Introduction
Chairperson, we
would like to thank you and the Committee for the invitation to present our
Strategic Plan 2007-2010, and our plans for this financial year, to the
honourable members, as Parliament prepares for the debate on the Budget Votes.
My name is Kanyi Mkonza, the Chairperson of the MDDA and I am presenting with
Lumko Mtimde, the Chief Executive Officer. We are accompanied by Board members,
Mazibuko Jara, Chris Moerdyk and the Executive Management team Mbuyiseni Jafta
(Chief Financial Officer) and Jayshree Pather (Programmes Director). We extend
our apologies to the Committee from the other Board members who could not make
it for this presentation.
We are advised that our Strategic Plan was tabled in Parliament by the Minister
in the Presidency on the 13th March 2007. The detailed document has therefore
been circulated in Parliament. As we present this today, we will focus on the
highlights.
Background
The Media Development and Diversity Agency (MDDA) is a development agency
set up as partnership between the South African Government and media
organizations to assist in developing community and small commercial media in South Africa. It was established in 2003 in terms of the MDDA Act, No 14 of 2002.
This document is a reflection and a pointer of the route that the Media
Development and Diversity Agency (MDDA) have mapped out for the period starting
2007 and ending in 2010, in accordance with Treasury Regulations (as amended),
Notice 29644 of 20 February 2007, issued in terms of the Public Finance
Management Act, 1999.
It outlines the overall strategic approach that the MDDA is proposing for the
period 2007-2010, the legislative and environmental context within which the
MDDA is placed, the program focus areas and the organisational and resource
implications of the proposed strategic approach.
The MDDA operates within a broad legislative framework including the MDDA Act
itself, the Public Finance Management Act, the Electronic Communications Act,
the ICASA Act, the Labour Relations Act, amongst others.
Vision
The vision of the MDDA is that “Each and every South African Citizen should
have access to a choice of a diverse range of media”
Mission
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.”
Approach
The MDDA does this by:
The provision of grants and subsidies to media projects and the promotion of
media development and diversity
Leveraging resources and support through technical assistance
Conducting and funding research
Facilitating capacity building
Advocating for media diversity
Achievements
Since its formation, the MDDA has achieved some major milestones including
the awarding of grants to the amount of R45m to over 135 projects, the
provision of 41 bursaries to different radio and print media. It has also
received unqualified audits since its establishment.
Challenges
The major challenges that are faced by the MDDA include; the limited
funding that it has including the duration of existing funding agreements, the
regulatory framework that governs the MDDA in terms of the regulations requiring
Tax certificates and audited financials from groups that are in their formative
stages, the generally perceived and potentially difficult environment in both
print and broadcast media, the lack of skills amongst the socioeconomic groups
that are targeted by the MDDA, the limited broadcast frequency and the limited
exposure of the small commercial and community media to advertising revenues.
Strategic Focus 2007 – 2010
The priority will be to increase our focus on rural and poor communities as
well as historically diminished language and cultural groups and to increase
work done in provinces outside of Gauteng and Western Cape.
In the period 2007 to 2010 the MDDA will continue to focus on to ensure that
all citizens can access information in a language of their choice and
contributing to the transformation of media access, ownership and control
patterns in South Africa.
The purpose of the MDDA programs in this period is to “strengthen the sector
though the provision of resources, knowledge and skills in pursuit of promoting
media development and diversity”
In this context, the MDDA will in the ensuing period, focus its work on
advocacy for the alternative sector, giving grants and seed funding support for
the newly licensed community radio stations in the nodal areas. For both small
commercial print media and community media projects, capacity building
interventions with beneficiaries including mentorship and monitoring and
evaluation, research and increasing knowledge of the MDDA to better structure
program intervention and innovation, stakeholder management and resource
mobilisation. Monitoring and Evaluation will play a key role in structuring
future program involvement, design and development. Interventions in the print
media sector include addressing printing and distribution challenges by
assisting in the setting up of hubs where resources can be shared amongst
projects.
Accordingly, the Agency has set itself the following indicators, in terms of
its mandate in the promotion and strengthening 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
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, magazines, online newspapers
or magazines funded
The rationale for the MDDA strategic focus for the ensuing period is predicated
on the fact that historically disadvantaged communities are deprived of access
to information that can assist them to participate actively in socio-economic
improvement and democratic processes of the country. Current media is still
insufficiently diverse with respect to reflection of the concerns of especially
the socio-economically marginalised communities and use of indigenous
languages.
Risk Management
Several risks and /or constraints exist that can limit the impact and work
of the MDDA in this period. Amongst others is the legislative framework which may
prove to be inflexible. The limited human resource base within the MDDA may
limit response levels to demand. Another is the possibility of the misuse of
funds by the beneficiaries. The MDDA has reviewed a number of legislative,
regulatory and policy positions and has planned in the ensuing period to
suggest a limited number of changes that may assist in the smooth functioning
of the organisation. The board has also agreed to review a number of internal
operational and HR policies and procedures as well as maintaining stringent
controls at the project management level.
In this context the MDDA has developed a set of interventions to mitigate
against these risks. A key strategy to mitigate risk will be the management and
institution of strict controls in the organisation through internal and
external audits. The board will continue with briefings to the minister and the
portfolio committee on any problems that may be encountered and how these have
been resolved. Staff development, performance management and a diligent process
of project assessment and monitoring will continue to be a routine of the MDDA.
Human Resources Plan
The MDDA will review its staff compliments from the current 13 going
forward with the view that service delivery and performance are not
compromised. Expanding activities will require an expansion of the staff
complement, the scale of which will become clearer as there is more clarity in
particular regarding the financial impact of the provisions of the ECA Act with
respect to the MDDA, a matter that will depend on the Regulations to be
prescribed by ICASA on the contributions and the outcome of discussion with
broadcasting funders of the MDDA and the Broadcasting service licensees.
Budget
The financial projections for the MDDA are based on a worse case scenario
of Broadcasting Service Licensee contributions being only a 0.2 % of their
annual turnover[1]. This is also based
on the assumption that Broadcasting Service Licensees will contribute to the
Agency, even before ICASA prescribe the regulations. Hence, the budget increase
from 2008 - 2010. Accordingly, projections in this regard are as follows:
R24m - 2007/2008
R39 m - 2008/2009
R42m - 2009/2010
Conclusion
The Agency welcome the Governments increase of its budget in the financial
year 2007/8 by R2m. It is our hope that as we plan forward we will together
ensure that the Agency is adequately resourced in order for it to respond to
the potential growth of the community broadcasting sector, as envisaged in the
ECA and the new regulatory framework outlined in ICASA Position Paper on
Community Sound Broadcasting licenses; as well as continue making efforts to
seek out more resources for the small commercial print media sector.
We have already analyzed the Electronic Communications Act of 2005 and its
implications for the MDDA. This strategy is informed by that analysis. We are
engaging with the USAASA on working together towards the achievement of the
universal service and access objectives in the broadcasting industry.
It is our hope that the new Electronic Communications Act of 2005 dispensation
provides an opportunity for the Agency to grow and be strong in its pursuit and
delivery of its mandate, with respect to broadcast and new media. At the same
time, part of the necessary steps to be considered by the Agency is to start to
engage with Print Media Funders, as the expiring funding agreements get
reviewed, to consider similar funding contributions or to source additional
funding so that the small print media sector can benefit on a scale comparable
to the which the ECA brings to the small broadcast and new media sector.