Press Release

MTN And Coca Cola Are The Most Admired And Valuable African and Global Brands In Africa

20 September 2013

On 20 September 2013, Brand Africa in association with Brand Finance, TNS and African Business, named MTN and Coca Cola the Most Admired and Valuable African and Global Brand in Africa at the African Business Magazine African Business Awards held at the Mandarin Oriental in New York, USA.

The African Business Awards, launched in 2008 by African Business magazine, have become a platform to celebrate excellence in African business by recognising the individuals and companies that are driving Africa’s rapidly transforming economy and creating new economic opportunities for citizens and communities all over the continent.

Brand Africa 100, established in 2011, is based on the realization that one of the key catalyst for Africa’s growth, competitiveness and reputation for investment, tourism and citizenship, lies in developing and growing African and global businesses and brands in Africa.

Brand Africa 100™ was developed by Brand Africa in partnership with Brand Finance AFRICA, a division of Brand Finance plc, the world’s leading independent valuation consultancy and TNS, the globally respected consumer knowledge and information company, recognizes Africa's Top 100 valued brands.

The Most Admired and Valuable Brands in Africa are limited to listed consumer brands or corporate brands that provide a significant endorsement to their consumer brands, operating in at least one market beyond their domestic market, and trades with a uniform brand identity and/or name. The valuation is limited to the estimated proportion of parent company revenues attributable to the brand on the African continent. The list of the brands that qualify for inclusion in the study is based on a multi-country consumer survey across Africa to determine the 100 Most Admired Brands in Africa.

An African Brand is defined as a multi-national brand developed ‘in Africa, by Africans,’ with a secondary or primary listing in Africa, serving customers primarily in Africa, with a growing international recognition and/or footprint, that contributes to Africa’s economic growth and global image and reputation.

MTN topped the league for African brands as the most admired African brand with a brand valuation of $4.655bn. Coca Coca is the top global brand in Africa with a brand value of $3.420bn. MTN also tops the league as the overall Most Admired and Valuable Brand in Africa.

‘It is perhaps not a surprise that MTN and Coca Cola, the dominant pan-African consumer brands in Africa in their respective categories are the most valuable brands in Africa. Both brands are the standard bearers in creating a favourable image for Africa as valuable services and respected corporate citizens in Africa,’ says Thebe Ikalafeng, Chairman – Brand Finance Africa and Founder of Brand Africa.

Top 10 African Brands

RankBrandIndustry GroupCountry of DomicileGlobal Brand Value 2013Africa Brand Value 2013Africa RevenuesBV Change from 2012
1 MTNTelecoms ServicesSouth Africa5,1724,65590%-1%
2 WoolworthsRetailSouth Africa1,2941,294100%24%
3 ShopriteRetailSouth Africa1,1151,115100%4%
4 Pick N PayRetailSouth Africa1,0351,035100%89%
5 GlobacomTelecoms ServicesNigeria655655100%13%
6 CastleBeveragesSouth Africa34027280%3%
7 TuskerBeveragesKenya222222100%561%
8 DangoteConsumer, Non-CyclicalNigeria216216100%3%
9 Guaranty Trust BankBanksNigeria201201100%-36%
10 Tiger BrandsFood DiversifiedSouth Africa201201100%11%

A Global Brand in Africa is a global multi-national brand developed outside Africa, with a primary listing outside Africa serving African customers, that contributes to Africa’s global reputation as an destination for economic growth and investment.

Top 10 Global Brands in Africa

RankBrandIndustry GroupCountry of DomicileGlobal Brand Value 2013Africa Brand Value 2013Africa RevenuesBV Change from 2012
1 Coca-ColaBeveragesUnited States34,2053,42010%27%
2 ShellOil & GasNetherlands29,7523,27311%6%
3 SamsungElectronicsSouth Korea58,7712,9395%121%
4 VodafoneTelecoms ServicesBritain27,0092,3289%4%
5 NikeApparelUnited States14,9431,94313%-20%
6 ToyotaAuto ManufacturersJapan25,9791,8197%-10%
7 McDonald'sRetailUnited States21,6421,0825%-11%
8 Pepsi-ColaBeveragesUnited States18,7019355%-2%
9 AirtelTelecoms ServicesIndia3,74689924%30%
10 HondaAuto ManufacturersJapan16,1148065%8%


Brand Africa 100™ is based on a multi-tier royalty relief methodology that blends a brand’s financial performance and consumer admiration scores to create a unique index and ranking.

Definition of ‘brand’

Financial accounting and reporting standards requires a clear definition of what intellectual property is included in the definition of ‘brand’. Brand Finance defines brand as the “Trademark and associated IP including the word mark and trademark iconography”.

Royalty relief

Brand Finance calculates brand value using the Royalty Relief approach. This approach involves estimating the likely future sales that are attributable to a brand and calculating a royalty rate that would be charged for the use of the brand. The steps in this process are as follows:

  1. Calculate brand strength on a scale of 0 to 100 based on a number of attributes such as emotional connection, financial performance and sustainability, among others. This score is known as the Brand Strength Index.
  2. Determine the royalty rate range for the respective brand sectors. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database of license agreements and other online databases.
  3. Calculate royalty rate. The brand strength score is applied to the royalty rate range to arrive at a royalty rate. For example, if the royalty rate range in a brand’s sector is 1-5% and a brand has a brand strength score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4.2%.
  4. Determine brand specific revenues estimating a proportion of parent company revenues attributable to the brand globally and on the African continent.
  5. Determine forecast brand specific 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. Brand revenues are discounted post tax to a net present value which equals the brand value.

Why we use the royalty relief approach

The Royalty Relief approach is used for three reasons:

  1. It is favoured by tax authorities and the courts because it calculates brand values by reference to documented third-party transactions
  2. It can be done based on publicly available financial information
  3. It is compliant with the requirement under the International Valuation Standards Authority to determine the fair market value of brands

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