South Africa still an attractive place for fast food, says Euromonitor
Despite the sluggish economic pace of the country, South Africa is still a good investment according to the research firm.
Thomas Verryn, Sub-Saharan Africa Research Manager at Euromonitor International said, “Despite sluggish economic growth, and a weak expected growth of less than 2% in 2015, South Africa remains a popular investment destination for consumer foodservice and apparel and footwear companies.”
"The second largest economy in Africa, with the biggest middle class proportional to its population, continues to attract international investors. The country also offers well-developed infrastructure, a stable financial system (ranked 7th globally in the World Economic Forum ‘s Global Competitiveness Index, 2014) and attractive company tax rates."
“Although the country has underperformed other comparable emerging economies, household income, the highest in Africa, is still on the rise. South Africa’s emerging and increasingly urbanised middle class drives consumer spending in an number of industries, including foodservice and apparel.”
Verryn noted that it is also easier to conduct business in South Africa compared to other fast-growing markets in the continent.
“South Africa is also considered to have one of the most established and well developed retail markets in Africa. Offering a ‘safe ‘route to market in one of the fastest growing regions in the world, South Africa is often used as a springboard for expansion to other Southern African and African markets,” he said.
This comes after the news that Taste Holdings has entered a licensed partnership with Starbucks Coffee Company to offer retail outlets in South Africa.
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