The Committee on Communications held its public hearings on the GCIS Budget Vote on 15 June 2004.

• Mr. Joel Netshitenzhe: Chief Executive Officer

• Tony Trew

• Ilva Mackay Langa

• Keith Semakane

• Mr. Kheepe Moremi: Marketing Director

• Moletsi Mabuku: Chief Financial Officer

• Kanyi Mkonza: Chairperson of the Board

• Tony Trew: Member of the Board

• Libby Lloyd: Chief Executive Officer of the MDDA

• Annand Chaytoo: Finance Manager

The presenter, Mr Joel Netshitenzhe welcomed the invitation from the Ad Hoc Committee to make a presentation on the GCIS Budget Vote No. 7. The presentation dealt with communication milestones of the past year and the communication challenges of the Second Decade of Democracy.

a) The Growth and Development Summit and its extended follow-up, which included a National Imbizo Focus Week on the theme of A People’s Contract for Growth and Development. This was the largest Focus Week, which included 140 events (which compares to the 170 events during the first Focus Week) involving representatives from all the spheres of Government across the country.

b) The completion of the Truth and Reconciliation Commission (TRC) process with the release of its final report also required an integrated communication strategy across all structures of Government. Similarly, the annual 16 Days of Action for No Violence Against Women and Children also required the same strategy. This campaign extended its reach and impact.

c) The Ten Year Review, managed by the Presidency, and the release of the Census 2001 results, required interaction across all departments both with the public and with a range of researchers and stakeholders, including the media. Given the importance of the Ten Year Review for evaluating progress and assessing future challenges, the GCIS ensured that the results of the review reached as many citizens as possible.

d) The GCIS also played a role in Ten Year Celebrations, locally and abroad, through its work in support of the Inter-Ministerial Committee.

e) The GCIS played a central role in the communication campaign around the 40th anniversary of Africa Day, and it is intimately involved in the integrated work of Government to realise the objectives of the African Union and New Partnership for Africa’s Development (Nepad).

f) At the end of the current financial year, 56 Multi-Purpose Centres (MPCCs) have been opened. Government is thus well on course to meet the objective of 60 MPCCs by the end of the 2004 calendar year, with the aim of one MPCC in each district and starting the protracted programme

to have one MPCC in each of the 248 municipalities. A joint effort with the Department of Trade and Industry (DTI) saw the establishment at three MPCCs of pilot Business Zones that bring information about economic opportunities and support services within easier reach of communities. The GCIS will review and assess the programme after the initial implementation.

g) The past year also saw intensive interaction with the Department of Public Service and Administration in preparation for the introduction of Community Development Workers and the launch of the Batho Pele e-Gateway. The Bato Pele e-Gateway is an initiative to assist citizens

getting access to government services through the use of Information and Communication (ICT).

h) The process towards the Transformation of the Advertising and Marketing Industry is also making progress, drawing on the impetus given to it by the Portfolio Committee on Communication. A baseline empowerment survey has begun. This will help the industry in setting benchmarks and targets (some benchmarks and targets have been developed and implemented)

for transformation that will inform a balanced scorecard and a charter. Research is also in progress to update the Advertising Transformation Index that compares adspend against the composition of the population and audiences. All this work will inform the report which the

Transformation Monitoring and Steering Committee will be giving to the Portfolio Committee later this year.

Government’s capacity to meet the communication challenges of major initiatives, as well as the ongoing work of communication in support of the implementation of the Government’s Programme of Action, depends on the continuing progress in key areas in the core mandate of the GCIS. This means strengthening the Government Communication System; widening access to Government information as well as more broadly to the means of receiving and imparting information and ideas. Progress continued in these areas during the period under review.

GCIS has had to engage in a longer-term assessment of progress of its work in the First Decade of Freedom as a foundation for addressing the communication challenges of the next decade. GCIS therefore looked at its directives which resulted from Cabinet’s adoption of the recommendations of the Comtask Report.

a) Access to communication and information: The major initiatives for enhancing the infrastructure and environment of communication are making an impact.

• The MPCC programme almost completed Phase 1 and is preparing for Phase 2.

• The MDDA is established and functioning.

• The process towards the Transformation of the Advertising and Marketing Industry is moving fast.

• The Internet is playing an increasing role in broadening access, both directly and through its support for MPCCs and other intermediaries. The Government On Line website has been redesigned to make it more user-friendly. The number of hits that the site receives has

increased from 4.3 million visits in 1999 to 8 million in 2004.

• A substantial shift towards unmediated communication is both improving access to Government information and affording citizens more opportunity to make their views and concerns known to the Government. This has involved Imbizo; more use of broadcast media, in particular in African Language Stations; systematic use of bigscreens to bring major events especially in rural areas; translating publications into all languages, including the use of Braille and tapes for people with disabilities.

b) Government-wide communication system: A more effective system is in place to promote coordination and coherence, compared to five years ago.

• A number of structures are providing coordination, including the Government Communication Forum (three times a year); Pre-Cabinet Meetings; Communication Clusters; Provincial Heads of

Communication meetings and the Ministerial Liaison Officers’ Forum. Work towards strengthening local government capacity has been initiated.

• Cabinet/FOSAD leadership of communication, leading to greater coherence and integration, is being effected through an annual strategising cycle driven by Magkotla and the State of the Nation Address; monthly DG Cluster Meetings in which a communication presence has been established; fortnightly Cabinet Current Affairs discussion and Bua Briefs; weekly GCIS Secretariat meetings and daily Rapid Response.

• Communication is informed by annual, monthly, weekly and daily research, monitoring and analysis of the Communication environment, as Comtask recommended.

c) International communication: This is another focus of the Comtask Report, which is getting more coherent, and is helping to improve South Africa’s image.

• The International Marketing Council (IMC) is making its contribution to building consensus amongst South Africans on how we represent ourselves to the world. The IMC is also helping to coordinate the communication effort of various State, public and private entities in marketing our country to the rest of the world.

d) Relations between government and the media: The relationship has improved. More regular contact has been promoted between the Executive and the media, including through the Presidential Press Corp.

• The SANEF-Cabinet Indaba led to a mutual commitment to improve relations as well as enhance skills and professionalism on both sides. Some Indabas have been held between provincial executives and SANEF.

The Ten Year Review concluded that if we are to reach the higher growth and development path, then we need a major intervention to reinforce the consolidation of democracy with measures aimed at integrating all of society into a growing economy from which they can benefit. Given this conclusion, the question arises, how can GCIS enhance the government communication system

and its operations in ways that contribute to this process? Corresponding to the four broad national challenges of the next decade, are strategic communication initiatives that should act as catalyst for the general enhancement of the communication system and its operation. The challenges for GCIS are thus:

a) Providing leadership in government communications and ensuring better performance by the communications system

• GCIS must take responsibility for ensuring the Government is communicating interactively with the public.

• GCIS needs to be at the forefront of analysis of the communication environment so that it can identify initiatives to be taken in enhancing the work of Government, and to enable it to respond effectively when required.

• Strengthening and integrating the Government Communication System remains of crucial importance.

b) Building a framework of communication partnerships informed by an encompassing vision around common development objectives

• GCIS must take overall responsibility for promoting an active partnership amongst all communicators, inside and outside of Government, in articulating a shared vision and value system for a caring society and in broadening access to the means of receiving and imparting information and ideas.

• This includes improving relations with the media and with communicators in parastatal bodies and the private sector, including in international marketing efforts.

c) Promoting awareness of the opportunities that democracy has brought and how to access them

• GCIS will need to intensify the provision of basic information to the public about the rights of citizens and how to take advantage of Government’s socio-economic programmes as well as about the general process of policy development.

• Attention will need to be given to improving the quality of information products, to broadening the platforms of communication and enhancing the effectiveness of GCIS’s distribution strategy in reaching all citizens.

d) Promoting awareness of the institutions and programmes of continental and regional integration and development

• GCIS should encourage and lead campaigns across Government and society to enhance public awareness of developments in the region and continent, and promote engagement with regional and continental institutions and programmes.

• Sustained profiling of the benefits of African development to South Africa and the rest of the continent will receive special attention.

e) Communication research and information: GCIS will play a key role in identifying areas of communication research as well as receiving relevant research reports from other sectors.

In the first months of the Government’s new term it will be of vital importance to speedily disseminate the detailed programme of action and timeframes which the President outlined in the State of the Nation Address. To this end there will be a major multi-media transversal campaign in all languages. This will include National Imbizo Focus Week during September.

The thrust in Government’s programme of action towards the First Economy and concerted Second Economy interventions will require corresponding communication thrust. This will need multi-media campaigns appropriate to the fact that the economically marginalised also tend to have least access to the information which they could use to change their situation. This would require new communication products, including a mass publication on economic opportunities produced by the Economic Cluster which will be launched in a matter of weeks.

Promoting partnerships will be a continuing theme of Government communication, receiving more emphasis to build on the greater consensus around development goals and a greater readiness of social sectors to work together, which are reflected in the positive mood of the country. This will include promoting participation of the public in implementing programmes to improve their own lives as well as promoting partnerships with those sectors of society whose command over resources is critical to the success of policies for a growing economy. It will also involve building partnerships with communicators outside Government.

Enhanced unmediated communication and improved interaction with the media will both be pursued. The former will include building on progress in making Imbizo an integral part of governance, amongst other things further integrating door-to-door inteaction in Imbizo.

The budget for the financial year 2003/04 was R178.5 million. There was overexpenditure

of R112, 000, equal to the required provision for Thefts and Losses. The budget for the current financial year (2004/05) is R203.1 million, including an increased allocation for the IMC and additional allocation by the National Treasury for the Tenth Anniversary Celebration campaign.

Regarding the GCIS establishment, the following has been noted:

• The total staff compliment should be 432. For this financial year 381 are funded while 51 are unfunded.

• The current posts filled stands at 357, of which the male/female ratio is male 49% and female 51%.

• In Senior Management males constitute 62% and females 38%.

• Disabled people constitute 1,7%, compared with the government-wide target of 2% for 2005. GCIS has also sent job advertisements to DPSA to aid GCIS in finding suitable candidates.

a) What are GCIS doing to expand the MPCCs to make it more accessible to the rural communities? In this regard, is GCIS using the existing Traditional Council Structures to house the MPCCs?

b) The Public Service Commission (PSC) Report on MPCCs made certain recommendations. What is being done regarding these recommendations, for example, the PSC Report commented on the services being offered by MPCCs in that departments have not budgeted for staff to work in the MPCCs which hampers the quality of services being offered. Also, there seems to be no integrated plan from the various departments when MPCCs are established.

c) The PSC Report also made recommendations regarding the state of the MPCCs physical structures. What is Government doing to ensure that the MPCCs are housed in quality structures?

d) What are the linkages between telecentres and MPCCs?

e) What is GCIS doing to help the plight of the Parliamentary Press Gallery?

f) It is not only the rural communities but also the urban poor and the unemployed that rely on radio for information. Is GCIS targeting these groups?

g) Are the visitors to the Government Online website from inside South Africa or outside?

h) GCIS published a telephone number for people to call regarding the TRADITIONAL COMMUNITY reparations, which was incorrect. When GCIS facilitated this service did

they do any follow-up regarding the incorrect information, and when did GCIS realise the information (telephone number) was incorrect?

i) For how long is the Ten Years of Freedom celebrations campaign going to continue?

j) What is the global amount allocated for Imbizos?

k) Are Imbizos accessible to the deaf? Do GCIS make provision for the deaf when they use the big-screens to screen major events?

l) The use of big-screens to screen events such as the State of the Nation Address is applauded, however it does not always take into consideration the linguistic diversity of the country.

m) What is the status of the Presidential Press Corp?

n) What is the GCIS doing to ensure that its products are reaching everyone?

a) Phase 2 of the MPCCs initiative are being implemented and Government is conducting an audit to ascertain how existing structures, such as the Traditional Council structures, can be turned into MPCCs and thus reaching the goal of establishing 284 MPCCs. The envisaged rollout of 284 MPCCs should suffice to cater to the needs of all. Furthermore, the Communication Officers in the MPCCs should travel within the location where the MPCC is situated so as to distribute material, and work with other partners to disseminate information.

b) The recommendations of the PSC regarding MPCCs are being dealt with. The National Inter-Sectoral Steering Committee NISSC) has written to DGs in all departments regarding the problems raised in the PSC Report. The NISSC and GCIS are also working closely with the Department of Public Works to improve the quality of the physical structures of the MPCCs. However, Government has not reached a stage yet to legislate to ensure that departments contribute to the successful operation of an MPCC.

c) The 3000 buildings identified for the use of MPCCs include the Traditional Council structures. A decision must be taken which sites are going to be utilised.

d) GCIS is working with other role-players/partners regarding the linkages between telecentres and MPCCs.

e) GCIS is not in the position to interfere with the matter between Parliament and the Parliamentary Press Gallery.

f) GCIS is working with the Department of Trade and Industry, and others, to target the unemployed youth. GCIS information is not making a great impact amongst the youth and it remains a challenge to GCIS, which need to be addressed. GCIS is also looking at finding more effective communication strategies to reach the unemployed and thus contributing to bridging the First and Second economies.

g) It is difficult to ascertain where the visitors to the Government Online website are from. However, GCIS should perhaps devise some mechanism to see where the hits to the site come from.

h) The problem with the incorrect telephone number appearing in a GCIS product is unfortunate as GCIS takes great care when publishing information. It was only after the material had been published that a new telephone was given, and it was unfortunately too late. However, the matter was rectified and those wishing to access the service could do so.

i) Most of the budget for the Ten Years Celebrations has been spent, although it is still a line item in this year’s budget. The Ten Years Celebration is intended to continue for the rest of the year.

j) There is, unfortunately, no global figure for the cost of the Imbizo’s. However, GCIS recognises that, for the sake of transparency, it should have been included. GCIS is working towards rectifying this. Products related to the Imbizos are produced not only for Imbizos, but relate to

other activities as well.

k) GCIS rely on broadcasters, in some instances, to provide services to the deaf. Similarly, GCIS also relies on the broadcasters to provide simultaneous interpretation facilities to provide for linguistic diversity. GCIS does ensure that services to the deaf are available when using the

big-screens. Services for the deaf at the Imbizos is a weakness, which GCIS has recognised and will be working on improving. In most cases where events are screened on the big-screens, such as the State of the Nation Address, Communication Officers or GCIS officials provide some

linguistic service to the communities.

l) The Presidential Press Corp is not functioning optimally. This is so because the media would prefer more regular briefings than the irregular briefings that are held.

m) GCIS, together with other partners, are working towards improving the capacity of Government Communication Officers. To this end, an Academy of Communications to train Government Communication Officers has been initiated. The first class had an intake of 46 students. The annual Government Communicators’ Award is also encouraging communication officers to improve.

n) GCIS is in partnership with the FRU and others to launch a Community Film Festival, which will be shown at MPCCs. Films and documentaries about Africa will form part of the film festival.

o) GCIS should also look into the possibility of making some of its products available at commercial outlets.

The primary objective of the (IMC) Trust is to develop and implement a pro-active and coordinated international marketing and communication strategy for South Africa.In order to achieve this, the primary objective must:

• Develop a South African brand identity that will advance South Africa’s objectives for investment, trade, tourism and international relations.

• Seek to build national support for the brand in South Africa.

• Seek the involvement and cooperation of various Government departments, public entities, private sector and non-governmental sector in achieving this objective.

• Seek to build awareness and image for the brand in other counties.

Since its establishment in 2001, the IMC has initially started building a framework for, and laying a foundation on which to build, "Brand South Africa".

Key highlights of the IMC include, amongst others:

a) Advertising: In April 2003, the "Brand South Africa" national pride campaign was launched on radio, and in May the launch of the television advertisement, "Today I woke up . . ." was launched. Approximately 10 000 radio spots and 337 television spots were aired. The television

advertisement has subsequently won the FM ADFOCUS 2004 award for "Pay-off line of the year". These advertisements had a ripple effect on the big corporations. Many corporations, such as banks, are beginning to change their advertisements to reflect images or stories, which tell a

positive story about South Africa.

b) Corporate support: The IMC’s television advertisements have been used in internal communications, corporate events and in some instances for international audiences. Organisations like KPMG, the BBC, the CSIR, Hollard Insurance, Coca Cola, Discovery Health, the SA Consulate General in New York, the South African Textile Industry Export Council,

TISA, the Department of Environmnetal Affairs and Tourism, SA Rugby and Ethekweni Municipality were amongst the many who approached the IMC to use the advertisements in their communications.

c) Valuing the brand: During the period under review, Professor Roger Sinclair used his BrandMetrics methodology to calculate the value of South Africa as a brand. Based on this methodology, "Brand South Africa" is estimated to be worth R379.5 billion today, which places it alongside brands like Coca Cola, IMB and Microsoft.

d) Thought leaders: The IMC invited Dr. Hiscam El-Agamy, Director of Corporate Development for the International Institute for Management Development (IMD), to South Africa to communicate an outsider’s perspective on the country, as it is reflected in the IMD International World Competitiveness Yearbook 2003. The IMC also hosted two events at the JSE Securities Exchange during which Dr. El-Agamy inspired his audience with a presentation on South Africa’s impressive, but little known rankings. The presentation aimed to encourage the business community in particular, to focus on the country’s many inherent successes, strengths and skills, and to actively promote these.

e) The South African Story: The "South African Story" booklet, which is filled with interesting facts that illustrate how much South Africa has achieved in its 10 years of freedom, was launched towards the end of 2003. This booklet was compiled for South Africa’s many "ambassadors", to ensure that they are armed with the mind opening facts necessary to change perceptions about South Africa. The IMC also printed, at the request of South African Airways (SAA), 100 000 copies. This was distributed on all SAA flights on Freedom Day, 27 April 2004 and the week

following. This project has enabled the IMC to reach a far wider target audience.

Since the inception of the IMC, a number of key tools have been developed. These are:

a) Communication Resource Centre (CRC): This state-of-the-art centre was established in April 2002 with the aim of enhancing communication with key stakeholders, in order to promote and maintain the integrity of the South African brand. The CRC monitors international media mentions of South Africa and tracks the uptake of the "Brand South Africa" message.

b) Information Resource Centre (IRC): This centre was established as a management tool to address the IMC’s knowledge management challenges. The IRC provides a content repository facility, which aids the IMC in identifying, capturing, customising and disseminating evidence of

the country’s core brand essence, "Alive with Possibilities". Towards the end of the year under review, the IRC was incorporated into the CRC.

c) Brand definition: The first major step was to develop the "Brand South Africa" campaign. South Africa’s brand definition provides the template against which to measure all communications, and forms the basis for the IMC’s strategy in selling South Africa to the world.

Other (ambitious) marketing tools (for the future) include:

• An Outreach Programme which aims to bring influential people, such as business people and asset managers, to South Africa and encourage them to see the positive side of the country. This would also be done through direct mailing and e-marketing.

• A Partnership Programme which would entail bringing the 15 most influential women in the world, the Chief Executive Officers of stock exchanges, and the 8 top Chief Executive Officers of the top companies on the world stock exchanges, to South Africa.

• An Ambassador Programme, which would entail using the IMC’s Country Managers in the United States of America and the United Kingdom to encourage a pool of respected business or influential people in these countries to validate and endorse the positive message of South Africa.

The IMC plans to:

• Continue with domestic marketing and mobilisation, which would include

telling positive South African stories through advertising and getting others

(corporates) to amplify these stories.

• Intensify global marketing, which would include taxicab advertisements in

the United Kingdom and placing advertisements in magazines such as

"Fortune" and "Economist".

The IMC is also in the process of recruiting the necessary staff to enable it to

function optimally.

a) How much money was misappropriated with regard to the fraud case?

b) Do the IMC have internal audit mechanisms?

c) Do the IMC target the deaf with its television advertisements?

d) Can the South African brand be associated with an image, such as the

kangaroo of Australia, or a one-text word?

e) How many South Africa citizens are supporting "Brand South Africa"?

f) What are the linkages between the "Proudly South Africa" and other

similar campaigns, and the campaigns run by the IMC?

g) To what extent is the IMC influencing other South African campaigns?

h) How many direct or indirect jobs have been created by the IMC’s

campaigns?

a) The money misappropriated amounts to R690 000.

b) The IMC share an internal auditing company with the GCIS and an

Internal Auditing Committee has been established. The fraud happened at

the establishment stages of the IMC and the IMC only discovered the

fraud at a late stage. Since then HR, Procurement and Financial policies

have been put in place to ensure that further incidents do not happen, as

well as ensuring that the IMC conforms to the requirements of the PFMA.

c) The IMC does not have an approach yet to reaching the deaf with the

television advertising campaigns. It is a weakness, which will be

investigated by the IMC.

d) Symbolic branding is a key challenge. However, a more pressing

challenge for the IMC is to embed positive South Africa thoughts in the

minds of the world. This is done through various advertisement

campaigns, which the IMC is hoping will create a catalyst to others to

spread the word about South Africa.

e) Although marketing surveys have been used to ascertain how many

people support "Brand South Africa", it is very difficult to ascertain the

extent to which the campaigns have made an impact. Although 80% of the

South African population has been reached by the campaigns, local

attitudes and perceptions towards South Africa has not changed to an

extent where everyone is positive about South Africa. Surveys will be

conducted later in the year to re-assess the shift of attitudes and

perceptions, if indeed there has been a shift.

f) Unfortunately, the IMC is not doing enough to cement ties with the

campaign drivers of the "Proudly South African" campaign due to a

shortage of staff.

g) The IMC is trying to create linkages with other campaign drivers such as

provincial trade and investment bodies. The IMC has also identified key

integration points such as tourism, which should adopt the "Brand South

Africa" campaign and hopefully this will filter down to others.

h) It is difficult to ascertain or claim that the IMC contributed to any job

creation. What the IMC is doing, is to raise the image of South Africa and

to say that South Africa is a country to invest in, which in turn will lead to

job creation.

The vision of the MDDA (hereinafter referred to as "the Agency") is to ensure that

each and every South African citizen should have access to a choice of a diverse

range of media.

The MDDA is 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.

• The MDDA Board was appointed in December 2002.

• In 2003 the Board had its first meeting.

• KPMG/UXOLO was appointed as project managers in March 2003.

• In July 2003 the Agency published its draft regulations.

• In August 2003 a Chief Executive Officer (Libby Lloyd) was appointed.

• In December 2003 the Agency’s Strategic Plan was adopted.

• In January 2004 the Agency made its first decision regarding applications

for funds.

a) Establishing the Agency: All internal systems and policies in line with the

PFMA have been finalised. The Agency also managed to achieve their

commitment to prudent financial expenditure on administration. Whilst the

regulations specify that the Agency should spend up to 35% of the budget

on administration in the first year, the Agency have managed to spend

under 27% of income on operational costs.

b) Developing regulations to determine criteria and other support: In

terms of the MDDA Act, the Agency must:

• Prescribe detailed selection criteria for community media, small

commercial media and research projects.

• Prescribe percentages of grant funds to be used for community media,

small commercial media and research.

• Prescribe the percentage of funds to be used for administration costs.

According to the regulations, at least 60% of grant money available will go

to community media (print or electronic) projects, 25% to small

commercial media and 5% to research projects. The regulations further

capped administration costs to 35% in the first year and 25% thereafter.

c) Researching the needs: In April 2003, the Agency commissioned

research (to the HSRC and Mediaworks) into the status of the community

and small commercial media sector (both in print and radio) and the

challenges faced.

The key research findings include:

• Rural areas do not have media diversity, only the major cities do.

• Women, the elderly, and people with disabilities are underserved.

• The print media makes up two-thirds of the small commercial media

sector.

• Radio makes up 91% of the community media.

• Media is predominantly in English.

• Electronic media is faced with lack of management skills, difficulties in

attracting advertising and the content is not developmental.

• The print sector faces similar challenges, but also faces difficulties in

distribution, high printing costs and verifying circulation.

It has thus become apparent that the Agency needs to map out gaps in

coverage of public and commercial operators to determine those areas where

little or no other media exists. This is being done together with the

Department of Communications (DoC).

d) Strategising for success: In December 2003, the Agency developed a

Strategic Plan, determining its plans, and detailing funding principles as

well as the grant-making cycle which Agency utilises to ensure efficiency.

The Strategic Plan outlines priorities for support and identifies what the

Agency will and won’t be able to fund (given the resources available to it).

These guidelines will be reviewed regularly taking into consideration the

needs of the sector, analysis of the impact of the Agency on media

development and diversity and funds available.

In line with this, and in order to ensure a fair and transparent decisionmaking

process, the Agency has developed a grant-making tool kit,

including templates for assessing applications, contracting partners and

monitoring and evaluation tools.

e) Disbursing funds: The first call for applications was issued in November

2003. The deadline for proposals was at the beginning of January. A total

of 27 applications were received. At the end of January the MDDA Board

made decisions on which projects to support, and the MDDA Board made

further decisions on applications on April 29 2004.

The Agency will be/are supporting 19 projects, totalling R3.6 million.

These are:

• 11 Community radio projects/partnerships, which include:

_ Moletjie Community Radio: To build a studio outside

Polokwane.

_ Moutse Community Radio (Dennilton), Takalani Community Radio

(Eastern Cape), Radio Unique (Eastern Cape), and Barberton

community radio: Mentoring.

_ Radio Mams in Mamelodi and Khathorus Community Radio:

Towards running costs.

_ Radio Teemaneng in Kimberley: Lightning conductor.

_ Radio Vukani Cala Eastern Cape running costs and infrastructure.

_ Workers World Production: Training on production of labour slots.

_ National Community Radio Forum: Research into establishment of

an ad agency, convergence, and cheaper signal distribution.

• 4 Community print projects/partnerships, which include:

_ High School Media Project – "Just Jy" (Cape Town): Training of

students over a year.

_ Agenda Feminist Media Project: Production of one edition a year

for three years and upgrade of computer equipment.

_ Amazwi Writers (Hluhluwe KZN): Seed funding to establish writers

training group and newsletter.

_ Nkomazi – the Voice: Emergency funding for six months production

whilst developing a sustainability plan.

• 4 Small commercial print projects/partnerships, which include:

_ Leseding News - Rustenburg and North West: Training and

computers.

_ Free State News: Training and equipment.

_ Big News - national magazine for SMME’s: Research.

_ Genuine Magazine – KZN family magazine: Strategic planning.

A further two projects have received in principle approval pending clarification of

their needs and the Agency is awaiting further information from another five

media entities. A total of 24 applications have been refused, primarily either as

they came from unlicensed radio stations or because they did not meet the

criteria in the regulations. The Agency attempts to give detailed reasons for any

refusal so that projects can if possible correct any problems and reapply.

The total amount granted so far amounts to just over R3.6 million. Altogether, the

Agency has been asked for close to R40 million with some individual projects

asking for as much as R5 million. Through the application process the Agency

works together with applicants to fine-tune their priorities. The average grant

provided amounts to approximately R200 000.

One of the objectives set by the MDDA Board in its first year of operation, was to

collect the funds pledged by broadcasting and print stakeholders to the Agency in

terms of Memorandum of Understandings (MoU’s) with the Minister in the

Presidency. According to these MoU’s, the major print and broadcasting entities

agreed to support the MDDA for five years.

The Board was tasked with the responsibility of converting these into funding

agreements. Funding partners wanted to see the regulations prior to discussing

any such agreements. The Board thus started negotiations on draft Funding

Agreements in November 2003.

The Agency is pleased to say that it has concluded these discussions with the

print partners and the agreement is currently being signed. The Agency is

saddened, however, at the possible loss of the NAIL contribution due to the sale

of their media assets.

The Agency is currently in discussions with the different broadcasters, and is

truly grateful for the support and commitment of the commercial and public sector

media partners to the partnership.

The Agency is also tasked with providing indirect support, including leveraging

resources. Whilst, during the year under review, the focus was on setting up the

Agency and developing the framework for disbursement of grants, the following

were also achieved.

a) Marketing workshops: The Advertising Media Association of South

Africa (AMASA) and the Advertising Media Forum (AMF) have agreed to

partner the Agency in hosting workshops on marketing for small

commercial and community media. The first of these workshops will be

held in Johannesburg in July 2004, with others held later this year in Cape

Town and Durban. This is the first time that organisations such as the

AMF and AMASA have participated so actively in providing such support

to the sector. This can be seen as the beginning of the process of

addressing difficulties the sector faces in attracting advertising.

b) Leveraging support: The Agency successfully intervened with the South

African Revenue Services (SARS) on behalf of a Johannesburg based

community radio station to prevent the station from being closed down.

The station was in arrears with its tax payments they appealed to the

Agency for assistance. SARS, at very short notice, provided more time to

the station to develop a plan to pay back the money owed.

c) Independent Communications Authority of South Africa (ICSASA):

The Agency and ICASA have agreed to enter into a Memorandum of

Understanding in order to ensure cooperation, where possible, to achieve

ICASA’s and the Agency’s mandates of increasing diversity in the

electronic media. ICASA has agreed to inform the Agency timeously when

it will be issuing new licences so that the Agency can inform and assist

community radio stations.

d) Department of Communications (DoC): The DoC, amongst other things,

provides support to install equipment in community radio stations around

South Africa. The Agency and the DoC have agreed to have ongoing

discussions to ensure that the two do not duplicate activities in order to

ensure maximum impact in the use of public funds to support the sector.

The DoC has further agreed to include the Agency on any committees

evaluating applications for studio equipment.

The emphasis in the current financial year (2004-2005) will be on implementing

and streamlining the Agency’s systems and policies to ensure efficient

distribution of funds and support. In subsequent years the Agency plan to focus

on addressing environmental problems proactively.

The Agency’s strategic plan has have been guided by the MDDA Act, the

research that have been conducted, learnings from other grant makers (including

the Open Society Foundation and the DoC), and the resources available to the

Agency.

The Agency has received R7 million from Government for this financial year.

Further, in terms of the funding agreements with major print and broadcasting

stakeholders the Agency project a further income of up to R9m, resulting in an

overall budget of about R16 million. The Agency has developed an operational

plan outlining activities that would assist it in reaching its strategic goals.

These are defined in a business plan, of which the following priorities are

highlighted:

a) Continued support for community and small commercial media

projects: This is one of the key objectives of the MDDA Act.

• A closed tender for an Information Management/Project Tracking

• The Agency has decided it will be both reactive and proactive. Whilst

responding to applications in quarterly cycles, the Agency will in this

year begin to explore support for the development of key projects,

which will assist in creating an enabling environment for media

development. It must be highlighted that effective proactive support is

not a quick fix. In order to develop a sustainable approach we must

ensure sector involvement in determining the approach and outcomes.

• One of the projects the Agency has already commenced with is looking

at ways to resolve difficulties with confirming audience and readership

figures. One of the key weaknesses is the fact that no research

methodology has been developed which focuses on the small media

sector. This impacts on the ability of projects to attract advertising and

potentially the relevance of their content. The Agency will soon be

hosting a round table discussion on this matter in order to assess the

best means of intervention. The Open Society Foundation has

expressed an interest in working together with the Agency in this

regard. The support of the SAARF has also been enlisted.

• External factors also affect the capacity of the Agency to build the

sector. With regards to radio and television, for example, the capacity

to absorb funds is determined by the number of licences available. The

Agency has been liaising with ICASA on creative ways to begin the

process of ensuring licensing in areas where there is little or no other

media available. They are committed to this but limited by lack of

resources (including time). The Agency, together with the DoC and

possibly the SABC, are also embarking on research regarding

community access to media.

• The Agency has decided to explore matching grants where possible.

This means that the Agency encourage the communities themselves to

provide support. So, for example, in Moletjie Village, the Agency has

agreed to provide building materials and the community radio station

has pledged to involve the community in the actual building of studios

on land, which has been donated by the local chief.

• In the last few weeks the Agency received applications from groups

focusing on addressing issues of disability. This still have to be

assessed, but the Agency want to work together with organisations for

people with disabilities on formulating guidelines to increase access to

the media as well as using media to raise awareness on disability

issues in communities. Hopefully the Agency will be able to report on

the progress on this and other areas.

b) Indirect Support/Leveraging Support

• The Agency is planning to investigate how it can partner with an

institution to provide low interest loans to the sector. The Agency will

explore different institutions, including other entities established by

government to provide support to SMME’s and organisations such as

SAMDEV, set up by Misa, to provide low interest loans to media in

Southern Africa. The Agency want to ensure that in this process it

share risk with any such other institutions. This project will commence

this year but is likely to be implemented fully only in the forthcoming

year.

• The Agency has also identified the need to establish partnerships with

other funding organisations supporting the media, in order to increase

the impact of grant-making organisations. In this regard, the Agency

want to assist in reviving the media funders forum which was

established to comment on the discussion paper on the establishment

of the MDDA.

• The Agency also wants to begin discussions with other grant-makers in

South Africa who currently do not provide support to media. In this

regard, the Agency want to interact with them to discuss the provision

of communications budgets to other community and non-profit

organisations. In this way the Agency can ensure more community

participation in local media and perhaps encourage cost sharing

between community organisations and media projects.

c) Partnerships

• The Agency has begun engaging with the National Media in Education

Initiative, initiated by the National Film and Video Foundation and the

Film and Publications Board. This Initiative is exploring ways of

developing media awareness and analytical media thinking amongst

school children and communities.

• The Agency has also begun developing a relationship with the Print

Industries Cluster Council, which is supported by the Department of

Arts and Culture, to impact on the publishing and printing industry.

The Agency are considering ways that it can use media to promote

reading amongst communities, which is an objective contained in both

of its founding documents.

• The Agency also want to liaise closely with its current funding partners

to tap into the wealth of skills they have, particularly in the area of

training.

d) More resources: The Agency will focus throughout the next three years

on garnering additional financial support for it. In this regard, the Agency

has already begun developing an investment strategy with the aim of

hopefully eventually covering its administration costs through interest

earned. This year the Agency will commence with trying to garner

additional financial support from international donors.

e) Mentors: The Agency has started with the process of developing a

database of mentors. The Agency made a public call for organisations and

individuals to submit their names it for inclusion on this database. It is

envisaged that it will include people and/or organisations with a range of

skills such as audience research, journalism, financial management, and

organisational development, community participation etc. Such mentors

will assist projects in developing plans for sustainability and in enhancing

their performance and corporate governance structures.

f) Communication: The MDDA Act defines two areas of communication,

which is of utmost importance to the Agency. These are (1) the raising

public awareness about media development and diversity, and (2)

ensuring the Agency’s activities are known to the public. Both are critical

to the successful implementation of the Agency’s mandate of developing a

diverse media responsive to the needs of all South Africans.

The have currently communicated about its programmes using existing

media and other networks. The Agency want to progressively expand this,

balancing the need to communicate broadly, its approach of prioritising

rural and underserved communities and the resources available to it.

a) The reported a loss of R454 000 in its Business Plan. What was the cause

of the lost? Is this loss due to theft?

b) How are beneficiaries of seed funding identified to ensure that all get

equal funding?

c) Have any seed funding been used to sort out licensing issues with

ICASA?

d) How can Members of Parliament be used to advertise to

programmes/work of the MDDA?

e) How does the MDDA communicate with/to the deaf?

f) Does the MDDA have monitoring mechanisms regarding programmes that

are rolled out or projects it is funding?

g) To what extent do resources filter down to community radio stations?

h) To what extent is the MDDA responding to the skills shortage in the media

industry?

i) Can the MDDA influence the content of community radio stations?

a) The deficit/loss in the budget is not due to any fraud. It is a technical deficit

because the financial year only starts at end (31) March and by then the

budget for the MDDA has been finalised.

b) The Agency is currently not distributing any seed funding to community

radio stations without a license. The Agency liaises with ICASA to ensure

community radio stations are informed about when ICASA will be issuing

licenses. ICASA will be issuing licenses again in 2007.

c) When the process for the distribution of seed funding commences, the

Agency will be guided by its general criteria for funding. Seed funding will

be small amounts.

d) Members of Parliament should inform communities in their constituencies

about the Agency and should also inform the Agency when a community

applies for funding.

e) The Agency has as yet no informed approach to advertising the services

of the Agency to the deaf community. The Agency thus need to be

proactive and should seek advice from disable communities on how to

formulate an approach.

f) The Agency uses to a large extend its site visits to the various projects it

funds to monitor progress. The Agency has also taken guidance from its

grant-funders in that it (MMDA) has built into its contracts a mechanism to

check how beneficiaries are spending their funds.

g) The Agency has, in terms of the MDDA Act and other policies, an

obligations towards "under serviced" areas. The Agency, together with the

DoC, are trying to map out what kind of media services are received in the

communities to ensure that media resources filters down to everyone.

h) Capacity-building is a serious issue to the Agency. The Agency is

addressing this through the media SETA and other means. A concrete

plan on how to deal with skill shortages will be formulated and forwarded

to the Committee.

i) The Agency cannot influence the content of the community media,

including the community radio stations.