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South Africa has seen a myriad of challenges in recent years, resulting in an economy that is showing signs of entering a recession. We are, however, fortunate in the Western Cape as the provincial government is taking significant steps to improve business conditions. These include exploring ways to reduce load-shedding by 4 stages and creating an enabling business environment by cutting red tape.
This has resulted in the province experiencing extraordinary population growth – 24% since 2021, according to Lightstone – due mostly to the migration of businesses and families from other provinces in search of improved standards of living and better service delivery. This influx of semigrants has resulted in a substantial increase in consumer demand, which bodes well for the strong presence of franchised enterprises in the area. However, high inflation, increases in interest rates, and food and fuel price hikes have resulted in consumers’ becoming cash strapped, and manoeuvring a business through these circumstances can be very challenging.
Despite these limitations, the franchise sector continues to be a robust contributor, providing around 15% (R721 billion) of the country’s gross domestic product according to the Franchise Association of South Africa. While the sector has a significantly lower failure rate than independent businesses –reportedly up to 5 times less – 4 out of 5 franchises still fail because of financial mismanagement. With Nedbank you get a partner that is strategically aligned with your growth narrative – one who understands that you need more than just innovative, competitively priced products and can help your business reach the next level. Through our bigger-thinking approach, the members of our highly experienced, specialised franchise teams in Worcester immerse themselves in your franchise and sector so that they can become an extension of your team, with a full understanding of your financial needs and business aspirations.
We leverage our own extensive business experience to offer expert guidance, financial and business inputs, as well as innovative payment and e-commerce solutions to help franchise businesses reposition themselves for a digitally facilitated operating model in future. For example, Nedbank’s super app, Avo, enables business owners to connect and easily communicate with new customers, send quotations as well as receive secure payments, all with zero sign-up fees. Avo gives business owners across all sectors access to thousands of new customers looking for verified service providers to deliver quality goods and services to their homes and businesses.
Ultimately, our ability to see and respond to the bigger picture and unlock growth opportunities through both conventional and unconventional financing approaches, combined with our advanced digital capabilities, makes us a trusted, valuable partner to any franchise business that is serious about repositioning itself to survive and thrive – whatever the future brings.
Let’s work together to boost your business and the greater Overberg economy. Talk to one of our franchising specialists to find out more about how we can help you grow your franchise business. For more information please send an email to scottgo@Nedbank.co.za; our business manager, Ehrich Kruger, at ehrichk@Nedbank.zo.za; our card acquiring relationship manager, Sean Whittaker, at seanw@Nedbank.co.za; or our national franchise manager, Karen Keylock, at karenke@Nedbank.co.za; or simply visit www.nedbank.co.za.
This post and content is sponsored, written and produced by Nedbank.
