Egypt: Franchising Sector Receives Financial Boost

Franchising in Africa and particularly in Egypt has developed quite extensively over a short time, especially in the fast-food sector. In an effort to further boost that country’s franchising industry, the African Development Bank financed Egypt’s Franchising Sector Support Program with U.S. $40 million. International franchisors should carefully consider the benefits that the program provides to expand their systems to Egypt.  Currently, there are approximately 40 international franchisors operating in Egypt, including 25 food franchisors and 15 non-food franchisors, with hundreds of individual outlets.  The Egyptian fast-food market, dominated by U.S.-based franchisors, has experienced notable expansion since it began in the 1970s, and market sources expect the growth to continue at an annual rate of 10-20% over the coming years. The current food franchise market size is estimated at more than US$ 300 million. During the 1990s, non-food sectors started to develop and they now have a large market potential.


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