The Egyptian Business Development Association in cooperation with the Egyptian Franchise Development Association (EFDA) is holding the 12th annual international exhibition for franchising from 22-25 May in Cairo. It is the largest franchise exhibition in the Middle East and North Africa. EDFA chairman Tarek Tawfik said in a statement on Friday "that despite the exceptional circumstances experienced by Egypt and the region, we are able to hold the annual franchise exhibition in a timely manner and with the participation of 50 exhibitors from Egypt and five foreign countries including the United States, Malaysia, Greece, Italy and Germany." According to Tawfik, the exhibition will shed light on the opportunities in the Egyptian market and give a boost to national economy, as investors from the Middle East in Europe will attend the event. "The great importance taken of businesses operating under the franchise system must be taken into account," Tawfik said, pointing out that there are more than 600 franchises, both local and international, operating in Egypt. These franchises compete with one another for annual sales estimated at EGP 12bn and provide approximately 800,000 direct jobs and 1.5m indirect jobs from the food industries alone. Direct investments for these companies are estimated to be approximately EGP 80bn. Tawfiq said that the 12th edition of the event will provide an opportunity for small investors to purchase a small or medium sized business, with the provision of soft financing provided by the Social Fund for Development, which provides funding and guarantees. A number of projects will also be on display in a special area of the exhibition. A diverse set of participants are taking part in the exhibition, varying among others from food and beverage suppliers to information technology and educational services, real estate investors and marketing companies. The exhibition also provides an opportunity for local businesses to expand both nationally and internationally, through the granting of primary franchising rights to visiting investors. The statement mentioned that the African Development Bank provided financing of $40m specifically for the development of small and medium enterprises based on franchises, with individual loans of up to EGP 5m available carrying simple interest rates and a 5-year tax exemption for certain types of projects, with appropriate safeguards. The Social Fund for Development is managing the loans. According to data from the association, local brands in Egypt account for 42% of the market, whereas 58% are foreign brands. Most are concentrated in the fields of clothing, fashion, hypermarkets, household products, furniture, leathers and restaurants.
