Telecommunications giant MTN has been named South Africa’s most valuable brand for the twelfth time in the past 13 years, according to brand valuation consultancy Brand Finance’s latest rankings.

The yearly 'Brand Finance South Africa 100' 2023 report shows that MTN’s brand value continued to grow, recording an increase of 24% to R74.3-billion in 2022, with a value that is now 50% higher than pre-pandemic levels.

“This is an impressive statistic considering the difficult operating conditions and the complex geopolitical environment that the brand has been faced with,” says Brand Finance Africa MD Jeremy Sampson.

“It is invariably the case that when economic conditions are particularly challenging, strong brands show off their pedigree. As the world economy and South Africa recover from the Covid-19 pandemic the brands that have continued to invest in their future are prospering.”

Brand Finance, which puts 5 000 of the biggest brands to the test and publishes over 100 reports ranking brands across all sectors and countries, has ranked rival Vodacom as South Africa’s second most valuable brand.

Vodacom’s brand value increased 33% to R39.8-billion.

“Although Vodacom is not yet operating on the same scale as MTN, Brand Finance’s research found it is outperforming it in a number of key metrics surrounding customer satisfaction. These included consideration, use, reputation, quality and customer service,” he says.

The report shows that South Africa’s banking sector is the most valuable, increasing 28% in aggregate brand value, accounting for 24% of the total brand value and has five brands in the top-ten of the ranking.

“A strong post-pandemic recovery has set South African banking brands up for impressive brand value growth in 2022,” adds Sampson, noting that the combined brand value of the 11 banking brands included in the ranking was R146.5-billion.

This is R25-billion more than the next most valuable sector, which was telecommunications with six brands included in the ranking at a combined brand value of R121.5-billion, he says.

Standard Bank, with a brand value of R29.7-billion, is the third most valuable South African brand, making it the country’s most valuable banking brand for the second consecutive year.

The bank’s 27% year-on-year growth has further widened the gap with First National Bank, which increased its brand value by 5% to R26.1-billion, and Absa, which recorded a 19% increase in brand value to R25.3-billion, and ranking fourth and fifth respectively.

Investec, with a brand value that increased 15% to R16.8-billion, rose three places in the ranking, re-entering the top ten.

In the retail sector, Spar South Africa emerged as the fastest growing South African brand, up 48% to a brand value of R21.4-billion, reflecting a positive outlook for South African retail brands, despite difficult operating conditions over the past year.

Spar South Africa opened 41 new stores in 2022 and was able to record 6% growth in revenue and increased forecast revenues.

Meanwhile, the 'Brand Finance South Africa 100' 2023 report listed Pick n Pay, which increased its brand value by 30% to R13.5-billion, as the strongest brand, with a Brand Strength Index (BSI) score of 94 out of 100 and corresponding AAA+ rating.

“Pick n Pay has seen a 14-point BSI increase year-on-year to clinch the top spot for brand strength. Astonishingly, it is one of seven South African brands to achieve the elite AAA+ rating, five of which came from the retail sector,” he says, adding that only 12 brands achieved AAA+ brand rating in the 'Brand Finance Global 500' 2023 ranking of the world’s top 500 most valuable and strongest brands.

Brand Finance also ranked South African companies through a Sustainability Perceptions Score, assessing how sustainable specific brands are perceived to be, which is linked to the Sustainability Perceptions Value that is then calculated for each brand.

The report shows that MTN achieved the highest Sustainability Perceptions Value at R8.6-billion and a Sustainability Perceptions Score of 5.23 out of 10, the tenth highest in the ranking.

Woolworths South Africa, which had a brand value of R21.7-billion and a Sustainability Perceptions Value of R1.97-billion, achieved the highest Sustainability Perceptions Score, at 6.02 out of ten.