1. REVIEW OF SEMINAR IN TUNISIA “Franchising as a SME development tool” 29 NOV – 3 DEC 2004

2. AFRICA 813 million people Density: 26 people per sq. km (46) Cultivation: 7 % vs 12 % GDP: 1,8 % World trade: 1 %

3. PURPOSE Senior government officials Key representatives from business communities To bring together from selected member countries to Exchange views and experiences to support the development of franchising

4. OBJECTIVES Advance the understanding Review challenges in Africa Establish a network

5. COUNTRIES THAT ATTENDED Algeria Botswana Cote d’Ivoire Egypt Kenya Lesotho Mauritius Morocco Nigeria Senegal Swaziland Tunisia Zambia South Africa

6. SEMINAR PROCEEDINGS 5 days Discussion papers presented Interaction from seminar delegates Two groups Recommendations

7. SUMMARY OF DISCUSSIONS Understanding franchising Business Environment challenges Legal and regulatory Private Sector involvement Indigenous vs. International Financing

8. COUNTRY PERSPECTIVES 4 Regions : North Africa West Africa East Africa Southern Africa

9. North Africa (Morocco, Algeria, Tunisia, Egypt) International franchising (Morocco, Tunisia) Homegrown franchising (Egypt, Tunisia) Influence of cultural elements No specific legislation Growth slow corruption Problems :

10. West Africa (Nigeria, Senegal, Cote d’Ivoire) SME option No preference International vs Homegrown Confusion Lack of understanding Financing Strength of informal sector Problems :

11. East Africa (Kenya, Mauritius) Franchising relatively unknown Enthusiasm to develop International brands dominate (Kenya) Lack of knowledge on benefits Need for information and assistance Access to finance Corruption and lack of supportive laws Problems :

12. Southern Africa (Swaziland, Botswana, Zambia, Lesotho) “follow the leader” South African concepts dominate Franchise concept unknown in Zambia Access to finance Lack of knowledge and information Lack of government support High cost of start-up Problems :

13. RECOMMENDATIONS