STRATEGIC PLAN AND BUDGET 2007-2010 ____________________________ A briefing to the Parliamentary Portfolio Committee on Communications 30 March 2007

Team members Kanyi Mkonza (Chairperson) Lumko Mtimde (CEO) Mazibuko Jara (Board member) Chris Moerdyk (Board member) Mbuyiseni Jafta (CFO) Jayshree Pather (Projects Director)

Introduction The Agency presents this Strategic Plan for the MTEF period 2007-10 Our priorities are informed by the legislative mandate and medium to long-term plans.

VISION “EACH AND EVERY SOUTH AFRICAN CITIZEN SHOULD HAVE ACCESS TO A CHOICE OF A DIVERSE RANGE OF MEDIA”

MISSION “ A DEVELOPMENT AGENCY THAT WILL ASSIST IN BUILDING AN ENVIRONMENT WHERE A DIVERSE, VIBRANT AND CREATIVE MEDIA FLOURISHES AND REFLECTS THE NEEDS OF ALL SOUTH AFRICANS.”

MANDATE CREATE AN ENABLING ENVIRONMENT FOR MEDIA DEVELOPMENT AND DIVERSITY WHICH REFLECTS THE NEEDS AND ASPIRATIONS OF ALL SOUTH AFRICANS REDRESS EXCLUSION AND MARGINALISATION OF DISADVANTAGED COMMUNITIES AND PERSONS FROM ACCESS TO THE MEDIA AND THE MEDIA INDUSTRY PROMOTE MEDIA DEVELOPMENT AND DIVERSITY BY PROVIDING SUPPORT PRIMARILY TO COMMUNITY AND SMALL COMMERCIAL MEDIA PROJECTS

Objective of the Agency in terms of the Act Encourage ownership and control of, and access to, media by HDC as well as by historically diminished indigenous language and cultural groups, Encourage the development of human resources and training, and capacity building, within the media industry, especially amongst HDGs, Encourage the channelling of resources to the community media and small commercial media sectors, Raise public awareness with regard to media development and diversity issues, Support initiatives which promote literacy and a culture of reading, Encourage research regarding media development and diversity, and Liaise with other statutory bodies, such as ICASA and USAASA.

APPROACH The provision of grants and subsidies – both to individual media projects and to create an enabling environment for media development and diversity Leveraging resources and support through technical assistance Conducting and funding research Facilitating capacity building Advocating for media diversity

VALUES INTEGRITY WE ARE HONEST, RELIABLE, FAIR, ACCOUNTABLE AND RESPONSIBLE FOR OUR ACTIONS CARING WE ARE TOLERANT; COURTEOUS AND RESPECTFUL TO OUR STAFF AND CLIENTS ALIKE PROFESSIONALISM WE ARE EFFICIENT, EFFECTIVE, SERVICE DELIVERY ORIENTATED, PUNCTUAL, PERFORMANCE DRIVEN AND WORK COLLECTIVELY COMMITMENT WE ARE PASSIONATE, GO THE EXTRA MILE, RESPONSIVE, HAVE A STRONG WORK ETHIC, CONSISTENT AND ACCESSIBLE TRANSPARENCY WE ARE OPEN AND PARTICIPATORY IN OUR DEALINGS WITH INTERNAL AND EXTERNAL PARTIES

LEGISLATIVE ENVIRONMENT (Amongst others) MDDA Act ECA PAJA PFMA ICASA Act BBBEE Act LABOUR RELATIONS Act SKILLS DEVELOPMENT Act PAIA Interceptions of Communications and Provision of Communication-related Information Act Electronic Communications Security (Pty) Ltd Act PPPFA

CURRENT PERIOD REVIEW AND HIGHLIGHTS PMG note: graphics not included, please email info@pmg.org.za

Setting up of the organization in 2003 and systems as well as moving into new premises in 2006

The development of a set of regulations to govern the MDDA The development and institution of effective organizational policies Populating the organisation with staff to run the affairs of the organisation Finalising funding agreements with government and the funders Making the first funding decisions in January 2004

The spending of approximately R20m in grants by March 2006 for just under 100 media projects Radio Teemaneng, Northern Cape Barberton Community Radio, Mpumalanga PMG note: graphics not included, please email info@pmg.org.za

KraftMedia Publications, KZN The spending of approximately R45m by March 2007 for 135 media projects KraftMedia Publications, KZN KZN PMG note: graphics not included, please email info@pmg.org.za

More than 40 of these did not exist prior to the establishment of the MDDA support PMG note: graphics not included, please email info@pmg.org.za

The provision of bursaries to 41 different radio and print managers “I write express my institution’s deep gratitude for the financial support that the MDDA gave to community media editors and managers who participated at the recent Essentials of Newspaper Management course run by Rhodes University’s Sol Plaatjie’s Institute for Media Leadership” Frances Ndlongwa - Director

The evaluation of MDDA organizationally after 3 years of operation The provision of awareness of resource needs and availability for the sector through resource mobilization workshops The evaluation of MDDA organizationally after 3 years of operation The consistent receipt of unqualified audits not even with matters of emphasis Presentation of 2005/6 Annual Report PMG note: graphics not included, please email info@pmg.org.za

Profiling the MDDA – safm radio interviews, annual report launch, sabc tv news coverage, city press, bizcommunity, leadership magazine, ceo magazine, presentations at different Local and District Municipalities, SALGA, etc. Maintaining good relations with stakeholders – funders, parliament, the presidency, doc, gcis, USAASA, ICASA, etc.

Working as a team internally Staff development opportunities, e.g. project management, records management, financial management, risk management The growth of demand for MDDA support Reaching our disbursement target

CHALLENGES

EXTERNAL CHALLENGES Limited funding and the expiring of the current funding agreements The market environment for print media development is not enabling Loss of skills from small commercial and community media to the more lucrative commercial/private media and public broadcasting sector Limited broadcast frequency spectrum Limited exposure of small commercial and community media to marketing and advertising revenues

INTERNAL CHALLENGES The level of organisational skills and capacity both in terms of numbers, knowledge and skills PMG note: graphics not included, please email info@pmg.org.za

STRATEGIC FOCUS FOR 2007-2010

RATIONALE Historically disadvantaged communities are deprived of access to information that can assist them to participate actively in the democratic processes of our country. Current media is still insufficiently diverse with respect to reflection of the concerns of especially the socio-economically marginalised communities and the use of indigenous languages.

In many communities, especially rural communities, frequency allocation and distribution is inadequate Small commercial media projects have limited access to printing in terms of lack of resources (costs and facilities) Access to advertising for small commercial media remains a stumbling block to their growth and viability. Similarly their inability to acquire the audit bureau of circulation (abc) certificate disadvantages them in the marketplace The sector lacks appropriate and relevant skills in respect of marketing; financial management and production management

There is a dearth of knowledge and information that can adequately identify critical issues in the small commercial and community media sectors in South Africa for innovation The small commercial and community media sector is further disadvantaged by the lack of appropriate skills in the management, development and sustenance of their efforts. There is also the lack of research and information specific to the sectors that inform program development and strategic focus (e.g. Not much information on the number of indigenous language newspapers in S.A., number of readers of such newspapers, etc.)

OVERALL OBJECTIVE “TO ENSURE THAT ALL CITIZENS CAN ACCESS INFORMATION IN A LANGUAGE OF THEIR CHOICE AND CONTRIBUTING TO THE TRANSFORMATION MEDIA ACCESS, OWNERSHIP AND CONTROL PATTERNS IN SOUTH AFRICA”

PURPOSE “TO STRENGTHEN THE SECTOR THOUGH THE PROVISION & LEVERAGE OF RESOURCES, KNOWLEDGE AND SKILLS IN PURSUIT OF PROMOTING MEDIA DEVELOPMENT AND DIVERSITY”

RESULT AREAS IN RELATION TO THE PURPOSE STATEMENT Advocacy for the sector Grant and seed funding support for community and small commercial media in the nodal areas and the sector Communications and public awareness with regard to the sector and the MDDA in general Capacity building interventions for beneficiary organisations and communities including mentorship and monitoring & evaluation Fundraising and resource mobilisation Research and knowledge management Stakeholder management

RESULT AREAS STRATEGIC OBJECTIVES AND OUTPUTS

ADVOCACY To contribute towards improving the operating environment of the community and small commercial media sector At least 1 submission made to Parliament, ICASA, Government, Regulatory proposals accepted and effected by ICASA Desired changes/amendments in the MDDA Act A more conducive operating environment for media development and diversity Draw on international experiences and share S.A.

FUNDRAISING AND RESOURCE MOBILISATION To increase the funding and resource base of the MDDA and its beneficiaries Fund development strategy and plan developed and approved by the Board Increased funding levels for MDDA programs

COMMUNICATION AND PUBLIC AWARENESS To enhance and position the MDDA as a leader in the media development and diversity sector A perception survey in place MDDA branding strategy ad plan in place Profile the Agency and increase public awareness Recognition by stakeholders of the role of MDDA in media diversity and development

STAKEHOLDER MANAGEMENT To strengthen relations with MDDA contractual and non-contractual stakeholders Stakeholder management plan in place Joint initiatives in media development and diversity undertaken with stakeholder Increased exchange of knowledge, skills and experiences in the sector Increased revenues for the sector

GRANT AND SEED FUNDING To promote and strengthen the small commercial print and community media At least 1 community radio per district municipality funded At least 1 community newspaper per district municipality funded At least 1 community television per province funded 1 media co-operative per district funded guided by the feasibility study on the viability of co-operatives At least 1 hub per province (print & radio) funded Number & range of student media funded

GRANT AND SEED FUNDING To promote and strengthen the small commercial print and community media Number & range of atypical media funded Number & range of new media funded 13 CRs in the nodal areas funded Number & range of content development initiatives Number and spread of small commercial newspapers, online newspapers and/or magazines funded

CAPACITY BUILDING INTERVENTIONS FOR BENEFICIARY ORGANISATIONS AND COMMUNITIES To enhance the sustainability of the community and small commercial media There is growth in the number and range of community owned and small commercial media Beneficiary organisations and community media are self sustainable, better managed and comply with their contractual obligations Beneficiary organisations and small commercial print media are self sustainable and better managed Increased number of people with relevant skills in the sector A % reduction in the labour turnover in the sector

RESEARCH AND KNOWLEDGE MANAGEMENT To enhance innovation and learning in the sector A research and knowledge management plan in place New and innovative initiatives in the sector emerge Extended knowledge of issues in the sector Positive and sector enabling legislation in place Increased number and range of knowledgeable people in the sector

CRITICAL ASSUMPTIONS

Sufficient legislative, regulatory and govt policy positions exist to support efforts of the sector The MDDA Act provides for the development and support of the sector. There is a need for expanded funding beyond current funding agreements There are funders and donors who are willing and able to fund the work of the MDDA

The MDDA regulations prescribe categories to be funded by the MDDA The MDDA has received requests in excess of R150m in the financial year preceding and up to 2006

Beneficiary organisations are wiling and able to participate in MDDA sponsored interventions There is a sufficient base of trainers and mentors in the sector

There is a need and hunger for knowledge sharing and dissemination in the sector There is an approved budget for project implementation

RISKS

Legislation and the regulations governing the MDDA may prove to be inflexible and stifle program implementation. The agency may not have sufficient and skilled human resources and progressive polices and systems that are sufficiently motivating to encourage effective performance. The misuse of allocated funding by beneficiaries and the collapse of confidence in the MDDA by stakeholders Closing down of funded projects.

RISK CONTAINMENT MEASURES

Apply diligent project assessment and continuous monitoring and auditing of the projects and take appropriate disciplinary and corrective actions were necessary through amongst other things, insistence to contractual agreements, Ensure that funded projects submit annual audited financial statements, Management with the assistance of the board will maintain strict controls of the legislative framework through regular internal and external audits as well as board self assessments. The board and senior management will conduct regular meetings and sessions to brief the minister and the portfolio committee to ensure continued support for the program.

Board approve a revised organogram based on human requirements for running a smooth organisation and in preparation for managing growth. Undertake regular organisational climate surveys and to commit to a regular staff development program and the review of polices and systems to facilitates and improve performance in the organisation.

REQUIRED ORGANISATIONAL CAPACITY FOR THE PERIOD AHEAD Board

MDDA SUMMARY BUDGET 2007/08 Budget (R) 2008/09 Budget (R) 2009/10 INCOME 24,208 000 39,510 000 42,237 000 TOTAL EXPENDITURE 23, 664 000 39,491 000 42,001 600 Programme Costs 16,264 913 28,347 910 30,680 393 Operational Expenses 7,399 087 11,143 090 11,321 207 Capital Expenditure – Capex 544,000 19 000 235 400 DEFICIT/SURPLUS

MDDA SUMMARY BUDGET Notes: Financial Year 2008/10 Budget based on the human resources requirements as in the proposed organogram. Please note that this budget is based on the assumption that broadcast service licensees will contribute 0.2%, which is the current ICASA regulatory requirement. It is therefore a conservative assumption, as ECA of 2005 provides for any determined (as prescribed) contribution which must not exceed 1% of the licensees annual turn over.

MDDA SUMMARY BUDGET Notes: This budget is in compliance with the regulatory limit of 25% for administration.

CONCLUSION Thank you 30 March 2007