MDDA

1. MDDA Annual Report Presentation to Parliament 04 November 2005

2. “Everyone has the right to freedom of expression, which includes: Freedom of the press and other media; Freedom to receive or impart information or ideas…” South African Bill of Rights

3. The MDDA should:“Create an enabling environment for media development and diversity…“Redress exclusion and marginalisation of disadvantaged communities….from access to the media…“Promote media development and diversity by providing support primarily to community and small commercial media”Preamble MDDA Act

4. Vision Each and Every South African citizen should have access to a choice of a diverse range of media

5. Mission The MDDA is a development agency that aims to assist in building an environment where a diverse, vibrant and creative media flourishes and reflects the needs of all South Africans

6. How • Grant support to non profit and small commercial media projects • Conducting and funding research • Facilitating capacity building in the sector

7. Background • MDDA was established through legislation in 2002 • The Board was appointed in January 2003 • The MDDA is a public private partnership between the South African government and major media entities in South Africa • Staff were appointed from September 2003 • First approvals of grant applications were made in January 2004

8. Annual Report The annual report covers the period 1 April 2004 – 31 March 2005

9. Highlights of latest annual report • MDDA received an unqualified financial report from the Auditor General • MDDA signed funding agreements with all private partners • MDDA supported up to 66 different projects

10. MDDA support guidelines • Regulations set out criteria for support • MDDA provides: • mentoring support. We have established a database of mentors with a range of skills • support for once off projects (e.g. equipment, 6 months start up costs) • Ongoing support for up to three years for non profit organisations

11. Supporting media 2004/2005 • Approved support for 51 different media projects around South Africa during financial year • Funds were earmarked for a further 15 community radio initiatives. • MDDA managed disbursement of funds to a further 8 projects provided grants in previous financial year Total from 1 April 2004 – 31 March 2005 66 projects supported Total funds approved: R8.7m

12. Support breakdown

13. Capacity Building 2004/2005 • 160 different community and small commercial media organisations attended three workshops on marketing and advertising co-hosted by the MDDA with AMASA and AMF • MDDA gave bursaries to 21 projects to attend media management courses

14. Government Caxton CTP Ltd Electronic Media Network Ltd (M-Net) Independent Newspapers Johncom Kagiso Broadcasting Media 24 Ltd Midi TV (etv) Primedia Broadcasting SABC Money Matters MDDA funders:

15. Money matters cont • Actual income received: R14.2m (incl interest) • Income (including debtors raised): R17.8m Funding agreements state print and broadcast partners could disburse 1st year’s income in two tranches: • 50% up front • A further 50% after 9 months

16. Funds expended • At end of financial year MDDA had R14.7m remaining in bank made up of: • R8.2m grants accrued to be disbursed in tranches over up to three years • R5.6m surplus made up of funds remaining from broadcast and print partners to be expended by August 2005

17. Regulatory compliance Regulations cap administration at 25% of total budget • MDDA spent 23% (excl debtors raised) or 18% (incl debtors raised) on administration – including capital expenditure • Met all regulatory requirements on division of grant funds

18. Governance • MDDA Board has met quarterly • Exco established and has met regularly • Audit Committee in place • Internal Auditors appointed (Sizwe Ntsaluba (plc) • All policies in place • Board and staff codes of conduct in place

19. Operations • MDDA has developed a grant making cycle to ensure risk management and ongoing support of projects

20. Organogram • 5 project staff and 4 administration staff

21. April 2005 onwards • A total of R8.4m has been allocated in support during this financial year • 20 new projects have been awarded support • Earmarked funds to assist up to 10 newly licensed community radio stations to get on air • Conducted road shows in all nodal points together with ICASA to ensure awareness of licensing and MDDA processes

22. April 2005 onwards • Total number of projects supported since January 2003: 72 • Support earmarked for a further 25 projects (newly licensed community radio stations)

23. April 2005 onwards • MDDA has supported/initiated following projects: • Resource mobilisation workshops • Advertising roundtable to develop strategies to gain access to more advertising • Research and roundtable into strategies to resolve challenges in distribution and printing • Working with MAPPP Seta to explore development of management course for small media projects

24. Other projects this financial year • Research with SABC, Sentech and the Department of Communications into communities in South Africa who do not receive a public radio station • Developing marketing and advertising tool kits

25. Other projects this financial year • Conducting feasibility study into low interest loans • Appointment of new Board members from January 2006

26. Conclusion • Thank you