Franchising and the African economy
- According to the Franchise Association of South Africa’s 2013 franchise survey, 84 local franchisors have successfully expanded into Africa
- Africa’s economy of approximately $1,6 trillion is expected to grow to $2,6 trillion in the next five years
- Since 2009, Angola, Nigeria, Ghana, Zambia and DRC have become top investment destinations
- Kenya and Nigeria are in the top six of the world’s fastest growing economies, with Kenya surpassing India in third place, while Nigeria outpaces Malaysia in sixth place
- Main sectors for development include mining, construction, property development, retail, supplier services for gas and oil, mobile, ICT, security, agriculture, tourism and hospitality
- Of Africa’s one billion population, almost 50% are under the age of 35 and nearly half live in cities
- 69% of 217 surveyed brands showed interest in expanding into Africa.
These are the total number of South African franchise outlets per sector in Africa
11 – Construction and related
12 – Real estate
28 – Automotive
33 – Childcare, education and training
41 – Building, office and home services
82 – Fast foods and restaurants
98 – Retailing
With the African economy steadily growing, a number of South African franchisees have already expanded into Africa. According FASA’s 2013 franchise survey, 84 franchisers have operations in ten African countries.
The top countries are Botswana with 37 South African franchise outlets in operation, Namibia with 35, Swaziland with 26, Zimbabwe with 20, and Zambia with 16 outlets.