Report by Demola Quadri
As part of its bold initiative to stimulate franchise development in Africa, the African Development Bank (ADB), in partnership with the Joint Africa Institute, held a four-day seminar “How to Support and Conduct Franchising for Economic Development” in November 2005 at the Sheraton Cairo, Egypt.
More than thirty participants from selected African countries representing franchise associations, small and medium enterprise associations and chambers of commerce met to discuss such topics as the role of franchise association, the importance of business development services; and, relevant legal framework essential for the development of franchising. At the end of the seminar, the group recommended both regional and country specific action plans to further the development of franchising in Africa.
The first of the two part seminar series was held in Tunis, Tunisia in 2004. The Tunis Seminar, “Franchising within an SME Development Strategy” introduced participants to the concept of franchising and the importance of creating an enabling environment for a successful franchise strategy. The group also discussed the need to link country perspectives against regional challenges and opportunities.
The Cairo seminar included representatives from Zambia and Ghana (that were not represented at the Tunis seminar) who joined the second-time participants from Botswana, Mauritius, Morocco, Nigeria, Senegal, Tunisia, Kenya, Egypt, Tunisia and Algeria in the deliberations. Representatives from South Africa, the only country in Africa with an advanced franchise sector, played mentoring role in collaboration with seminar consultants, Nic Louw and Ines Sagrario, and ADB managers.
Four broad actions were recommended by the “advanced” group, (countries that already have a franchise association), South Africa, Kenya, Nigeria, Egypt and Morocco:
- Funding – The associations should be self-sustaining through membership fees and revenues generated through trade shows.
- Networking – Associations should network at the regional level to exchange ideas. The Franchise Association of South Africa (FASA) and the Egypt Franchise Development Association (EFDA) will provide technical assistance to the new associations.
- Capacity Building – Training of association members and educating financial institutions and associated professional bodies - accountants and lawyers, are essential to building an organized franchise sector in each country.
- Code of Ethics – Associations should be self - regulatory. New associations should adopt a code of ethics using the FASA standard.
The “emerging” groups, countries with no structure for promoting franchising, Mauritius, Ghana, Senegal, Algeria, Tunisia, Zambia and Botswana recommended the following actions:
At the regional level, recommended actions are:
- Sharing of information
- Developing a franchising guide or manual
- Jointly promoting expos and the introduction of "African Stand" at franchise expositions organized by franchise associations in the African region
- Developing a web page for sharing of materials and exchange of information
One major concern at the conclusion of the Cairo seminar was how to make the recommended action plans achievable. Participants were encouraged to serve on a squad team and accept specific appointments to facilitate the execution of proposed actions at the regional level while country delegates are to ensure the execution of their country-specific action plans.
As Muhamed Bourenane, manager, special projects division at the African Development Bank said to delegates at the closing lunch break, “There is no free lunch. All of you will go back and make franchising work in your respective countries - that is your commitment to this gathering.” Bourenane skillfully moderated the four-day seminar and interjected good humor into the eight-hour long daily sessions.
