MTN has emerged as South Africa’s most valuable brand for tenth consecutive year, with a brand value of R44,8-billion.
This is according to the Brand Finance South Africa 50 2021 report, which also found that Capitec is the country’s strongest brand, with an AAA rating.
New entrants to the list are Spar, Sibanye Stillwater, Markham, Media 24 and Dischem.
The top 50 most valuable South African brands were initially forecasted to lose over R65-billion in cumulative brand value (15%) during the pandemic. However, they record a drop of just a 2% (R8,8-billion) in cumulative brand value, from R471,3-billion in 2020 to R462,4-billion in 2021.
The same resilience was apparent in the recovery of the Johannesburg Stock Exchange (JSE), which returned to January 2020 levels after just 15 months.
Jeremy Sampson, MD of Brand Finance Africa, comments: “While there may be a lack of appreciation for South African brands globally, South African companies should be celebrated.
“As a young, developing nation with enormously strong potential, but a troubled and complex past, it is increasingly important that leading brands are recognised as the nation’s ambassadors for their enduring contributions to the wider African economy.”
Banking and telecoms – two of the top three sectors in the Brand Finance South Africa 50 2021 ranking – are clustered in Gauteng, making it the province with the highest brand value.
Banking is South Africa’s most valuable sector, claiming 23% (R104,4-billion) of the ranking’s overall brand value. Seven banking brands are represented in the ranking: FNB (R22,1-billion), Standard Bank (R20,8-billion), Absa (R20,5-billion), Nedbank (R15-billion), Investec (R14,9-billion), Capitec (R7,3-billion), and Rand Merchant Bank (R3,8-billion).
While FNB is South Africa’s most valuable banking brand for the fourth consecutive year, Capitec is one of the five most reputable banking brands globally – according to the Brand Finance Banking 500 ranking – and ranks within the top 25 most valuable South African brands this year in 24th position.
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. According to these criteria, Capitec is the strongest banking brand in the country, with a Brand Strength Index of 89.2 out of 100 and a corresponding AAA brand strength rating.
Pointing towards an effective rebrand of their African operations after Barclays divested, Absa (BSI 75.6/100) also enjoyed positive results after seeing an improvement in brand strength and is expected to continue on an upward trajectory as it secures its presence across the continent.
Telecoms accounts for 18% (R81,3-billion) of the ranking’s overall brand value with a total of five brands featuring, including the Brand Finance South Africa 50 2021 ranking leader MTN, marking its decade-long reign as the most valuable South African brand, bolstered by its reach across Africa and the Middle East.
Vodacom (down 6% to R28,4-billion) continues to trail behind MTN, occupying the second spot.
David Haigh, CEO of Brand Finance, comments: “For most, lockdown has increased our reliance on electronic devices to remain connected, and this will only accelerate with the introduction of 5G. MTN and Vodacom are perfectly placed for these developments, however smaller contenders will struggle and ultimately be squeezed out of the running.
“While there are little signs of digital transformation slowing, South Africa’s challenge now becomes closing the socio-economic divide, allowing for equal access to all.”
Although banking and telcos are South Africa’s top two most valuable sectors, both experienced an 11% dip in brand value year-on-year. On the other hand, for retail – the country’s third most valuable sector – total brand value increased by 36% to R61,4-billion in 2021, accounting for 13% of the ranking’s overall brand value, with eight brands featuring.
Of these eight, five are headquartered in the Western Cape, including Shoprite (up 11% to R12,9-billion) – the most valuable retail brand this year (ranking in 12th position overall) – making retail the leading sector in the province. Other Western Cape-based brands include Pick n’ Pay (up 5% to R8,2-billion) in 23rd position, Checkers (up 33% to R6,5-billion) in 26th, Clicks (up 12% to R6-billion) in 29th, and Pep Stores (down 2% to R3,5-billion) in 36th position.