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The latest Nation Brands report on the world’s most valuable nation brands, which was released on Friday, shows that South Africa and Nigeria have fallen on the ranking. The Nation Brands report shows the benefits that a strong nation brand can confer, but also the economic damage that can be wrought by global events and poor nation brand management.

In the global marketplace, a country’s national image is one of the most important assets of any state, encouraging inward investment, adding value to exports and attracting tourists and skilled migrants, according to Brand Finance, a leading global independent brand valuation and strategy consultancy. Every year, Brand Finance puts thousands of the world’s top corporate brands to the test. However, in recognition of the growing influence of national image on the success of both companies and national economies, the firm also evaluates the 100 most valuable nation brands, published in the Brand Finance Nation Brands report.

South Africa fell two places on the ranking to 39th with a nation brand valuation of $196 billion this year, down 13% from $225 billion recorded last year. Nigeria is down one place on the ranking to 42nd globally, with its nation brand value at $178 billion this year.

Other African countries on the ranking are Egypt (53rd), Algeria (57th), Angola (67th), Morocco (70th), Kenya (75th), Ethiopia (79th), Tunisia (82nd), Tanzania (84th), Ghana (86th), Cote d'Ivoire (90th), Uganda (96th), and Cameroon (100th). Of the 14 African countries listed on the Nation Brands 2016 ranking, only Egypt and Ethiopia improved their ranking by 21% and 10%, respectively.

The United States continues its dominance of the Brand Finance Nation Brands table, growing by 4% and adding $871 billion this year. The top five most valuable nation brands are the U.S., China, Germany, Japan and United Kingdom. India is ranked as the 7th valuable nation brand. Of the BRICS economies, only South Africa is not among the top 20 most valuable nation brands.

Brand Finance uses methodologies that measure the strength and value of the nation brands of countries on the ranking. Nation Brand Strength is derived from three key pillars: Goods & Services, Investment and Society, and individual countries are assigned ratings ranging from AAA+ representing 'Exceptional' to DDD representing 'Failing'. The nation brand valuation is based on five-year forecasts of sales of all brands in each nation. Hence, a country's nation brand valuation includes the contribution of the nation brand effect and corporate brands value.

Brand Finance also said cuisine is integral to nation brands, with profound economic implications, given that food can be the main attraction for some tourists. "Cuisine therefore helps to sure up the ‘People and Skills’ and ‘Investment’ pillars of a nation brand as well as that of ‘Tourism’,” the firm said.

Luxembourg – ranked 54th in 2016 – is this year’s fastest growing nation brand, having increased 43% to $85 billion. The nation is known for being a financial centre of paramount importance. In 2014, the country initiated a nation brand campaign for greater transparency and openness.

The five best performing nation brands are Luxembourg (increased by 43%), Pakistan (up 38%), Czech Republic (grew by 27%), Ukraine (improved by 27%) and Mongolia (up 27%). The worst performing nation brands are Jordan (down 35%), Cameroon (decreased by 34%), Brazil (down 30%), Turkey (down 29% in brand value) and Azerbaijan (fell 28%).

"Jordan is this year’s biggest faller as a result of continued conflict in neighbouring Syria. As the World Bank reports, the security situation is deteriorating, affecting tourism, construction and trade. Meanwhile unemployment is rising. With no prospect of the situation in Syria improving, a turnaround in Jordan is unlikely for now,” Brand Finance stated on Thursday.  

Turkey is another country that is suffering from the instability of its war-torn neighbour, Syria. But Brazil has dropped even further than Turkey. While Turkey has been impacted by the furious backlash of a failed coup, an ailing Brazilian economy, declining value of the Real and the Petrobras corruption scandal are responsible for driving the nation brand value down 30%.

Nation Brand value is reliant upon GDP, (i.e, the revenues associated with the brand). However, in terms of underlying nation brand strength, Singapore is the world's strongest nation brand. This is as a result of the nation-state's famed business friendliness, investment, robust education system, and strong ranking on the Corruption Perception Index, among other metrics.