WeWork South Africa is forging ahead with ambitious expansion plans despite its parent company, WeWork Inc., filing for bankruptcy recently. The surge in demand for flexible office spaces, fueled by the rise of hybrid work arrangements, has prompted WeWork South Africa to target growth within the country and across the continent.

WeWork South Africa, wholly owned by real estate investment firm SiSebenza, holds the exclusive WeWork franchise license for South Africa, Nigeria, Kenya, Ghana, and Mauritius. Andrew Robinson, SiSebenza’s founder, revealed that the company took over WeWork Inc.’s South Africa operations in March 2023, marking the beginning of an ambitious expansion strategy.

“Over the last eight months, our operations have thrived, achieving record occupancies in our three South African locations,” shared Robinson said recently. He disclosed plans to expand the Cape Town operation by adding 250 desks this month, signaling the company’s optimism in the face of WeWork Inc.’s bankruptcy.

WeWork SA’s expansion drive is propelled by the return to traditional office setups after the remote work era enforced by COVID-19. The surge in hybrid work arrangements has amplified the demand for flexible office spaces. Robinson emphasized, “To service this demand, we are currently doing due diligence on several pieces of real estate throughout South Africa. We have also started to develop our roadmap into Nigeria and other African markets and we are very excited about that.”

WeWork South Africa’s growth across the continent will be facilitated by local companies seeking to enter markets covered by its franchise rights. Robinson stated, “Our growth in South Africa and into the continent is going to be fueled by our current members in South Africa who are looking to open up their operations in places like Lagos and Nairobi.”

According to data from real estate analytics firm KnightFrank’s 2022/23 Africa Report, office space vacancy rates in South Africa hit a 17.9% all-time high in Q1 2022. However, KnightFrank anticipates a stabilization of this trend as business confidence returns and more companies shift back to full-time office work.

WeWork South Africa is strategically focusing on the flexible office space sector, constituting only 1% of current commercial real estate in the country. Robinson predicts this share to grow to 2% and 6% in the short and medium terms, driven by the shift towards hybrid work models.

While WeWork Inc. faced challenges due to the shift from in-office work to hybrid models, impacting occupancy rates and contributing to bankruptcy, WeWork South Africa sees the shift to hybrid work as an advantage. Whether this perspective will shield WeWork SA from a similar fate remains to be seen, but the company remains optimistic about its expansion plans amidst the evolving dynamics of the workspace.