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Strong outlook for the South African franchise industry

Strong outlook for the South African franchise industry

The South African franchise industry has become a substantial contributor to the local economy. Recent reports indicated that South African companies dominated the latest World Economic Forum (WEF) global growth companies list, with six local businesses named the most dynamic in terms of growth in the continent.

Morne Cronje, FNB Head of Franchising, explains: "Africa is fast becoming a dynamic business hub. The caliber of franchise brands in South Africa penetrating the rest of the African continent is remarkable. Together we need to find innovative ways of integrating business efforts that will ensure that there is greater diversification in the business sector. This will not only contribute to the economy but also encourage business partnerships on all levels." He adds: "we need to continually network and create dialogue in the industry. The annual FNB Franchise Leadership Summit (FLS) does just this. It provides a unique platform for new and existing franchisees to showcase some of South Africa's top franchisors and gives franchisees an opportunity to learn, network and contribute to the industry."

The South African environment has been conducive in attracting both local and global franchise brands. As a developing economy, South Africa has harnessed the power of emerging technologies to foster economic growth, which has helped the country to remain competitive in today's world.

Efficient, innovative new technology has helped build an infrastructure that has assisted businesses on many levels. "Today, innovation creates growth, disrupts and adds value to the innovation process. FNB's electronic business banking platform provides evidence of the ease, and effectiveness, with which technology can be harnessed to add significant value to small and medium business banking clients," explains Cronje. According to the International Franchise Association (IFA), despite slower than expected growth in 2014, so far, the outlook for franchise growth remains strong with employment and output forecasts revised up slightly from January estimates.

Article courtesy SA Good News