How do you see franchising in Africa in the next 5 years in terms of:

Challenges: In the franchise industry, inadequate infrastructure, such as transportation, logistics, and reliable energy sources, can hinder the operations and expansion of international franchise businesses.

Variability in regulatory frameworks across different African countries can pose challenges for franchisors who are considering the market in the upcoming years. Adapting to and complying with diverse legal and regulatory requirements can be complex and costly as well, especially in markets with nonexistent franchising legal framework.

In general, I can speak of three of major challenges to grow the franchise business operations in Africa:

• Access to Finance: Many potential franchisees in Africa may face challenges in accessing financing to start or expand their businesses. Limited access to capital can slow down the growth of the franchise sector.
• Educational and Skill Gaps: A skilled workforce is essential for the success of franchise businesses. Addressing gaps in education and skills training may be necessary to ensure a pool of qualified employees for franchise operations.
• Technology Adoption: Keeping up with technological advancements is crucial for the success of any industry. Franchise businesses in Africa may face challenges in adopting and integrating the latest technologies, potentially affecting efficiency and competitiveness.

Opportunities: The rise of a growing middle class, combined with increasing disposable incomes and a tech-savvy youth demographic, presents a favorable outlook for franchising opportunities in Africa over the next five years. Untapped markets provide unprecedented potential for expansion, further enhanced by government policies that acknowledge the economic benefits of franchising. In my mind, Nigeria, South Africa and Kenya to mention a few are the best examples.

In your experience, what are some of the most common mistakes that non-African brands make when entering African markets?

Africa is a mosaic of countries, culture, religions and languages. The continent is a blend of over 54 countries, spread over 30 millions km² – it measures over 5 000 miles north to south. In Africa, the largest country is Nigeria with a population over 223 million inhabitant and the less populated are the Seychelles with about 100 000 inhabitants.

Adopting a one-size-fits-all approach weakens the brand. Understanding and adapting to local consumer preferences and behavior is crucial for the success of franchise businesses. Changes in consumer trends and preferences may require adjustments in marketing and product offerings.

Also, it’s important to plan carefully and work closely with local partners. Investing in developing local skills is a key factor for long-term success, building on the importance of training and reinforcing a strong local team.

Lastly, before entering a market, the brand and/ or local partner should conduct market research to validate the franchise concept and better understanding what are the consumers habits and the competition.

How do you help franchisors to adapt their business models to be more successful in Africa?

When offering our services to international brands, we like to bring focus, in addition with the standard practices of our business, the alternative facet of the business strategy, ie. incorporating sustainable practices aligns with African values, cultivating a positive brand image. Equally important, the development of cost-effective models catering to diverse income levels is pivotal for achieving market penetration and fostering inclusivity. This is probably the best argument to support the development of local (African born) concepts as well

What are some of the key resources and support mechanisms that are available to franchisors and franchisees in Africa?

Due to varying levels of market maturity, the landscape of franchise support systems differs from one country to another. The most effective strategy is consistently to seek the optimal local partner – a franchisee who will navigate the journey of implementing the brand in the specific local market.

You are the Vice President of America Chamber of Commerce in Tunisia. What are some of the ways that the AMCHAM supports franchising in Tunisia and other African countries?

Amcham – as a business network, business facilitator, may play a role in various degree to promote the franchise industry across Africa:

• Facilitating regional collaborations promotes the exchange of knowledge (international donors programs such as Prosper Africa, USAID are pivotal to support these initiatives)
• Help sharing of best practices though members training sessions
• Establishment of partnerships within the region based in inter-regional agreements such as AfCFTA.
• Implementation of mentorship programs, where seasoned franchisors guide entrepreneurs across borders, facilitates talent development and knowledge transfer.

Also, by advocating for infrastructure development through the regional AMCHAM network in Africa, AMCHAM can play a pivotal role in lobbying for enhanced infrastructure throughout Africa. This advocacy not only benefits the field of franchising but also contributes to the overall economic growth of the continent. Furthermore, championing innovation through the promotion and support of localized and tech-driven franchise models fosters inclusivity and addresses specific market needs.

How do you see franchising evolving in the next 5-10 years?

The franchise industry is poised to evolve positively, becoming a driving force for the ecosystem, job creation, and entrepreneurship, provided that the following key factors are well-directed:

• Understanding and Implementing Best Practices:

Local businesses need to comprehensively understand and implement the best practices of the franchise model. This involves gaining a clear understanding of the business model, ensuring effective replication, and adhering to established standards. If not done properly the failure of franchise model will discourage other from entering the business because it will be perceived as ineffective.

• Providing a Safe Space for International Brands:

Creating a conducive environment for international brands to enter the market is crucial. The presence of international brands not only elevates standards but also contributes to the overall growth of the industry. This entails establishing frameworks that support and facilitate the entry of global franchises.

• Accelerating Growth of Local Brands:

Focusing on accelerating the growth of local brands is vital, as they are often well-suited to navigate local markets and operate within restricted budgets. Local brands possess the agility necessary for development in remote areas, fostering economic growth across diverse regions.

• Access to Financing for Investors:

Ensuring access to financing for investors entering the franchise market is essential. This facilitates the entry of new players and supports the expansion of existing franchises, contributing to job creation and entrepreneurship. Adequate financial support enables investors to seize opportunities and drive the positive evolution of the franchise industry.

By aligning efforts with these strategic directions, the franchise industry can emerge as a robust catalyst for economic development, generating employment opportunities and fostering entrepreneurial endeavors.

What are the biggest trends that will shape the future of the industry?

Digitalization and early adoption of technology are poised to be the predominant trends shaping the future of the franchise industry. In many markets, the current phase does not yet fully support discussions about franchising in the green or blue economy. Another significant trend emerging is social franchising, with microfinance playing a pivotal role in fueling the ecosystem across the continent. These trends collectively underscore the dynamic shifts and opportunities unfolding in the franchise landscape, emphasizing the increasing importance of technological integration and sustainable business practices.

What kind of support does WeFranchiz provide to franchisors and franchisees throughout the franchising process?

Wefranchiz operates as a specialized franchise consulting firm, offering comprehensive expertise in franchise development, market research, and legal compliance. The organization provides guidance throughout the establishment and growth phases of a franchise business. Additionally, WeFranchiz collaborates with local banks and lenders to streamline access to capital through tailored financial products.

The platform serves as a vital link between franchisors and franchisees, acting as a central hub for information dissemination, resource sharing, and matchmaking opportunities.

The annual survey, « Barometer of Franchising, » provides the franchising ecosystem with valuable statistics, market trends, and other pertinent information. The survey serves as a reliable source of data, offering insights that empower stakeholders in making informed decisions, shaping strategies, etc.

Furthermore, WeFranchiz organizes the Tunisia Franchise Show, creating a dynamic space for the franchise ecosystem to network, learn, and foster growth.