Should you simply invest in the top corporate blue-chip brands known all around the globe? Some people prefer this investment strategy. If you are a bit more daring, you might learn a little about what investment expert Igor Cornelsen thinks about African branding.
“Africa Needs More Global Brands”
When you consider the list of the most popular brands in the world, it might be full of companies from the United States, Germany, France, Switzerland and Japan. Gradually, some South Korean and Chinese firms are becoming more well-known, but Africa is not really well-represented.
Many African brands are basically offshoots from colonial brands. The Europeans started the firm, but gave it a little more of a local flavor. Investment consultant Igor Cornelsen identified this key African problem: “Lack of well-known global brands.” Some of the reasons for this are quite basic – while the British had a global empire, no African nation did. Thus, the African brands were not spread around the world.
Mr. Igor Cornelsen also blames the high interest rates charged in Africa. Because of the high risks involved, there are few startups on the continent. This needs to change, if Africa wants to compete with the other continents for venture capital and asset investment capital. It is kind of a “vicious cycle.”
“Most Admired African Brands”
Nevertheless, there is an emerging movement to promote “Made In Africa.” Ventures Africa listed the following as the “Top 10 Most Admired Brands” on the continent:
- MTN in South Africa
- GLO in Nigeria
- Dangote in Nigeria
- Tusker in Kenya
- Mukwando in Uganda
- Simu TV in Tanzania
- Zenith Bank in Nigeria
- Peak Milk
- Sasko in South Africa
- Star Beer in Nigeria
As wealth management professional Igor Cornelsen pointed out, most are “local” and don’t really have an international appeal. Will that change? The top African entrepreneurs need to find affordable funding. Then, who knows what could happen?