In March 2011, Ramaphosa secured a 20-year agreement to run 145 McDonald’s restaurants in South Africa. Unlike a regular conventional franchisee, Ramaphosa owned all of McDonald’s assets, including owning or leasing property.
The reason why McDonald’s Corp turned to Ramaphosa was because it had been struggling to gain traction in South Africa since opening its first store in 1995.
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They turned to Ramaphosa because they believed he was familiar with local dynamics and market conditions of the country.
One sign of trouble was seen in 2010 when SA was the first African country to host the World Cup. Even though McDonald’s was one of the sponsors, it didn’t serve its food at the fan parks or stadiums.
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MSA Holdings
In 2016, Ramaphosa sold McDonald’s South Africa to MSA Holdings to eliminate any conflicts of interest, as he was the Deputy President of the country.
The Competition Commission approved the sale of McDonald’s South Africa to MSA Holdings(a company based in the UAE), because it wouldn’t present undue competition to local companies.
The value of the deal was never disclosed.
Get South Africa’s latest entrepreneurial or business success stories delivered right to your inbox – Sign up to Entrepreneur Hub SA’s newsletter today
So who owns MSA Holdings?
Thair Mohammed owns MSA Holdings
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