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Making a Difference in Africa. MicroFranchising Launch: Trade Show and Workshops by Martha Deacon Founder and CEO The Townships Project. Making a Difference in Africa. Making a Difference in Africa. Report from South Africa 31 August – 2 September 2011 O.R. Tambo Recreation Centre

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making a difference in africa
Making a Difference in Africa

MicroFranchising Launch:

Trade Show and Workshops

by Martha Deacon

Founder and CEO

The Townships Project

making a difference in africa2
Making a Difference in Africa

Report from South Africa

31 August – 2 September 2011

O.R. Tambo Recreation Centre

Khayelitsha, Cape Town

South Africa

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Making a Difference in Africa

The Townships Project

  • has been supporting microfinance in South Africa since 1998, and currently supports Tetla Financial Solutions and Phakamani Foundation
  • created MicroFranchising Launch in response to the challenges it has faced in making microfinance as effective and efficient as possible
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Making a Difference in Africa
  • What is MicroFranchising Launch?
  • How does it relate to Microfinance?
  • Why does it matter?
  • What does it mean?
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Making a Difference in Africa
  • MicroFranchising Launch was designed as a forum to address the four limiting factors in microfinance
  • By applying the world’s most successful business system to the world’s most intractable problem: systemic poverty
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Making a Difference in Africa

Microfinance

Limitations:

20% max voluntary;

80% necessity

“whack-a-mole” jealousy;

Too many doing the same thing

Building assets & infrastructure

The Unicycle

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Making a Difference in Africa

Asset-Based

Community

Development

Let’s use what we have to get what we want

The Bicycle

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Making a Difference in Africa

Asset-Based Community Development

helps communities to understand

The Leaky Bucket

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Making a Difference in Africa

Third Wheel:

Corporate Social Investment/

Enterprise Development

The ABCD’d community seeks additional resources…

The Three-Wheeler

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Making a Difference in Africa

Fourth Wheel:

Microfranchising and other commercial solutions

Potential to systematize, replicate and brand a tiny business

Four- Wheel

Drive

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Making a Difference in Africa
  • Market information
  • Banking services
    • Money transfer
    • Repayments
    • Savings
  • Inventory restocking
  • Accounting
  • Training
  • Mentoring

Mobile

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Making a Difference in Africa

Four Wheel Drive Mobile

meets MicroFranchising Launch!

plus

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Making a Difference in Africa
  • MicroFranchising Launch: Trade Show and Workshops brought all these elements together in a unique format … it happened!

31 August – 2 September 2011 in

Khayelitsha, South Africa

  • Government policy makers met townships entrepreneurs met corporate entrepreneurs met franchisors met community activists…
  • To create and support new microfranchising businesses to build a massive job creation engine at the bottom of the economic pyramid…
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Making a Difference in Africa

On right:

Sadi Luka, Chief Director of Community Development, Department of Social Developmen

On left: TumeloChipfupa, Deputy Director-General, Enterprise Development, Department of Trade and Industry

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Making a Difference in Africa

THREE CASE STUDIES

From MicroFranchising Launch:

Trade Show and Workshops

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Making a Difference in Africa
  • Example: Keys Communications
  • Challenge: Securing exclusive sites

on home walls owned by grannies

who resell them several times to competitors

  • Solution: Deal with the “chief” granny through local church groups to build understanding and loyalty, thereby increasing competitive uniqueness – ACHIEVED in 2 hour workshop
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Making a Difference in Africa

Kabelo Kale

Founder of Keys Communications

“Indeed, we identified a few opportunities including providing most of the businesses that were in the Workshop Process access to The Townships. We have identified opportunities for Siyabonga Bakeries, and certainly existing township businesses like Lebo’s Backpackers, we’ll be doing some walls for them. We also made business connections with Legal Wise, and a possible partnership is brewing there. We are further more excited about the low cost biking franchise opportunities, upon which we hope to be the 1st to launch in Soweto, and KZN. All this stems from The Township Projects!”

  • Did you make any business connections or deals that you think will be useful?  If yes, please tell us what they were.
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Making a Difference in Africa

Kabelo’s unedited answer to “What did you like about the Launch?”:

“The organization of these workshops was superb. We were well taken of from the word go. BUT, I liked the flow of events the most. The Plenery Sessions and The consequent Workshops, understanding different aspects of Micro Franchise and how they relate to my business, and being given the opportunity to interrogate my own business in relation to those aspects of Micro Franchise, WOW! There is no other genius event systematization and thought out eventing like that.”

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Making a Difference in Africa
  • Example: Crime Scene Clean-Up
  • Challenge:

Cost of franchise R 136,000

($20,000) vs. township entrepreneur ability

to pay about R 10,000 ($1,500)

  • Solution: Downsize without losing any branding, systematization or replication functions – ACHIEVED in 2 hour workshop
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Making a Difference in Africa

Eileen de Jager

Co-Founder, Crime Scene Clean-up

The company cleans and decontaminates sites after a traumatic or violent event. Ambulance decontamination is offered as an additional service.

YES, I met a lot of really helpful business people, we will set up appointments in the near future to discuss our opportunities. We are also busy with Honda to see how we can implement the scooters with our business.

Did you make any useful business connections? If so, please tell us about them.

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Making a Difference in Africa

Eileen’s unedited answer to “Any new ideas from the Launch?”:

“New ideas? definitely YES, the project changed our whole outlook on the expansion of the business, hygiene services is much more needed in the township communities than we thought, I also realised that these communities does not know about the dangers involved in connection with hygiene. The job creation on its own could be phenomenal if done up to standard. Our business plans are in process to be changed to be able to make it affordable for an entrepreneur to start his or her own business. The operations and systems also need to be adjusted to complete the process.”

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Making a Difference in Africa
  • Example: Honda Scooters
  • Challenge: Maximizing the

townships market even with

100% financing strategy

  • Solution: Focus on micro-businesses lacking transit options rather than city commuters; take advantage of microfinance credit track record – ACHIEVED in 2 hour workshop
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Making a Difference in Africa

1st element:

Plenary

Sessions

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Making a Difference in Africa

2nd element:

Workshops

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Making a Difference in Africa

3rd element:

Trade Show

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Making a Difference in Africa

What was achieved?

  • 15 businesses were workshopped to become or expand as microfranchises by a cross-section of townships people, community workers, business tycoons, students, entrepreneurs and government policy makers
  • New partners met, deals were made & business plans revised
  • Everyone saw the power of small: microfranchising is now being integrated into the mainstream for all who participated
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Making a Difference in Africa

MicroFranchising Launch: Trade Show and Workshops

Making it happen!

A new annual event in South Africa designed to use microfranchises to build a massive job creation engine at the bottom of the economic pyramid!

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Making a Difference in Africa

Thank you!

Interested in helping us?

Contact marthadeacon@thetownshipsproject.org

Next Toronto Workshop

5:30 – 7:30 p.m. on Thursday, 22 September 2011

At Macleod Dixon LLP

RSVP essential

www.thetownshipsproject.org

Working in South Africa; headquartered in Toronto