When we surveyed Africa’s most admired brands for the first time in 2010, there was optimism for African brands. Since then, their representation in the rankings has dropped by almost two-thirds. What will it take to allow African brands to compete with the global giants that dominate the table?
In the midst of the euphoric and successful organization of the first FIFA World Cup in Africa, while the pride and admiration of Africa were at their peak, African brands also enjoyed their most dominant position in the first Brand Africa 100 ranking: Africa’s Best Brands.
In 2010-11, African brands represented 34 of the 100 most admired African brands, after a continent-wide survey.
It was the time when the President of the African Development Bank, Donald Kaberuka, could declare that “the African private sector is fast becoming the main engine of growth on the African continent”.
After a decade of growth driven by public investment, the advent of technology, increased exports to China and a rapidly growing consumer class, the private sector, the engine of brands, is expected to fuel the continent’s growth.
With the rise of new African champions in the private sector, many anticipated the emergence and development of African brands. Growth is expected to reach 6.2% by 2020.
A decade later, amid a global health and economic pandemic, optimism was showered. Growth projections at the start of the year hovered around 3.9%, but we are now talking about Africa’s first recession in 25 years. How is this reflected on African brands?
Disappearance of flagship brands of the 2000s!
It’s a dark result. This year’s ranking shows a further decline for African brands, accounting for 13% of this year’s list, just over a third of their performance a decade earlier.
This is their weakest performance to date, down 2% from a year ago. Asia (16%), Europe (42%) and North America (29%) all managed to increase their share.
Overall, among the 100 most admired brands in our first ranking in 2010-11, only half are still on this year’s list. This is due to the mergers, acquisitions and obsolescence of many brands.
The most significant changes are in the technology category with the disappearance of Blackberry (No. 32 in 2010/11); the consolidation of Vodafone (No. 54 in 2010/11 and now No. 13); which acquired Vodacom in 2008 and renamed in 2011; Etisalat (No. 40 in 2010/11) renamed to 9 Mobile in 2017; and Motorola (#39) acquired by Lenovo in 2014.
We also saw the rise of the Chinese brand Tecno, which went from 33rd place in the ranking to 5th place – a surprising performance for one of the first Chinese world brands which is not even sold in China!
Mergers and acquisitions will impact the ranking in different ways. After a merger, it will take a brand a long time to rebuild its presence and this seems to be the case for ABSA, which is asserting its brand beyond South Africa.
Despite ABSA’s name change in 2018 after UK-based Barclays sold its stake in Barclays Africa to the South African banking group, it abandoned this year’s ranking as it rebuilt its brand through the continent, after having ranked 76th in 2010-11.
The goddess of victory!
The same goes for the former South African brewer SAB Miller, since the mega-merger between AB InBev and SAB Miller in 2016.
The American sports brand Nike has retained its first place for the third consecutive year as the most admired brand in Africa.
Ranked ninth ten years ago, the brand reigns supreme today, supported by partnerships with African athletes such as Eliud Kipchoge, the Kenyan who runs the marathon in less than two hours. As well as global collaborations like those with the South African designer Poppy Karabo and the Nigerian musical sensation Wizkid on his brand Starboy.
Nike also sponsors the jerseys of the Nigerian and South African national football teams, making it visible throughout sub-Saharan Africa. As a result of these high level actions, Nike continues to reign as an ambitious and must-have brand for sport, fitness and lifestyle.
Africanized products!
The domination of non-African brands is tireless. In the survey question to determine the most admired African brands, a multitude of non-African brands are identified as African.
Brands such as Coca-Cola (#2 in 2011 and #4 in 2020) are at the top of these brands. The company has been present on the continent for almost a hundred years and, thanks to innovative distribution and engaging local campaign strategies adapted to African markets, it has achieved ubiquity and a certain Africanity. Where could you ask someone to order a hot coca-cola, as is often the case in East Africa?
A common theme among the ten best brands of this type is their in-depth local knowledge, their localized marketing and their extraordinary marketing budgets. As a result, they have managed to create an intimate and contagious relationship with the African consumer. The strategy of these global brands has been, to use Brand Leadership, to “think locally and act globally”.
This is the case of brands such as Vlisco, the Dutch designer of wax fabrics, dominant in its sector, and Guinness, consumed by more people in Africa than its own domestic market in Ireland. The same goes for Vodafone and Airtel.
Africans don’t prefer locals!
Among the 27 countries studied, which represent more than 85% of the continent’s population and GDP, it is only in Zimbabwe (via Econet), Zambia (via Trade Kings) and Tanzania (with Azam) that we find a local brand taking the place of first in its country.
In Liberia, an African brand from another country, MTN, takes the first place, but in all other countries, it is a non-African brand: Nike (11 of 27), Samsung (4/27), Coca- Cola (3/27) and Adidas (2/27) lead the way, Tecno, Orange and Airtel each dominating in a country.
Powerful African brands, such as Dangote in Nigeria, Safaricom in Kenya and MTN in South Africa, do not even rank first in their domestic markets, and in North Africa, the ten most admired brands in Egypt and Morocco are not African.
Made in Africa!
When asked to choose his favorite African brand, the distribution is fairly even between South Africa, East Africa and West Africa. Compared to last year, East Africa increased its contribution from 4% to 36%.
West Africa arrived with 28% of these brands represented and Southern Africa with 36%. One of the main engines of growth in East Africa is the Tanzanian conglomerate Azam, with a diversified portfolio covering the media and consumer goods. Its new brand image has started to reap rewards and attachment from consumers in the region.
While his peers are on their knees, the jewel in the crown of the African sky, Ethiopian Airlines, continues to develop its brand, going from 14th place to 7th place. Increased market share thanks to a larger fleet and new routes, an ambitious growth strategy and its status as an airline that really manages to make money, it seems, has made it the “pride of Africa “, as she likes to be called.
Zimbabwe’s loyal brand Econet slipped eight places to 13th. It has been a difficult year for the group which, in 2019, ended its pay-TV business, Kwese media. The group has a significant African presence thanks to Liquid Telecom, an Internet solutions provider, and its reputation will only grow if it manages to acquire a telecoms license in Ethiopia, which is opening its market to foreign entities.
Jumia, nicknamed “Amazon of Africa” when it boldly launched on Wall Street, struggled to meet expectations, dropping five places to 18th. Jumia and many e-commerce brands in Africa have their work cut out for them, especially with the e-commerce giants Alibaba (n° 92 in the main table) and Amazon (n° 56 in the main table) hiding in background.
The African consumer could be his next battleground. Jack Ma, the billionaire founder of Alibaba, launched last year the Africa Netpreneur prize to support the next generation of African entrepreneurs, knowing, according to him, that “a digital revolution will make Africa the center of the world”.
Innoson, in Nigeria, is a company trying to create a hub in the manufacturing of engines. The brand, which ranks 10th in our category of most admired African brands, aims to eradicate the Tokunbo (used foreign cars) from Africa. It makes cars and motorcycles in the industrial heart of Nigeria, in the state of Anambra.
Winners and losers!
In the main draw, one of this year’s big winners is Indomie, who ranks 34th. An Indonesian company that entered the Nigerian market more than 30 years ago today has successfully transformed instant noodles into a staple food in the most populous country in Africa. She defies jollof rice for main billing in Nigerian households.
Indomie controls 74% of the market and the brand is so popular that the Indonesian Minister of Commerce was able to declare that most Nigerians made a common mistake by considering this brand as a local product. For many Nigerians, all noodles are Indomie!
The second is Vlisco, which climbs 50 places to No. 45. Vlisco is undoubtedly the most dominant brand in African fashion. Its success has highlighted African fashion and has undoubtedly inspired other global brands. These include LV Basotho’s range of covers or Christian Louboutin’s collaboration with Senegalese artists to launch the Africaba Tote Bag, which incorporates bold Ankara prints from West Africa.
The fashion world has helped the African style to go global. More recently, we saw British designer Stella McCartney also use Ankara-inspired prints in her Paris fashion show and Thai-American designer Thakoon inspired by Maasai for her latest collection. In a resurgence and appreciation of “African fabrics”, most of which are inspired by Vlisco, among the brands mentioned by the respondents were Capulana in Mozambique, Kente in Ghana and Kitenge in Zambia.
African brands need support!
What does this year’s ranking tell us? After an exciting start at the start of the decade, and despite a dynamic entrepreneurial environment with pockets of excellence, the rush for very deceptive value and size of spending by African consumers is still between brands from outside the continent rather than from the inside.
Africa is not lacking in ideas, plans and enthusiasm. But its brands need financial and government support to really grow and take off. We seem to be going in the right direction: the African Continental Free Trade Area will help our brands reach new markets; the removal of travel barriers with the passport of the African Union will also allow Africans to discover new brands while traveling the continent.
But to compete with the global giants, our brands will have greater ambitions to be the ones our people look for and respect: “leading” brands that we not only consume, but which represent the life we want to live.
This will require a change of mentality from top to bottom. It cannot be someone else’s story or success. It must come from within. The next decade cannot be another promise for an “Africa on the rise”, an “African renaissance” or “the time of Africa”. The time of Africa is now.
