ADDIS ABABA – The total value of Africa’s top 150 most valuable brands has declined by$5.5 billion dollars (12%) from $45.5 billion dollars in 2020 to $40.0 billion dollars in 2021, says the latest Brand Finance Africa 150 2021 report.
The COVID-19 pandemic has played a key role in the downturn in the brand value of Africa’s top brands.
Lockdown measures and travel bans were implemented throughout the year and across the continent, creating uncertainty and impacting brands’ ability to do business as usual.
And therefore, Jeremy Sampson, Managing Director of Brand Finance Africa, said the decline in total brand value for the top African brands “is unsurprising”.
“Following the pandemic, African brands will need to search for opportunities to make up lost ground,” Sampson said. “By embracing new technologies and collaboration, the continent can propel its recovery and bounce back from the extraordinary situation the world has found itself in.”
South African Brands Dominate
MTN has retained the title of Africa’s most valuable brand, despite recording a 19% drop in brand value to $2.7 billion dollars as South African brands dominate the Brand Finance Africa 150 2021 ranking once again.
The entire top ten are hailing from that nation, says the report.
In total, 81 South African brands feature with a cumulative brand value of US$29.0 billion, equating to 73% of the total brand value in the ranking – a 15% decrease from last year.
MTN and Vodacom lead the way, with First National Bank (brand value US$1.3 billion), Old Mutual (brand value $1.3 billion dollars) and Standard Bank (US$1.3 billion) completing the top five.
In total, there are only 19 of the continent’s 54 countries with brand representation in the ranking.
Nigeria is South Africa’s closest competitor with 17 brands featuring, which account for 6% of the cumulative brand value in the ranking.
33 Export (down 8% to US$292 million) is Nigeria’s most valuable brand, sitting in 43rd in the overall ranking.
This brand value decrease is in line with the trend seen for alcohol brands across the continent and the rest of the world with people going out and drinking less because of the pandemic, says the report.
Morocco is the third most represented nation in the ranking, with 10 brands featuring, which account for 6% of the total brand value.
Claiming 13th spot is Maroc Telecom – the highest ranked brand from outside South Africa – jumping five spots following a modest 1% rise in brand value to US$761 million.