By Nick Parry, Regional Manager, Nedbank Commercial Banking
The KwaZulu-Natal economy has been heavily affected by the pandemic, riots, floods and Transnet port strikes, but business owner - and particularly our clients - have shown incredible resilience to weather the storm.
South Africa’s franchise sector has likewise displayed enduring fortitude in what has been a tough time - and continues to be a robust contributor to the economy, providing around 15% (R721 billion) to the country’s gross domestic product (GDP), according to the Franchise Association of South Africa. With over 800 franchise systems operating more than 48 000 outlets in the country, the sector employs close to 500 000 people, which is good news in a country rife with unemployment.
As a bank that recognises the value and importance of the franchising sector for South Africa’s economic future, Nedbank is committed to supporting franchisees and franchisors. We partner with reputable franchisors founded on strong operating models, principals, values and integrity. Nedbank services franchises across various industries including retail, food and fuel, and provides an integrated solution that incorporates lending, transactional and value-added offerings. Our highly competitive pricing is structured to the needs, individual risk profiles and track records of each specific franchise business.
While franchising has a significantly lower failure rate than independent businesses – reportedly up to five times less – four out of five franchises fail due to financial mismanagement. But with Nedbank, you have a partner that is strategically aligned with your growth narrative – one that understands that you need more than just products and that can help your business reach the next level.
Through our bigger-thinking approach, the members of our highly experienced, specialised KwaZulu-Natal franchise team – with more than 100 years combined experience in banking – immerse themselves in your franchise and sector so they can become an extension of your team, with a full understanding of your financial needs and business aspirations.
Our client support goes above and beyond. For example, the riots last year and floods earlier this year resulted in loss and damage of point-of-sale devices, and Nedbank stepped up to ensure our clients didn’t experience downtime or inoperability as a result, while also offering device rental-payment relief where applicable.
We leverage our own extensive business experience to offer expert guidance, financial and business inputs, and innovative payment and e-commerce solutions to help franchise businesses reposition themselves for a digitally enabled future operating model. Research shows that contactless transactions have increased by up to 50% since the start of the Covid-19 pandemic - and facilitating these through next-generation payment methods is a significant value-add we offer our franchise merchants.
Ultimately, our ability to see and respond to the bigger picture and unlock growth opportunities through conventional and unconventional financing approaches, combined with our advanced digital capabilities, makes us a valuable partner to any franchise business that is serious about repositioning itself to survive and thrive – whatever the future brings.
Talk to one of our franchising specialists in KwaZulu-Natal to find out more about how we can help you grow your franchise business in 2022 and beyond. Email me at nicholaspa@nedbank.co.za; our Regional Manager of Card and Payments Acceptance, Niel Reddy, at nielr@nedbank.co.za; our national franchise manager, Karen Keylock, on karenke@nedbank.co.za; or simply visit www.nedbank.co.za.