Avis Budget Group has signed an agreement with Barloworld Ltd, which operates the Avis Car Rental brand in southern Africa, to also operate the Budget Car Rental brand there, effective March 1, 2015.

The agreement offers both companies an opportunity to leverage Barloworld's knowledge of the car rental market to develop the Budget brand across South Africa, according to Avis Budget.

"Avis Budget Group is delighted to be extending its relationship with Barloworld to include Budget," said Troy Warfield, commercial and licensee director, Avis Budget Europe, Middle East and Africa (EMEA). "The combination of Barloworld and our global network positions Budget Car Rental to continue to grow and prosper today and in the future."

Under the license agreement, Barloworld will operate the Budget brand in Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zambia, Zimbabwe and South Africa. Barloworld already operates the Avis brand in Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe.

"Barloworld has a 45-year history of partnership with Avis Budget Group and proven experience successfully operating the Avis brand in southern Africa,” said Keith Rankin, chief executive of Avis Rent a Car Southern Africa. "We are thrilled to add the Budget brand to our portfolio as part of Avis Budget Group's multi-brand strategy."