JOHANNESBURG – Telecommunications giant MTN has retained the title of South Africa’s most valuable brand, but rival Vodacom now has the strongest visibility.
A Brand Finance South Africa 50 2020 report yesterday showed that MTN, Africa’s largest mobile operator, recorded solid profits, and its subscribers grew to more than 250 million across 23 countries despite a 2 percent brand value loss to R49.4 billion.
The report said MTN had taken a hit with increased global scrutiny following allegations that it paid bribes to militant Islamist groups in Afghanistan.
“This is not the first time the brand has come under the microscope – most notably its 2015 Nigerian fine – and MTN will, once again, rely on its strong brand and its far-reaching market share to maintain its position as South Africa’s most valuable brand,” the report said.
Brand Finance said Vodacom had become the strongest brand in South Africa, with a Brand Strength Index score of 89.5 points out of 100 points.
“Brand Finance’s global brand monitor study showcased a clear improvement in Vodacom’s brand investment metrics – place, price, products and promotion. All of which were considerably stronger than main rival MTN,” the report said.
Vodacom had committed to a 34 percent price cut in its data services following an agreement with the Competition Commission, after criticism that it was exploiting its market dominance.
“This price cut is, no doubt, going to bolster the brand’s already burgeoning subscriber base, which is currently growing on average by a staggering 67 000 a day,” it said.
Life Healthcare was South Africa’s fastest-growing brand, up 29 percent and climbing five spots in the ranking. The report found that South Africa’s top 50 most valuable brands could lose up to 15 percent, or R65bn, of brand value cumulatively, compared to the original valuation in January.