Download - Media Funding & Sustainability-SAMDEF
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HIGHWAY AFRICAHIGHWAY AFRICACONFERENCE CONFERENCE
20082008Media DevelopmentMedia Development
& & SustainabilitySustainability88thth September 2008 September 2008
GrahamstownGrahamstown
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Who is Samdef ?Who is Samdef ?
10 years of Media Support & 10 years of Media Support & DevelopmentDevelopment
Regional Media Funding OrganisationRegional Media Funding Organisation Board of Trustees - MISA Trust Fund BoardBoard of Trustees - MISA Trust Fund Board Provision of Financial Assistance / GrantsProvision of Financial Assistance / Grants Donor Supported / LoansDonor Supported / Loans Independent Regional Board of Directors Independent Regional Board of Directors Non Profit Making (Co. Ltd by Guarantees) Non Profit Making (Co. Ltd by Guarantees) Non Governmental OrganisationNon Governmental Organisation
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What do you do? What do you do?
Provision of affordable medium to long Provision of affordable medium to long term finance to independent media in the term finance to independent media in the SADC Region SADC Region
LoansLoans DebenturesDebentures Equity & Quasi Equity (Preference Shares)Equity & Quasi Equity (Preference Shares) GuaranteesGuarantees Co-financing / SyndicationCo-financing / Syndication Combination of the aboveCombination of the above Corporate Governance / Management SkillsCorporate Governance / Management Skills
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What do you Fund?What do you Fund?
Newspapers / MagazinesNewspapers / Magazines
Radio StationsRadio Stations
Television, Video ProductionTelevision, Video Production
Printing PressesPrinting Presses
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“In many countries, the chief barrier to free expression is no longer censorship. It is cash.”
The Economist,
The Major Challenge..
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Where do you get your Where do you get your funds?funds?
Open Society Initiative of Southern AfricaOpen Society Initiative of Southern Africa Free Voice Free Voice SidaSida Strategic Partnership - MDLFStrategic Partnership - MDLF - PTA Bank- PTA Bank - BOA (- BOA (EurAfrican BankEurAfrican Bank)) - African Banking - African Banking
CorpCorp - BIM- BIM
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Who Qualifies for Funding?Who Qualifies for Funding?
Citizen of the SADC countries/ JVCitizen of the SADC countries/ JV Investment must be in MediaInvestment must be in Media Independent Media EnterprisesIndependent Media Enterprises Own ContributionOwn Contribution Duly Registered CompanyDuly Registered Company Viable BusinessViable Business
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TV Station TV Station
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Restructured SamdefRestructured Samdef Review of original model - 2001Review of original model - 2001 Why Restructuring ?Why Restructuring ? Split between Samdef & SaimedSplit between Samdef & Saimed
Sustainability Sustainability Revolving fund Revolving fund Equity participation – Corporate GovernanceEquity participation – Corporate Governance ConsolidationConsolidation Effective monitoring Effective monitoring Added Products & Services Added Products & Services Donor fatigueDonor fatigue
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SamdefSustainable
independent media
Affordable financing
Repayments
Samdef’s Revolving Fund
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Where we work, independent media is a growth business: Where we work, independent media is a growth business:
Big demand, but little supply.Big demand, but little supply.
Where We’ve Done It
Botswana South Africa Big News
Mmegi
Trans Africa
Spectrum
Ice Media
Tanzania Sahara CommunicationZambia
The Post Habari Corporation
Luna Enter.Printech
Kings Multimedia
Total Print HousePC FmPublic Eye
Mokgosi GABZ FM Yarona FM
Sky Fm
Malawi
Lesotho
Swaziland
Namibia
The Nation Magazine
One Africa TV
Mozambique
Zimbabwe
SOICO
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Current Investment PortfolioCurrent Investment Portfolio
Loan Portfolio (23 projects) – Loan Portfolio (23 projects) – US$7.4 million
Average Annual Grants - Average Annual Grants - US$2 millionUS$2 million
Average Size of Investment – Average Size of Investment – US$459 000 US$459 000
Average Annual Collections Average Annual Collections – – US$430 000US$430 000
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Samdef Sectoral DistributionSamdef Sectoral Distribution(by value)(by value)
58%
15%
22%
5%
Newspapers
Radio
TV
Other
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Geographical DistributionGeographical Distribution(by value)(by value)
Geographical Distribution of Investments
4%
17%
2%
29%
0%
17%
15%
1%
15%
Botswana
Zambia
South Africa
Tanzania
Swaziland
Namibia
Lesotho
Malawi
Mozambique
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Highlights for the YearHighlights for the Year Conclusion of OATV & PrintechConclusion of OATV & Printech Disinvestment in Big NewsDisinvestment in Big News Full repayments – The Post & SaharaFull repayments – The Post & Sahara Successful Restructuring – Habari Successful Restructuring – Habari
Corp.Corp. Appointment of New Chief ExecutiveAppointment of New Chief Executive Collaboration AgreementCollaboration Agreement OSISA & Sida FundingOSISA & Sida Funding
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Samdef HouseSamdef House
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Lessons LearntLessons Learnt Thorough due diligence process.Thorough due diligence process. Realistic assumptions to be used as benchmark.Realistic assumptions to be used as benchmark. Close monitoring & submission of reports.Close monitoring & submission of reports. Fostering long term relationships.Fostering long term relationships. Control over editorial policies – local contentControl over editorial policies – local content Equity participation.Equity participation. Consolidation & phased funding Consolidation & phased funding Complementary skills among promoters.Complementary skills among promoters. Intervention at national level – Printing presses.Intervention at national level – Printing presses. Good Corporate Governance. Good Corporate Governance. Closer Collaboration with MISA & SAIMEDCloser Collaboration with MISA & SAIMED
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Infrastructural Investments Infrastructural Investments (Printing Press & Transmitters) (Printing Press & Transmitters)
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Challenges!Challenges!
Growing Revolving Fund - SustainabilityGrowing Revolving Fund - Sustainability
Lack of Business Management Skills & Specialised skillsLack of Business Management Skills & Specialised skills
Limited Resources – Financial, Expertise, Own ContributionLimited Resources – Financial, Expertise, Own Contribution Tight Control by Authorities in Awarding Licenses ( Radio & TV)Tight Control by Authorities in Awarding Licenses ( Radio & TV)
Draconian & Repressive Laws Draconian & Repressive Laws
Risk Management Risk Management
Good Corporate Governance Good Corporate Governance
Hostile takeovers – threat to diversityHostile takeovers – threat to diversity
Cost of Consumables e.g. Newsprint ( Price Wars)Cost of Consumables e.g. Newsprint ( Price Wars)
Ethical PracticesEthical Practices
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“Increased funding enquiries and applications against a backdrop of limited (donor) funding
The Major challenge..sustainability
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Future StrategiesFuture Strategies Continued Fund Raising InitiativesContinued Fund Raising Initiatives Recoveries & CollectionsRecoveries & Collections Maintenance & Service CompanyMaintenance & Service Company Newsprint & Consumables ProjectNewsprint & Consumables Project Regional Media Pension Fund Regional Media Pension Fund Efficiency ( Smart & not Hard)Efficiency ( Smart & not Hard) Working Closely with Strategic PartnersWorking Closely with Strategic Partners Sustainability of Samdef ClientsSustainability of Samdef Clients Media Private Equity FundMedia Private Equity Fund …… (WIP) …… (WIP)
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A Real Balancing ActA Real Balancing ActA Real Balancing ActA Real Balancing Act
Funding
Good Project
Applications
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Thank YouThank You