Telecommunications giant MTN’s brand is worth R44.2 billion - double the value of Absa and FNB’s brands combined - a new report found.
“MTN’s brand value was boosted by a solid overall performance for the year, despite challenging economic conditions and regulatory challenges in some markets,” according to Brand Finance’s South African top 50 Brands.
The South African top 50 Brands report, released on Monday, uses a combination of marketing investment, loyalty toward the brand and business performance to calculate the value of a brand.
The report named MTN South Africa’s most valuable brand. Its brand value grew by 8% the past year.
Comparatively, FNB was placed third on the list with a brand value of R19.4 billion, and Absa fourth with a brand value of R18.9 billion.
“[MTN is] increasingly recognised throughout Africa by their customers as providing a high-quality service, because their brand image is deeply rooted on more than just marketing campaigns,” David Haigh, CEO of Brand Finance, said. Vodacom - MTN’s main South African competitor - came second overall with a total value of R27.5 billion.
Other entries to the list include Standard Bank at fifth place with a total brand value of R18.5 billion, Woolworths South Africa at sixth with a brand value of R18.1 billion, and Sasol seventh with a brand value of R15.7 billion.
Capitec Bank was named South Africa’s strongest brand, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation. It has a total brand value of R6.8 billion.
Jeremy Sampson, Executive Director of Brand Finance Africa, said overall South African brands saw a growth of 8% the past year to a total of R426 billion.
“[This reflects an] economy showing signs of recovery from the Zuma years,” Sampson said in a press release.
“The potential for South Africa going forward is huge, especially as new brands such as Capitec emerge.”