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Lewis Njoka @Lewis Njoka

Senator Lager, a local brand brewer has emerged the fastest growing in Africa by a record 88 per cent, a new study has shown.

Brewed by East African Breweries Limited (EABL), beer brand was established in Kenya by alcohol giant Diageo in 2012, when emerging economies posed a real opportunity for growth and developed economies were becoming saturated.

In a recent ranking conducted by Brand Finance, a London-based company, Safaricom emerged the 12th most valuable brand in Africa out of 151.

This was no mean feat for the telco, which was the leading brand by an entry outside South Africa.

Since its inception, Senator Lager has become popular amongst workers – some of whom have switched to the brand from homemade alternatives – due to its very low prices.

Sales of Senator rose by a third over the previous year, which has helped to offset some of the difficulties that both Diageo and EABL are encountering as a result of higher taxes in Kenya.

 Among telephone companies, Safaricom came third after MTN and Vodacom with a brand value of Sh105.5 billion ($970 million).

A household name in Kenya,  Safaricom provides integrated telecommunication services including mobile and fixed voice, short messaging service (SMS), data, Internet and M-Pesa.

M-Pesa is a service to send and receive money or pay for goods and services through a mobile phone.

It also provides financial services and enterprise solutions to businesses and the public sector.

South African companies dominated the ranking, taking all the top ten positions with MTN, Vodafone and  First National Bank  (FNB) being ranked the most valuable brands on the continent.

“There is no denying that the African market remains immature and fragmented in comparison to its global counterparts.

The lack of connectedness between nations across the continent means that brands’ growth is being stifled and they are unable to flourish beyond their home markets.

This does pose, however, a great opportunity for African brands to develop in a market ripe for consolidation and Mergers and Acquisitions,” Managing Director, Brand Finance Africa, Jeremy Sampson said. 

MTN brand is valued at $3.349 million (Sh334.9 million), Vodacom at $2, 052 million while FNB  is valued at $1,617 million. Absa and Old Mutual complete the top five list.

Despite recording a one per cent brand value loss to $3.3 billion over the last year, MTN, Africa’s largest mobile operator, has celebrated solid profits and impressive subscriber growth which currently stands at over 250 million across 23 countries.

Emerging markets

Vodacom emerged the strongest brand on the continent scoring 89.5 per cent on the Brand Strength Index

 Out of the 150 top brands on the continent, 87  per cent are South African followed by Nigeria and Morocco with 16 and nine brands respectively.

 As in most emerging markets, banks dominate the ranking followed closely by telcos, and insurance accounting for 34, 25 and nine brands respectively out of the total 150.

As a corporate,  Safaricom  added Sh654 billion to the Kenyan economy in the year ended March 2020, consolidating its position as one of largest contributors to the country’s GDP.

This means that firm’s contribution to the economy increased by nine percent or Sh54 billion from Sh601 billion the previous year.

The economic contribution was in the form of jobs,  taxes and dividends to shareholders.

“Safaricom has played an important role in Kenyan society for the last 20 years. 

I am eager to see that role expand as we continue to identify and exploit new opportunities in critical areas like agriculture, health and education,” said Safaricom CEO Peter Ndegwa last week.

  According to Ndegwa, Safaricom’s operations sustained 1,013,728 direct and indirect jobs.