Franchise Forum | Africa: Continued Growth of Franchising

Like much of the rest of the world, South Africa experienced a sharp economic decline during the global recession. From approximately 2008 to 2010, the South African economy lost over one million jobs. Unemployment in the country soared well into the double digits. According to AccountancySA, sectors such as manufacturing, mining, and agriculture saw their activity decline by rates between 2.9 percent and 10.7 percent. Growth in the real estate, finance, and business services industries decelerated from highs of 7.9 percent to only 1.3 percent. But the numbers only tell one part of the story. Through it all, there remained a bright spot in South Africa’s economy. Franchising in South Africa continued to expand. As other sectors lost a staggering amount of jobs, the franchising sector actually provided thousands of new opportunities for workers. By some estimates, franchising provided 25,000 new employment opportunities.

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