how public-private partnerships can support the country's socio-economic development. We're hoping this model will be so successful in breaking down the barriers to entry in the petroleum industry that we'll be able to extend it on an on-going basis at the end of the initial two-year period. It's a win-win for everyone involved," concludes Gillion.

Prospective retailers interested in dealership opportunities can email their profile to .
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juduis ngoako mabetoa
my name is juduis , 2009 i applied franchise to engen they sayed iam in database . just want to cherck if i still in u file .i will be happy if u consirder my massage.
Posted on 28 Dec 2011 22:12
Thula Zungu
Hi. would you kindly guide us to Engen garage franchise opportunities in and around Durban, Northern Zululand, Pietermaritzburg and Natal midlands and Lower South coast. We are a team of wife n husband. You can send info to: thulazungu@ymail.com
Posted on 2 Jul 2012 22:24
Negotiate Nego
Hello. My name is Negotiate Masemola,would you kindly assist me to Engen Garage franchise opportunities...the requirements that are needed and how to apply.My email :negotiate.2010@yahoo.com
Posted on 21 Feb 2013 18:34
rembu munyadziwa
hello my name is Rembu Munyadziwa.I have few question t ask .i have dream of owning a filing station under engen franchiser.wat must i do first t qualify also i understand the percent that they need for person to obtain franchiser.wer to go for advise.thanx ill be happi t get my answer i am willingly to own one of engen before 3 years from now thanx.
Posted on 30 Jul 2013 17:16
Kleinbooi Letsoalo
Hi name is kleinbooi i have dream of owning filing station i need any franchise information or opportunity to make my dream come true.where i grow up we used to have filing station but it closed down and people in the are have to travel long distance to get their diesel and petrol its high demand.i want to approach the owner so that i can take it over.please email me on lkleinbooi@yahoo.com
Posted on 12 Nov 2013 13:41
Samuel Kisaame
Hello, my name is Sam Azafe and would like to know about franchise opportunities for Engen petrol stations. My email addresses are pietsellah@gmail.com and stklconsultancy@gmail.com. We would like to get into this business as most of the modalities for attaining this goal are already underway.
Posted on 17 Feb 2014 12:05
Angie Mashabela
My name is Semakaleng Mashabela. My husband and I would like to venture into the business of running a petrol station. We need to compare among available brands and the relative initial investment costs required to get started.
Posted on 10 Apr 2014 13:03
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Posted on 3 Sep 2015 19:48
Hi my name is khayelihle nene can someone help me about my dream to own engen filing station my email is nenekhayelihle@gmail.com
Posted on 27 Jul 2016 22:17
Nathan Davidson
It is a good platform to start your business by first managing a franchise. Once you have had sufficient experience from your mentors from the main business, then you could apply the skills to your next milestone. A franchise business is easier to manage but you would have to be in a registered main business to prevent any misleading guidance throughout the whole experience.
Posted on 23 Jun 2017 23:29
Ritu Gupta
I can understand how there are so many benefits in a franchise precisely because my self storage business is a franchise too and we're very successful in Melbourne South now! I just love the fact that there is a community of storage managers that we can tap into and the knowledge and information learning curve is so much better for us too!
Posted on 9 Jan 2018 09:28
Hi,I heard about the franchise opportunity,can I please send the information and how to apply.My email address is vusumzi.mah@gmail.com
Posted on 10 Oct 2019 10:53