AVIS SA: Delivering Growth in a Tough Economy

In an economy burdened by high fuel prices, minimal GDP growth, and the lasting hangover of a decimated tourism sector, many South African businesses are holding their breath. But for one of the country’s most recognised mobility brands, it’s a different story. Avis Southern Africa, a household name with global backing, is not only surviving these testing conditions – it’s thriving.

Under the strategic leadership of Zeda Group – the mobility-focused entity spun out from Barloworld and listed independently on the JSE in late 2022 – Avis has continued to deliver strong financial performance, innovative service development, and a purposeful focus on inclusivity and transformation. The company has entrenched itself as a driving force in the South African car rental, leasing, car sales, and fleet management space.

In May, Zeda released its results for the half-year ending 31 March 2025.

“This reaffirms the strength of our robust operating model, our diversified portfolio and disciplined strategy execution. We’ve delivered double-digit earnings growth, superior margins and solid returns in a revenue-constrained environment,” said Group CEO Ramasela Ganda.

While many in the vehicle rental and sales sectors have faltered amid interest rate spikes, currency volatility, and global supply chain disruptions, Avis Southern Africa has maintained momentum through a careful, long-term approach to its asset and service base.

“In a period where traditional car rental and vehicle sales faced mounting pressure, our Leasing, Subscription, and Greater Africa strategies delivered, helping grow earnings, improve margins, and continue investing for the long term. We achieved this through a stringent implementation of the operating model of financing right, buying right, using right and disposing right,” remarked Ganda.

BUILDING ON SUCCESS

Avis Southern Africa’s most recent performance, as reported by Zeda, shows just how deeply this strategy is embedded. Revenues increased year-on-year, margins held strong despite cost inflation, and operations across rental, leasing, and subscription categories were streamlined for continued resilience.

“Our interim results reflect operational resilience and strong fundamentals, with the headwinds in the key focus regions, we will prioritise efficiencies to contain our operating costs below inflation. We are also implementing a multi-year efficiency programme that aligns with our portfolio review to enhance the performance of our services and improve branch profitability,” Ganda said.

What sets Avis apart in this sector is its clear sense of purpose beyond just profits. Whether adapting to shifting customer behaviours or aligning with national development goals, the company consistently plays the long game. Having grown and adapted through post-pandemic recovery and now tackling load shedding, logistics bottlenecks, and currency instability, the company is still aggressively chasing new opportunities.

One such opportunity is the growing appeal of short-term vehicle subscriptions over outright ownership – a consumer trend that Avis is already capitalising on. The company has also stepped up its adoption of digital platforms to streamline bookings, personalise service, and improve fleet monitoring across the region.

PROGRESS AND PARTNERSHIPS

More than just reacting to market shifts, Avis Southern Africa is also shaping the future of the mobility sector. The brand’s alignment with green technologies, empowerment principles, and smart industry collaboration is allowing it to lead, rather than follow.

Recently, the company rolled out electric vehicle rental options with free charging included – a first in the country and a bold step towards sustainable transport. At select branches, customers can now hire an EV and recharge at no extra cost, tapping into growing consumer interest in eco-friendly alternatives. The move also supports the country’s wider climate commitments.

Additionally, a new collaborative agreement with WesBank has strengthened the connection between the rental and dealer worlds. This deal brings together the mobility solutions of Avis with the financial tools of one of SA’s largest vehicle financiers, allowing consumers and businesses alike to access a fuller suite of options from lease to purchase.

These developments come as Avis continues to maintain its competitive edge through compliance and transformation. The company boasts a Level 1 B-BBEE status – the highest rating available under South Africa’s empowerment codes – and continues to actively promote skills development, procurement transformation, and employment equity throughout its operations.

Female leadership is also a defining feature of Avis Southern Africa. With Ganda at the helm, and a strong representation of women across managerial roles, the business is a leader in gender transformation in a sector still dominated by male leadership.

In past years, Avis has invested heavily in employee training and support structures, helping to build not only a high-performing workforce but also one that reflects the communities it serves. In a fragmented and often informal industry, this consistency of internal culture and service quality is a major differentiator.

FRESH OFFERINGS

While traditional car rental remains a core revenue driver, Avis Southern Africa continues to diversify its offering in line with changing needs. Business travel may still be rebuilding, but tourism is slowly rebounding – and Avis is positioned to ride the wave with fresh offerings and a nationwide footprint.

One area of notable growth is long-term rental and subscription services. For SMEs and individual entrepreneurs navigating uncertain cashflows and fluctuating vehicle needs, these flexible options offer affordability and ease without the commitment of ownership. Avis has been quick to roll out customisable packages that meet this demand.

Meanwhile, partnerships with travel agents, airports, and local tourism operators have been refreshed post-Covid to support inbound visitors. These relationships are key, especially as global travel patterns shift and South Africa markets itself once again as a destination of choice.

A growing portion of Avis Southern Africa’s fleet is now digitally managed, enabling real-time availability, predictive maintenance, and better overall fleet utilisation. As such, customers can expect a better selection of newer vehicles, quicker turnaround times, and improved service consistency. A digital sales showroom has also been launched where customers can look through the entire Avis fleet at their fingertips and find a car to buy that suits their lifestyle requirements.

The company’s Greater Africa strategy is also bearing fruit. Operations in Namibia, Botswana, Mozambique, and other SADC countries are helping to stabilise earnings and increase scale across regional markets. Southern Africa remains a cornerstone of Zeda’s portfolio and a region with long-term growth potential.

TOURISM ON THE RISE

Southern Africa’s appeal as a tourism destination is not in question – from Cape Town’s coastal charm to Kruger’s wildlife riches and Namibia’s dramatic dunes, the region has everything to attract international and regional visitors alike. For Avis, this translates into consistent demand for quality rental services that can support adventure travel, business trips, and family getaways.

As air routes grow slowly and travel confidence returns to pre-pandemic levels, Avis is working to capture this demand through targeted marketing, expanded branch access, and vehicle categories that suit the needs of both international tourists and local road trippers.

Crucially, the reputation of the Avis brand globally – associated with service reliability, modern fleets, and digital convenience – makes it the preferred choice for many inbound travellers. Leveraging this trust, combined with local expertise, allows Avis Southern Africa to deliver a seamless customer experience even in remote destinations.

South Africa’s ambitious plans to grow its tourism economy – targeting over 21 million international arrivals by 2030 – only reinforce the long-term opportunity for car rental providers. Whether it’s foreign businesspeople attending major conferences in Johannesburg or European families exploring the Garden Route, Avis is committed to being the go-to brand for safe, comfortable, and accessible mobility.

POSITIONED FOR LEADERSHIP

From financial performance to operational excellence and market reach, Avis Southern Africa is in a strong position. It’s a business that has proven its adaptability in volatile conditions and is still investing for future growth.

As part of the Zeda Group, Avis benefits from a focused mobility strategy, world-class operational models, and a culture of innovation that continues to drive results.

“We’ve delivered double-digit earnings growth, superior margins and solid returns,” said Ganda – and this comes not despite South Africa’s economic challenges, but because of Avis’s ability to navigate them smartly.

The road ahead is full of opportunities – and with tourism returning, partnerships growing, and digital innovation picking up pace, Avis Southern Africa is not just moving with the times, it’s steering the sector forward.