Broadcast media (SABC, Primedia Broadcasting, M-Net, Kagiso Broadcasting, MIDI TV) together with print media (Media 24, CTP, Independent Newspapers and Avusa) in 2004 committed to supporting the noble work of the MDDA (a statutory development agency for promoting, supporting and ensuring media development and diversity, set up as a partnership between the South African Government and major print and broadcasting media companies, in terms of the MDDA Act No. 14 of 2002) for five years.
The five years which has been a successful period for the Agency in the pursuit of its mandate led to (amongst other achievements) more than 235 beneficiaries supported with about R75m. All of the MDDA achievements over the last five years are thanks to the Government (whose valuable support for the Agency through GCIS and the Presidency has made its work manageable) and the funding partners of the MDDA.

Media 24, CTP, Independent Newspapers and AVUSA (through PMSA); and Jacaranda FM; East Coast Radio; MNET have now joined Primedia (Pty) Ltd in signing a new funding agreement commencing on the 1st of April 2009. This is a show of confidence in the mandate and work of the MDDA. These signings are renewing the existing funding agreement for another period ranging from five years (the print media), six years (some broadcasters) to as long as some broadcast service licensees hold the individual commercial sound broadcasting licenses in terms of the Electronic Communications Act 36 of 2005.

The agreement will enable the broadcast service licensees to comply with the ICASA Regulation published on the 10th of October 2008, prescribing annual contributions of licensees to the MDDA or the Universal Service and Access Fund. Broadcast service licensees will accordingly contribute 0.2% of their annual turnover, derived from their licence activities to the MDDA.

Media 24, CTP, Independent Newspapers and Avusa have agreed through PMSA and the Agency to contribute a flat fee of R1.2m for three years and R1m for the fourth and the fifth year of the funding agreement. This agreement is in acknowledgement of the challenges facing the newspaper industry and the uncertainties thereof in the five-year period of the funding agreement.

The Agency will allocate 90% of these contributions to broadcast media projects and print media projects respectively and 10% to its administrative costs.

The MDDA welcomes this expression of confidence by the funding partners to the Agency's ability to do its work in accordance with its mandate, commits to continue developing and diversifying the media landscape in terms of the MDDA Act and adhering to the dictates of the Public Finance and Management Act.

We look forward to renewing our funding agreements with all the other partners (SABC, and e.tv) and the other broadcasting service licensees who have not had a direct relationship with the Agency before [AME (Algoa FM and OFM), Capricorn FM, Kaya FM, YFM, Classic FM, Heart FM and Igagasi FM (Makana Radio Communication, Radio North West and M-Power]; strengthen our relationship and work together towards ensuring that each and every South African citizen has access to a choice of a diverse range of media.

[15 May 2009 15:00]