South Africa in danger of being overtaken by Nigeria in brand value rankings
South Africa’s brand value has dropped six places in the latest Brand Finance Nation Brands report for 2018 – putting the country at risk of losing its African leader position to Nigeria.
The report from global consultant firm Brand Finance ranks the nation brands of 100 leading countries annually.
To do this, it measures the strength and value of each country’s brand, using dozens of data points across three key pillars: goods & services, investment and society.
South Africa ranked 49th overall, (down from 43rd in 2017), making it one of the middle-of-the-road nations in terms of brand value. It has a brand value of $207 billion, $15 billion less than the $222 billion valuation in 2017 (a 7%) drop.
South Africa was one of only 11 countries in the list of 100 to see a decline – and it saw the 5th biggest drop, overall (tied with Iran).
According to Brand Finance CEO, David Haigh, South Africa’s brand value took a blow in the past 12 months as the country struggles to recover from the turmoil of the Zuma years. The country’s brand is also in danger of being overtaken by Nigeria, making it one to watch for years ahead, he said.
Nigeria was ranked 50th overall, just below South Africa, with a brand value of $203 billion, up 6% from $191 billion in 2017.
Despite the country’s troubles, South Africa still remains the gateway to the African continent, with Johannesburg the hub.
The top nation brands
According to the report, topping the table as the world’s most valuable nation brand in 2018, the US’s brand value has gone up 23% over the past year to $25.9 trillion..
This is because of the US economy expanding at a speedy pace with growth expected to continue in the months to come.
“Alongside the GDP, also consumer sales, construction orders, car output and other indicators of growth have each seen an increase – proving the US economy truly is booming,” the group said.
In addition, thanks to the falling tax rates, which have created a more business-friendly environment, the US’s Brand Strength Index (BSI) score has improved from 83.8 in 2017 to 85.6 out of 100 this year.
As a result, America’s brand rating has been upgraded from AAA- to AAA, and the brand value leader has also moved up the brand strength ranking, replacing Sweden as the 8th strongest nation brand in the world.
“As Donald Trump approaches the start of his third year at the White House, in the longer run, negative perceptions of his personal brand have turned out to have little impact on the nation brand as a whole,” Haigh said.
“Rather, the new free-market policies have resonated with business leaders and the economy is growing, driving an improvement in America’s brand strength and brand value alike.”
China maintained its spot as the second most valuable nation brand, with brand value up 25% to $12.8 trillion. This was a solid performance despite the prospects of a protracted trade war with the US.
The fastest-growing brand in the top 50 of the Brand Finance Nation Brands 2018 was Germany, which has seen a 28% brand value jump to $5.1 trillion over the past year.
“This has solidified the country’s position as Europe’s most valuable nation brand and the world’s third,” the group said.
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