Making a Difference in Africa

1. Making a Difference in Africa MicroFranchising Launch: Trade Show and Workshops by Martha Deacon Founder and CEO The Townships Project

2. Making a Difference in Africa

3. Making a Difference in Africa Report from South Africa 31 August – 2 September 2011 O.R. Tambo Recreation Centre Khayelitsha, Cape Town South Africa

4. 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

5. Making a Difference in Africa • What is MicroFranchising Launch? • How does it relate to Microfinance? • Why does it matter? • What does it mean?

6. 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

7. 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

8. Making a Difference in Africa Asset-Based Community Development Let’s use what we have to get what we want The Bicycle

9. Making a Difference in Africa Asset-Based Community Development helps communities to understand The Leaky Bucket

10. Making a Difference in Africa Third Wheel: Corporate Social Investment/ Enterprise Development The ABCD’d community seeks additional resources… The Three-Wheeler

11. Making a Difference in Africa Fourth Wheel: Microfranchising and other commercial solutions Potential to systematize, replicate and brand a tiny business Four- Wheel Drive

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

13. Making a Difference in Africa Four Wheel Drive Mobile meets MicroFranchising Launch! plus

14. 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…

15. 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

16. Making a Difference in Africa THREE CASE STUDIES From MicroFranchising Launch: Trade Show and Workshops

17. 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

18. 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.

19. 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.”

20. 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

21. 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.

22. 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.”

23. 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

24. Making a Difference in Africa

25. Making a Difference in Africa 1st element: Plenary Sessions

26. Making a Difference in Africa 2nd element: Workshops

27. Making a Difference in Africa 3rd element: Trade Show

28. 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

29. 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!

30. 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