Africa 150™ 2021 The annual report on the most valuable and strongest African brands September 2021 Contents. About Brand Finance 4 Get in Touch 4 Brandirectory.com6 Brand Finance Group 6 Foreword 8 Executive Summary 10 Sector Reputation Analysis 20 Brand Finance Africa 150 (USD m) 22 Methodology 26 Definitions 28 Brand Valuation Methodology 29 Brand Strength 30 Brand Equity Research Database 31 Our Services 32 Consulting Services 34 Brand Evaluation Services 35 Communications Services 36 Brand Finance Network 39 © 2021 All rights reserved. Brand Finance Plc. Brand Finance Africa 150 September 2021 3 About Brand Finance. Brand Finance is the world's leading brand valuation consultancy. We bridge the gap between marketing and finance Brand Finance was set up in 1996 with the aim of 'bridging the gap between marketing and finance'. For 25 years, we have helped companies and organisations of all types to connect their brands to the bottom line. We quantify the financial value of brands We put 5,000 of the world’s biggest brands to the test every year. Ranking brands across all sectors and countries, we publish nearly 100 reports annually. We offer a unique combination of expertise Our teams have experience across a wide range of disciplines from marketing and market research, to brand strategy and visual identity, to tax and accounting. We pride ourselves on technical credibility Brand Finance is a chartered accountancy firm regulated by the Institute of Chartered Accountants in England and Wales, and the first brand valuation consultancy to join the International Valuation Standards Council. Our experts helped craft the internationally recognised standards on Brand Valuation – ISO 10668 and Brand Evaluation – ISO 20671. Our methodology has been certified by global independent auditors – Austrian Standards – as compliant with both, and received the official approval of the Marketing Accountability Standards Board. Get in Touch. For business enquiries, please contact: Jeremy Sampson Managing Director, Brand Finance Africa j.sampson@brandfinance.com For media enquiries, please contact: Florina Cormack-Loyd Associate Communications Director +44 020 7389 9444 f.cormackloyd@brandfinance.com For all other enquiries, please contact: enquiries@brandfinance.com +44 207 389 9400 For more information, please visit our website: www.brandfinance.com 4 Brand Finance Africa 150 September 2021 linkedin.com/company/brand-finance twitter.com/brandfinance facebook.com/brandfinance instagram.com/brand.finance brandfinance.com Request your own Brand Value Report A Brand Value Report provides a complete breakdown of the assumptions, data sources, and calculations used to arrive at your brand’s value. Each report includes expert recommendations for growing brand value to drive business performance and offers a cost-effective way to gaining a better understanding of your position against competitors. Visit brandirectory.com/request-a-valuation or email enquiries@brandfinance.com Insight Strategy Benefits Brand Valuation Summary Brand Strength Tracking Conte Royalty Rates Cost of Capital Analysis nts benraqnudiriireesc@tobryr.acnodmir/eacfrtiocray.com Customer Research Findings Competitor Benchmarking Benchmarking Education Communication Understandin Brand Finance Africa 150 September 2021 5 Brandirectory.com Brandirectory is the world’s largest database of current and historical brand values, providing easy access to all Brand Finance rankings, reports, whitepapers, and consumer research published since 2007. + Browse thousands of published brand values + Track brand value, strength, and rating across publications and over time + Use interactive charts to compare brand values across countries, sectors, and global rankings + Purchase and instantly unlock premium data, complete brand rankings, and research Visit brandirectory.com to find out more. Brand Finance Group. 6 Brand Finance Africa 150 September 2021 Brand Finance Institute Brand Finance Institute is the educational division of Brand Finance, whose purpose is to create and foster a professional environment for knowledge-sharing and networking among practitioners and experts in the market. BFI organises events, in-company training, and corporate educational initiatives around the world. In the quest for marketing excellence and with the purpose to equip the brand valuation and strategy practitioners with the necessary skills and tools, we have developed a wide range of programmes and certifications in collaboration with the most coveted business schools, universities and thought leaders in the field. Brand Dialogue Brand Dialogue is a public relations agency developing communications strategies to create dialogue that drives brand value. Brand Dialogue has over 25 years of experience in delivering campaigns driven by research, measurement, and strategic thinking for a variety of clients, with a strong background in geographic branding, including supporting nation brands and brands with a geographical indication (GI). Brand Dialogue manages communications activities across Brand Finance Group's companies and network. VI360 VI360 is a brand identity management consultancy working for clients of all sizes on brand compliance, brand transition, and brand identity management. VI360 provide straightforward and practical brand management that results in tangible benefits for your business. brandfinance.com Global Brand Equity Monitor Original market research on 2,500 brands 29 countries and 23 sectors covered More than 50,000 respondents surveyed annually We are now in our 5th consecutive year conducting the study Visit brandirectory.com/consumer-research or email enquiries@brandfinance.com benraqnudiriireesc@tobryr.acnodmir/eacfrtiocray.com Brand Finance Africa 150 September 2021 7 Foreword. Jeremy Sampson Managing Director, Brand Finance Africa This is the second consecutive year that Brand Finance has ranked the top 150 brands of Africa by brand value and brand strength. Africa is made up of 54 countries, a patchwork quilt of different languages and cultures, remaining fragmented in many ways. Severe unrest in parts of the continent is not helpful. As always, we have drawn up the rankings without having contact with the brand owners and using publicly available material. Some well-known brands are not mentioned as their financial data remains confidential. Many brands you may have never heard of, illustrating how many may simply operate in their country of origin. COVID-19 is playing a key role in driving down the value of Africa’s brands, as with the rest the world. However, given the lack of availability of vaccines in many parts of the continent and the slow uptake on vaccinations, there is cause for concern that the recovery will be hesitant. The exception is South Africa where the data is very encouraging, something the international media is slow to acknowledge. The longer travel restrictions are in place, the more harm will be done to tourism, a major industry in Africa and to business in general. As with any pandemic there are upsides, and the accelerating adoption of new technologies is proving to be a game changer. But first, how does Brand Finance approach a project such as this? London based, with offices a stone’s throw from the Bank of England, Brand Finance has been preparing rankings for 25 years, producing over 80 on industry sectors and countries last year alone. In addition, working with the brands of some of the global leaders ensuring they are measured and leveraged to their optimum. Compliant with ISO (international Standards) 10668 Brand Valuation and ISO 20671 Brand Evaluation, this is global best practice. The rankings include research from the Brand Finance Global Brand Equity Monitor survey, covering over 100,000 consumer opinions on 29 sectors in 38 countries. Why does Africa need brands? To begin with they generate income, create jobs, and act as ambassadors for their country of origin. Its not surprising that South Africa with 81 of the top 150 brands, accounts for 73% of total brand value and is by far the dominant economy. Most of these brands are based in the Sandton area north of Johannesburg making it clearly the hub for doing business in Africa - the gateway to Africa as it has been described. Clustered around this area are the offices of the financial and the legal fraternity, hotels, and restaurants. Nigeria has 17 brands listed, Egypt 13, Morocco 10 and Kenya 7. As with most emerging markets banks dominate the rankings followed by telcos, insurance and retail. Showing the immaturity of the branding market, many brands you may never have heard of and only operate in their home country and perhaps a couple of others in the region. This fragmentation - partly a result of Africa’s historic colonial past and domestic barriers to entry - means growth is stifled. No truly Pan African brands exist. A continent ripe for consolidation and increased M&A (mergers and acquisition) activity. To some major global players Africa is the big opportunity, admittedly off a low base, with its burgeoning population, and increasing spending power. The big hurdle to many is distribution, given the scattered populace, sheer geographic scale, and the cross-border challenges in many parts of the continent. The economies of many African countries rely on mining, farming mainly for subsistence and tourism. Whilst many understand that to own a strong brand is the ideal, the other end of the spectrum are commodities where everything is based in price, the cheapest. As David Haigh the Founder and CEO of Brand Finance states: “Brands create value and will help lead the economy out of the recession caused by COVID-19. There has never been a more important time to recognize the role of brands.” Put another way: African countries need to grow their own brands to build their domestic economy, otherwise global brands will fill the vacuum as economies start to pick up. 8 Brand Finance Africa 150 September 2021 Top African Brands Lose US$5.5 Billion in Brand Value. + Total brand value of Africa’s top 150 most valuable brands drops 12% from US$45.5 billion in 2020 to US$40.0 billion in 2021 + MTN retains title of Africa’s most valuable brand, brand value US$2.7 billion + South Africa dominates ranking with 81 brands featuring which account for 73% of total brand value. Nigeria, with 17 brands, and Morocco with 10, are next best represented nations in ranking + Banking, telecoms, and insurance are continent’s most valuable sectors + Capitec Bank overtakes Vodacom as Africa’s strongest brand, Brand Strength Index (BSI) score 89.2 out of 100 + Safaricom retains Kenya’s most valuable brand title + Access Bank is Nigeria’s fastest growing Brand Finance Africa 150 September 2021 9 Executive Summary. Executive Summary. Top African brands lose US$5.5 billion in brand value The total value of Africa’s top 150 most valuable brands has declined by US$5.5 billion (12%) from US$45.5 billion in 2020 to US$40.0 billion in 2021. 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. MTN peaks again South Africa’s MTN has retained the title of Africa’s most valuable brand, despite recording a 19% drop in brand value to US$2.7 billion. The telecoms giant dominates on home soil too, this year holding onto its decade-long reign as South Africa’s most valuable brand, according to the Brand Finance South Africa 50 2021 report. It has beena turbulent year for MTN, however, with the brand facing several scandals from its money mobile services been hacked in Uganda, to being accused of price discrimination practices alongside telecoms rival and second-ranked Vodacom (brand value down 16% to US$1.7 billion). MTN has also begun to scale down its operations, announcing its exit from the Middle East, in order to focus and build further across Africa. In a year that saw most African countries go into lockdown and significant unrest across the continent, a 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. 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. Jeremy Sampson, Managing Director, Brand Finance Africa 12 Brand Finance Africa 150 September 2021 brandfinance.com © Dada dada © Brand Finance Plc 2021 Executive Summary. Despite this, according to the Brand Finance Global Brand Equity Monitor, MTN is ranked 3rd among consumers for “popularity with friends and family”, 4th for “cool” and 4th for “accessible anywhere and anytime” – all of which contribute to its leading position across the continent. With the recent appointment of Ralph Mupita to the helm as CEO, as well as the successful launch of its 5G network across major South African cities, MTN will hope to use these developments as a springboard to capture some of its lost brand value moving forward. South African brands dominate South African brands dominate the Brand Finance Africa 150 2021 ranking once again, with the entire top ten hailing from the nation. 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 US$1.3 billion) 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. 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. The telecoms brand was able to capitalize on the increased reliability on its services over the previous year and a half, with both work and social lives forced to turn online, managing to increase its customer base, seeing an uptick of 10% in broadband users. brandirectory.com/africa Top 10 Most Valuable Brands H 1 0 1
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