MTN has retained pole position as SA’s most valuable brand, according to the latest survey by Brand Finance Africa.
This is the 12th time in 13 years that MTN has led the rankings despite the many challenges it has grappled with in several markets, including Nigeria where the regulatory restrictions debacle stood out like a sore thumb.
Its brand value rose 24% to R74.3bn in 2023, almost twice that of second-placed Vodacom, whose brand value rose 33% to R39.8bn.
“Brand value reflects scale and MTN operates across 19 international markets. It manages to communicate its brand consistently and effectively despite its broad operations,” said Declan Ahern, valuations director at Brand Finance in London.
“As well as scale, MTN has brand strength, according to how Brand Finance measures this metric.”
The recent “refresh of its brand identity to look and feel more modern as it made a strategic shift towards a more platform brand and business rather than just a typical telecom company, contributed to MTN’s strong brand equity”, Ahern added.
Though MTN has a larger footprint than Vodacom, Brand Finance found that MTN is outperforming its crosstown rival in a number of key metrics around customer satisfaction. These include consideration, usage, reputation, quality and customer service.
“It is invariably the case that when economic conditions are particularly challenging, strong brands show off their pedigree. As the world economy and SA recover from the Covid-19 pandemic the brands that have continued to invest in their future are prospering,” Brand Finance Africa MD Jeremy Sampson said on Tuesday in a statement.
With the worst power crisis on record, mobile operators are investing heavily in backup power to maintain the integrity of their network. To stay relevant, they have also been diversifying into fintech and mobile money as traditional voice and data revenue become cheaper.
Banks
Standard Bank was the third most valuable SA brand, followed by FNB and Absa.
Banking is the most valuable sector, up 28% in aggregate brand value and was boosted by a strong postpandemic recovery, according to the survey.
The brand valuation consultancy puts 5,000 of the world’s biggest brands to the test annually, and publishes about 100 reports, ranking companies across all sectors and countries.
Spar SA emerged as the fastest-growing SA brand, with its brand value up 48% to R21.4bn. This “reflects a positive outlook for SA retail brands, despite difficult operating conditions over the past year”, the survey said.
Spar SA opened 41 new stores in 2022 and increased forecast revenues. Its growth in brand value comes despite negative publicity over the alleged misrepresentation by some of Spar’s senior managers in court cases in 2019.
Besides brand value, Brand Finance determines the relative strength of brands using a metric that evaluates marketing investment, stakeholder equity and business performance.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.