Value of top brands eroded by pandemic

By ANTHONY KITIMO

The total value of Africa’s top 150 most valuable brands declined by $5.5 billion, from $45.5 billion in 2020 to $40.0 billion in 2021, as a result of the Covid-19 pandemic, according to the latest report by valuation consultancy firm Brand Finance.

According to the report titled Brand Finance Nation Brands 2021, lockdown measures and travel bans implemented during the pandemic peak across the continent created uncertainty and impacted brands’ ability to do business as usual.

Brand Finance Africa managing director Jeremy Sampson said it was not surprising to see top African brands decline in value due to the pandemic.

“African brands will need to search for opportunities to make up lost ground. By embracing new technologies and collaboration, the continent can propel its recovery and bounce back from the extraordinary situation the world has found itself in,” said Mr Sampson.

The top 10 brands are from South Africa. In total, 81 brands feature out of 150, with a cumulative brand value of $29 billion. This represents 73 per cent of the total brand value in the ranking.

Nigeria is second on the ranking, with 17 brands featured, which account for six per cent of the cumulative brand value.

Seven Kenyan brands are represented, with a total value of $1.4 billion, an eight per cent year-on-year decline.

Debut appearance

This year, three Kenyan brands made their debut appearances in the ranking, including one of the country’s most popular beer brands, Tusker (brand value $52 million) in 117th spot.

Kenya’s brand value has risen eight per cent to $67 billion in the past year. The report noted significant developments in the country this year, including cementing its relationship with the UK through an agreement to secure $16 billion in investment.

Brand Finance Africa regional manager for East Africa Walter Serem said Kenya’s financial services brands grew in brand value.

“If this trend continues, this sector could produce Kenya’s next pan-African brand, following in Safaricom’s footsteps with its recent landmark acquisition of a joint licence and successful launch into the Ethiopian market,” said Serem.

In the report, Safaricom retained its most valuable brand title at a value of $716 million despite falling three places to 15th and recording a 26 percent year-on-year drop in brand value.