• • • • • • In 1998, SAMDEF signed a Memorandum of Understanding with the Media Development Loan Fund (MDLF) of Prague to co-finance media projects in the SADC region. During the 1998/1999 financial year USAID and Danish non-governmental organisation (NGO) Ibis came on board. In 2002, SAMDEF changed the funding model and hived off grants and training divisions to SAIMED. In 2005, PTA Bank disbursed money to finance the expansion of a television station in Tanzania and the expansion of a printing press in Zambia. SAMDEF provided a cash guarantee for the loan. In 2005, SAMDEF provided a guarantee to Millennium BIM, a commercial bank based in Mozambique, for a financing facility to a television project in Mozambique. The Swedish NGO Sida advanced a concessionary loan to SAMDEF in 2007. SAMDEF’s intervention has influenced and contributed to the growth and diversity of the media sector within SADC, by supporting and strengthening companies which, without SAMDEF’s assistance, could not have managed to undertake their expansion or start-up projects. Some of the promoters who accessed funding from SAMDEF in the last decade commented as follows: • Salva Rweyemamu, Habari Corporation, Tanzania: “The benefits from SAMDEF have been in many aspects.” • Dumi Lopang, Yarona FM, Botswana: “SAMDEF has assisted not only financially but from a corporate governance perspective.” • Fred Mmembe, The Post Newspapers, Zambia: “We did not have the necessary technical know-how about running the newspaper business, in addition to dealing with political challenges ... but with help from SAMDEF we were able to make it.” • Daniel David, SOICO, Mozambique: “The greatest challenge in Africa is the cost of money … We thank SAMDEF for their support.” • Bethuel Thai, The Public Eye, Lesotho: “With the assistance we got from SAMDEF we were able to acquire our own printing press.” • Samuel Nyalla, Sahara Communications, Tanzania: “The second round of funding from SAMDEF helped us to buy transmitters and towers.” The new model According to the current SAMDEF CEO, Kate Senye: “It would not only be naïve to measure SAMDEF’s performance on the financial recovery rate on the loans ... but rather one has to look at the overall impact, which includes, among other parameters, the increase in circulation, readership, viewership, employment creation, sustainability and independent voice.” Since taking office, Senye has worked tirelessly on the new SAMDEF model, which is aimed at making the fund the ‘centre of excellence in media finance’. “SAMDEF’s financial sustainability has been dependent on grants,” says Senye. “There is need now to recapitalise the company and ensure that it is self-funding so as to meet the ever-increasing demand on its products and services.” The new funding strategy aims to ensure the long-term sustainability and growth of SAMDEF by diversifying its funding sources to include the more aggressive commercial investors. To this end, it is being proposed that a forprofit subsidiary company be formed. The business model would be that of a private equity management company that will be able to raise funds for existing and new media projects. Annual Report 2008 45