Brand consistency and investment fuels growth of South African businesses as telecoms giants rank first and second

• Telecoms giants MTN and Vodacom hold on to top two spots in new ranking of South Africa’s most valuable brands from Brand Finance.
• Nando’s brand debuts in top five most valuable brands.  
• FNB ranked strongest brand in South Africa following a strategic shift in brand positioning
• Retail brands remain amongst South Africa’s strongest, despite mixed brand valuation results

MTN maintains its position as the most valuable South African brand, despite experiencing an 8% decrease in brand value to ZAR68.2 billion, according to a new report from Brand Finance, the world’s leading brand valuation consultancy.

The telecommunications brand has significantly expanded outside of its home market and has a stronghold in Nigeria, which is now MTN’s largest market in terms of both user base and revenue.

Vodacom’s brand value increased 10% to ZAR43.9 billion in 2024. This secures its second place in the ranking, while also narrowing the gap with leading competitor MTN. Brand Finance research indicates that the influence of majority shareholder Vodafone bolsters Vodacom’s brand and market standing. Although Vodacom operates autonomously and is listed on the Johannesburg Stock Exchange, Brand Finance data reveals that Vodacom’s association with Vodafone enhances brand equity, cultivating recognition and trust.

Jeremy Sampson, Chairman, Brand Finance Africa commented:

[i"Amid the myriad of challenges that South African businesses are facing, our research highlights that now, more than ever, brand consistency is crucial in driving growth. For the past fifteen years, MTN and Vodacom have consistently maintained their positions as the top two most valuable brands and six of the top ten brands have stayed in the top ten. Leading brands like MTN, Vodacom, Standard Bank, and Absa have also nearly doubled their brand values since 2016. Time and time again, our findings underscore the critical need to prioritise brand investment as a strategic imperative, safeguarding companies’ brand as a valuable asset for the future.[/i]

Nando’s is included in the South Africa 100 ranking for the first time with a brand value of ZAR28 billion. Previously, Nando’s was excluded from the ranking due to data limitations, however, Brand Finance is now able to leverage new data sources and value the brand. The brand’s entry at fourth position for brand value reflects its status as a global restaurant powerhouse and one of South Africa’s most iconic brands. Although rooted in South Africa, Nando’s generates most of its revenue from international markets, notably the UK and Australia.

Consumer acceptance of First National Bank’s (FNB) 2022 brand update appears to have enhanced its brand equity and appeal, as it becomes South Africa’s strongest brand in 2024. FNB boasts a Brand Strength Index (BSI) score of 92 out of 100 and elite AAA+ brand rating. This success is attributed to the bank’s strategic shift towards positioning itself as more advisory-focused, rather than merely product-oriented. Brand Finance’s research also found FNB had high levels of familiarity and consideration among consumers in South Africa.

South African retailers remain amongst South Africa’s strongest brands, despite mixed brand value fortunes. There were six retailers in the top ten strongest brands in South Africa, indicating the sectors overall strength. Woolworths remains the strongest retail brand for the second year in a row.

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.

Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.

Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.

Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance’s proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.