/ 23 January 2007

Tuning into change

Residents in Limpopo, North West and Mpumalanga could soon be tuning in to new commercial radio stations. The ten applicants for licences in these provinces have been waiting anxiously since the Independent Communications Authority of South Africa (Icasa) held its hearings last August.

It has been a long wait as applications were submitted just over a year ago after Icasa opened up applications for one licence in each of these three provinces and the Northern Cape. There were no applicants for the Northern Cape.

Herewith a brief overview of each applicant.

Limpopo Province

Five bidders made applications for the commercial radio licence on offer covering Limpopo Province. One of the applicants, Mapungubwe FM, withdrew its bid shortly before the hearings, leaving four contestants.

All of the applicants proposed a predominantly music format with some news, current affairs, talk and/or community programmes. Most are predominantly in English with some news and incidental programming in other languages in the province – with the exception of Radio Limpopo which states that 60 percent of its content would be in Sepedi and 40 percent in English (with smatterings of other languages).

Capricorn FM

Who is it targeting?

18-34 year old Limpopo residents from the LSM 4-7 groups.

What is the sound?

Young adult contemporary.

Who is behind it?

Some new and some old players are involved in the application. MSG – an entertainment and communications company established by former radio personality Given Mkhari and communications professional Simphiwe Mdlalose – is the biggest shareholder. They own no other commercial radio stations (though produce the Harmony Mines in house radio on behalf of the mining company).

The other key shareholder is Safika (including Saki Macozoma, Moss Ngoasheng and Willie Cuba). Safika recently sold all its radio assets gained in the takeover of NAIL, but states in the application that it is assisting in developing new radio players.

Other shareholders include Shonisani Muleya (better known as comedian and TV host Ashifashabba), a consortium of Limpopo women business entrepreurs and a group of Limpopo based business people.

Shares have been set aside for staff and the University of the North journalism school.

Radio Limpopo

Who is it targeting?

Broad audience of black Limpopo residents.

What is the format?

Gospel music.

Who is behind it?

The applicant includes several shareholders who have previously been key players in existing commercial radio licences. There is no clear majority shareholder.

It includes Direng, a group of black business people who have been involved in other stations (Kenny Setzin who used to be with NAIL and Felicia Roman previous managing director of KFM in the Western Cape are key players), the investment company of the South African Democratic Teachers Union, a consortium of black entrepreneurs from Limpopo, and a foreign partner (21st Venture, a Norwegian company including individuals who helped establish P4 in Cape Town and Durban).

Limpopo FM

Who is it targeting?

16-34 year old black South Africans.

What is the format?

Urban contemporary (including urban contemporary, Afro pop, Soul, R and B, contemporary jazz).

Who is behind it?

Limpopo based companies dominate this applicant – including Nhlalala Investments (chaired by Christopher Mabunda) (established by people with disabilities in the Province) and a group of women (Fullswing).

They are backed up by a “technical consortium” of people with expertise in radio such as Govin Reddy (Professor and ex SABC), Yunus Fredericks (ex Kaya FM finance head) and Coen Gouws (ex Radmark).

Twelve O Stereo

Who is it targeting?

Limpopo residents from 24-45 years old across the province.

What is the format?

Adult Contemporary music – “the easy listening companion”.

Who is behind it?

The applicant’s shareholding includes a plethora of small shareholders – all new entrants in commercial radio ownership. The biggest shareholder is Mowana Investments (which includes former Chair of the Portfolio Committee on Communications Nkenke Kekana). Tokyo Sexwale’s Mvelaphanda Holdings has pledged financial support should they be awarded the licence.

North West Province

There were three bidders for the licence in North West Province – including YFM. Key shareholders in the other two applicants are also bidders in Limpopo.

Radio North West

Who is it targeting?

North West listeners from 25-49 years old in LSM 4-8.

What is the format?

Gospel station – broadcasting predominantly in SeTswana.

Who is behind it?

Essentially the same shareholders as those in Radio Limpopo – with some North West flavour. It again includes the consortium of black business owners in Direng (see above), the investment company of the South African Democratic Teachers Union, and the Norwegians. A group of black women entrepreneurs from North West are also shareholders.

Platinum FM

Who is it targeting?

Twenty four to 49-year-olds in LSM 5-10.

What is the format?

Adult Contemporary (including R&B, African pop and “music from the African diaspora”. The station proposes to broadcast predominantly in English with some SeTswana (in news and current affairs).

Who is behind it?

Nkenke Kekana’s Mowana Investments Holdings is in this bid as well as that of Twelve O Twelve in Limpopo. The other major shareholder is Sesa Motho Holdings (26 percent) which is described as a North West based Black Economic Empowerment Company.

Other shareholders include another North West based consortium (Moribo), the Disability Empowerment Concerns Trust (all beneficiaries are organisations representing people with disabilities), the Musicians Union of South Africa, and Basadi in Media Investments.

As with the Limpopo bid, the applicant presented a letter promising financial backing from Mvelaphanda Holdings

YFM (Yired Pty Ltd)

Who is it targeting?

Black youth from 16-24 years old.

What is the format?

Essentially the same as YFM with smatterings of North West specific shows (increasing year by year).

Who is behind it?

The same shareholders of YFM – including Hosken Consolidated Investments Limited (e.tv owners) with over 77 percent.

Mpumalanga Province

Heartland Stereo

Who is it targeting?

All residents of Mpumalanga.

What is the format?

It is described as a full service station predominantly broadcasting in English and Afrikaans. It would include religious programmes, magazines and talk shows for children, women, the elderly, farmers as well as drive show programmes.

Who is behind it?

Evening Star Pty Ltd – which has four individual shareholders all involved in community radio.

One FM (Mpumalanga Radio Consortium)

Who is it targeting?

“Youth and adults from ages 15-60”.

What is the format?

Urban hits with 40 percent talk. Predominantly English with some SeSwati, isiNdebele, isiZulu and Afrikaans.

Who is behind it?

Nkenke Kekana’s Mowana Investments features in this applicant again. Also involved are some key members of Barberton Community Radio Station, T-Bose Productions (including ex Metro DJ Thabo Mokwele), small business groups from Mpumalanga and a range of NGO’s (Disabled People of South Africa, Betties Haven Orphanage and the Middelburg Employable People Structure). The consortium is headed by ex SABC human resource consultant Ann Naicker.

M Power

Who is it targeting?

Mpumalanga residents from 16-49 years old in LSM 6-10.

What is the format?

Adult contemporary music mix – with some urban and contemporary pop. The station would broadcast predominantly in English (with smatterings of SeSwati and isiZulu).

Who is behind it?

Direng Pty Ltd (see Radio Limpopo and Radio North West above) are behind this bid as well, together with Mbombela Business Joint Venture ( Nafcoc Mbombela (Mpumalanga) and the Lowveld Chamber of Business and Tourism). The other shareholder is long time commercial radio player AME (which owns OFM, Radio Algoa and specialist radio sales house United Stations).

Icasa had not made a decision on the winners by the time The Media went to print.

Libby Lloyd was once an Icasa councilor and is now a media consultant.