Mobile telecom network operator MTN (brand value up 49% to US$4 billion) has retained the number one place on the ranking of the most valuable African brands, according to the new Brand Finance Africa 150 2022 report.

Apart from telecommunications, MTN has diversified its services into fintech and mobile money across Africa. According to the research, MTN’s Mobile Money (MoMo) application is performing exceedingly well and overtook competitor M-Pesa in terms of volume of financial transactions through the application with a customer base of 57 million active users.

South African brands (value up by 30% to $36.9 billion) are leading the African continent, followed by Nigerian brands (value up by 35% to $3.2 billion), Egyptian brands (value up by 42% to $3.1 billion), Moroccan brands (value up by 14% to $2.6 billion) and Kenyan brands (value up by 69% to $2.1 billion).

“African brands have achieved strong performances by being agile amid change in the business environment. Whilst South African brands will continue to dominate the ranking for some time, there are encouraging signs of strong brands emerging around the continent, especially amongst the banking and telecommunication sectors,” commented Jeremy Sampson, managing director of Brand Finance Africa.

Banking has the most valuable brands in Africa, followed by telecom and retail. Banks – including Standard Bank, First National Bank and Absa – are significantly contributing to the success of African brands with 26% of the total brand value growth. The growth of African banks in the ranking is facilitated by focusing on digital payments and online banking.

Similarly, the telecommunications sector – led by MTN, Vodacom and Maroc Telecom – is also focusing on mobile applications as a strategic means to engage with users. Telecom brands have relied on growth in internet usage and mobile data requirements with major brands pivoting to a primarily digital strategy.

Lastly, retail brands – such as South Africa’s Woolworths, Shoprite and Spar – have recovered from the impact of the pandemic with their impressive ability to adapt to changing customer needs in a time of economic disruption.

Tusker becomes Africa’s fastest growing brand

Kenyan beer brand Tusker achieved an impressive 132% brand value growth this year, more than doubling to $50 million in brand value. This brand value growth was noteworthy as it was achieved amidst uncertain business conditions, including global supply chain crisis, and the closure of restaurants and bars due to pandemic induced restrictions. The brand overcame this challenge by employing social media marketing and influencer marketing as its primary method of promotion throughout the lockdown. By partnering with athletes and social media influencers, Tusker created engaging online content to increase demand, sales and brand recall.

Capitec Bank is the strongest brand in Africa

In addition to brand value, Brand Finance determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.

Capitec Bank (brand value up 41% to $625 million) is the strongest brand in the ranking with a Brand Strength Index (BSI) score of 92.4 out of 100 and a corresponding brand rating of AAA+. The South African bank is forming strategic partnerships to keep up with market and sector-wide trends in online banking and digital transformation. Most recently, Capitec Bank partnered with IT consulting firm Entersekt to leverage behavioural analytics and to enable a higher number of online transactions using e-commerce platforms. The bank also works alongside US-based software brand nCino to provide more efficient and more effective banking services to consumers with the help of cloud banking and digital automation.