(Photo by Alborsa Newspaper )
Franchising has major benefits that directly impact the Egyptian economy and specifically the industry and trade sectors as it allows local suppliers to export to other countries, according to Tarek Tawfik, Chairman of the Egyptian Franchise Development Association (EFDA).
“Food chain restaurants such as McDonalds and KFC depend on local suppliers to supply them with food and other products, and since franchisers put specific regulations that local suppliers should follow (as quality regulations), many local suppliers have been given certifications as they abide to international quality standards and this gives them the right and ability to export to other countries,” Tawfik noted.
Tawfik indicated that investors are gaining more confidence in the Egyptian economy, whereby he pointed out that Azizia Panda United (a franchise), which forms the retail division of the Savola Group of companies, is set to open 16 new retail shops as part of their expansion plan in Egypt.
Carrefour, which is also a franchise, will open 10 new retail stores in the upcoming period, whereby both companies’ stores will be in different provinces in the country.
A draft for a new franchise law was submitted to and welcomed by the Ministry of Industry and Foreign Trade, whereby the new law is expected to ease the process for franchisees in Egypt and attract more investments in that area, Tawfik also noted.
Tawfik further said that the legislative reforms of the new investment law have to be implemented. He further stressed that other amendments must be made to the corporate and commercial laws; otherwise no real change would have been made.
He added that a draft for an amended corporate law will be issued within the coming weeks.
EFDA will host the 13th Middle East & North Africa International Franchise Exhibition on 20-23 May in Cairo.
The exhibition will witness the presence of 55 international and local brands, whereby 11 countries will be involved, including South Korea for the first time.
“Last year’s exhibition, saw the presence of 45 brands with representatives from only six countries and around 3,500 visitors. I however expect that this year more visitors will attend,” Tawfik said.
Almost all services provided in the tourism sector are through franchising. Other franchising models are applied in the fields of restaurants, clothing stores, and cosmetics amongst others; he said.
