{"id":14377,"date":"2012-09-07T15:56:54","date_gmt":"2012-09-07T13:56:54","guid":{"rendered":"http:\/\/www.myza.co.za\/09\/africa-money-franchises-target-africa-with-fashion-food-and-fitness\/"},"modified":"2012-09-07T15:56:54","modified_gmt":"2012-09-07T13:56:54","slug":"africa-money-franchises-target-africa-with-fashion-food-and-fitness","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/africa-money-franchises-target-africa-with-fashion-food-and-fitness\/","title":{"rendered":"AFRICA MONEY-Franchises target Africa with fashion, food and fitness"},"content":{"rendered":"

\t\t<\/span><\/p>\n

By Tosin Sulaiman<\/span><\/p>\n

<\/span><\/p>\n

JOHANNESBURG, Sept 7<\/span> (Reuters) – From fried chicken to ice
\ncream and body-building supplements, international franchises
\nare making inroads into Africa, tapping into consumers’ hunger
\nfor their brands as developed markets stagnate.<\/p>\n

<\/span><\/p>\n

Hilton Hotels, owned by asset manager Blackstone, Yum
\nBrands’ Kentucky Fried Chicken and the fashion retailer
\nMango are some of the companies driving the growth of
\nfranchising in Africa. Others in the fast food, automotive and
\neducation sectors are also expanding into the continent.<\/p>\n

<\/span><\/p>\n

Franchising creates opportunities for African entrepreneurs
\nand provides jobs in the formal sector, while for brands it is a
\nchance to enter a new market at a lower cost and with a business
\npartner who is familiar with the terrain.<\/p>\n

<\/span><\/p>\n

“It’s an inexpensive means to expand using the money of
\nothers,” said Kendal Tyre, editor of a new book on franchising
\nin Africa. “You have a franchisee who is coming in and paying a
\nfranchise fee to have access to your system that you’ve
\ndeveloped over some period of time.”<\/p>\n

<\/span><\/p>\n

However, weak judicial systems, corruption and poor
\ninfrastructure are still deterrents for potential franchisors.
\nThe repatriation of profits from some African countries can also
\nbe difficult and there are concerns about the protection of
\nintellectual property.<\/p>\n

<\/span><\/p>\n

Until recently, franchising in Africa had only taken hold
\nin the continent’s more advanced economies, such as South Africa
\nand Egypt. South Africa’s 300 billion rand ($36 billion)
\nfranchise sector accounts for 12 percent of GDP, according to
\nStandard Bank.<\/p>\n

<\/span><\/p>\n

The industry employs around 500,000 people directly. Nearly
\n700 brands operate franchises, including KFC and McDonald’s, and
\nhome-grown businesses such as Nando’s, a chicken restaurant.<\/p>\n

<\/span><\/p>\n

But as Western brands face slowing growth at home they are
\npaying closer attention to the rest of Africa, encouraged by
\nlegal and economic reforms and governments keen to spur the
\ngrowth of small businesses, said Tyre, who edited Franchising in
\nAfrica: Legal and Business Considerations.
\n\u00a0 Continued…<\/strong><\/span><\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

By Tosin Sulaiman JOHANNESBURG, Sept 7 (Reuters) – From fried chicken to ice cream and body-building supplements, international franchises are making inroads into Africa, tapping into consumers’ hunger for their brands as developed markets stagnate. Hilton Hotels, owned by asset manager Blackstone, Yum Brands’ Kentucky Fried Chicken and the fashion retailer Mango are some of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-14377","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/14377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=14377"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/14377\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=14377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=14377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=14377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}