Africa's most valuable brands
AFRICA VS. THE DEVELOPED WORLD
Most notably, it shows that although the recession dented the value of African companies, with the percentage of intangible assets having moved from 65% in 2007 to 57% in 2008 and 54% in 2009, enterprise values (EV) have not dropped as dramatically in Africa as in the developed world. The value of intangible assets did not drop as precipitously in 2008 and has remained stable in 2009, and tangible asset investment continues apace to build infrastructure. In the developed world, EVs and intangible asset values dropped dramatically and rebounded almost as dramatically once the recovery in sentiment took hold.
The difference in performance has several causes. The African economy is more dependent on basic industries like banking, mining and telecoms, so is less volatile. African banks in general didn’t suffer the same devastating fall from grace as the US and UK. The drop in value of over-leveraged and over-valued businesses in the developed world can be compared with the solid progress of down-to-earth African businesses. Also, Africa starts from a low base, but economic growth is solid and continuing.
MOST VALUABLE AFRICAN BRANDS
Sadly, African domiciled brands contributed only $7 billion to the total brand value within the Global 500. This is 21% growth up on 2009, but still low. Only two South African brands made it into the BrandFinance® Global 500 2010 table and both were in the booming telecom sector.
Vodacom is a great African brand, covering five countries in Africa, and has reached a scale to enter the Global 500 table. It is now a full subsidiary of Vodafone and may be migrated to the Vodafone master brand to achieve global synergies.
Vodacom has struggled to keep up with the rapid expansion of rival MTN in Africa and the Middle East. MTN is the most valuable brand in the African region with a brand value double that of Vodacom. In order to become the largest African telecom company, MTN is apparently keen to merge with Zain, a Kuwaiti mobile operator. Could MTN become another SAB, which is now technically domiciled in the UK?
Interestingly, the two most valuable African brands are from South Africa, reflecting the scale and sophistication of the South African telecoms sector; a pattern also reflected in the performance of South African banking brands.
A strong economy, political stability, a reliable legal system, an educated population and good regulation have created the right conditions for Pan African growth by South African brands. Nigeria and North African bank brands also fare well, but South Africa is the clear leader in brand value creation. No doubt this year’s FIFA World Cup will help to create more South African brands on the global stage.
Beyond the telecom and bank sectors, high-value African brands are in short supply, although there are clearly many small brands trying to make progress. The dilemma for African governments is that most major brands in most major categories are foreign. The top 10 brands by African ‘footprint’ of revenues illustrate this point.
G7 Summit guide: What it is and what leaders hope to achieve
Unless you’ve had your head buried in the sand, you’ll have seen the term ‘G7’ plastered all over the Internet this week. We’re going to give you the skinny on exactly what the G7 is and what its purpose on this planet is ─ and whether it’s a good or a bad collaboration.
Who are the G7?
The Group of Seven, or ‘G7’, may sound like a collective of pirate lords from a certain Disney smash-hit, but in reality, it’s a group of the world’s seven largest “advanced” economies ─ the powerhouses of the world, if you like.
The merry band comprises:
- The United Kingdom
- The United States
Historically, Russia was a member of the then-called ‘G8’ but found itself excluded after their ever-so-slightly illegal takeover of Crimea back in 2014.
Since 1977, the European Union has also been involved in some capacity with the G7 Summit. The Union is not recognised as an official member, but gradually, as with all Europe-linked affairs, the Union has integrated itself into the conversation and is now included in all political discussions on the annual summit agenda.
When was the ‘G’ formed?
Back in 1975, when the world was reeling from its very first oil shock and the subsequent financial fallout that came with it, the heads of state and government from six of the leading industrial countries had a face-to-face meeting at the Chateau de Rambouillet to discuss the global economy, its trajectory, and what they could do to address the economic turmoil that reared its ugly head throughout the 70s.
Why does the G7 exist?
At this very first summit ─ the ‘G6’ summit ─, the leaders adopted a 15-point communiqué, the Declaration of Rambouillet, and agreed to continuously meet once a year moving forward to address the problems of the day, with a rotating Presidency. One year later, Canada was welcomed into the fold, and the ‘G6’ became seven and has remained so ever since ─ Russia’s inclusion and exclusion not counted.
The group, as previously mentioned, was born in the looming shadow of a financial crisis, but its purpose is more significant than just economics. When leaders from the group meet, they discuss and exchange ideas on a broad range of issues, including injustice around the world, geopolitical matters, security, and sustainability.
It’s worth noting that, while the G7 may be made up of mighty nations, the bloc is an informal one. So, although it is considered an important annual event, declarations made during the summit are not legally binding. That said, they are still very influential and worth taking note of because it indicates the ambitions and outlines the initiatives of these particularly prominent leading nations.
Where is the 2021 G7 summit?
This year, the summit will be held in the United Kingdom deep in the southwest of England, with Prime Minister Boris Johnson hosting his contemporaries in the quaint Cornish resort of Carbis Bay near St Ives in Cornwall.
What will be discussed this year?
After almost two years of remote communication, this will be the first in-person G7 summit since the novel Coronavirus first took hold of the globe, and Britain wants “leaders to seize the opportunity to build back better from coronavirus, uniting to make the future fairer, greener, and more prosperous.”
The three-day summit, running from Friday to Sunday, will see the seven leaders discussing a whole host of shared challenges, ranging from the pandemic and vaccine development and distribution to the ongoing global fight against climate change through the implementation of sustainable norms and values.
According to the UK government, the attendees will also be taking a look at “ensuring that people everywhere can benefit from open trade, technological change, and scientific discovery.”