MTN has maintained the number one position in the ranking of the most valuable South African brands in the world, according to the latest report from Brand Finance. Brand Finance assumes no liability and will not be liable in the event that the publicly available information on which it is based is subsequently determined to be inaccurate. Both Standard Bank and First National Bank have created valuable brands as the third and fourth most valuable South African brand overall. Old Mutual maintained its position as the most valuable insurance brand in the ranking and rose one place to fourth, despite a 7% drop in brand value.
A key factor in the strength of the Woolworths brand is parish support in South Africa, where local consumers and stakeholders feel a national affinity with Woolworths (and also with several other South African brands). This increase in brand values reflects a significant improvement in revenue forecasts in the future of less harm from COVID-19 and the likelihood of a reduction in civil unrest in key markets for South African brands. As its customers look ahead, Checkers is in a strong position to leverage its increased brand value to drive further growth. Each brand is assigned a score of 100 on the Brand Strength Index (BSI), which is incorporated into the brand value calculation.
Managing Director of Brand Finance Africa Jeremy Sampson said that South African brands were boosting the economy and, as the world looked to life after Covid-19, MTN had cemented its leadership role as the most valuable local brand. As a result, Brand Finance always incorporates a review of what brand users actually pay for the use of brands in the form of branded royalty agreements, which are found in more or less every sector of the world. Since 1998, BrandZ has shared brand creation ideas with business leaders based on interviews with 4 million consumers, for 18,000 brands in 51 markets, including the opinions of 31,335 South African consumers on 660 brands in 47 categories. Brand Finance is a regulated accounting firm that leads the standardization of the brand valuation industry.
The added value of South Africa's top 50 brands grew 15 percent this year, from R452 billion last year to R$519 billion this year. We then apply the royalty rate to the revenue expected to earn the brand's revenue and apply the appropriate valuation assumptions to obtain a discounted present value after tax that equals the brand's value.