The Big Names of Fast Food Expand Across Africa

Giants of the Fast Food industry are gradually expanding in the Sub-Saharan African Markets. The presence of McDonalds, in four African countries, already ascertains this fact, as Nigeria, with approximately 182 million inhabitants (http://countrymeters.info/en/Nigeria ) and an average growth rate of 8% since 1999 stands as a fertile ground for their business expansionist program. Also, rival businesses like Kentucky Fried Chicken (KFC), and Burger King are also setting sail especially in West Africa.

Following the reports of Agence Ecofin, KFC operations manager for Africa, Bruce Layzell affirms that, Ethiopia which is Africa’s the second most populous country represents an asset for a potential offensive business expansion, not just to “… construct four or five restaurants there solely because we would record no success there. We want to become implanted where we will be able to construct 50 to 100 signs. Our business answers imperatively to scales” as he declared. On the other hand Burger King targets Ivory Coast as an entry point to their business in West Africa after it has established itself in Morocco, Egypt and South Africa. It is crucial to note that the rising interest of these fast food giants is happening in a context where the economy of the sub-Saharan Africa records a growth rate of 6,1% this year whereas the world growth,  will be of 3,7% according to the IMF.

The rising of the middle class plays a vital role in the arrival of such global giants, since it constitutes a credible guarantee of African countries to afford their products financially. Expanding in Africa will actually make these companies truly global, since the African continent was largely unexplored by these companies. Ovamba also participates in the raising of the middle class by partnering with SMEs, helping them to obtain capital to grow. Such way it helps creating more employments and thus reduce poverty.

Sources: http://www.agenceecofin.com/industrie/1002-17475-mcdonald-a-la-conquete-des-marches-africains

http://www.agenceecofin.com/investissement/0112-34246-cote-d-ivoire-une-filiale-d-air-france-va-ouvrir-un-restaurant-burger-king-a-abidjan

http://www.agenceecofin.com/restauration/0611-33689-mcdonald-s-invitera-bientot-au-nigeria

http://www.agenceecofin.com/restauration/0111-33536-kfc-s-installera-en-ethiopie-des-l-annee-prochaine