Embracing Franchise, A Modern Tool for African Economic Development
The term 'franchising' derived from ancient French, is defined as holding a particular privilege or right. Many believe that Albert Singer, is the founder of the Singer sewing machine, was the initiator of franchising. He was actually the earliest person recognized by most as being associated with franchising. However, the concept of franchising is alleged, really began long before.
Having carefully studied the objectives of Contemporary Diplomacy and functions of its network of partners, if all parties accepts to use its proven structures, l strongly believe this dissertation will achieve its maximum benefits within 5 years while considering commensurate financial options to leverage and equipoise Franchise to Africa.
Currently, Franchise is struggling to find ways into Africa, this dissertation is to complement and improve on the following evidential findings which are becoming significant Africa’s area of immediate need:
- Recently, President Obama engaged in a tour of Africa, which included stops in Tanzania, Senegal and South Africa meeting with government, business and civil society leaders to strengthen the U.S. commitment to expanding trade, investment and economic growth and to invest in future African leaders.
- The U.S. Commercial Service, the International Franchise Association and the Franchise Times sponsorship of trade mission to Kenya, Nigeria and South Africa to investigate partnership opportunities in franchising with area developers for the sub-Saharan Africa region.
- Africa is consistent evidence that both Africa’s middle class and its economy are growing. The African Development Bank has estimated that 34 percent of Africans or 326 million people make
up the middle-class, up 7 percent over the last decade. It is estimated that African consumers will spend $2.2 trillion on goods and services by 2030.
- Africa currently has a $1.8 trillion economy and approximately seven of the world’s 10 fastest growing markets are in Africa with five of them in the heavily populated sub-Saharan region.
- At the 2014 International Franchise Expo held in New York, over 100 U.S. Franchise businesses expressed interest in expanding their brands into Africa. Since 2014 less than 5% of these U.S. based franchises were able to generate leads from high net worth individuals in Africa with the skills, experience and financial capacity to meet their qualifications.
- The Wealth Report 2015 reported the number of ultra-high net worth individuals (UHNWIs) - those with at least $30 m in assets - in Africa will increase by 59% over the next 10 years, stronger than 34% projected global growth.
As Franchisors are finding it hard to find the right investor and investors the right franchise model that meets the consumer demands in Africa. Export and Import Banks functions are interchangeable to achieve African Economic Development in Franchising, which the dissertation will address.
Hence, diplomats and stakeholders will get a thorough understanding of unspotted lapses, mediate against backdrops and pave practical ways for Franchise practice and its sustainability in the Continent.
Francis John, Kansas City
A Dissertation Presented to the Faculty of Arts in the University of Malta for the Degree of Master in Contemporary Diplomacy.
References:
Albert Singer: the Myth about the 'Father of lFranchising'http://franchises.about.com/od/franchisebasics/fl/Albert-Singer.htm By Michael Seid, Managing Director, MSA Worldwide, Franchising in Africa Franchising World, August 2013 BY KENDAL H. TYRE AND DIANA VILMENAY http://www.franchise.org/franchising-in-africa-0
FranServe, Inc. 12600 Deerfield Parkway Suite 100 Alpharetta, GA 30006 http://franserve.com/