04/10/23 We Add Value to Media 1

HIGHWAY AFRICAHIGHWAY AFRICACONFERENCE CONFERENCE

20082008Media DevelopmentMedia Development

& & SustainabilitySustainability88thth September 2008 September 2008

GrahamstownGrahamstown

04/10/23 We Add Value to Media 2

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

04/10/23 We Add Value to Media 3

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

04/10/23 We Add Value to Media 4

What do you Fund?What do you Fund?

Newspapers / MagazinesNewspapers / Magazines

Radio StationsRadio Stations

Television, Video ProductionTelevision, Video Production

Printing PressesPrinting Presses

04/10/23 We Add Value to Media 5

“In many countries, the chief barrier to free expression is no longer censorship. It is cash.”

The Economist,

The Major Challenge..

04/10/23 We Add Value to Media 6

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

04/10/23 We Add Value to Media 7

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

04/10/23 We Add Value to Media 8

TV Station TV Station

04/10/23 We Add Value to Media 9

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

04/10/23 We Add Value to Media 10

SamdefSustainable

independent media

Affordable financing

Repayments

Samdef’s Revolving Fund

04/10/23 We Add Value to Media 11

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

04/10/23 We Add Value to Media 12

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

04/10/23 We Add Value to Media 13

Samdef Sectoral DistributionSamdef Sectoral Distribution(by value)(by value)

58%

15%

22%

5%

Newspapers

Radio

TV

Other

04/10/23 We Add Value to Media 14

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

04/10/23 We Add Value to Media 15

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

04/10/23 We Add Value to Media 16

Samdef HouseSamdef House

04/10/23 We Add Value to Media 17

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

04/10/23 We Add Value to Media 18

Infrastructural Investments Infrastructural Investments (Printing Press & Transmitters) (Printing Press & Transmitters)

04/10/23 We Add Value to Media 19

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

04/10/23 We Add Value to Media 20

“Increased funding enquiries and applications against a backdrop of limited (donor) funding

The Major challenge..sustainability

04/10/23 We Add Value to Media 21

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)

04/10/23 We Add Value to Media 22

A Real Balancing ActA Real Balancing ActA Real Balancing ActA Real Balancing Act

Funding

Good Project

Applications

04/10/23 We Add Value to Media 23

Thank YouThank You