Compliments of the New Year, 2008

The MDDA’s existence is thanks to the funding from the government through the Presidency and GCIS, as well as from major commercial media entities, like Caxton (Pty) Ltd, Independent Newspaper Group, Johncom (now called AVUSA), Kagiso Media, Media 24, Midi Pty Ltd (etv), M-Net, PRIMEDIA Pty Ltd and the SABC. This support has benefited about 135 different projects as at the end of the financial year 2007 (March 2007).

The Agency’s work gives meaning and effect to the Constitution Act No. 108 of 1996 of South Africa, which provides for the freedom of expression and access to information, in its Section 16 and 32. The Media Development and Diversity Agency was established by legislation (the MDDA Act No 14 of 2002) to create an enabling environment for the development of media development and diversity in South Africa (including radio, television, newspapers, magazines and new media). In the main, it was established to help create an enabling environment for media development and diversity that is conducive to public discourse and which reflects the needs and aspirations of South Africans.

Opportunities for the growth of the community and small commercial media

The President promulgated the Electronic Communications Act, which became effective on the 19th July 2006. This law provides for an opportunity for the industry at large to grow and in particular the community and small commercial media sector. Added opportunity for the community media sector, is the Regulations on Community Sound Broadcasting Services published by ICASA in June 2006, the Community Television Broadcasting Services Position Paper (November 2004) and the Regulations relating to the Applications for Special Events Temporary Community Television Broadcasting Licenses (August 2005).

Most significantly, is the regulation to be prescribed by ICASA (hopefully early this year, 2008) in terms of the Electronics Communications Act of 2005 (Section 89), in terms of which Broadcasting Service Licensees are expected to make contributions not exceeding 1% of their annual turnover. These contributions are required to be made to the Universal Service and Access Fund, but Broadcasting Service Licensees who make these contributions to the MDDA will have their contributions set off against the prescribed contributions. ICASA published a draft Regulation (Notice 1149 of 2007) towards the end of 2007 proposing that such contributions be 0.2% of the annual turnover and with effect from 01 July 2008. Accordingly, in our submission to ICASA and in our engagements with the broadcasting industry, as the Agency, we would prefer that the contributions be made to the MDDA, in accordance with the partnership that already exist and which has worked well for the broadcasting industry since 2003/4. All eyes await the final regulation, and accordingly the Agency hope to amend its funding agreement with its current funders in accordance with this regulation and sign new agreements with new Broadcasting Service Licensees.

Further, USAASA and MDDA held a joint workshop in August 2007. A Memorandum of Understanding between the two organs is under discussion. Subsequently, a Broadcasting Service Licensees Roundtable was held on the 22nd October 2007, in preparation for renewing the funding agreements and making submissions to ICASA.

Whereas the above opportunities prevail in the broadcasting landscape, and other opportunities for the entire small commercial and community media sector (including) print, there is still not much available diverse media for the majority of citizens, in particular poor and rural areas. There remain few media products (in particular in the area of print) in indigenous languages.

Different industries are developing their Charters, aligning existing charters to the Code of Good Practices (February 2007) published in terms of the Broad Based Black Economic Empowerment Act of 2003. These further provide an opportunity to support small businesses. The skills development opportunities exist which are provided through the Skills Development Act, specifically for this sector through the MAPPSETA and ISSETSETA. All these opportunities are over and above the existence of the other Development Finance Institutions like NEF, SEDA, SAMAF, UYF, etc. which can also strengthen the work of the MDDA and benefit the wider South African citizenry.

The MDDA therefore focused its resources in the period under review, analyzing all these opportunities and used them to plan for its Strategic Plan 2007-10.

Organizationally and Governance

The MDDA Board has always provided leadership and strategic direction to the Agency. It has supported the management of the Agency, ever since its inception in 2003. The first three years of the Agency established a foundation within a certain context both in terms of the development of the sector and the funding base of the Agency.

The Agency has always had unqualified audit reports; it complies with relevant legislative requirements and again the same prevails this year. We also take this opportunity to thank the outgoing Board members, Ms Kanyi Mkonza, Dr. Boloka Mashilo, Ms Kerry Cullinan, Mr. Tony Trew and Prof Govin Reddy for their contribution towards the facilitation of development and diversity in the South African media sector and to the promotion of the right to freedom of expression enshrined in our Constitution. Their service has been much appreciated.

New Board members

The President of the Republic of South Africa (President Thabo Mbeki) has, in terms of Section 4 of the MDDA Act and as per the recommendation from the National Assembly appointed the following 5 new Board members with effect from 01 January 2008 for a term of office of three years and five years for the Chairperson, Ms Gugu Msibi (as Chairperson), Ms Nomonde Gongxeka, Ms Baby Tyawa, Mr. Siviwe Minyi and Prof Guy Berger.

We welcomes the new Board members, commit to working with and supporting them, look forward to their leadership and guidance in the governance of the Agency, and wish them all the best in the quest to pursue the mandate enshrined in the MDDA Act. The new members will be taking an oath or affirmation committing them to fairness, freedom of expression, openness and accountability, and upholding and protecting the Constitution and other laws of the Republic. They join the current existing Board membership consisting of Mr. Connie Molusi, Mr. Chris Moerdyk, Mr. Mazibuko Jara and Ms Felleng Sekha.

A few highlights of 2007

In March, the MDDA supported a resounding successful 5th World Summit on Media and Children hosted by South Africa and Africa for the first time, with over 90 countries in participation.

In April, we held a very successful Community Television Summit in Durban, which brought together interest groups in the sector, ICASA, DoC and funders. The outcomes of the summit were communicated to the DoC’s Digital Broadcasting Working Group. The Summit established an interim group to facilitate and co-ordinate the community television sector’s input into the current processes at ICASA and the DoC. Soon after the summit, Soweto Community Television went on air on a temporary community television license issued by ICASA for a one year period. The MDDA joins the people of Gauteng in welcoming this initiative in the country’s biggest township. Soweto Community TV is now also available as a channel on DsTV.

Cape Town Community Television initiative has also submitted an application to ICASA, it is planning to take effect from April 2008. It is expected that post November 2008 when digital migration commences, ICASA may thereafter publish a Call for Applications for Community TV, after reviewing and aligning the Regulation for CTV and in line with the Digital Broadcasting strategy.

Beside, the above, together with the small commercial and community media sector, the Agency plans to develop strategies to resolve printing and distribution challenges facing the community and small commercial print media. Discussions have already been held in the Western Cape (18th September 2007) on strategies to deal with this challenge taking into account the recommendations arising from the research conducted in the previous year.

A mentorship roundtable was also held in August 2007 that took stock of the MDDA’s flagship mentorship programme, evaluated its strengths and weaknesses, then advised on how best to ensure that it adds value to the mandate of the Agency.

MDDA also partnered with ENABLIS on the Business Plan competition, which introduced a new category – media with support from the MDDA. The Agency congratulate Ms Noma Radebe of “The Media Mall” in Gauteng and Ms Janine Nel of the “Nelida Publishing” in Western Cape for winning the categories of media idea and media expansion respectively. We congratulate all the finalists and the other entrants, we wishes them well in their business growth. We are hoping to have discussions with ENABLIS on how to support all the entrants and our beneficiaries in general on the area of business planning and entrepreneurship.

Conclusion

As we start the year, we take the opportunity to again thank 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 [SABC, Primedia Broadcasting, MNET, Kagiso Broadcasting, MIDI TV, Media 24, CTP, Independent Newspapers and Johnnic Publishing]. We look forward to strengthening our relationship and working together towards ensuring that each and every South African citizen has access to a choice of a diverse range of media.

We hope that the newly licensed broadcasting services [Telkom Media, Multichoice Africa, On Digital Media, E-Sat, Walking on Water TV, Capricorn FM, M-Power Radio and Radio North West] and other media groups will join our hands in assisting the building of an environment where a diverse, vibrant and creative media flourishes and reflects the needs of all South Africans.

Thank you all for your support

Lumko Mtimde
Chief Executive Officer
08 January 2008