SA dominates ranking of Africa’s most valuable brands

The latest annual report by Brand Finance has revealed the ranking of Africa's most valuable brands, with South Africa continuing to hold onto its dominance, although the overall value is slowly decreasing. In a recent interview with CNBC Africa, Jeremy Sampson, Managing Director of Brand Finance Africa, discussed the results of the report. According to Sampson, MTN and Verticom are currently leading the pack, with MTN taking the number one spot due to its larger geographical footprint. Both companies have seen a surge in digital usage and data consumption amid the COVID-19 pandemic, leading to strong performance for their brands. South Africa's brands make up over 70% of the total value of the top 150 brands in Africa, with the top 12 or 13 brands being South African. The competitive landscape is fierce, especially among banks, telcos, and insurance companies. Old Mutual has been gaining momentum and climbing up the ranks. While South Africa's retail sector has surpassed insurance in terms of brand value within the country, insurance remains a strong sector in the rest of Africa. Sampson emphasized the importance of top brands staying active and investing in order to maintain their positions. One notable brand that has entered the top 10 rankings is multi-choice, showcasing the diverse range of industries represented in the list. Despite the dominance of South African brands, Sampson acknowledged that the continent as a whole needs to focus more on developing local brands to compete with international giants. He highlighted the success of Chinese brands and the need for African nations to create strong local brands to counter international competition. Sampson also addressed the composition of sectors within the top brands, noting that banks currently hold the top positions, followed by telcos. He mentioned the limited presence of tech brands in South Africa compared to leading markets like the United States, where tech giants dominate the rankings. Sampson emphasized the importance of tech brands for Africa's future growth, especially in the digital and mobile space. Looking ahead, Sampson expressed optimism about the potential for Africa to leap forward in the digital realm, citing examples like Impessa in Kenya as indicators of the continent's progress. The increased use of mobile phones and digital platforms post-COVID-19 could serve as a game-changer for Africa's branding landscape, paving the way for greater representation of tech brands and a shift towards innovative digital solutions.