Top 150 African brands to lose $60bn due to pandemic, says report
Following the economic downturn caused by the Covid-19 pandemic wreaks on the global economy, Africa’s top 150 most valuable brands could lose up to 12% of brand value cumulatively, a drop of US$60bn compared to the original valuation date of 1 January 2020, according to the current Brand Finance Africa 150 2020 report.
MTN is leading the way for South African dominance in the ranking. The entire top 10 are South African brands, and a total of 87 brands feature with a cumulative brand value of US$34.6bn, equating to 76% of the total brand value in the ranking.
Behind South Africa, Nigeria’s 16 brands account for 7% of the total brand value in the ranking (cumulative brand value US$3.bn) and Morocco’s 9 brands account for 5% (cumulative brand value US$2.2bn).
Commenting on the development, Declan Ahern, valuation director, Brand Finance London, 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 reacting, Jeremy Sampson, managing director, Brand Finance Africa, noted: “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.”
Looking beyond Africa, the value of the 500 most valuable brands in the world, ranked in the Brand Finance Global 500 2020 league table, could fall by an estimated US$1tn as a result of the coronavirus outbreak.
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