MTN, with a brand value estimated at $4 billion, has maintained the top spot in the rankings of the most valuable African brands worldwide. MTN has expanded beyond telecoms into mobile money and fintech services across Africa.
This is according to Brand Finance’s Brand Finance Africa 150/2022 report.
It asserts that MTN’s Mobile Money (MoMo) application is performing exceedingly well and overtook its competition, Safaricom’s M-Pesa, In terms of the number of financial transactions that were made through the application. With a loyal customer base of 57 million active users, M-Pesa’s brand value increased by 32% to reach $246 million.
Every year, Brand Finance puts 5 000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. Africa’s top 150 most valuable and strongest brands are included in the annual Brand Finance Africa 150 ranking.
African brands have greatly benefited from the ability to adapt to unpredictable business conditions created by Covid-19. This was achieved by using technological disruption to solve supply chain issues as well as national lockdowns. Brands from diverse sectors including banking, telecommunications and food & beverage found innovative ways to connect with the customers online.
Digital transformation was a key factor in helping top brands in Africa increase their brand value by 28% to $50.1 billion. The economy is growing by building strong brands in Africa, which creates more long-term jobs.
South Africa is the leader
South African brands now have a value of $36.9billion, following a 30% increase in brand value. This makes South Africa the undisputed market leader in Africa. It is followed by brands from Nigeria (worth $3.2Billion), Egypt (worth $31 billion), Morocco (worth $2.6Billion) and Kenyan (worth $1.21 billion).
Jeremy Sampson is the managing director of Brand Finance Africa. “African brands have shown strong performance by being flexible in the face of change in their business environment. Whilst South African brands will continue to dominate the ranking for some time, there are encouraging signs of strong brands emerging around the continent, especially amongst the banking and telecommunication sectors.”
Cheers to Tusker!
Kenyan beer brand Tusker saw a 132% increase in brand value this year. It has more than doubled its brand value to $50 Million. This makes it Africa’s fastest growing brand.
It was notable that this brand value growth occurred despite uncertain business conditions. This included a global supply chain crisis and the closing of bars and restaurants due to pandemic-induced restrictions. This challenge was overcome by using social media marketing, influencer marketing, and social media marketing to promote the brand throughout the lockdown. Tusker collaborated with athletes and social influencers to create engaging online content. This helped increase brand recall and sales.
Furthermore, Capitec Bank was rated the strongest brand in Africa by the latest report with an AAA+ brand ranking.
South African banks are forming strategic alliances to keep up with industry and sector-wide trends in online bank and digital transformation. Capitec Bank recently partnered up with Entersekt IT consulting firm to use behavioural analytics and enable more online transactions through e-commerce platforms.
The bank works with nCino, a US-based software company, to offer more efficient and effective banking services to customers through cloud banking and digital automation.
Bank brands such as Absa, First National Bank, and Standard Bank are significant contributors to African brand success. They account for 26% of total brand value growth. Focusing on online banking and digital payments has helped African banks climb the rankings.
The telecommunications industry, led by MTN and Vodacom, is also focusing its attention on mobile applications to engage customers. Major brands are shifting to a digital strategy, as they have relied on the growth of internet usage and mobile data needs for their telecom brands.
With their extraordinary ability to adapt to changing customer requirements in an era of economic disruption, South African Woolworths and Shoprite are just a few of the retail brands that have recovered from the pandemic.