Cyril Ramaphosa, South Africa’s current President, secured a twenty-year agreement in March 2011 to operate 145 McDonald’s restaurants in South Africa.
This deal was unlike any other, as Ramaphosa owned all of McDonald’s assets, including property, making him more than just a conventional franchisee. McDonald’s Corp chose Ramaphosa due to his familiarity with local dynamics and market conditions, hoping to turn around their struggling business in the country.
Since opening its first store in 1995, McDonald’s had faced challenges in South Africa. One notable example was during the World Cup, where despite being a sponsor, McDonald’s didn’t serve its food at fan parks or stadiums. Ramaphosa’s involvement aimed to change this narrative.
However in 2016, Ramaphosa sold McDonald’s South Africa to MSA Holdings, a UAE-based company, to eliminate potential conflicts of interest as Deputy President. The Competition Commission approved the sale, citing no undue competition to local companies. The deal’s value remains undisclosed.
This move showcased Ramaphosa’s commitment to transparency and accountability, prioritizing the country’s interests over personal business ventures.
Under MSA Holdings, McDonald’s South Africa has experienced remarkable growth. Today, the fast-food giant boasts an impressive presence with over 400 restaurants across all nine provinces in South Africa.
This extensive reach enables McDonald’s to serve an astonishing 8 million customers per month.
Moreover, the company provides significant employment opportunities, supporting over 12,000 jobs, making a substantial contribution to the local economy.
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