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Africa’s top 150 brands stand to lose US$60 billion from Covid-19 outbreak

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Africa’s most valuable 150 brands that help drive the agenda of the economies on the continent have not been spared the brute force of the novel coronavirus. The top 150 Africa’s most valuable brands stand to lose up to 12% of brand value cumulatively, a drop of $60 billion compared to the original valuation as of 1st January 2020, the latest Brand Finance Africa report said.

Jeremy Sampson, Managing Director at Brand Finance Africa said the 150 Africa’s most valuable brands are made up largely of Telecommunications companies, Banks, and Insurance companies. These brands amass a total value of US$10.4 billion, US$ 12.5 billion and US$3.8 billion respectively. MTN leads the chart as Africa’s most valuable brand followed by Vodacom and FNB (First National Bank).

The Impact of COVID-19

Brand Finance a UK-based independent brand valuation and strategy consultancy that specializes in brand valuation and the valuation of intangible assets came up with the figure based on the assessment of the impact COVID-19 has had on enterprise value, compared to what it was on 1st January 2020.

Analyzing the impact on enterprise value, Brand Finance estimated the likely impact on brand value for each sector. The industries have been classified into three categories, which are,
• limited impact (minimal brand value loss or potential brand value growth),
• moderate impact (up to 10% brand value loss), and
• heavy impact (up to 20% brand value loss) which is based on the level of brand value loss observed for each sector in the first quarter of 2020.

In a release sighted by Ghana Talks Business, Jeremy Sampson said despite the loss, Telecommunication companies “are in a very good position to benefit from COVID,” since “people are staying at homes, they are on their computers and smartphones.”
“The areas that are losing out by a long, long way are the airlines, and tourism, and hotels.” Jeremy Sampson further said.
According to Jeremy Sampson, the continent is still heavily unbranded given that of the 150 Africa’s most valuable brand, South Africa makes up 87 of those brands.

Africa Unbranded

Declan Ahern, Valuation Director at Brand Finance said “No truly Pan-African brands exist, with even the highest-performing brands in the ranking often only operating out of their home countries and therefore finding themselves a complete unknown across the continent and globally. It is no surprise that South Africa is by far the most represented economy in the ranking, with 87 brands featuring, which account for 76% of the total brand value.”

ALSO READ: THE FASTEST GROWING AFRICAN BRANDS

“There is no denying that the African market remains immature and fragmented in comparison to its global counterparts. The lack of connectedness between nations across the continent means that brands’ growth is being stifled and they are unable to flourish beyond their home markets. This does pose, however, a great opportunity for African brands to develop in a market ripe for consolidation and M&A,” Jeremy Sampson also said.

Beyond Africa

According to Brand Finance Global 500 2020 league table, the value of the 500 most valuable brands in the world could fall by an estimated US$1 trillion as a result of the Coronavirus outbreak. Amazon takes the lead and makes its history as the first brand in Brand Finance Global 500 to exceed US$200 billion in value and holds its title as the world’s most valuable brand for the third consecutive year.

www.ghanatalksbusiness.com

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Source : African Media Agency (AMA)

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African Media Agency -English

Growth of African economies: Where the opportunities are

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Economies all over the world are putting in plans to stimulate growth, so they can recover from COVID-19. We are seeing a resurgence of private capital investment in infrastructure and food security, in both developed and emerging economies. South African President Cyril Ramaphosa announced plans to unlock major infrastructure investment in the country. Greg Swenson, Founding Partner at Brigg Macadam joins CNBC Africa for more.

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Unlocking Africa’s Energy Investment Potential Will Require More Than Just Waiting for Covid-19 to be Over

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Download logoAcross the world, the Covid-19 pandemic, along with its subsequent travel restrictions and historic crash in oil prices, is deferring major final investment decisions and billions of dollars of capital that were expected to flow into Africa’s energy industry. Or is it really?

While the impact of the Covid-19 pandemic on the oil market has been unforgiving, the latest meeting of the African Energy Chamber’s Investment & Regulatory Affairs Committees last week tended

The post Unlocking Africa’s Energy Investment Potential Will Require More Than Just Waiting for Covid-19 to be Over appeared first on CNBC Africa.

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MTN is Africa’s most valuable brand – Brand Finance

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Brand Finance, an independent brand valuation consultancy firm, has for the first time ranked Africa’s top 150 most valuable and strongest brands. South Africa’s Telecommunication giant, Mobile Telephone Network (MTN) took the number one spot as Africa’s most valuable brand (MVB) with a brand value of US3.3 billion despite recording a 1% loss in brand value.

With a dominant presence across 23 countries and a subscriber growth of over 250 million, it is without question that MTN has emerged as Africa’s most valuable brand. Brand Finance came up with its Telecoms 150 report, earlier in the year in which MTN took the number one spot as the leading telecommunication brand in Africa.

“MTN is to be commended for its performance in its home market as well as further afield. They are increasingly recognized throughout Africa by their customers as providing high-quality service because their brand image is deeply rooted in more than just marketing campaigns.”

David Haigh, Brand Finance CEO

MTN’s Dominance and Controversy

According to MTN’s 2019 five-year review document published in April, out of the 21 countries where it operates mobile networks in Africa and the Middle East, it has the biggest market share in 13 countries. This impressive feat hasn’t come without scrutiny and cost. In Ghana, for instance, the National Communications Authority (NCA) took cognizance of MTN Ghana’s dominance in the country and sought to control said dominance. MTN Ghana is said to currently control close to 70% of the country’s data subscriptions market share and just under 60% of voice. MTN Ghana also owns the leading mobile money platform by far, outstripping other telecommunication brands like Vodafone and AirtelTigo and even banks.

ALSO READ: MTN SET TO RULE AFRICA

In 2017, MTN faced an $8.5 million fine by Rwanda’s regulatory authority for hosting its IT services outside the country, (reportedly in Uganda), which Rwanda believed compromised its national security. Also in Uganda last year, three of MTN’s top executives were deported on January 19, 21 and 22 by authorities sighting “involvement in activities that comprise state security.” In 2018, MTN settled a long-running dispute which it had with the Central Bank of Nigeria over tax and dividend payouts totalling $8.1 billion.

Despite the controversies and suits, MTN continues to exact its dominance and continues to grow in strength.

Competition

With instant messaging services or online chat provided by apps like WhatsApp, MTN faces huge competition as such apps offer comparable data services below-market rates. Jeremy Simpson, Managing Director at Brand Finance is however of the view that COVID-19 offers a major opportunity for telecommunication brands such as MTN to increase growth as demand surges due to a lot more people working for home and spending time on their computers, and smartphones.

www.ghanatalksbusiness.com

The post MTN is Africa’s most valuable brand – Brand Finance appeared first on Ghana Talks Business.

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