SEED WORKING PAPER No.

49

Series on Upgrading in Small Enterprise Clusters

and Global Value Chains

Promoting the Culture Sector through Job Creation and

Small Enterprise Development in SADC Countries:

The Music Industry

by
Cecile Ambert

InFocus Programme on Boosting Employment

through Small EnterprisE Development
Job Creation and Enterprise Department

International Labour Office Geneva

Copyright International Labour Organization 2003

First published 2003
Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short
excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or
translation, application should be made to the Publications Bureau (Rights and Permissions), International Labour Office, CH-1211 Geneva 22,
Switzerland. The International Labour Office welcomes such applications.
Libraries, institutions and other users registered in the United Kingdom with the Copyright Licensing Agency, 90 Tottenham Court Road,
London W1T 4LP [Fax: (+44) (0)20 7631 5500; e-mail: [email protected]], in the United States with the Copyright Clearance Center, 222
Rosewood Drive, Danvers, MA 01923 [Fax: (+1) (978) 750 4470; e-mail: [email protected]] or in other countries with associated
Reproduction Rights Organizations, may make photocopies in accordance with the licences issued to them for this purpose.

ILO
Promoting the Culture Sector through Job Creation and Small Enterprise Development in SADC Countries: The Music Industry
Geneva, International Labour Office, 2003
ISBN 92-2-115283-9

The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein
do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any
country, area or territory or of its authorities, or concerning the delimitation of its frontiers.
The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does
not constitute an endorsement by the International Labour Office of the opinions expressed in them.
Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and
any failure to mention a particular firm, commercial product or process is not a sign of disapproval.
ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications,
International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the
above address, or by email: [email protected]
Visit our website: www.ilo.org/publns

Printed in Switzerland

Foreword
This research report is part of a set of five studies commissioned by the ILO in the framework
of the project Small enterprise development and job creation in the culture sector in the SADC region.
This project was funded by the Ford Foundation and implemented by the InFocus Programme on
Boosting Employment through Small EnterprisE Development (IFP/SEED). This project explores the
possibility that the promotion of cultural entrepreneurship that harnesses local talents, skills and
heritage may be especially resistant to the competitive pressures of globalization and may provide
innovative possibilities for boosting incomes and generating quality employment in a sector that is
normally overlooked by policy-makers or addressed with piecemeal and traditional approaches.
IFP/SEEDs work in the area of Market Access is based on the premise that small enterprises
can only grow and become competitive economic ventures when they have clear and well-developed
channels for selling their outputs. The lack of adequate markets for the consumption of cultural goods
and services is frequently identified as a major obstacle to the development of a truly vibrant and
economically viable culture sector. This finding is highlighted repeatedly in these SADC region
studies. The use of a value chain analysis, adapted to the culture sector, has been a particularly
effective tool in these studies to identify strengths and weaknesses and help inform policy
recommendations for bolstering the weaker links in this chain. The partnership forged between the
Ford Foundation and the ILO for this project aims to marry the concerns of the Education, Media, Arts
and Culture division of the Ford Foundation with the ILOs tools and approach for creating more and
better jobs for men and women, in order to transform the culture sector into a sustainable form of job
creation and income generation for developing countries.
Over the past 15-20 years, a majority of both developing and industrialized countries have
initiated policies and programmes aimed at promoting the micro, small and medium enterprises in view
of their important job creating potential. Support has been directed toward the major sectors of the
economy, yet the economic potential of local artistic talents and a nations cultural heritage has been
largely untapped.
Although the presence of cultural activities may be perceived to be widespread, the
development of the culture sector is rarely treated as a serious economic venture and few practitioners
are actually able to make a living solely based upon their artistic trade. Few examples exist where
government policies have given systematic and strategic business support to this sector. As a result, the
culture sector in most developing countries plays a much more limited role as a source of jobs,
revenues and foreign exchange than in industrialized countries where it contributes to a significant
proportion of gross national product, indicating the need to promote what might be called cultural
entrepreneurship among developing country artists. Furthermore, limited data exist and the true scale
and dimension of local cultural activities are generally not well documented. In particular, few culture
sector studies have been undertaken in Southern Africa.
For this reason, original field research was commissioned by the ILO to provide more detailed
information and case studies of culture enterprises in the SADC region, with an eye toward providing
policy prescriptions that would help ameliorate the major constraints preventing the growth of small
enterprises. Five studies were conducted in the following cultural areas: crafts and visual arts; music;
performing arts and dance; TV and film; and ethno-tourism. These five studies have been published as
SEED Working Papers and readers may find various studies from this set to be of interest.
This present report focuses on the music industry. It is estimated that the value of the global
music market stands at US$36.9 billion, with total unit sales of 3.5 billion. In comparison, monitored
record sales of Africas music market reveals this to be the worlds smallest regional market, worth only
US$207 million in 1998, representing a mere 0.6 per cent of total global sales. The African market is
dominated by South Africa, in terms of legal and recorded units sales. One of the most severe obstacles

iii

to growth of the industry in the region is often considered to be directly linked to the limited purchasing
capacity of the African market. However, the recording industry is a young industry in most African
countries. This implies that its means of production, circulation and distribution are in their infancy, and
that it has not yet reached its full potential in terms of per capita sales. This is reflected in the recording
industrys institutional profile by the fact that the different functions performed in the course of
production, circulation and distribution tend to be undertaken by a relatively low number of actors with
limited institutional specialization. The growth of the industry is, however, evident in terms of the
emergence of numerous recording labels, music venues and events throughout the region.
The lack of effective protection of the intellectual property rights of local artists is another
crucial issue in this sector, and local practising artists are generally unaware of the implications raised
by their mastery of specific know-how and use of traditional practices and designs. In this regard, these
studies have benefited from a collaboration with the Director, Mr. Guriqbal Singh Jaiya, Small and
Medium-sized Enterprises Division of the World Intellectual Property Organization (WIPO)
(http://www.wipo.int/sme). Comments on intellectual property related to the music industry were
added in the text, as well as Annexes 4 and 5.
Ms. Cecile Ambert, the author of this study, is a consultant with Development Works, South
Africa and can be contacted by email at: [email protected]. Ms. Anne Posthuma, Senior
Specialist, Small Enterprise Development, IFP/SEED was the Project Coordinator responsible for
backstopping this project. Ms. Avril Joffe was the Consultant and Project Advisor who oversaw the
development of these studies. The internal reader for this study was Mr. John Myers, Media and
Entertainment Industry Specialist, Sectoral Activities Department (SECTOR), ILO. It should be noted
that the views presented in this document are those of the author and do not necessarily reflect the view
of the ILO or its constituents.

Kees van der Ree,

Director a.i.
InFocus Programme on BoostingEmployment
through Small Enterprise Development.

iv

Table of contents
Foreword .................................................................................................................................................. iii
Executive summary .................................................................................................................................. ix
1.

Introduction......................................................................................................................................1
1.1

Background............................................................................................................................1

1.2

Socio-economic issues in the music industry ........................................................................2

1.2.1
1.2.2
1.2.3

1.3

Global trends..........................................................................................................................4
1.3.1
1.3.2
1.3.3
1.3.4

2.

Importance of the sector to the cultural industries.....................................................2

Music as a bridge across culture, national boundaries and conflict...........................2
Development issues in the music industry.................................................................3
Global players perspective on global market trends.................................................4
Institutional and organizational dynamics .................................................................6
Growth of World Music across cultural divides ........................................................8
Music piracy and parallel economies.........................................................................9

The music industry value chain in the SADC region.....................................................................10

2.1

Conceptual framework for analysing the music industry ....................................................10

2.2

Generic actors ......................................................................................................................10

2.3

Diagram of the value chain in the music industry in the SADC region...............................11

2.4

Beginnings: The first segment of the value chain................................................................12

2.5

Production: The second link in the value chain ...................................................................15

2.6

Circulation: The third segment of the value chain...............................................................17

2.6.1

2.7

Delivery mechanisms: The fourth segment of the value chain............................................18

2.7.1
2.7.2

2.8

Live performance delivery mechanisms ..................................................................19

Broadcasting ............................................................................................................20

Audience reception and feedback: The fifth segment of the value chain ............................21
2.8.1
2.8.2
2.8.3
2.8.4

2.9

Live performance circulation...................................................................................17

The global recording industry-driven import market...............................................22

The international consumption market for SADC products ....................................22
The trans-regional market........................................................................................23
Local production for local consumption ..................................................................24

The pirate value chain..........................................................................................................24

2.10 Stakeholder bodies: Low capacity and bargaining power ...................................................26

2.11 Lack of coordinating bodies ................................................................................................27
2.12 Policy issues.........................................................................................................................28
2.12.1 Copyright protection and collection systems...........................................................28
2.12.2 Contractual arrangements ........................................................................................29
2.13 Making a living....................................................................................................................30
2.14 Location ...............................................................................................................................31

2.15 Gender and racial issues...................................................................................................... 31

2.16 Main characteristics of the music industry in the SADC countries .................................... 31
3.

Analysis of key issues and proposals for targeted actions and interventions................................ 34
3.1

Key issues and dynamics emerging from the research ....................................................... 34

3.1.1
3.1.2
3.1.3
3.1.4

Contextual preconditions for the growth of the industry ........................................ 34

Supportive policy and legislative measures ............................................................ 35
Professionalism and entrepreneurship .................................................................... 36
Developing local and international markets............................................................ 37

3.2

Gap analysis of the key issues and dynamics ..................................................................... 38

3.3

Targeted actions and interventions ..................................................................................... 40

3.4

3.3.1

Institutional responsibility for driving actions and interventions ........................... 40

3.3.2

Education and training ............................................................................................ 41

3.3.3

Developing localized, industry actor-specific business growth strategies.............. 43

3.3.4

Establishing a facilitative framework for industry growth ..................................... 44

Concluding statements ........................................................................................................ 46

Bibliography............................................................................................................................................ 47
Annexes
1.
Key organizations in the region..................................................................................................... 51
2.
List of interviewees ....................................................................................................................... 53
3.
Country cases................................................................................................................................. 55
4.
Intellectual property, copyright and related rights and collective management of rights.............. 57
5.
National copyright offices in the SADC region............................................................................. 61
Boxes
1.1 Role of the music industry in fighting HIV/AIDS in Zambia ......................................................... 3
1.2 Supporting musicians as a micro-marketing initiative in tourism destinations ............................... 3
1.3 Mergers and agglomeration ............................................................................................................. 7
1.4 WOMAD, a celebration of World Music ........................................................................................ 9
1.5 Impact of piracy on a developing countrys recording industry ...................................................... 9
2.1 Music education through initiation processes................................................................................ 13
2.2 Lack of formal education in music ................................................................................................ 14
2.3 Musical milieu in Maputo.............................................................................................................. 14
2.4 Quality control and production facilities in South Africa.............................................................. 15
2.5 Radio Tanzania recordings An opportunity and a piracy risk .................................................... 16
2.6 An example of good practice in Zimbabwe: Fighting piracy through right-pricing
and regulating the distribution network ......................................................................................... 19
2.7 The paucity of live performance opportunities stifles livelihoods and music industry
development in Angola.................................................................................................................. 20
2.8 Encouraging local performers: Music festivals are a growing industry ........................................ 20
2.9 Broadcasters Makers and breakers in the music industry........................................................... 21
2.10 Artists developing a sense of the market: Papa Wemba, an artist of two musical worlds............. 23
2.11 The MIDI Trust: An example of good practice in South Africa.................................................... 27
2.12 Government or parastatal intervention in the United Republic of Tanzania ................................. 30
3.1 Independent-driven music industry in the United Republic of Tanzania ...................................... 36
3.2 Proposed set of key questions to facilitate strategic thinking in the music industry ..................... 43

vi

Tables
2.1 Summary overview of main characteristics of the music industry in the SADC region ................32
3.1 Needs, assets and gaps: An overview of the music industry in the SADC region, 2002 ...............39
Figures
1.1 Industry supply chain........................................................................................................................8
2.1 Diagram of the value chain in the music industry in the SADC region .........................................12

vii

viii

Executive summary
Music is an art form that spans a range of human activities, from entertainment to
religious and social rites, political activism and lobbying, education and commercial
interests. At the socio-political level, it can serve as a bridge across cultures and national
boundaries, as well as to keep conflict-ridden and poverty-stricken societies together.
Music has also been used as a tool to challenge the political and socio-economic status
quo. Finally, music has been used as an instrument for fund-raising for development and
poverty alleviation.
Because it is an art form, its artistic value can often only be measured subjectively.
Attaching a commercial value to music is intrinsically partial. It cannot reflect the whole
gamut of values generated in the process of creating and consuming music. Yet, the
existence of industries entirely dedicated to this process demonstrates the viability of
engaging with the sectors economy as they affect local economies, by providing
employment, leading to the consumption of music products, and supporting other
industries. As such, they are linked to specific local development levels and processes.
Understanding the nature of these linkages is, therefore, an important consideration for
socio-economic development. Understanding the manner in which the music industry
operates within a particular locality, country or region to generate those linkages and
resulting impacts provides clues on how to maximize the development potentials of the
industry in the Southern African development community (SADC) countries.
Section 2 of the report presents relevant information about socio-economic issues
relating to the role of music as a sector and an industry and presents global trends affecting
the industry.
Estimates of the value of the global music market stand at US$36.9 billion, with total
unit sales of 3.5 billion. In terms of monitored record sales, Africas music market is the
worlds smallest regional market, worth only US$207 million in 1998 or a mere 0.6 per
cent of total global sales. The African market is dominated by South Africa, in terms of
legal and recorded units sales. One of the most severe obstacles to the growth of the
industry in the region is said to be directly linked to limited purchasing capacity of the
African market. However, the recording industry is a young industry in most African
countries. Its means of production, circulation and distribution are in their infancy, and that
it has not yet reached its full potential of per capita sales. This is reflected in the recording
industrys institutional profile: the different functions performed in the course of
production, circulation and distribution tend to be undertaken by a relatively low number
of actors with limited institutional specialization. Despite this, the music sector is growing,
as this report shows. It also assesses the impediments to growth and suggests
recommendations to potentialize the opportunities inherent in this burgeoning industry.

ix

1.

Introduction1

1.1

Background
Music is an art form that spans a range of human activities, from entertainment to
religious and social rites, political activism and lobbying, education and commercial
interests. Since time immemorial, music has filtered through the streets of all cities,
villages and fields, in melody, in rhythm and in movement. It transcends the boundaries of
language, nationality and ethnicity and acts as a vehicle for social memory. Music is both
an instrument of change and a symbol of tradition.
The existence of industries entirely dedicated to this process demonstrates the
viability of engaging with the sectors economy. These industries affect local economies,
by providing employment, leading to the consumption of music products, and supporting
other industries. As such, they are linked to specific local development levels and
processes. Understanding the nature of these linkages is, therefore, an important
consideration for socio-economic development. How the music industry operates within
the South African development community (SADC) to generate those linkages and
resulting impacts provides clues on how to maximize the development potentials of the
industry. In so doing, the focus of the research is threefold. It comprises:

(a)

The recording industry

The production and consumption of tangible music products

The recording industry in the region is multifaceted. Up until the late 1990s, the
recording industry operated primarily in two SADC countries, South Africa and
Zimbabwe. Since then, several small-scale independent recording labels have mushroomed
across the region. This recent development has changed the nature of the music industry in
those countries where a recording industry is emerging. In some instances, this process
represents the birth of the formal music industry. Previously, in countries such as Malawi,
little if any formal market economy existed in the creative industries, in spite of the
intimate relationship between music and everyday life. There, although the recording
industry is still in its infancy, it is now making great strides in establishing itself as a
formal economic sector.
Key issue: In the SADC region, the recording industry is in its infancy, but the emergence of independents
across the region is a positive sign for the local and regional music industry.

(b)

The performance industry

Live performance
Income generation for the majority of musicians is primarily tied to live
performances, as the supply capacity of the recording industry and its market remain
limited.

This research drew extensively on the input from a number of industry actors in the region, which
is gratefully acknowledged. In particular, support received in the field research countries, Zambia
and Zimbabwe, deserves specific acknowledgement.

(c)

The multidisciplinary sector

The multidisciplinary sector is increasingly important for the growth of the creative
industries on a global scale.

1.2

Socio-economic issues in the music industry

1.2.1 Importance of the sector to the cultural industries

Music is a core component of the cultural industries, as it provides a suitable medium
to support the multidisciplinary sector. It is a core element of cinematographic production.
Even soap operas rely on the obligatory opening musical segment. Similarly, few
commercials are aired without a selling jingle. This relationship is often mutually
beneficial. On the one hand it facilitates branding and the definition of corporate identities;
on the other it opens up opportunities for composers and musicians to gain exposure to
music markets and generate an income in the process. For example, Ladysmith Black
Mambazos Heinz baked beans commercial has not only upped Heinzs sales considerably,
but it has also propelled the South African band to the top of the UK music charts. 2
Music provides an opportunity to promote local cultural products nationally and
internationally. Festivals, where music is at the core of artistic events, play a critical role in
exposing musical genres and artists to new markets, and promote specific countries and
regions as attractive tourism destinations. The Celebrate South Africa Festival in London,
and the Zimbabwe Music Festival in United States are a case in point. 3 The potential of the
industry in terms of the growth of tourism in the region is twofold. First, by drawing
audiences to specific locations, music tourism also enables the entire domestic tourism
industry to grow. Second, by showcasing music performances together with visual arts and
crafts, as well as other performing arts, they act as a multi-faceted platform for a range of
artistic products in a single event.
Key issue: Music is a catalyst for and provides support to a range of creative activities, industries and initiatives.

1.2.2 Music as a bridge across culture, national

boundaries and conflict
I had to use my music as a weapon.
In Angola and the Democratic Republic of the Congo, music has also been an
important factor for keeping conflict-ridden and poverty-stricken societies together. The
collective peace song effort by Angolan musicians, called A paz que o povo chama
(The people are calling for peace), is a case in point.
Music has also been used as an instrument for fund-raising on behalf of development
and poverty alleviation. For example, in 1984 Bob Geldof, Irish singer and guitarist,
organized Band Aid which, by means of large benefit concerts, recordings and television

http://www.suntimes.co.za/1999/10/10arts/ane04.htm

http://www.zimfest.org, http://www.celebratesouthafrica.com

appearances, raised more than GB50million to fund poverty relief in Africa. 4 Currently,
album releases are also used to support organizations active in fighting HIV/AIDS, and
raising popular awareness of the pandemic, as box 1.1 shows.
Box 1.1
Role of the music industry in fighting HIV/AIDS in Zambia
In Zambia, a local recording company Mondo Music has, with donor funding, distributed to truck-drivers tapes
on which popular songs are punctuated with a short AIDS-awareness segment. 5 As a through-road for goods
across the SADC region, Zambia has been particularly vulnerable to the spread of HIV/AIDS. By targeting
truckers directly, the initiative seeks to alert key actors in the spread of the pandemic across the country and in
the subregion.

Key issue: Music can play a key social development role and provides a platform to disseminate topical
messages and mobilize people to address issues affecting their lives.

1.2.3 Development issues in the music industry

Although development is a key focus area of the research, it is important to note the
economic dynamics of the music industry in the region. Where it is most active, in South
Africa, the music industry is associated with consumption of mainly foreign repertoire,
which results in an import-export deficit in favour of international products and
international intellectual property revenue flows. 6 This is not the case in the other SADC
countries, where local content production and consumption are the majority. However, in
those countries, the existence of a parallel economy in the recording industry, mainly
through piracy in the informal economy, means that revenue generated does not
necessarily contribute to supporting the creative economy per se or the overall national and
regional economy. 7
The music industry also plays a significant role in other, non-cultural industries. The
tourism hospitality and retail industries often benefit directly from the broadcasting of
music. Music supports those industries by enabling the creation of a particular ambience or
setting. Its multiplier effect is therefore much broader and more potent than its direct
industry-specific impact.
Box 1.2
Supporting musicians as a micro-marketing initiative in tourism destinations
In some tourist destinations, such as the Victoria Falls in Zimbabwe and Cape Town in South Africa, music
serves to draw shoppers to curio shops and to restaurants. In Victoria Falls, shop owners in the city centre have
grouped together to hire several local performers, organized as groups, to perform in front of their stores on a
rotational basis. This arrangement enables the musicians to complement the income that they derive from
performing in hotels and restaurants, by drawing a regular albeit small salary and receiving donations from
the public.

http://www.ifpi.org

C. Folotiya, interview Aug. 2001.

D. Shabala, interview June 2001.

M. Ottou, in Confrence panafricaine sur le statut du musicien, La Nouvelle Vision, No. 9,

2001.

Because the performance and recording industries are highly technology dependent,
they are extremely vulnerable to the degree of regulation and openness of the economy.
Where strong import regulations exist, the availability of imported music instruments,
public address equipment, recording and reproduction equipment is generally limited.
Historically, this has tended to limit the growth of the industry in most countries of the
region. However, recent trade liberalization processes have facilitated the acquisition of the
tools of the trade. In Zambia, this is the primary factor, which is enabling the birth of the
recording industry. In Zimbabwe, where severe foreign exchange regulations have recently
been set up, recording industry actors and musicians alike are already deploring the
difficulty of importing music equipment. 8 Even in South Africa, which is relatively more
developed economically to its neighbours in the region, the changes to the exchange rate of
the rand against the US dollar have limited the availability of imported sheet music. The
ability of music industry actors, from musicians to record labels, to import music and
recording equipment may, in the short term, negatively affect some countries balance of
payments. However, it is critical for facilitating local production of music products for
domestic and export consumption, which in the long term can provide a significant boost
to the local economies.
Domestic consumption of music products, from radios to tapes and CDs, or live
performances, is also influenced by the overall level of development within a particular
country. Physical infrastructure levels (from telecommunication and electricity to live
venues and retail outlets) impact on the operations of the industry. For example, the
frequent power cuts in cities such as Nairobi make setting up a concert, without powerful
generators, extremely arduous. Infrastructure throughout the region is often minimal or
poorly resourced, although significant efforts are being made in addressing basic services
needs.
Key issue: Without the availability of basic infrastructure levels, the existence of musical assets cannot be
harnessed to generate the emergence of vibrant music industries.

1.3

Global trends
A number of significant global trends impact on the prospects for growth of the music
industry in the SADC region. These are related to market trends, institutional and
organizational dynamics of the industry, technological innovation, trends in music genres,
as well as pirating and informal economic activities.

1.3.1 Global players perspective on

global market trends
In 2000, IFPI announced that the global recording industry was under severe strain. In
1996, the total wholesale value of the global music industry was US$39.8 billion and the
global music industry grew by 4 per cent in terms of the total volume of unit sales, 9
whereas global sales of recorded music fell by 1.3 per cent in value and 1.2 per cent in
units in 2000. 10 North America was said to have experienced the most severe decline,

V. Kapepa, M. Kabuki, TNT and J. Hozheri: interviews Aug. 2001.

The Economist, 17 May 1997.

10

http://www.ifpi.org

offsetting improved album sales worldwide and strong market performance in several
European countries.
In 2000, IFPI estimated the value of the global music market at US$36.9 billion, with
total unit sales of 3.5 billion. Global sales of CD albums grew by 2.5 per cent to 2.5 billion
units, whilst sales of singles and cassettes fell by 14.3 per cent and 9.4 per cent
respectively. Currently, cassettes dominate many of the developing markets, although the
overall global level was down by 11 per cent in 1998, to 1.2 billion units.
Key issue: Globally, the music industry is experiencing a serious strain, both in terms of unit sales and turnover.

Statistical sources: Accuracy and availability

Those involved in the music industry from the SADC region are not actively
represented in IFPI, except for the global majors and the independent record labels from
South Africa. This situation results in two related outcomes. First, there are no statistical
sources in regarding the recording industry for the region as a whole, and only in specific
cases for individual countries. Second, the information released by IFPI might paint an
erroneous picture of the actual size, composition and dynamics of the recording industry
globally, and in the SADC region, by representing South Africa as the only SADC country
with a recording industry. The figures presented in the following sections should,
therefore, be seen to represent a partial reality, in terms of the performance of the industry
in the region and in respect of South Africas actual contribution to the global recording
industry.
Figures may misrepresent the true economic value generated by the music industry in
other developing markets. Based on its membership profile, IFPI posited that in 2000, 84
per cent of the recording industrys value is located in three regions North America,
Europe and Japan. 11 The Indian Times, on the other hand, stated in early 2001 that the
Indian market has emerged as the second largest music market after the US, fetching
values of US$5 billion. 12 The publication attributed this situation to the crucial role which
music plays in local film production. It is indeed very likely that the role of the music
industry in supporting the multi-billion dollar Indian film industry contributes to making
the former a large money generator. However, by focusing on the wholesale figures for
distribution of recorded music of its members, IFPIs statistics can only be approached as a
partial and perhaps skewed representation of the actual value of the global industry.
Key issue: There is a critical lack of qualitative and/or quantitative information about the condition of the music
industry across the different countries of the SADC region and within each country.

According to IFPIs figures, the African music market is the worlds smallest regional
market, worth only US$207 million in 1998 and representing a mere 0.6 per cent of total
global sales. The organization also noted, however, that over the 1990s unit sales for the
SADC region had grown by an annual average of 5 per cent, and real value at 1 per cent.
This improved performance was attributed to growth in the South African market that
represents 94 per cent of sales in the region. The South African market grew steadily
throughout the 1990s, increasing in volume from 12 million units to 21 million between
1992 and 1996. However, this growth was short-lived, with a 12.4 per cent drop in annual

11

www.ifpi.org

12

The Indian Times, 1 Jan. 2001.

sales value and a 16 per cent decline in annual unit sales in 2000. 13 One reason most
interviewees cited for the downturn in profit and turnover is the countrys current
economic strain, which is affecting purchasing power. Similarly, in Zimbabwe, severe
economic crisis and exponential inflation is undermining advances made over the past two
decades by the local music industry, by shutting tight the purses of music product
consumers. 14 In South Africa, in the 1990s, the importance of the CD increased, with CD
sales representing almost 65 per cent of all albums sold. This is in sharp contrast to the
other African countries, were CD sales are only a small proportion of the market.
Excluding South Africa, local repertoire dominates the region, with an average 65 per
cent of consumption of domestic music. In South Africa, the international repertoire
accounts for over 75 per cent of sales, although the share of the local repertoire is growing.
In fact, over the last three years, local music genres, such as kwaito and Afrikaans pop
have dominated the charts, capturing more than 80 per cent of the best-selling albums
market share. 15 One of the possible causes for this trend aside from a rise in popularity of
local music genres is that the retail cost of local repertoire products tends to be lower
than that of music products developed in South Africa under licence from the global
majors. For example, the retail cost of a Brenda Fassie CD will fetch between US$8 to 10,
whereas a Michael Jackson CD will range from US$12 to 15. What this suggests, in turn,
is that more affordable local products can potentially attract a greater share of the market
than international products.
While album sales in Africa are lower than in parts of the world where both
infrastructure and income levels are higher, it should be borne in mind that the recording
industry is young in most African countries. This implies that its means of production,
circulation and distribution are in their infancy, and that it has not yet reached its full
potential in terms of per capita sales. For example, in Zimbabwe, record sales of 100,000
units per album were never heard of until the early 1990s, when significant investment was
made to enhance production, circulation and distribution by Zimbabwes major record
labels. 16 Similar experience albeit on a more limited scale has emerged in Malawi,
United Republic of Tanzania and Zambia.
Key issue: The African and SADC markets are small because they have not realized their potential for
development. This is in contrast to other markets, which are well established, and nearing saturation.

1.3.2 Institutional and organizational dynamics

The wave of corporate agglomerations throughout much of the secondary and tertiary
economic sectors globally in recent years also affected the music industry. Recording
majors, such as EMI, Sony and Vivendi-Universal established themselves as global actors
by purchasing local labels and acquiring subsidiaries active in the different segments of the
music industry value chain. 17 Typically, the recording industry production process is
composed of three phases manufacture, from the recording of a master and the pressing

13

U. Lebuso. SA artists sing their own tune despite world slump, Sunday Times, 2 Sept. 2001.

14

A. Wilson, interview Aug. 2001.

15

U. Lebuso, op. cit.

16

D. Metcalfe, M. Sibanda and A. Wilson, interviews MayAug. 2001.

17

G. Hardie, interview June 2001; see also http://www.risa.org; http://www.gallo.co.za

of multiple copies, distribution and retail. Global majors own a significant proportion of
facilities and actors comprised in each phase. For example, EMI has a practice of, as far as
possible owning production facilities in any territory that it is based in. This gives EMI the
capacity to produce a reported 3 million compact discs daily. 18
The global recording industry is dominated by five multinationals that have
subsidiaries in the majority of the worlds major music markets. Of these companies, four
BMG, EMI, Vivendi-Universal and Sony are present in only one country in the region
South Africa. The music industry is one of the worlds most thoroughly globalized
industries. This characteristic is partially captured by the pronouncements of some of the
worlds largest music companies, for example: Think globally act locally (Sony). 19
Box 1.3
Mergers and agglomeration 20
The purpose of the merger between EMI and Time Warner was to make them number one in the global market
position. The idea of a strategic merger was timely right in the middle of the music breakthrough into the
Internet. A Deutsche Bank report on the merger states that the deal should accelerate Internet initiatives in the
music industry in terms of developing digital downloading technology standards and copyright protection. The
merger also made sense because the companies are diversifying their risk. The replacement cycle of CDs for
LPs and cassettes in the early 1990s represents the last and highest historical revenue growth rate of 8 per
cent. With the end of this replacement cycle, the music industry has been in a lull and, as a result, the music
majors have been competing for market share. By merging, EMI and Time Warner would diversify their risk of
losing or gaining in such a volatile market. The merger would provide vertical integration in what could be a key
e-commerce consumer product where music can be exploited through AOLs 22 million-customer franchise
base. The merging of EMI/Warner did not take place finally due to a veto from the European Commission (DGAnti-Trust).

Key issue: Internationally, the music industry is increasingly controlled through global oligopoly.

To a large extent, the agglomeration process is mitigated by a process of

fragmentation and specialization of small independent companies, securing niche-markets
for musical genres, or focusing on providing specific services in production, circulation
and distribution of music products and processes.
In the SADC region, one of the key features of the independents institutional profile
is that, because the industry is young and relatively undeveloped, the different functions
performed in the course of production, circulation and distribution tend to be undertaken
by a relatively low number of actors. For example, Zambias Digital Network Solutions or
Mondo Music both have their own recording studios, both undertake the production
process and have to circulate their repertoire themselves to retail outlets or other delivery
mechanisms. This is in contrast to practices in areas where the industry is well established
and where a high level of industry specialization exists.
Key issue: The wave of agglomeration of global music industry actors is also giving rise to the establishment of
small and specialized independents.

18

DACST. 1998. Industry Strategy for Music, one of four studies for the Cultural Industries
Growth Strategies.

19

R. Burnett, in DACST, op. cit.

20

http://www.soc.duke.edu

Figure 1.1

Industry supply chain

Conglomerate holding company

Other non-music divisions

Music group

Music publishing companies

Record group

Record labels
Artists and repertoire

Record distribution system

Record manufacturing

The agglomeration of the majors and the niche-market specialization of the

independents have been enhanced by the emergence of new technologies. For example, the
electronic media is proving to be a remarkable opportunity for the distribution of recorded
music at relatively minimal costs. It is also enabling music genres to reach a global market.
Further, information technology has facilitated and enhanced the affordability of the
production of music, bypassing the need for complex recording studios and production
plants. 21 In the region, some artists are even taking the lead in recording, producing and
distributing their own music directly. 22 This technology comes at a price, however. While
it has enabled the mushrooming of small independent recording and production activities
in the region over the past five years, few are currently able to acquire it.
Key issue: Technological changes can revolutionize the nature, scale and performance of the music industry
globally but technology requires seed capital.

1.3.3 Growth of World Music across cultural divides

The third global trend is the emergence of an amorphous music genre loosely labelled
World Music, in which regionally developed music is finding a niche. In developed
countries retail outlets, music from the continent is often slotted into this niche. World
Music is not traditional music, but fuses local tradition with exogenous influences. Artists
from the region that are considered world musicians include Remmy Ongala of the United
Republic of Tanzania, Orchestra Marrabenta Star de Moambique, Kende Bongo Man of
the Democratic Republic of the Congo and Oliver Mutukudzi of Zimbabwe. With the rise
to fame of such artists internationally, interest is also generated in other local products and
music genres, which further enhances production in the artists country of origin.

21

H. Forbes, interview June 2001.

22

C. Moyama, interview Aug. 2001.

Box 1.4
WOMAD, a celebration of World Music 23
WOMAD stands for World of Music, Arts and Dance, expressing the central aim of the WOMAD festival to
bring together and to celebrate many forms of music, arts and dance drawn from countries and cultures all over
the world. The first WOMAD festival was held in 1982. The festivals have allowed many different audiences to
gain an insight into cultures other than their own through the enjoyment of music. As an organization, WOMAD
operates through festivals, performance events, through recorded releases and through educational projects.
Since the first festival, WOMAD has presented more than 90 events in 20 different countries.

Importantly, this trend reveals that local music originating from parts of the world as
culturally diverse as Latin America, Africa and Asia are marketable across cultural divides.
Unfortunately, for these music genres to be recorded, produced, circulated and distributed
in the richest and most active markets (i.e. Western Europe, Japan and North America) the
involvement of foreign actors is often a prerequisite. Whereas a particular local musician
may be recorded and produced by a local company, the intermediary of actors such as
Lusafrica, Melt 2000, BMG, EMI or AOL Time Warner becomes necessary for the artist to
be distributed internationally. The outcome of this situation is that much of the commercial
value generated in the process of circulating and distributing local music products
internationally risks being lost to the local actors.
Key issue: World Music is an important niche market for music actors and stakeholders in the SADC region but
much of the commercial value generated in the process of circulating and distributing local music products
internationally is lost to the local actors.

1.3.4 Music piracy and parallel economies

The fourth global trend is the remarkable growth of music piracy, facilitated in part
by technological advances. It has spurred a collective response of organized global
industry actors in fighting against pirate activities. The IFPI estimates that, globally CD
piracy is worth US$4.5 billion per year. It identified that one root cause of the problem is
the massive over-capacity of CD manufacturing plants. The total global manufacturing
capacity of plants is estimated at nearly double the legitimate demand. Cassette piracy is
highly active in the developing world.
Box 1.5
Impact of piracy on a developing countrys recording industry 24
Mexico City, 17 May, 2001 Mexican artists and record companies have developed a US$666 million music
business that ranks eighth in the world, but the industrys future is now under threat because of soaring levels of
music piracy.
Of an estimated 181 million recordings sold in Mexico last year, three in every five was a pirate copy. With a
piracy rate of more than 63 per cent of the total market, piracy is costing the legitimate industry estimated losses
of US$300 million annually. A massive increase in illegal sales of CDs led to an 8 per cent fall in the legitimate
music market last year and a further estimated 4.7 per cent slump in the first quarter of 2001.

Key issue: Piracy is a global phenomenon which impacts directly on the performance of the music industry by
undermining value generation for all those who invest in the development of music products, from musicians and
composers to recording studios owners, sound engineers, record labels, to distribution and delivery actors.

23

http://www.womad.co.uk

24

http://www.ifpi.org

2.

The music industry value chain in the

SADC region

2.1

Conceptual framework for analysing

the music industry
The following section provides a brief overview of the manner in which the music
industry can be a value chain analysis adapted for the cultural industries.
This methodology was developed to support strategy-making in the cultural industries
and comprises five phases, or segments of the chain, where economic value is created and
enhanced, including:
beginnings;
production;
circulation;
delivery mechanisms; and
audience reception and feedback.
A key assumption in respect of the value chain in the cultural industries is that these
industries are able to grow not so much due to the strengths of actors and processes active
in a particular segment of the value chain, but rather as a result of:
highly effective and well-utilized links between its different segments and other
industries; and
the effective communication of information within and between the different
segments and their role-players (or actors) and between the music industry and
allied industries. 25
The segmentation of the process of generating value in the music industry comprises
both the supply of tangible products (i.e. cassettes, CDs, concert tickets, recording and
broadcasting of live performances ) and intangible services (music education, royalties
collection, promotion, artist management ). Both aspects contribute to the growth of the
industry in different but often complementary ways and are presented, in this report, in
relation to how they contribute to the value chain.

2.2

Generic actors
The music industry comprises of a number of generic actors and stakeholders, who
participate in the value chain differently as described below.
Originators: The musicians, composers and songwriters provide the raw material that,
once transformed through the processes of recording and marketing, generates the
income stream of the music industry.

25

DACST, 1998.

10

Agents and managers: Act as an intermediary between the originators and the other
actors to generate and negotiate contract opportunities, and to develop the artists and
their repertoire.
Publishers: These actors publish musical works as composed by songwriters and
lyricists. To sustain their role in promoting the work of songwriters, by making it
accessible to performing artists, they collect royalties known as publishing rights.
Record companies: Record companies are responsible for sound recordings, the
promotion and marketing of recording artists, the development of artists and their
repertoire, and ensuring the manufacture and distribution of phonograms.
Manufacturers: Responsible for the reproduction of phonograms from masters
produced by the recording studios. These commonly take the form of tangible
products such as cassettes and compact disks.
Promoters: Negotiate and organize live performances with agents, broadcasters and
venue agencies.
Broadcast, retail and entertainment sectors: These constitute the three sectors through
which the product of the music industry reaches the market.
Intellectual property rights administrators: These agencies operate to protect the range
of intellectual property rights (from composing, to publishing, performing and
broadcasting rights) and collect licensing fees and royalties from users. 26

2.3

Diagram of the value chain in the music

industry in the SADC region
Figure 2.1 provides a schematic representation of the value chain in the SADC region
and is detailed in the following subsections.

26

Annex 4 summarizes intellectual property, copyright and related rights and the collective
management of rights. It also reviews the current status of copyright protection in the SADC
countries.

11

Figure 2.1 Diagram of the value chain in the music industry in the SADC region

1. Beginnings
Musical education in formal and informal
systems (music schools, initiation schools)
Censorship, state control of broadcasting
Role of music in daily life and social rituals
Access to live music venues and music
products through informal channels
Access to telecommunication, technology
and tools of the trade
Organized musicians associations involved
in supporting training
Pirate activities, relationship to criminal
networks and application of the rule of law.

2. Production
Composing and practicing of songs by musicians (limited number of
professional composers)
Organization of bands and groups through informal networks and
musicians associations
Recording in studio of master tape by majors (South Africa) and
independent labels (whole of SADC)
Burning of CDs (mainly South Africa and Europe) and recording of tapes
and LPs (Some SADC countries)
Contractual arrangements negotiations (influence of the rights protection
systems and collection)
Development of artists and repertoire
Pirate activities (illegal covers, bootlegging, illegal reproductions)

3. Circulation
Circulation contracts with importers and
exporters of music and retail outlets
including wholesalers
Negotiation with promoters for live
performances, festivals, concerts
Licensing of broadcasters by copyright
collection agencies
Intellectual property rights legislation and
enforcement
Marketing and publicity activities for
products and live performances
Distribution and related activities
Pirate activities (out-of-contract additional
copies and grey stock)
5. Audience reception and feedback
Large size but limited spending capacity of the
market
Issues related to tastes of the market, market
and audience development
Monitoring of sales by producers
Fan clubs and associations
Competitions and awards
Musical journalism
Pirate activities (purchase of pirated materials,
illegal recordings, Napster )

2.4

4. Delivery mechanisms
Retail outlets (music retail outlets mainly in South Africa),
supermarkets, hawkers and informal economy traders
Internet (recent initiative) used by music labels, specialized distributors,
musicians and composers, support organizations
Restaurants and other non-live venues (such as night-clubs)
Broadcasting (TV, radio), influence of local content provisions
Live performances (festivals, concerts, clubs, hotels, motels and private
functions...)
Pirate activities (bootlegging, theft and sale of stock )

Beginnings: The first segment of the value chain

Music education in informal and formal systems

Southern Africa is rich in musical traditions and music is mainstreamed into all
aspects of daily life. 27 For example, the pivotal role which music plays in society in the
27

http://www.archive.ilam.ru.ac.za

12

Democratic Republic of the Congo, where every boy is expected to know how to sing and
dance, is a critical factor of creation within the chain. 28
Box 2.1
Music education through initiation processes 29
Girls who are initiated into the Lunda People of Zambia perform in a dance called the Chilumwa-lumwa. The
dance is mainly performed by women during initiation ceremonies for girls who have become of age. This is the
time when the girls are taught about adulthood. Learning the songs that form the backbone of the dance is an
important factor in developing music appreciation, establishing a baseline for music education, and fostering a
tight bond between music and everyday social rituals.

Role of musicians associations

Established musicians are often involved in training and developing the talent of local
performers. In Zambia for example, experienced musicians are invited to run musical
workshops for local performers. In Swaziland, the Musicians Association organizes a
workshop animated by experts to the attention of musical performers on a yearly basis. In
South Africa, music education and music business education is often promoted and
undertaken by local musicians. Similarly, some established musicians make use of their
international exposure and networks to promote emerging artists or to develop recording
infrastructure in their countries of origin.

Role of government
The role of government in introducing and promoting local cultural development can
be critical. For example, former President Mobutus role in instilling national cultural pride
facilitated the development of a national appreciation of local artists and music. Similarly,
the introduction of dance and culture groups in Zambian public schools as an extracurricular activity enabled several young artists to develop musical skills.
The composition of new songs, the creation of lyrics and the development of
arrangements take place in this segment of the value chain. In the region, most songs are
composed and created by the musicians and performing artists themselves.
In some countries, such as Mozambique, specific attention has been given to
developing cultural life, specifically in urban areas. For example, in Maputo, the
proliferation of cultural centres has been associated with the emergence of a richly creative
milieu. These are developed through government initiatives as in Mozambique, private
sector interventions in South Africa, or donor involvement as in Zimbabwe.

28

Dr. Lema, interview 2001.

29

Zondali Sakala email: [email protected]

13

Box 2.2
Lack of formal education in music
Music education is relatively absent from most school curricula in the region. In Botswana, for example, music
education does not form part of the syllabus. Where it is present, it is mostly in the form of music appreciation
programmes. A remarkably limited number of music schools exist, and like tertiary education institutions, they
tend to focus on musical performance, with little attention to the supporting technological, financial and
institutional aspects of the music industry, such as sound engineering, artist management and production
management. It is important to note that few successful artists were ever exposed to formal music education.
Most professional musicians are unable to read or write musical notation, which is resulting in the following
hindrances to the growth of the industry:
Composers are not able to control the publishing of their music, as they are unable to affix their
compositions to paper. This is often done by recording companies publishing sections, which then lay
claim to composing rights.
Composers cannot easily establish themselves as professionals in their own right, as their trade is not
readily marketable.
Problems are experienced by artists wanting to record their music, as most studios require that music be
transcribed to facilitate the recording and music engineering process.
Where they are formally educated, musicians are seldom educated with the skills required to manage their
profession. In the words of South African jazz artist, Vusi Khumalo: in music schools, they teach you to make
music, not how to be a musician. While musicians are often expected to treat their skills as a profession, they
are seldom equipped with adequate financial and administrative skills to manage their careers. Initiatives
launched by the South African Recording Rights Association Limited (SARRAL), and the Midi Trust in South
Africa have sought to remedy this situation by training composers and musicians in areas such as music
literacy, rights protection and contract negotiation.

The availability of support skills for industry growth is also critical. However, in the
region, those involved in managing the industry, the leaders of record labels, lawyers,
agents and stage managers have not been exposed to music business education. For
example, in South Africa, where professional skills are more abundant than in the rest of
the region, one interviewee noted that there are currently at most 20 lawyers who
understand the entertainment industry. Of these, few are involved in the music industry and
those who are involved work for record companies. As a result, little professional support
is available to musicians, particularly regarding the negotiation of contracts for live
performances and recording purposes.
Box 2.3
Musical milieu in Maputo 30
Very few African cities boast more cultural centres and associations than Maputo, mostly dating from the Machel
Government. Here, the arts are lived; they are part of the daily existence. Life in Maputo is like a permanent
festival.

Musicians associations and organizations can play a major role in supporting the
Beginnings segment of the value chain, by providing training and support. For example,
the Dorkay House Trust in South Africa was the sole provider of training and management
support to black musicians during the apartheid era. 31

30

J.N. Ntone, In Search of the Lost Rhythm; http:www.afribeat.co.za

31

W. Sabrowzky, interview May 2001.

14

Key issue: Although the SADC region has a wealth of musical talents and assets, few opportunities exist to
develop the quality and value of these raw materials through training and capacity building.

2.5

Production: The second link in the value chain

Production refers to the process whereby a product or service is produced. In the
music industry, the production process comprises different activities in respect of the
recording industry and the live-performance industry. Both involve the composition,
practice and rehearsing of songs, as preliminary steps in the process, which can be referred
to as pre-production. However, studio recording and editing are steps associated with the
recording process that may not be required in terms of live performance.
In the recording industry subsector, production refers to both the creation of a master
in a recording studio and to the mass production of cassettes or CDs in a manufacturing
plant.
Box 2.4
Quality control and production facilities in South Africa 32
One of the greatest strengths of the South African music industry is that it has such a comprehensive structure
from record company to manufacture to retail. There are four multinational subsidiaries, one independent major
and approximately 80 small independent record companies.
Manufacture of cassettes and compact disks is done locally with high-quality plants existing in the Gauteng
region. Quality control in one of South Africas cassette manufacturers is so good that in 1996 the reject rate
from consumers was a mere 2 units out of 6 million units produced. In addition to the quality control in the
production process, this cassette manufacturer sends cassette samples three times a year to Sony in the UK to
have their quality checked against international standards. One of South Africas largest CD plants is rated as
one of the top 20 CD plants in the world.

To record master tapes, the most accessible resource for musicians in the region is the
countrys national broadcasters studios. For example Radio RTK in Mozambique, Radio
Tanzania Dar es Salaam, and the South African Broadcasting Corporation offer their
services to musicians at relatively affordable rates. During the 1980s the only two private
recording studio and record labels in Zambia (Teal Records and Malachite Records) were
closed because of the severe economic crisis in the country. The only recording
opportunity in the country became the national broadcasters one-track studio, which
emerging artists had to resort to. Since the late 1990s several studios and labels have
opened their doors in Lusaka, one of which even boasts a 24-track studio, affording
musicians alternative opportunities to record and distribute their music.
In the past five years, a host of small independent studios has emerged in most
countries of the region, and this has enabled musicians to make use of local facilities.
However, interviewees mentioned quality problems. 33 This results in situations where
some musicians still opt to record in Europe or in South Africa. For the receiving country,
this market can be fairly lucrative and contributes to supporting the local recording
industry.
Until recently, South Africa was the only country in the region where a fully fledged
CD burning facility was available. Recently, the Zimbabwe Music Corporation in
32

DACST, op. cit.

33

M. Mumkitiwa, D. Metcalfe, T. Langa, W. Yav, interviews MayJune 2001.

15

Zimbabwe and Digital Network in Zambia have acquired similar capacity. 34 Most of the
available reproduction facilities are still cassette-based, although in Zambia there is also a
vinyl pressing plant. This situation is not only influenced by the availability of
infrastructure and equipment, but also corresponds to the means available for the local
market to use the products delivered. In the region, few households have the means to
purchase tape players, let alone CD players and the cost of a cassette is also more
affordable than that of a CD.
Box 2.5
Radio Tanzania recordings An opportunity and a piracy risk 35
The United Republic of Tanzania has virtually no recording industry, save for the continued activities of Radio
Tanzania Dar es Salaam (RTD), over the last 25 years. Once or twice a year, bands come to its one-track studio
for a session, recording about five songs at a time. This enables both parties involved in the process to benefit;
on the one hand the broadcaster accesses music cheaply, whilst the bands are then able to benefit from the
publicity that the broadcasts provide for their live performances. The instance of piracy in the region has soured
this relationship. For example, RTD recordings are often pirated and released in neighbouring countries such as
Kenya. As a matter of fact almost all releases featuring Tanzanian bands in the last ten to 15 years have used
tapes stolen or illegally copied from the library of RTD, without the permission of the bands or any remuneration
accruing to the band. Some support associations, often Internet based, have begun distributing dance band
music.

Key issue: In the past five years, numerous entrepreneurs in the region have begun acquiring equipment to
produce music products enabling the capitalization of musical assets into nascent industries.

Given the fragmented nature of the music industry, production occurs in a number of
sites and forms. Recording and production take place in the SADC region in four main
formats:
The production and distribution of international repertoire under licence from the
global majors. These are primarily located in South Africa.
The production of local goods for local and trans-regional consumption. These
processes are spread across the region. The manner in which different actors are
involved in the production networks for specific product is largely influenced by
factors such as musical genres (the growth of Kwaito in Botswana and Zimbabwe),
institutional systems (i.e. the collection system), technological infrastructure (i.e. the
availability and quality of recording studios) and socio-linguistic factors. Although
the global majors are involved in the production of local content, the market tends to
be primarily represented by independent production companies and record labels
active in the region.
The production of local products for international consumption. This aspect is driven
through local actors, but often requires the involvement of other actors outside the
region, such as international record companies, primarily those based in France, the
United Kingdom and Germany.
The pirate production and distribution process. This aspect of the production process
covers only partially the production aspects, as it can only truly begin once a sound
has been produced and/or distributed, although it may take advantage of live
performances to record sound previously unrecorded. This network is extremely
34

R. Sombe, Jr., J. Ngandy, D. Medcalfe, A. Wilson: interviews MayAug. 2001.

35

Webber and Wagner, 1996.

16

significant in most of the African continent, and some of its actors can be linked to
international criminal organizations in Asia and the Middle East. 36
Key issue: In South Africa, the development of local production facilities has taken place primarily to support the
international industry (i.e. South Africa has been seen as a market). Conversely, in the SADC region, the
development of local production facilities is geared to support local consumption of local repertoire and products.

The production aspects of live performance are closely tied to the delivery
mechanisms and platform. Delivering music to a live audience requires arranging a live
venue and setting up public address and sound engineering systems. Lighting and special
effects engineering, as well as event and stage management functions can also be
performed to enhance the quality of a live performance. However, these means of
production and delivery are not prerequisites for production; for example, many
performing artists perform unplugged at small venues. This, however, limits the size of
their audience, and in turn, their livelihoods.

2.6

Circulation: The third segment of the value chain

The circulation of music products across borders and regions is often contingent on
reciprocal licensing and distribution deals signed between record companies in different
territories or between record labels and distribution agents. 37
In established markets, the circulation aspects of the recording industry are highly
sophisticated. In countries such as the Democratic Republic of the Congo, the United
Republic of Tanzania and Zambia, where the market is primarily performance and/or
piracy-driven, the legal circulation networks for recorded music is weak and marketing and
publicity rarely happen, although intricate circulation networks have been developed for
parallel processes. Circulation involves actors such as music buyers, exporters and
importers of international products who are extremely active in Botswana, Mauritius,
Zimbabwe and South Africa, and focus on the distribution of imported products often
under licence from international companies. Wholesale distributors who sell to hawkers
and small retail outlets, such as Reliable and Jumbo Cash and Carry in South Africa, and
Portuguese Shopping in Malawi, play a critical role in the circulation process, through
informal trading networks.

2.6.1 Live performance circulation

In the region, circulation actors include individuals operating as agents to specific
artists, to musicians association active in placing musicians and negotiating with venues,
to parastatal organizations in the United Republic of Tanzania, for example, and to major
international conglomerates bringing a specific artist or event to perform in a set of venues.
The role of promoters can be both extremely lucrative and risky. One reason this activity
can be risky is linked to a lack of professionalism: of artists (who sometimes whimsically
fail to honour their contracts) and/or of promoters (who do not secure sufficiently formal
agreements from artists or miscalculate the costs of production of live events).
On the other hand, promotion can also involve significant profit-making, where
promoters contract musicians to perform for an unlimited number of performances in a
36

Hoiijer, R., interview July 2001.

37

DACST, op. cit.

17

given country and then resell performance rights to smaller local promoters. For example,
in Belgium, a host country for Congolese music, a promoter can pay a band up to
US$20,000 to tour for a month, host a major concert to recoup the initial investment (and
more), then sell-out the band to other promoters for smaller events.
Key issue: Circulation in the recording and performance subsectors is largely informal and undeveloped and
suffers from a lack of professionalism.

2.7

Delivery mechanisms: The fourth segment

of the value chain
A multiplicity of delivery mechanisms exists. Delivery mechanisms are those
structures that make music available to the market, thereby laying the foundations for
returns on investment. The delivery mechanisms range from retail, broadcast and live
music. The retail component comprises intermediaries between the record companies and
the retail outlets. Including:
Formal retail outlets. Specialized music retail outlets are rare in the region. In South
Africa, three chains operate currently: Musica; the Compact Disc Warehouse; and
Look and Listen. In Zimbabwe, Express Toll is the only music retail outlet and is only
present in Bulawayo and Harare. In Zambia, Sound Investments is the market leader
in the retail of music, although most music products are retailed through
supermarkets, petrol stations shops and through informal vendors. 38 In most of the
region, the purchase of delivery of music in formal retail outlets takes place in
supermarkets, as in Namibia, or clothing stores, as in Zimbabwe.
Informal retail networks. These networks are extremely significant in terms of the
role that they play in bringing legal products to consumers, and represent a large
proportion of the total sales of a particular product (from 25 per cent in South Africa
to 99 per cent in Malawi). Informal traders retail music products at a more affordable
cost than formal retailers, and distribute products in parts of the region that are not
serviced by formal retail. However, they often obtain their music products via the
intermediary of pirate producers, and as the nature of their operations takes place
beyond the ambit of the formal and controlled economic sector, they are a key
distributor of pirated products. In parts of the region where intellectual property
legislation and enforcement are lacking, the distribution of pirated products takes
place in direct competition with the legal distribution process.
Internet distribution networks active in promoting and exposing artists to new
markets. These are sometimes directly linked to the production segment of the value
chain and bypass the circulation aspects, for example where a record label posts
albums on their web sites. Some composers and artists are also using the Internet as a
means to promote and market themselves directly to the public without having to go
through an intermediary.

38

C. Folotyia, interview Aug. 2001.

18

Box 2.6
An example of good practice in Zimbabwe:
Fighting piracy through right-pricing and regulating the distribution network
In Zimbabwe piracy has historically been a problem facing local producers. Over the last two years, recording
industry actors initiated a process to regulate the distribution of music by informal traders who are key in
delivering musical products to the market. The initiative is twofold and involves the issuing of permits to informal
economy traders to control trade and enabling licensed traders to purchase tapes at the reduced wholesale
price of US$2. Producers such as the Zimbabwe Music Corporation, hold hawkers days for this purpose. The
price of the legally acquired music together with the policing of informal trading places to ensure that traders are
licensed has made the legal route attractive to traders. This has, however, required a change in strategy for
recording industry actors, who have had to reduce their profit margins considerably to operate entirely on
increasing the scale of turnover. In turn, this has also enabled more diversity in musical consumption and
production, which is also enhancing access of musicians to the recording market.
What makes this approach a good practice are the strategic decisions taken to:
Develop cooperation between actors;
Formulate operational strategies that are embedded within the local economic framework conditions
(informality and low-income market); and
Target interventions to leverage outcomes that address more than one issue affecting the industry (i.e.
fighting piracy and increasing production).
Source: Debbie Metcalfe, CEO, Frontline Promotions Private Ltd., Zimbabwe.

Key issue: The role of formal actors in enabling the informal distribution and delivery systems (through which
most music products are delivered), within the ambit of the legal system (as in Zimbabwe) is critical.

2.7.1 Live performance delivery mechanisms

Live performances are a key contributor to the functioning of the value chain. In
South Africa, for example, the local artists most active in the live performance sector also
often achieve the highest record sales. 39 In other parts of the region, they are generally the
primary means of income generation for artists. Conversely, in parts of the region where
opportunities for live performances are few, such as Angola, the promotion of artists and
the development of the local music industry are threatened. The profile of each artist and
the country and context in which they perform drastically influence their income levels.
These range from US$15,000 for artists such as Yvonne Chacka Chacka, Papa Wemba and
Lucky Dube when performing outside of their country of origin, to US$400 in small local
venues and night-clubs, to US$200 for local stars performing in private functions, or to a
percentage proportion of gate takings. Finally, live performances provide an opportunity
for bootleggers associated with pirate networks to record, produce and distribute materials
illegally. 40

39

R. Katz, D. Forbes, C. Folotyia, interviews MayAug. 2001.

40

W. Zabrowsky, interview Apr. 2001.

19

Box 2.7
The paucity of live performance opportunities stifles livelihoods
and music industry development in Angola 41
There are many nightclubs in Luanda, and numerous possible concert venues. Recently, although a number of
new clubs have opened up, the gigging situation has stagnated. This war-ravaged city is bereft of live music
because it has no infrastructure or support and hence no development of new acts. The stars are based in
Europe, visiting Angola occasionally to perform. Radio and television offer little support the emphasis is on
American content in music programmes on TV, and the big commercial radio stations such as FM Stereo stick
almost exclusively to American hit radio.

Key issue: The live performance subsector has a key role to play in supporting the performance of the
recording industry sector and in providing livelihood opportunities for musicians. Yet, in the region, it is largely
under-regulated in terms of contractual arrangements and the protection of intellectual property, and also lacks
organizational capacity.

A growing component in the live performance sector of the industry has been the
emergence of numerous music festivals across the region, in particular in South Africa,
which now counts more than 20 different festivals, ranging in styles from jazz to rock,
kwaito and classical music. These festivals are generally as important for creating
performance opportunities for artists as they are for providing a platform to their sponsors
who seek to leverage specific brands or products. In the region, national breweries are key
sponsors of music events.
Box 2.8
Encouraging local performers: Music festivals are a growing industry
The Splashy Fen success story demonstrates how the entrepreneurial spirit can foster live music audience
development. Lets have a music festival, said Peter Ferraz, a trout farm owner and former journalist, to his
friend, Bart Fokkens, a former forester who was in the process of setting up a computer rental company in
Durban. The date was early 1990. Several months later, the first Splashy Fen festival was held over two days. It
attracted about 1,200 enthusiasts who camped on Ferrazs farm to listen to local artists. Infrastructure was
rudimentary a makeshift stage, a tractor-powered generator and a few portable toilets. From humble
beginnings, the Splashy Fen festival has snowballed into a major event on the South African music calendar.
The 1998 event was held over four days and attracted 10,000 people.
The festival is held on the farm Splashy Fen, which is situated 19 kilometres from Underberg in the Southern
Drakensberg Mountains. The focus of the music in the early years was folk and light folk rock, as well as music
styles such as mbaqanga and iscathamiya.
Only genuine original music is played at Splashy Fen, and this has played a part in creating a fusion of styles
and cultures and a feeling of shared co-existence between previously disparate artists.

The running of song and performance contests, such as the Shell Road to Fame in
South Africa, the Malawi Gin Song Contest in Malawi and Radio RTK Competition in
Mozambique have played an important role in fostering exposure of new talent. 42

2.7.2 Broadcasting
Across the region, the number of radio stations and television stations vary although
airways have been opened up in countries where political transformation has occurred. Box
2.9 encapsulates the influence of the current broadcasting system.

41

Iain Harris, www.afribeat.co.za

42

B. Kwilimbe, T. Langa, interviews June 2001.

20

Key issue: Festivals and music competitions present an important opportunity for attracting private and public
sector funding to the music industry. They also have a key role to play in the development of new artists.

Box 2.9
Broadcasters Makers and breakers in the music industry
The broadcasting system has an important role to play in fostering the local music industry. From commissioning
jingles to using tracks as theme songs for local television productions, public and private broadcasters can
contribute to the livelihood of musicians and composers. In South Africa, because local television production is
relatively important compared to the rest of the region, commissions can be an important source of income.
South African musician and composer Vusi Khumalo explained that his largest source of income is derived from
the soundtrack he produced for a local sitcom Backstage. Increasingly however, local broadcasters are
forcing composers to sell-out their rights on commissioned works.
In some countries, local content provisions have been set up in legislation and policy. In South Africa this
amounts to 20 per cent of broadcasting. Local content is often credited with fostering the local music industry.
However, measures to enforce these provisions are often lacking. This is particularly the case where institutional
capacity is weak. Further, the extent to which broadcasters are able to play local music and still maintain a high
number of auditors thereby satisfying their sponsors is largely dependent on the quality and the existence of
a fairly wide local repertoire. In Zambia, former President Kaundas 90 per cent local content requirements in the
1980s never really materialized, because of the limited scale of the local repertoire, together with a strong
penchant of Zambian listeners for Congolese Rumba. As a result, the national broadcaster directly under state
control had to bypass these quotas. In addition, the practice of payola, where DJs are paid by record labels to
play particular songs is alleged to be widespread. This skews the broadcasting content in favour of those
recording labels that have most financial capacity.

Key issue: The policy framework on broadcasting, the number of broadcasters in a given country, and the
extent to which local broadcasters support local music production and delivery has a strong impact on the local
music industry.

2.8

Audience reception and feedback: The fifth

segment of the value chain
Audience reception and feedback allow for the reformulation of investment strategies
on the basis of audience responses. The nature and scale of the market also influence
audience reception. Here, intangible factors, such as the existence of a culture of liveperformance attendance or localized musical tastes, interact with tangible factors such as
income levels and are critical in determining how investment decisions are made. For
example, they may determine what level of investment should go into production by
considering the costs of production in relation to the spending capacity of the market, and
the desirability of adapting specific musical genres to the tastes of the market. 43 Such
processes include chart shows and awards, music journalism, and the tracking of record
sales.
Record sales are monitored by recording companies in terms of artists, not in terms of
where a sale has taken place in the region. Similarly, collection agencies tend not to
differentiate between specific countries in monitoring royalties and licence rights
payments. 44 When albums and singles are introduced into a country by importers and
wholesalers, it cuts out an important opportunity for artists to receive feedback. Numerous
artists from the region and labels are thus focusing on adapting their styles for international
43

D. Forbes, interview June 2001.

44

G. Hardie, interview May 2001.

21

consumption, in particular with the growing wave of World Music popularity. Similarly,
record labels, such as Sheer Sound in South Africa, are specifically targeting the emerging
black middle-class.
Key issue: Mechanisms for supporting audience reception and feedback in the region are extremely underdeveloped which means that actors in the industry lack valuable information on which to base investment
decisions.

Overall, the market has tended to define the nature of the supply process, except for
South Africa whose market is highly biased in favour of international music (Western rock
and pop, rap and R&B). 45

2.8.1 The global recording industry-driven

import market
The global record industry-driven import market is primarily active in South Africa
(the only SADC country where global majors are represented and legal sales are recorded).
The active import market actors are large multinational companies, who package
international products for local consumption. This market represents close to 75 per cent of
the total turnover of the South African market, which itself represents 98 per cent of the
total African market. 46 This may suggest (if one considers the music industry in terms of
legal sales of recorded products alone) that this market and its actors dominate the music
sector in the region a false assumption. Music buyers import legal products into most
SADC countries, although products are not monitored and seldom quantified, in particular
in countries such as Botswana and Namibia. Significantly greater production and
distribution of international artists and product takes place through the intermediary of
pirate networks.
Key issue: South Africa is the only country in the region where the global majors are present, which means that
in other parts of the region, international products are distributed through importation or via the pirate network.

2.8.2 The international consumption market

for SADC products
The international consumption market of local products is a specialized, niche sector.
In general, no specific music genres are developed and produced for this market. South
African jazz has been heavily influenced by its northern American counterpart, Congolese
Rumba and the Afropop and Afrojazz developed in the Lusophone countries, by artists
such as Angolas Waldemar Bastos, and Congos J.B. Mwenda. Artists like Werason or
Lucky Dube have sold over 5 million albums in countries as varied as Australia, France
and Sweden; considerably more sales than they could hope to achieve in their countries of
origin.

45

V. Khumalo, D. Mashaba, R. Katz, D. Dyson, interviews May 2001.

46

http://www.ifpi.org

22

Box 2.10
Artists developing a sense of the market:
Papa Wemba, an artist of two musical worlds 47
Papa Wembas singing style is reminiscent of his traditional and rural beginnings in Kassa and of his mother,
who sang traditional mourning songs. Papa Wemba began his career in the rough and tumble world of
downtown Kinshasa, where he received musical training of the highest order in Kinshasa, with legends such as
Tabu Ley Seigneur Rochereau and Jean Bosco Mwenda.
As part of this movement, Wemba was a founding member of Zaiko Langa Langa who shook the older gentler
Afro-rhumba of the 1950s and 1960s to arrive at a meaner, leaner, heavier version known as soukous which
has since become the dominant pop sound in Africa.
Wemba moved to Paris in the mid-1980s and proceeded to live two parallel lives, one as a world music star
releasing slickly produced records for Western audiences and another as the frontman of Wenge Musica
pumping out raw soukous for African audiences.

Key issue: Although this market represents a significant opportunity for artists and composers, most local
recording industry actors have yet to take greater advantage of this potential export market, currently dominated
by specialized record labels located primarily in Europe.

Specific artists have developed styles that slot them into the loosely defined World
Music genre. Originally, these artists may have targeted their products at local or transregional markets. Reaching international markets may be highly dependent on factors such
as international migration of the local market, due to political and economic hardship in
specific countries. In fact, this has been a key factor in building not only a market for
African music in Belgium, France and the United Kingdom but also a recording industry
entirely dedicated to this type of music in those countries. The key recording industry
actors in these markets are generally located in France, Germany and the United Kingdom.

2.8.3 The trans-regional market

The trans-regional market is shaped by factors such as ethno-linguistic linkages,
geographical proximity and trans-regional migration patterns and facilitate the crosspollination of music genres. Examples of musicians who are consumed regionally are
Yvonne Chaka Chaka otherwise known as the Princess of Africa, Bonga Kwenda of
Angola and Thomas Mapfumo of Zimbabwe. Linguistic linkages are also critical in
shaping the involvement and the location of actors in the value chain. For example,
Mozambican and Angolan artists have strong linkages with their Latin American
counterparts, especially in Cuba and Brazil.
Exposure to broadcasts from neighbouring countries, for example, those parts of
Zambia that border the Democratic Republic of the Congo, popularizes certain genres of
music and enables musicians to tour in these countries, often via pirate operators. The
latters economic interests do not always favour artists who, fearing piracy and aware of
the poor performance of local collection systems, frequently seek to release their work in
South Africa, rather than in their country of origin.
The role of live performance is also critical in promoting the exposure of artists to
new markets across the region. As they are generally remunerated up front, often in hard
currency, this market is more profitable for artists in the region than those of their
respective countries of origin. Artists from the region frequently tour neighbouring

47

Real World Records (2000).

23

countries as a means of generating revenue, which they can use to sponsor their own
recording and even production costs. 48
Key issue: Regional trade in legal music products is extremely undeveloped. As a result the main opportunity
for consumers to access such products is through informal or pirate networks.

2.8.4 Local production for local consumption

The local production for local consumption exists in each country of the subregion.
Typically, local artists use local compositions that may be heavily inspired by regional and
international musical genres, but are directly targeted at the local market. In the past five
years, numerous independent companies have emerged. 49 Their involvement may not span
the entire scope of activities required to lead to the production of a tangible music product
(i.e. a cassette or a CD), but are significant in enabling artists to prepare their work for
distribution. This is particularly the case in the Democratic Republic of the Congo where
most artists may begin recording but have to take their work to major record labels in
France and Belgium. This gives artists access to the major production and distribution
companies for African music. Importantly, live performances are critical in the
development of artists and enable them to gain sufficient following and financial resources
to enter the recording and production realm. A second example is the Mondo Music
Corporation, 50 Zambias leading musical entertainment company. Started by music-lover
and entrepreneur Chisha Folotya, it is home to a diverse roster of artists striving for
professionalism and production quality. A key contributing factor to the companys
success is that its leadership views the industry as a business.
Key issue: Local production for local consumption although only emerging in most countries in the region is
unevenly developed between the different countries in the region. This results in a situation where production of
a single product may take place in different countries within and outside the region, which may in turn raise the
wholesale and retail price of such a product.

2.9

The pirate value chain

Multinational recording industry organizations actively cooperate to fight piracy by
monitoring, negotiating and supporting countries to stem pirate activities. However, as
noted earlier, the majors focus mainly on South Africa. 51 Little if any monitoring of piracy
activities has taken place: industry figures range from 25 per cent to 90 per cent of sales
and broadcasting in the different countries of the region. 52 For example, in early 2001,
three pirate operators were arrested and admitted to having sold more than 6,000 tapes of
the Zambian Hip Hop stars, Black Muntu, within the first two weeks of the release of the
album a figure substantially higher than that of the legal retail sales achieved within that
time-frame. This demonstrates two key characteristics of the pirate networks success: it is
both affordable and accessible. This competitive advantage should be taken into
48

V. Kapepa, M. Kabuki, TNT, M. Sakhala, M. Khumalo, interviews MayAug. 2001.

49

T. Langa, B. Kwilimbe, M. Munkhondia, M.Simbungo-Nyapa, M. Mumkitiwa.

50

http://www.mondomusic.co.zm

51

See http://www.ifpi.org and http://www.risa.org

52

R. Hoiijer, interview July 2001.

24

consideration by formal/legal actors, in formulating their own approaches to dealing with

piracy.
It is useful to explore how and where in the different segments of the value chain the
pirate activities are initiated to create a secondary chain. In the pirate network, the financial
returns do not accrue to those situated in the formal chain and permission to use
materials and intellectual property has not been granted. Hence, the characteristics of this
parallel value chain in the network of pirated music is described below.

In the beginnings segment

The formal production and distribution sectors are non-existent, unaffordable or
inaccessible and the enforcement of intellectual property rights is not effective. The only
way consumers access musical products is through informal and pirate networks. This
situation generates consumption patterns that function beyond the structure of the
mainstream music industry value chain. For example, pirated tapes with hand-written titles
are distributed widely in the Democratic Republic of the Congo and in Zambia. In Lusaka,
pirated tapes are sold in front of music outlets, at a fraction of the price, with little or no
police intervention. Consumers have become accustomed to buying in the pirate market,
and results in artists shunning the local recording industry in favour of alternative
production, circulation and distribution networks, as they are aware of the devastating
impact which piracy may have on their long-term gain in their country of origin.

In the production segment

A master tape could be sold informally to a separate producer who reproduces the
tape and passes it on to retailers and distributors. Sometimes artists or their agents
participate in this process in cases where contractual arrangements are not perceived to be
adequately advantageous for the musician. 53
A record producer can make copies illegally of distributed materials and distributes
them through an informal distribution network. The availability of affordable CD burning
and tape copying infrastructure makes this a widespread process. In Malawi, for example,
this was a key problem which the copyright protection legislation and mechanisms
introduced have sought to resolve. 54
A recording company could source published materials and recruits artists and
musicians to perform cover versions without the permission of the rights holder and
distributes the illegal products in the formal distribution process. 55

In the circulation segment

Stocks of recorded material may be stolen and then re-distributed through formal or
informal sector distributors. 56

53

W. Zabrowsky, interview Apr. 2001.

54

M. Munkhondia, interview May 2001.

55

L. Mashigo, interview May 2001.

56

D. Forbes, interview June 2001.

25

Record labels might circulate and distribute material by artists from their repertoire in
different countries without informing the artists and by withholding royalty payments. 57
Stocks of discontinued material may be deleted (officially discontinued) from the
circulation chain and then re-released through formal and informal retailers. 58

In the delivery segment

Live broadcasting and performances can be recorded illegally by pirate operators and
then distributed (the latter being a secondary source of income for promoters who organize
artists live performance and bootleg the performance). 59
Unauthorized Internet transactions are included in this segment. 60
The range of pirate activities suggests that sometimes the pirate and the mainstream
actors may act side by side and cooperate. 61 Such is the prevalence of piracy in the region,
that all actors mentioned it as a hindrance to industry growth. This situation attests to the
weak institutional structure in the music industry throughout the region and the need to
strengthen the individual components of the value chain, as well as the linkages between
them in the SADC region. Clear implications for policy arise here, in order to provide the
support and the encouragement, including financial and trade policies toward this industry,
in order to increase the gains from operating through formalized channels and compliance,
rather than evasion of regulations.
Key issue: Mainstream industry actors need to consider what practices of the pirate network make pirated
goods more advantageous to the consumer, and how they can adapt their own practices to efficiently undermine
pirate activities. This approach also means that industry actors need to become familiar with the specific manner
in which piracy operates within their own country, market and sector of the industry.

2.10 Stakeholder bodies: Low capacity

and bargaining power
Stakeholder bodies in the region are few. They comprise musicians associations or
unions, as representatives of composers and musicians. They are relatively weak and lack
administrative and technical support.
In South Africa, the musicians union has been seeking to strengthen musicians
rights and has been actively promoting the development of legislation and a collection
system that acknowledges neighbouring rights. However, its success has been extremely
limited, which suggests that its bargaining power tends to be restricted. This situation is
symptomatic of the low profile that such institutions hold in the region. Mostly, such
organizations reflect the manner in which musicians operate in their trade, with little
57

M. Sibanda, interview Aug. 2001.

58

G. Hardie, interview June 2001.

59

W. Zabrowski, interview Apr. 2001.

60

KPMG. 2001. The South African Music Industry. KPMG.

61

W. Yav, J. Ngandy, G. Hardie, G. Atkinson, A. Wilson, C. Folotyia, R. Sombe, Jr.: interviews

MayAug. 2001.

26

technical and management ability, and little impact on the manner in which the recording
industry operates, which highlights the need for capacity building among artists and their
representatives as well as their associations.
Other stakeholder bodies in the region include music educators and the institutions
they represent. These are seldom organized or structured and lack both financial and
administrative capacity. Collection and rights protection organizations are operating in all
the countries of the region, but again, their impact is often limited and, in some countries,
such as the Democratic Republic of the Congo, they exist mainly in name.
Recording industry stakeholder bodies are only present in South Africa, under the
aegis of the Recording Industry of South Africa (RISA), which has primarily provided a
platform for formal sector recording companies to cooperate in fighting piracy. 62

2.11 Lack of coordinating bodies

Few coordinating bodies exist in the region. Where they do, they primarily operate at
the national, not regional, scale. Non-governmental organizations, such as the MIDI Trust
(See box 2.11) tend to focus on training and education, networking and industry
development. However, such initiatives are rare.
Box 2.11
The MIDI Trust: An example of good practice in South Africa
The MIDI Trust is a Section 21 company that began operating in October 1996. Since its inception, The Trust
has received an annual grant from Peter Stuyvesant for operational costs.
The Trust focuses on:

Industry Development

Training and Education

Information Dissemination

Networking

The Midi Trust plays a coordinating role, and is focused on South Africa; not enough funding exists to allow for
operating with other countries:

The MIDI Trust, in partnership with the Department of Arts, Culture, Science & Technology (DACST) and
the National Arts Council, host the annual South African Music Week. This event celebrates South African
music and strategic partnerships are formed with many industry stakeholders.

Administering of organizations

Allowing access to young entrants to make use of office facilities

Administering of Interim Export Council. The MIDI Trust was mandated by the industry to proceed with
this project, at a Conference held during South African Music Week 2000.

The MIDI Trust, in conjunction with Music Africa, publishes an annual music industry directory, the only
comprehensive guide to the South African music industry.

Key issue: Stakeholder and coordinating bodies are institutionally weak and/or operate within limited and partial
frameworks. Some coordinating bodies also lack adequate legitimacy to operate as representatives of the music
industry.

62

http://www.risa.org.za

27

2.12 Policy issues

Legislative and policy issues impact on the nature and performance of the value chain
in different contexts. First, in most developed countries with an established music industry,
significant attention has been given to setting up supportive policy frameworks, which
typically entail promoting music and music business education, economic support for the
arts and provisions for local content regulations of broadcasting. For example, in Canada,
the government has invested approximately $45 million in the sound recording industry; in
return, revenues of over $230 million have been generated. 63 Second, in such countries, the
protection of copyright and the efficient administration of rights legislatively ensure that
the intellectual property and investments of all actors in the industry are protected and
remunerated. Finally, issues relating to freedom of expression, censorship and control of
the media play a role in shaping the different segments of the value chain, by impacting
directly on the content of music, its circulation and distribution.

2.12.1 Copyright protection and collection systems

The extent to which the rights 64 are effectively monitored and redistributed varies
extensively. In some countries, copyright protection agencies exist only in name.
Variations also exist in terms of the origins of either the artists or the music products
distributed. In the first instance, in the Democratic Republic of the Congo, the law provides
that only local musicians can access copyright protection. In Malawi where local
production and consumption is amply copyright-protected the vast majority of
international products, whether from the region or from beyond its borders, are of pirate
origin.
Governments in the region have made a significant effort to develop copyright
protection legislation. 65 In South Africa, in May 2001, the Department of Trade and
Industry published draft amendments to copyright legislation proposing the introduction of
a public performance royalty for performers and record labels, 66 which would generate
extra revenue to musicians and labels. Broadcasters would pay for this additional revenue
every time a particular song is played. In Zambia, the role of the Musicians Union in
lobbying for the passing of copyright protection legislation and its resulting impact on
protecting albeit in limited terms the recording industry has been noteworthy.
UNESCO and the World Intellectual Property Organization have provided important

63

DACST, op. cit.

64

Usage rights can be divided into two categories mechanical usage and performance royalties.

Mechanical usage refers to each time that a given recording is used in its original form. Thus
mechanical usage rights would be collected each time that a copy is made of a particular musical
composition.
Performance royalties are collected each time that a composition is used, whether re-interpreted by
another musician; used as the backing to an advertising jingle (synchronization); or used in its
original form.
Sound recording royalties refer to those recordings that are the result of an artists recording of a
particular composition. The record company usually holds these rights. Again, there are two forms
of usage rights mechanical usage and performance royalty.
65

National copyright offices in the SADC region are provided in Annex 5.

66

KPMG. 2001. The South African Music Industry, KPMG.

28

assistance to governments. 67 Similarly, some copyright organizations, such as SARRAL

have set up support systems and cooperation agreements with governments and local
organizations to assist in the development of collection agencies. A key challenge here is
the need to ensure a fit between the legislation, the rights protection framework and the
institutional capacity available locally. For example, whereas the Zimbabwe Copyright
Protection Association only accessed computers in the course of 1991, most of their
counterparts in the SADC region still manage collection systems manually. 68 Whilst this
does not significantly affect licensing agreements for local repertoires, it hinders greatly
both the licensing of international repertoires and the protection of mechanical and
neighbouring rights. 69
Key issue: While much attention has been given to the development of copyright protection policy and
legislation, a lack of consideration of the institutional capacity available to apply, monitor and enforce this
legislation and collect copyright payments from users, tends to limit their value and contribution. Each country
should be encouraged to develop systems that are mindful of its own institutional capacity limitations, while
providing sufficient protection to local and international services and goods.

2.12.2 Contractual arrangements

There are currently no guidelines on the nature of the contracts or the manner in
which musicians and composers should be remunerated. These vary from 5 per cent to 20
per cent of the retail-selling price depending on the status of the artist, where mechanical
rights are protected. 70 In much of the region, where mechanical rights are not protected,
remuneration of musicians occurs as a once-off buy-out payment with no claim on
royalties. In South Africa, concern was expressed that musicians who compose their own
songs are forced into ceding their composing rights to recording companies, in the process
of negotiating for the production of an album. 71
In terms of live performance, remuneration arrangements range from a flat fee to a
percentage or even to the whole of gate takings, and possibly some other payment through
gifts and tips from the audience, or from name-dropping. In the region, a number of
hotels, motels and restaurants have resident bands who perform on a regular basis. Often,
these arrangements are based on verbal agreements, and on average, musicians earnings
although more regular tend to be lower than earnings that are generated from once-off
concerts or performances. The band or group leader often takes responsibility for sourcing
new touring or contract opportunities. Arguably, this detracts from the musicians and
composers focus on artistic creation and practice. It also means that where bandleaders are
not equipped with adequate negotiation and organizational skills, this may impact
negatively on the bands overall success.

67

http://www.wipo.org. Of special interest is Intellectual property for small and medium-sized

enterprises, CD-ROM in English, French and Spanish, http://www.wipo.int/sme

68

D. Metcalfe, interview Aug. 2001.

69

R. Hoiijer, interview May 2001.

70

D. Forbes, interview, May 2001.

71

G. Hardie, V. Khumalo: interview, May 2001.

29

Key issue: Negotiations for contractual arrangements in the sector reveal a lack of professionalism and the
inaccessibility of support actors such as lawyers and managers to musicians and composers. This impacts
negatively on the conditions of employment of artists in the region.

2.13 Making a living

Throughout the region, the majority of the industry is based on contract labour or
part-time employment. 72 Musicians and composers constitute the greatest percentage of
people working in the music industry. While this work is very rarely full-time, it provides a
point of access into the job market and a source of income. 73 Estimates on the number of
individuals employed on a full-time basis in the music industry (from musicians to record
labels, broadcasting, promotion and collection agencies), range from 1,000 in Malawi to
20,000 in South Africa. In most countries, making a living from music is arduous. In the
United Republic of Tanzania, bands have to play for five or six nights a week and up to six
hours at a time, a task beyond the capability of a small ensemble. Thus, bands are large,
featuring from 20 to 30 musicians. In Mozambique, well-known musicians have to
perform in up to three different gigs per night to support themselves. In countries such as
Zimbabwe where alternative sources of employment are few, musicians are
professionals by default, as they are unable to find other sources of income. However,
even in this context, some musicians opt to leave the industry in favour of more regular
employment opportunities. In countries such as Malawi, where agricultural activity is a
key source of household income, most musicians partake in agriculture to support
themselves. In Zambia and Malawi however, a number of interviewees noted that recently,
with the emergence of the recording industry, making a living from music is possible, as
income generation can be achieved from the sale of records. They also explained that as
broadcasting relies on recorded music products, they had gained exposure in new parts of
the region and countries of origin through recording, which now made it possible for them
to perform in other places, and expand their income-generating opportunities.
Box 2.12
Government or parastatal intervention in the United Republic of Tanzania
An example of policy support to the social conditions of artists and stability of the music industry is provided in
the United Republic of Tanzania. In the 1970s and 1980s, the organization of some Tanzanian bands, some
comprising more than 20 musicians, was taken under the wing of government or parastatal organizations. They
owned the instruments used for practice and performance and employed the musicians as waged employees.
The musicians complemented this income with a percentage of the gate takings from their live performances.
Bands in the scheme included Mlimani Park, Tancut Alimasi, and Vijana Jazz, for example. Tanzanian
musicians enjoyed a financial security un-matched by any other country in the region. Employee benefits in
these organizations included access to housing and health care.

Key issue: Although making a living from the music industry is arduous, anecdotal evidence suggests that the
birth of the recording industry and the liberalization of the broadcasting system are auspicious in facilitating
income generation.

72

DACST, 1998, op. cit.

73

ibid.

30

2.14 Location
In terms of recording production, urban environments with adequate economic,
infrastructure and population thresholds are necessary for the emergence of a viable
recording industry. Dense urban areas offer opportunities for industry clustering. This
applies both in terms of production facilities and in terms of live venues. For example, in
Johannesburg, the majors are almost all located within a 15 km radius.
Wholesale of music products occurs close to the production facilities (i.e. in the cities
of the region) retail, and especially informal retail, brings goods to a range of locations
not only the dominant cities and towns. Furthermore, whereas highly urbanized
environments are easily controlled in terms of the dissemination of pirated goods, more
rural areas offer favourable environments for pirate operators.
Finally, in relation to the raw material of the southern African music industry,
artists are drawn from all parts of the subregion, from rural to highly urbanized
environments. Inevitably, artists who want to access the recording market must locate in
areas where recording opportunities exist. This process may prove to be a difficult, costly
and daunting task, especially where information about actors and the music industry
production processes is nearly non-existent.
Key issue: Production of music product is agglomerated in the larger cities of the region, although the raw
materials and the markets spread across urban and rural areas.

2.15 Gender and racial issues

In the region, an overwhelming finding of the research is that most of the production,
circulation and delivery functions is performed by males. In addition, in a number of
countries in the region, the means of production (studios, cassette and CD manufacturing,
retail outlets and independent radio and TV stations) are owned by men. The presence of
women in the music industry tends to be limited to composing and performing. Even
within the ambit of these roles, women seldom play an instrument, and are clustered in
backing vocals or as vocalists. This does not necessarily mean that in terms of income,
music stars who are female earn less than their male counterparts, but that overall fewer
women who earn a living from the music industry than there are men. Often, white
nationals also own these means of production. A number of musicians explained that, in
terms of negotiating for recording or performance deals, white managers were more
sought-after, as they allegedly command greater respect from the producers and venueowners than their black counterparts. 74
Key issue: The industry is dominated by male ownership and employment, especially where value is added to
music services and goods.

2.16 Main characteristics of the music industry

in the SADC countries
Table 2.1 specifies the status of both the recording and live performance sectors and
points to initiatives and supportive factors that have contributed to the development of the
industry in the SADC countries.
74

M. Sibanda, TNT, Papa Victor, P. Salim, Shane: interviews, Aug. 2001.

31

Table 2.1

Summary overview of main characteristics of the music industry in the SADC region

Country

Recording industry

Live performance

Supportive initiatives*

Angola

Non-existent

Very limited extreme paucity of

live venues

N/A

Botswana

One label

Limited but some linkages with

tourism activities (hotels and
lodges)

N/A

Democratic
Republic of
the Congo

Intricate linkages with European

labels, for production and
distribution networks
High piracy levels

Extremely active, supportive role

for other economic sectors
(hospitality), high levels of linkages
with recording industry
Linkages with local, trans-regional
and international markets

Historically strong cultural

awareness and nation-building
drive during the Mobutu period

Lesotho

Non-existent

Some primarily in hotels

N/A

Malawi

Emerging and growing industry but

high levels of monopoly in
recording, production and
distribution

Active and growing

Gin Music Competition

New and effective copyright
protection and collection system

Mauritius

No local industry, but linkages to

Indian and European industry
Emerging activities through
electronic media

Strong primarily because of

tourism industry

Strong government support to the

arts and music education

Mozambique

Emerging industry, historical role

of the national broadcaster
High linkages with European and
South African industries for artists
seeking production opportunities
High levels of piracy

High and competitive and

supported by donor-funded
centres

Historical role of government and

more recently NGOs in promoting
cultural activities
National broadcasters role in
organizing competitions

Namibia

Strong linkages with the South

African industry actors which has
tended to undermine the local
industry

Active, across musical genres and

supported by donor-funded
centres

Strong role of NGOs and

companies in sponsoring events
and festivals

Seychelles

Non-existent

Limited to tourism

N/A

South Africa

Historically active industry, with

presence of global majors and
growth in the number of
independents (playing an
important role in scouting new
talent)Stagnating sales
Some piracy

Fairly active, emergence of music

festivals but lack of audience
development
Numerous venues with high
quality equipment

Strong role of the State in

developing growth strategy
Role of copyright protection and
collection agencies in education
and capacity building in the region
Role of NGOs in music education

Swaziland

N/A save for national broadcaster

High levels of piracy

Active in hotels, few venues

N/A, high levels of censorship

32

Country

Recording industry

Live performance

Supportive initiatives*

United
Republic of
Tanzania

Emerging studios and labels

Important role of the national
broadcaster historically
High levels of piracy (hub for pirate
networks)

Extremely active and organized

through large bands

Involvement of World Intellectual

Property Organization Historically
strong state support and promotion
of the arts
Organizational capacity provided to
some bands Organized activity in
Hip-Hop
Broadcasters competition

Zambia

New labels emerging since

economic and political
liberalization
CD & vinyl pressing plant
Some piracy

Highly active in motels, hotels

Role of the musicians union in

supporting live performance
New copyright protection and
collection system

Zimbabwe

Historical activity currently

experiencing strain because of
political situation, but still fairly
active and growing through
changes in operational strategy or
recording actors

Fairly active industry with several

festivals, although currently under
strain

Strong initiative in operational shift

of the music industry to support
informal distribution processes,
make music more affordable and
stamp out piracy
New copyright protection and
collection legislation and framework
Role of NGOs in providing access
to tools of the trade
Music competitions and festivals

* In the majority of these countries, the World Intellectual Property Organization has been involved in numerous activities related to the updating
of intellectual property systems, human resources development, promotion of creativity and innovation, and information technologies
Note: N/A = not applicable.

33

3.

Analysis of key issues and proposals for

targeted actions and interventions

3.1

Key issues and dynamics emerging from the

research
The following section presents an issue-based assessment of opportunities and
impediments to the growth of the music industry in the region.

3.1.1 Contextual preconditions for the growth

of the industry
Access to infrastructure
Access to infrastructure is critical in shaping the creative process. In some countries,
access to telephones and communication systems is almost impossible. For example, the
limited capacity of the fixed-line telecommunications systems in the Democratic Republic
of the Congo during office hours means that the only access to communication is through
cellular operators, which is unaffordable to most. Gaining access to international and
national music industry actors in or from such countries is extremely difficult.
Key issue: In those countries and areas in the SADC region that have least access to physical infrastructure,
such as electricity and telecommunications, the growth of the industry is seriously compromised.

Economic policy, access to the tools of the trade

and seed capital
Aspects such as import taxation and regulation systems are related to a countrys
economic policy. In most SADC countries, musical instruments and music recording
equipment are not manufactured locally. Therefore, the tools of the trade have to be
imported. In countries with strong foreign exchange regulations, the availability of
equipment is sorely lacking. In Zimbabwe for example, the foreign exchange crisis makes
it almost impossible to import equipment for live performance, recording or even
administering property rights. Conversely, in the United Republic of Tanzania, the
establishment of new bands was greatly facilitated by the economic liberalization
programme, which allows importation of musical instruments by private businesses.
Taxation systems for imported goods can also have a detrimental impact on the availability
of music equipment. For example, in Zimbabwe, whereas most industrial equipment is
treated as capital goods, music equipment is treated as a luxury good and carries a 25 per
cent import tax.
Key issue: The degree of economic liberalization in a particular country and across the SADC region impacts
directly on the access of music industry actors to the tools of the trade.

This issue also relates to the availability of seed capital for potential music
entrepreneurs, which affects their ability to enter and compete in the market. The lack of
access to capital is a major factor limiting the growth of the industry. Independent record
companies often have little disposable income to invest in improving the quality of sound

34

recordings or in marketing campaigns to build the profiles of domestic artists. 75 The final
product delivered to the consumer is often of a poorer quality than the competing product
of a popular international artist, is less well marketed, and consequently has a lower market
profile. 76
Key issue: Access to capital to develop the industry is a key determinant of any business venture. In the SADC
region, this aspect is critically lacking, for musicians, recording studios and labels, as well as venue owners.

Managing HIV/AIDS impacts

HIV/AIDS infection rates are as high as 25 per cent of the population in some
countries of the region. In Zambia and Zimbabwe, for example, where the pandemic has
been rife for the past decade, numerous artists have succumbed to AIDS-related illnesses.
This has a significant impact on the investment patterns which a record label follows in
managing each artists album releases: the artist is required to record and release more
albums within a relatively short period of time. This decreases the shelf life of a particular
album, which in turn decreases the internal rate of return of the investment made in the
production and distribution of the album. Further, HIV/AIDS also has an overall macroeconomic impact that can reduce the size of the local market for music products.
Key issue: Music actors are extremely vulnerable to the HIV/AIDS pandemic. Many have already succumbed to
the disease and recording companies are changing their investment patterns by releasing more albums more
quickly.

3.1.2 Supportive policy and legislative measures

Local content drive
A major aspect of local content drives is that, in those countries where such policies
have been effectively applied, this has often been linked to a quasi-monopoly of the State
in broadcasting, which has made them easy to enforce. This means that in countries where
liberalization has taken place, regulating local content may be less efficient in promoting
local music than measures to facilitate broadcasters support. In Zambia and Zimbabwe,
specific radio programmes are dedicated to scouting and exposing new local talent. These
efforts are critical in promoting the consumption of local music.
Key issue: Whilst in some countries local content regulations have in the past assisted in popularizing local
music, it is unclear how successful such measures would be if the broadcasting system were not under the
direct control of government.

Recognition of intellectual property rights and collection agencies

In most countries of the region, intellectual property rights are not always recognized
or enforced. This directly affects the income-generating opportunities of musicians,
composers and others involved in the industry. In instances where legislative processes
were engineered to protect rights, educating actors about rights protection has not been an
easy task and collection agencies sorely lack the institutional capacity to enforce the
systems. In this respect, it is important to note the initiatives taken by the World
75

DACST, 1998.

76

DACST, 1998.

35

Intellectual Property Organization (WIPO) to establish or modernize intellectual property

systems through its Cooperation for Development Programme in the region. Linked to this
role of intellectual property is the widespread practice of piracy.
Key issue: The lack of remuneration systems through copyright collection for artistic creation and the production
of music services and goods is a disincentive to actors and stakeholders in the music industry to increase trade
and investment in this sector.

3.1.3 Professionalism and entrepreneurship

The music industry as a business:
The approach of the emerging independents
A significant number of independent music producers, in South Africa, Zambia and
Zimbabwe, in particular, are being set up and driven by individual entrepreneurs who have
prior experience running commercial ventures, but share a common passion and historical
involvement in the music industry on an amateur basis. This enables them to source
sufficient capital to set up production facilities. Further, these individuals have often been
educated outside of their country of origin, in the United Kingdom and in the United
States, and been exposed to the workings of the entertainment and music business in areas
where it has operated successfully (see, for example, box 3.1).
Box 3.1
Independent-driven music industry in the United Republic of Tanzania 77
Tanzanian producer Master Jay began making inroads in the countrys music industry in the 1990s with his
small studio built in a freight container in Dar es Salaam. During the third and fourth year of his university studies
(in the UK), he befriended a studio-owner who introduced him to music and how to run a recording studio. He
was taught theory of music and sound engineering by his friend, and went for a short course in sound
engineering. While studying at university he was working in the university kitchen. He used his earnings to
purchase the studio equipment. On returning to the United Republic of Tanzania in 1996, he had acquired all the
equipment needed and opened a studio. He is aware that the local market for the industry is limited. For
example, whereas a Tanzanian rapper will sell at most 40,000 tapes, in Kenya the sales figures go up to
100,000 tapes. He perceives this situation as linked to the much more established Kenyan recording industry,
which started in the 1960s. The Tanzanian industry is only 10 years old. His entrepreneurial ambitions are to
rise in the music industry by purchasing duplicating machines and then to participate in distribution.

Key issue: Emerging independents in the region perceive their enterprises as fully fledged business ventures,
requiring the application of professional management and business development practices.

Management and leadership

In most countries of the region, music management and leadership are almost nonexistent. This hinders the circulation process for musicians who have to market, administer
and coordinate their entire professional activities without any form of support.
Key issue: A major obstacle is the near absence of dedicated artist management capacity to support musicians
in their trade and to enhance their ability to maximize the value generated by their talent and profession.

77

www.africanhiphop.com

36

Managing costs of production by using

technological opportunities
The digitalization of recording is providing a significant opportunity to change the
manner in which the production process operates, making the process of production faster,
simpler and more affordable. This has reduced the costs of equipment and human
resources. Musicians, composers and songwriters are able to create digital recording
studios in their own home; they are also able to manufacture the end products of the
process, the CDs and cassettes. The Internet takes this a step further, as musicians,
composers and songwriters are able to distribute and expose their work over the Web,
without having to resort to publishers and record companies. 78
Key issue: Technology can facilitate the production of music goods and services and contribute to reducing the
cost of production.

Protecting artists labour

Artists conditions of employment for live performance generally do not meet the
minimum outlined in international labour conventions, in terms of workplace safety and
contractual obligations in spite of the existence of labour legislation and labour
movements in all the countries in the region. For example, a number of resident band
members interviewed deplored situations where they had found themselves bound to
perform on a daily basis without leave, for fear of losing their jobs. 79 A few performers
also reported that they had experienced situations where promoters had failed to pay them
after a regional tour or concerts. 80
Key issue: Most industry actors are insufficiently aware of the existence and functioning of copyright protection
and labour rights, and this makes them vulnerable to exploitation and unfair conditions of employment.

3.1.4 Developing local and international markets

Festivals as a tool for audience development
Numerous festivals have emerged in the region over the past five years. Of note is the
multiplier effect that festivals generate in terms of large audiences and sponsorship. For
example, the recent Solipse Festival in Zambia, and the Harare International Festival of the
Arts are significant local and international drawcards.
Key issue: Multi-cultural and trans-regional festivals have an auspicious role to play in developing new markets
for local and regional artists and their products across the region.

Fostering cross-pollination
The process of cross-pollination between musical genres is providing significant
opportunities for artists to develop cutting-edge musical genres. Music genres such as

78

G. Hardie, interview June 2001.

79

Papa Victor, T. Bene, P. Pumelo, TNT: interviews Aug. 2001.

80

Papa Victor, P. Salim, L. Sakhala, C. Andiyanbo: interviews JuneAug. 2001.

37

Afropop (African + Pop) and Zamragga (Zambian + Ragga) exemplify the process
whereby a new genre is created through the melding of different musical traditions.
Cross-pollination between music genres also enables artists to use established
production and circulation networks in regions or for music genres that were previously
inaccessible to them. Some organizations, such as UNESCO, and artists are also involved
in setting up residency programmes and musical exchanges. This also develops transregional markets for artists and actors involved in the industry.
Key issue: The cross-pollination of music genres and collaboration between artists occurs beyond the ambit of
government or private sector intervention (i.e. it is mostly initiated by the artists themselves). It plays a significant
role as a catalyst for creation and encourages the development of new music markets across boundaries in the
region.

World Music
The rise of World Music as a music genre should be seen as a strong signal for the
opening up of international markets to receive music from the region. 81 Currently, much of
African music never makes it beyond market vendors stalls, which suggests a general lack
of business savvy in the local music industry to promote their products both locally and
internationally. However, the growth in the number of studios and labels in the region
suggests an increasing interest on the part of entrepreneurs in developing not only the local
market for local production but also the export market. Recently established record label
and production companies Sheer Sound of South Africa and Mozambique Recordings of
Mozambique have carved a niche in this market.
Key issue: World Music is a niche market, which local labels should consider in terms of expanding their
commercial activities.

3.2

Gap analysis of the key issues and dynamics

Table 3.1 presents a summary of the needs, assets and gaps raised by the issues
identified during the research process.

81

See for example sites such as the following, which support African music as World Music:
http://www.musicafrica.com; http://www.dandemutande.com; http://www.afromix.org; http://www.melt2000.com

38

Table 3.1

Needs, assets and gaps: An overview of the music industry in the SADC region,
2002

Needs

Assets

Gaps

Industry growth requires

access to equipment, but there
is extremely limited access to
capital to acquire the tools of
the trade (music instruments,
sound engineering equipment,
PA systems, production
equipment).

Skilled musicians and performers and

some venues.
Limited NGO funding for social
development projects, which can
facilitate access to equipment.

Lending facilities for industry actors.

Taxation systems on music instruments
and equipment as capital goods.
Greater accessibility of foreign
exchange for importing music
equipment.

Development of local repertoire

Role of music in everyday life.

Rich cultural heritage.
Competitions for new talent and
repertoire.

Music education and training, limited

music literacy among musicians and
composers.
Supportive partnerships between the
broadcasters and local industry actors
from musicians and composers to
studios and labels.

Business development support

and mentoring, strategic
planning for industry.

Business persons involved in music

industry.

Music business education for

musicians, composers, studios, labels
and broadcasters. Industry incubator
measures. for studios

Marketing support and

distribution.

Liberalization of the broadcasting

system.

Lack of marketing knowledge and

strategy.
Financial capacity of labels and venues
to invest in marketing and promotion.

Access to markets and retail

outlets.

Accessibility and efficacy of informal

networks for distribution.
Growth of World Music.
Internet distribution and circulation.

Fighting the competition of pirate

products. Poor quality of music venues
across the region.
Under-developed circulation networks
for legal products.

Access to market information

on the national and regional
scale.

Record labels monitoring of sales by

record labels. Broadcasters chartshows.

Coordinated monitoring of sales,

consumption patterns (unit sales and
turnover) per country, genre, and
across the region.
Development of statistics and indicators
for the music industry across industry
actors, in each country, within the
SADC region and in relation to export
markets.

Training in business and life

skills for musicians and
performers.

Involvement of established musicians

in mentoring and grooming.

Lifestyle awareness training.

Basic financial administration and
organizational skills for musicians and
performers.
Development of management skills for
support actors.

Greater affordability of
production costs.

Technology for recording, production

and technology.
National broadcasters studios.

Plug-and-record programmes in
partnership with local studios and
labels.
Improved PA systems to enable live
recordings.

39

3.3

Needs

Assets

Gaps

Integration with
multidisciplinary initiatives and
industries.

Growth of festivals in the region and

internationally.
Advertising industry.
Growth of tourism and link with
tourism locations.
Use of music, film and performing arts
by NGOs to convey social messages.

Poor coordination of events across the

region.
Broadcast industries underdeveloped.
Dedicated multidisciplinary industry
growth strategy.
Partnerships between creative
disciplines.

Effective control of intellectual

protection and collection of
rights and royalties.

WIPO initiatives.
Understanding of the manner in which
pirate networks operate. Possibility to
craft partnerships with informal
operators.

Legal and policy framework adapted to

each countrys specific industry profile
and institutional capacity to enforce and
manage intellectual property protection.
Coordination and cooperation of
governments and industry actors in
fighting piracy.

Professionalism in live
performance.

Some live music venues, musicians

and festivals.

Training in event management and

events promotion.
PA systems rental facilities.
Grooming of musicians and performers
for live performance.

Targeted actions and interventions

The following section draws on the issues discussed above and proposes areas for targeted
action and interventions to foster the growth of the music industry in the region. These relate
to:

education and training;

developing localized, role-player specific business growth strategies; and

establishing a facilitative framework for industry growth.

3.3.1 Institutional responsibility for driving actions and

interventions
As noted earlier in this text, capacity and legitimacy issues limit the outright
identification of programme and project formulation and implementation partners. In the
region, no institution is representative of the whole gamut of actors and stakeholders for a
given country. Even where organizations have some degree of legitimacy, their
institutional capacity limitations restrict the extent of involvement. This means that part of
formulating and setting up country-specific and regional programmes and projects, based
on the recommendations below, will require the establishment of dedicated programme
and projects teams. Potential implementation partners and actors could include, in different
capacities:

international organizations (SADC Culture Desk, ILO, WIPO, UNESCO);

government actors (especially in respect of policy and legislation issues, as well as

taxation systems);

recording industry stakeholders (as they are often the main drivers behind the
development in the music industry in their respective countries of origin);

40

collection and intellectual property organizations (especially in respect of policy and

implementation of anti-piracy mechanisms and royalty payment systems);

musicians associations and unions as well as arts councils (with the proviso that
they are able to demonstrate their legitimacy);

individual musicians, performers and ensembles organized at the city or province

levels;

broadcasters; and

training institutions involved in music education and/or business education.

3.3.2 Education and training

Enhancing the skills base of actors and stakeholders in the music industry could seek
to achieve the following targeted objectives:
Institutional support actors
A key skills-development area for the growth of the music industry in all the
countries in the region is to ensure that the music industrys support professionals (such as
managers, lawyers, and financial advisors) are equipped with sufficient industry-specific
knowledge to interact meaningfully in the process of negotiating contracts and sourcing
financial support. Industry knowledge entails a sound understanding of the copyright
protection framework and practices, payment structures and financial relationships
between the different actors in the production process. Training for managers would also
need to include basic management aspects such as fundraising, negotiation, coordination
and administrative processes.
Enabling artists to manage their careers effectively and
professionally
A required training outcome is to ensure that the artists that comprise the creative
basis of the music industry (composers and musicians) are better equipped to manage their
careers, in the absence of existing management actors. A strong emphasis could be placed
on basic financial administration and management skills (from writing up invoices to
developing personal finance cash flows, applying for funding from commercial and noncommercial institutions). Another key area of focus is to ensure a sufficient understanding
of the copyright protection and collection system applicable in the artists respective
countries of origin, as well as in those regions where artists intellectual property is
distributed.
The majority of music education institutions in the region do not currently provide
such training. Therefore, in the short term, offering skills development directly to
musicians and composers would be required. However, to ensure the sustainability of such
a capacity-building process, it would be advisable that music educators were themselves
made aware of those aspects of the industry, so that they could in turn impart this
knowledge to their students.
Musicians and composers in the region, who have not been exposed to a formal music
education process, may be lacking the skills required to take greater control of their
intellectual property. For example, musical literacy is not highly developed among
musicians or composers. This means that in order to have their works published, they have

41

to use the intermediary of a music-publishing agency, thereby relinquishing some of the

royalties that may have accrued to them.
Finally, promoters and record label actors interviewed during this research deplored
the fact that lifestyle issues tend to impact negatively on the professionalism of artists and
on their quality of life which in turns affects negatively the career of the artists and their
productivity. Raising artists awareness about lifestyle issues such as HIV/AIDS,
alcoholism and drug abuse, which affect many artists in the region, is therefore critical.
Technical support providers
The current music education system focuses on musical performance. Little, if any,
training in composition, lyrics development, sound engineering and stage management
skills is currently being offered by music education institutions. This skills development
gap not only affects the nature and quality of music creation in the region, but also tends to
limit the skills pool required for both the live performance and recording industries to
flourish. It is unlikely that the provision of such technical training could be standardized
across the countries in the region, as the range of available technology in those countries
differs significantly. In addition, where the information technology is fast becoming an
accessible alternative for the recording, production and distribution of music products, it
seems that the knowledge and skills about the management of such resources and
processes is lacking, and needs to be attended to.
Targeted capacity-building for institutional coordination
Those organizations and institutions formally tasked with supporting the music
industry in the countries of the sub-region, from intellectual property rights associations to
government departments in charge of arts and culture, would also benefit from a capacitybuilding effort. Of note are organizations such as SARRAL and WIPO, whose expertise is
in this area, which could be approached to help in delivering training in the region to
support intellectual property protection. A key objective of training and capacity-building
for this type of actor is to promote institutional development approaches for industry
support that are mindful of general institutional limitations, both in terms of budget and
labour. Learning from country experiences with similar institutional contexts, rather than
duplicating training processes developed to support solid and established institutional
arrangements, would best benefit such actors. The most appropriate learning outcomes are
those that include aspects such as industry trends and dynamics globally, regionally and
nationally; coordination and integration support with relevant government sector
departments (departments of trade and industry, culture, education and labour); as well as
developing and sustaining partnerships with non-governmental and industry actors from
musicians association and record labels, to lending institutions and informal sector
operators.
Consumer education processes
Consumer education and advocacy to inform the consumers of music products of the
value of purchasing legal products and, conversely, of the quality risks involved in
purchasing pirated materials would also need to form part of training initiatives. However,
in areas where the availability of music products is solely possible through pirate markets
and distribution channels, such an awareness campaign would clearly be of little value.

42

3.3.3 Developing localized, industry actor-specific

business growth strategies
Recording industry actors have a critical part in supporting the development and
promotion of local music industries. A common denominator of all successful independent
recording companies approached in the research process is the manner in which they view
the music industry: as a business. A passion for music and a strong vision can be a
significant motivating factor for industry actors; however, adopting sound business
practices to the production, marketing and distribution process is what gives specific
companies a competitive edge. Key questions that companies need to consider are
provided in Box 3.2.
This set of questions was developed specifically to focus on the needs of the
recording industry. However, different actors could make a strategic assessment of the
manner in which they approach their business and/or career, and target their operations
accordingly, to professionalize their respective contributions to the industry, using a
similar set of headings and questions.
Box 3.2
Proposed set of key questions to facilitate strategic thinking in the music industry
Market
Who is our market? (What age? What gender? Where are they living? What do they do?)?
What income do they have at their disposal to purchase our product whether CDs or cassettes?
How do we ensure that they spend this income on our products rather than on the competition (including local and
international repertoire and pirated products)?
How do we generate a new market and increase our market share locally, in the region and internationally (what
does this means in terms of our relationship with different broadcasters)?
Raw materials
Who provides our raw materials Artists, composers, performers and technical support actors (sound engineers,
producers, designers)?
How do we generate new raw material that corresponds to our demand (competitions, festivals)?
What contractual and financial conditions are best suited to ensure that they are productive and dedicated (i.e. how
can we contribute in fostering creation, and enable artists to focus on composition and/or performance)?
What skills training support do they require (in terms of artistic performance and lifestyle management)?
What management support do they require (financial management support, grooming, brokerage)?
What support do they require in terms of access to equipment and instruments?
Production facilities
How do we use existing recording and production facilities to manufacture our products?
What is the opportunity cost of developing our own facilities (independently or in coordination with other actors) as
opposed to making use of existing facilities (locally, in the region or internationally)?
What steps can we take and what steps should others be taking to ensure greater accessibility to music equipment?
What quality can be achieved using different production facilities in respect of the expectation and purchasing
capacity of our market (and what medium should we use cassette or CD)?
Circulation and distribution
What circulation and distribution channels can we utilize to make our products more accessible and affordable to
our market?
Should we develop our own circulation and distribution channels or should we co-opt existing channels (locally,
regionally and internationally)?

43

How do we monitor the nature and extent of audience reception for our products (sales, airplay, competitions and
awards, market research)?
How do we use the feedback in terms of audience reception to refine our operational strategy in relation to our
understanding of the market, our selection and development of artists, repertoires, genres and music products,
promotion and advertising, production and circulation and distribution processes?
Partnerships and growth strategies
What strategic partnerships can we develop to ensure that our business interests are protected and promoted in
terms of issues such as fighting piracy, developing copyright protection frameworks, capacity-building and skills
training?
What complementary business partnerships can we craft to facilitate the growth of our business, in terms of
relationships with broadcasters and the media, as well as commercial and non-profit organizations who have a
stake in the media or that rely on the operations of the media to operate?
What can we learn from the factors that make informal and pirate processes successful, namely pricing of products
and services and spatial accessibility to the market?
Trends, contextual impediments and opportunities
What are the global, regional, national and local trends affecting our business?
What do they mean for the growth of our business and that of our competitors?
How do we diminish the negative impact of contextual impediments to the growth of our business?
How are competing or complementary businesses responding to these impediments?
How do we maximize opportunities to leverage growth in our business?
What actors have a stake in these opportunities and how should we relate to these other actors?

3.3.4 Establishing a facilitative framework for industry

growth
Additional intervention is also needed to ensure that the context in which industry
actors and stakeholders operate is an enabling one. The role for defining and implementing
these measures is one where governments should take the lead. To ensure the sustainability
of such a process, extensive participation with industry actors and stakeholders would need
to occur. Interventions could include:

Setting up an enabling environment for industry growth: Recording industry actors,

such as the independents that have emerged in the past five years, can be supported
to develop their specific business development requirements in terms of access to
infrastructure and business incubator measures. Access to appropriate technology
and the tools of the trade should be facilitated through the development of suitable
lending facilities for artists and organizations involved in the industry, and training
in the use of the technology. Facilitating access to import permits for music
equipment and providing for tax and VAT exemption on music equipment may also
be considered.

Discovering local and regional talent and promoting audience development: One of
the success factors in discovering and grooming new talent and promoting audience
development has been the running of original song contests in some countries in the
region. These have managed to generate sustained interest in specific artists, where
they are linked with some form of talent grooming and recording arrangement. In
addition, because they can easily be linked to mass media events, they offer
attractive opportunities for leveraging corporate sponsorship. Such processes could
be initiated in several countries in the region where independent recording labels are

44

emerging. In addition, the development of a regional song competition, where

different countries expose their respective original talent could foster the emergence
of collaborative practices around issues such as joint marketing and promotion,
cooperation for copyright protection, and opening up markets for artists regionally
and internationally.

Coordinating bodies: These should be structured to facilitate the development and

alignment of initiatives in the region and nationally, in terms of copyright
protection, import regulations, multi-disciplinary activities (i.e. music tourism, arts
festivals), recording industry promotion, and local repertoire promotion. At
present, coordinating bodies are mostly local and operate on a small and fragmented
basis with limited institutional capacity. Establishing and working to achieve
common objectives for the growth of the industry in the region and in its respective
countries is therefore a key area of intervention.

Intellectual property and rights management: Intellectual property protection and

remuneration systems, that are mindful of institutional capacity constraints, should
be set up and provisions made for their enforcement. In the first instance, it would
be necessary to begin with the protection of local repertoire products, following up
with imported content rights protection and collection systems can be set up.
Because music piracy is often driven by multinational criminal organizations,
coordination and cooperation between governments in the region would be critical.
Similarly, piracy can also result from the direct involvement of the mainstream
actors, who should be sensitized and monitored to avoid activities such as
bootlegging and the illegal reproduction and/or distribution of music products.

Local content: As the enforcement of local content legislation is an arduous task in

institutional environments that are weak, and where the broadcasting system has
been liberalized, local content promotion should focus on facilitative measures. The
range of music industry stakeholders and actors (from government to the recording
industry, musicians and venue owners) should cooperate in marketing and raising
consumer awareness of local and regional repertoires, nationally and internationally.
Further, the promotion of local content in broadcasting, live performance and
retailing should form the basis of technical and other types of support provided to
actors.

The development of statistics and indicators to measure the industry: A key gap
identified from the onset of the research is the lack of access to documented
statistical information on the music industry, for example, systems to record the
number of professional musicians in a specific country, the number of persons
employed in supporting the industry, or those whose economic activities are
supported by the music industry. Record sales and industry turnover are only
monitored by the majors in South Africa, not in the other countries in the region.
The lack of records and statistics means that the nature of the information collected
is generally anecdotal. Indicators and statistical records should be developed and
applied to monitor and further support the manner in which the music industry
operates, what its employment capacity is, what multiplier effect it generates, and
how it contributes to the local and regional economy. This is an area of intervention
that should be driven in partnership between government, musicians associations,
and recording industry actors.

Liberalization of the broadcasting system: Opening up the airwaves provides an

important boost to the music industry, as it generates a demand for a diversity of
music products. The deregulation of the broadcasting system can also lead to greater
coverage of broadcasting. This can raise overall audience numbers in a given

45

country and even in neighbouring countries, which effectively results in the opening
of new markets for artists and music products.

3.4

Concluding statements
Up until the late 1990s, the music industry was a self-sustaining industry in only two
SADC countries, South Africa and Zimbabwe. In the rest of the region, by and large,
music merely existed as a cultural asset, albeit a rich and vibrant one, with great but
untapped economic potential. Since then, in the majority of the SADC countries, the
recording and live performance sectors are emerging as viable enterprises and incomegenerating opportunities.
The present research has identified that the role of particularly entrepreneurial,
innovative and dedicated individuals in developing cultural assets into industries is critical
in this process. However, the analytical components of the research also draw significant
conclusions pertaining to specific contextual factors that have enabled such individuals to
play their role. Among these contextual factors, the liberalization of economic and political
frameworks, together with broadcasting deregulation, intellectual property protection
systems and the presence of minimum infrastructure levels stand out as basic preconditions
for enabling both the production and consumption of music products.
In parts of the world where the music industry has long been established, the
saturation of music markets is high, and competition between and among global majors
and independent record labels is rife. In the SADC region, on the other hand, whilst
competition between record labels is relatively limited, the primary threat to the continued
growth of the recording industry comes from pirate operators. Piracy draws on highly
effective networks of production, circulation and distribution, and often co-opts
mainstream industry operators to source, produce and distribute counterfeited or
bootlegged music products. Its ease of operation is symptomatic of a relatively low
institutional capacity to enforce and monitor the protection of intellectual property. Whilst
the policy and legislative frameworks pertaining to intellectual property protection have
increasingly received support from international and multilateral agencies, the need for
institutional capacity-building remains.
Other capacity gaps were identified in the course of the research. These affect all
actors differentially. However, the main thrust of such capacity-building considerations is
clearly a requirement for greater professionalism, strategic decision-making and technical
capacity among all actors, each according to his or her respective contribution to the
industry. In the short term, the greatest challenge facing such capacity-building efforts
would probably be to ensure that it accommodates overall contextual limitations, be they
economic, social, political or infrastructural.
Finally, the research identifies a wealth of opportunities and assets to be drawn upon
by music industry actors and stakeholders. The role which music plays in everyday life in
the sub-continent bears witness to this statement. Its socio-cultural and developmental
contributions are also manifold. Similarly, the use of music in sectors ranging from the
hospitality, retail and tourism, to film, performing arts, product branding and advertising,
internationally and in the region highlight the versatile contribution that the music industry
can make to the micro- and macro-economy. As these sectors develop, they also generate
further demand for music products and services, nationally and internationally. Because
the music industry is a young industry in the region, its full potential is yet to be unlocked.
In many respects, its pioneers are demonstrating that, through determination and the
application of sound business practices, the industry can be a potent income-generator for
individuals, communities, cities and even countries.

46

Bibliography
SARRAL, 1998. South African Recording Rights Association Limited.
Department of Arts and Culture. 1998. Cultural Industries Growth Strategy The South
African Music Industry. Report.
KPMG, 2001. The South African Music Industry.
http://www.afribeat.co.za
http://www.ifpi.org
http://www.suntimes.co.za/1999/10/10/arts/ane04.htm
The Indian Times, 1 January 2001.
The Economist, 17 May 1997.
Vincent, J., 2001. The Social Situation of Musical Performers in Africa, Asia and Latin
America, Report to the International Labour Organization, Sectoral Working Paper
No. 172 (Geneva, ILO).

Web pages
General country and culture information
http://www.africa-insite.com
http://www.sadc-online.com
http://www.angola.org
http://www.bbc.co.uk

Music sites listing organizations and stakeholders

http://www.powerzone.co.za
http://music.org.za

Intellectual property organizations

http://www.cisac.org/cisac/webcontent.nsf/homepage
Intellectual property for small and medium-sized enterprises, CD-ROM in English, French
and Spanish, http://www.wipo.int/sme

Recording industry initiatives

http://www.ifpi.org
http://www.risa.org.za

47

International organizations
http://www.wto.org
http://www.unescostats.unesco.org
http://www.wipo.org
http://www.worldbank.org
http://www.ilo.org/dyn/empent/empent.portal?p_prog=S
http://www.ilo.org/public/english/dialogue/sector/sectors/media.htm

African music sites

http://www.afribeat.worldonline.co.za
http://www.musicafrica.com
http://www.mbira.org
http://www.dandemutande.com
http://www.afromix.org
http://www.www.africaonline.com.na
http://www.africaonline.co.tz
http://musicafrica.com

Organizations
http://www.masa.francophonie.org
http://www.archive.ilam.ru.ac.za
http://www.freemuse.org
http://www.fim-musicians.org

Music labels
http://www.melt2000.com
http://www.lusafrica.com
http://www.tequila.co.za
http://www.sheer.co.za
http://www.gallo.co.za
http://www.mondomusic.com

48

Festivals and venues

http://www.zimfest.org
http://www.celebratesouthafrica.com
http://www.backstage.co.za

49

Annex 1
Key organizations in the region
Country

Organization

E-mail

Angola

Ministry of Education

Http:www/angola.org/
poitics/index.htm

National School of Music

Botswana

Tiago Langa

SADC Secretariat

Democratic Republic of Socit Nationale des diteurs,

the Congo
Compositeurs et Auteurs
Lesotho

Contact persons

Y Ifosela (CEO)
M Domba (MD)

Dept of Mining, Sports and Culture

Lesotho Academy of the Arts

Malawi

Copyright Society of Malawi

[email protected]

Department of Culture and Education

Mauritius

Bernard Kwilimbe (Director)

Ministry of Culture
Music Association
Mauritius Society of Authors

Elie Riviere (President)

Mozambique

Ministry of Culture

Minister: Miguel Costa

Mkama

Namibia

Namibian Society of Composers and

A4uthors of Music

[email protected]

Deidre A. De Klerk

National Arts Council

Seychelles

Arts Council

South Africa

Southern African Music Rights

Organization

Swaziland

Robert Hooijer (CEO)

A. Emdon (Chairman)

South African Recording Rights

Association Limited

[email protected]

George Hardie (MD)

Mothobi Mutloase
(Chairman)

Representing the Recording Industry

of South Africa

[email protected]

Charles Khun (Chairman)

N Sibisi (General Manager)

Musicians Union of South Africa

Howard Belling

Midi Trust

Rosie Katz

Ministry of Education
National Council of Arts and Culture

Tanzania

National Arts and Culture Trust Fund

Zimbabwe

Zimbabwe Music Right Association

[email protected]

National Arts Council

Gill Atkinson (GM)

Tendai Mupfurutsa
(Chairman)
Titus Chipangwa (Director)

51

Country

Organization

E-mail

Contact persons

Zambia

Zambia Music Copyright Protection

Society

[email protected]

Emmanuel Chandla
(Director)
Stanley Mkandawier
(Acting Manager)

Zambia Union of Musicians

(ZUM)

Wapolina Mukandawire
Maureen Lilanda

National Arts Council

Mumba Kapumpa
(Chairman)

ZAMCOM

[email protected]

52

Edem Jokote (Training

Manager)

Annex 2
List of interviewees
Caroll Andiyanbo, Travelling performer (Zimbabwe)
Gill Atkinson, Zimbabwe Music Rights Association (ZIMRA): General Manager (Zimbabwe)
Leo Bweupe, Black Muntu: Artist (Zambia)
Thando Bene: Traditional music performer and band leader (Zimbabwe)
Mwembe Chulu, Black Muntu: Artist (Zambia)
Edem Djokote, ZAMCOM: Training Manager (Zambia)
David Dyson, Dyson Ndlovu Attorneys: Partner (South Africa)
Chisha Folotiya, Mondo Music Corporation: Managing Director (Zambia)
Damon Forbes, Sheer Sound: CEO (South Africa)
George Hardie, South African Recording Rights Association Ltd: Managing Director (South
Africa)
Herrol Hickey, Radio Phoenix: Managing Director (Zambia)
Robert Hoiijer, Southern African Music Rights Organization (SAMRO), CEO (South Africa)
Josh Hosheri, Jazz 105: Owner and manager (Zimbabwe)
Saboi Imboela, Shatel: Artist (Zambia)
Moses Kabuki, Summer Breeze, Musician (Zimbabwe)
Ben Kangwa, Zambia National Broadcasting Corporation: PR Manager (Zambia)
Vincent Kapepa, Summer Breeze: Band leader (Zimbabwe)
Rosie Katz, Music Industry Development Initiative Trust: Managing Director (South Africa)
Bernard Kwilimbe, Department of Culture and Education: Director of Arts and Craft; part time
musician and band manager (Malawi)
Vusi Khumalo, Jazz musician and composer (South Africa)
Tiago Langam National School of Music: Director (Mozambique)
Chilu Lemba, Radio Phoenix DJ and artist (Zambia)
Andre Le Roux, Department of Arts and Culture (South Africa)
Keith Lister, BMG Records, CEO (South Africa)
Rick Louw. Southern African Music Rights Organization (SAMRO), Manager Licensing
Administration (South Africa)
Daphne Mashaba, South African Recording Rights Association Ltd: Composer Liaison Manager
(South Africa)
Lorraine Mashigo, Dyson Ndlovu Attorneys: Legal Counsel (South Africa)
Herbert Markoye, University of Dar el Salaam: Lecturer (Tanzania)
Debbie Metcalfe Frontline Promotions Private Ltd: CEO (Zimbabwe)
Peter Mubi: Owner of several music venues in Harare and Victoria Falls (Zimbabwe)
Mutty Munkhondia, Copyright Society of Malawi: Licensing Manager (Malawi)
Michael Mumkitiwa, Mumkitiwa Tours and promotions: Manager (Zimbabwe)
Frank Mutubila, Digital Business Associates: Media consultant (Zambia)

53

Milla Muyova, Mondo Music: Marketing Manager (Zambia)

Charles Muyamwa, Musician and composer (Zambia)
Roshnie Naicker: Promoter (South Africa)
Josheph Ngandy: Home College of applied arts and commerce: Lecturer (Zambia)
Barbara Njovu, Shatel: Artist (Zambia)
Elizabeth Pemba, Radio Phoenix: Marketing Manager (Zambia)
Patience Pumelo: Traditional musician (Zimbabwe)
Peter Salim: Musician (Zimbabwe)
Moses Sakhala, Sakhala Brothers: Artist (Zambia)
Luvy Sakhala, Sakhala Brothers: Artist (Zambia)
Shane: Musician (Zimbabwe)
Roger Sombe Jr., Sound Investment: Producer (Zambia)
Matale Suba, Sugar Shack Sounds: Director (Zambia)
Victor Sembe: Informal music trader (Zimbabwe)
Maxwell Sibanda, The Zimbabwe Daily News: Entertainment journalist (Zimbabwe)
Mundia Simbungo-Nyapa: Caf dAfrique: General Manager (Zambia)
TNT, Mama Africa Caf: Manager and musician (Zimbabwe)
Papa Victor: Musician and band leader (Zimbabwe)
Peter Vundla: Informal music trader (Zimbabwe)
Alan Wilson, Gramma Records & Zimbabwe Music Corporation: Managing Director
Willie Yav: Yav Productions: Director (South Africa)
Wolfgang Zabrowsky: Afrika Vision: Director (South Africa)

54

Annex 3
Country cases
Zambia
Zambia boasts a wealth of musical assets. Music is mainstreamed throughout everyday life,
and informal musical education and appreciation permeates Zambian society, from church choirs to
dance and culture groups in Zambian public schools, and regular live performances in motels and
hotels throughout the country.
During the 1980s, the only two private recording studio and record labels in Zambia (Teal
Records and Malachite Records) folded because of the severe economic crisis in the country. The
only recording opportunity became the national broadcasters 1-track studio, which emerging artists
had to resort to.
Since the late 1990s, several studios and labels have opened their doors in Lusaka, one of
which even boasts a 24-track studio, affording musicians alternative opportunities to record and
distribute their music. Two factors have greatly enhanced the ability of musically inspired
entrepreneurs: the deregulation of the broadcasting system and the liberalization of the economy.
The recording industry, whilst exhibiting significant advances, is still in its infancy. This is
evidenced, in terms of the lack of specialization of actors. For example, Zambias Digital Network
Solutions and Mondo Music both have their own recording studios, both undertake the production
process and have to circulate their repertoire themselves to retail outlets or other delivery
mechanisms.
Zambia hosts a number of international and regional development organizations. The use of
cultural activities to support developmental issues, such as the HIV/AIDS awareness tapes
distribution to truck drivers, offers an avenue for further sustaining the music industry.
Piracy is still a factor hindering the growth of the industry, although the role of the
Association of Zambian Musicians in lobbying for the passing of copyright protection legislation
and its resulting impact on protecting albeit in limited terms the recording industry has been
important. Sound Investments is the market leader in the music retail sub-sector, although most
music products are retailed through supermarkets, petrol stations, shops and informal vendors.

Proposed areas of interventions for Zambia:

Targeted skills training
Because of the lack of specialization of the industry, specialist technical and music business
skills are not adequately available. Such skills include in particular sound engineering, artist
management, music marketing and events management. Further, a number of artists who were
interviewed for the research deplored their lack of music literacy, which limits their ability to
engage with the production process on a more informed basis. Existing training institutions could be
co-opted and upgraded to offer training into such skills targets, to actors involved in the industry.
Stamping out piracy
Music piracy is rife in the country and contributes to limiting returns on investments made by
all actors in the recording industry. One possible way to address this problem would be to place
greater effort on policing informal vendors who distribute pirated products. Co-opting such actors
by facilitating their access to the distribution of legal products, would be an area that would require
attention. The distribution of pirated Zambian music products outside of the countrys boundaries
was also cited by interviewees as problematic, and would require bilateral intervention between
Zambian actors and their regional counterparts. This is an area of intervention in which all actors in
the recording industry have a stake, and which, therefore, requires cooperation and coordination
between recording industry actors.

55

Market research
Mechanisms to monitor audience reception and to encourage investment towards production,
circulation and distribution are almost non-existent. Market research is, however, a critical source of
information for all actors in the industry, as it would enable them to better manage investment
decisions. It would be particularly critical for such actors to have access to information about the
income and demographic profile of consumers of music products, and to target marketing strategies
to enhance access to markets.

Zimbabwe
Zimbabwe has a rich musical tradition and appreciation of traditional music genres such as
Mbira (thumb piano) music is not only wide within the country, but stretches as far as the United
States and Asia. Music education opportunities, although often limited to musical appreciation
education exist, and a high number of bands and groups have been able to record and distribute their
music through established Zimbabwean recording labels.
In Zimbabwe, record sales of 100 000 units per album were never heard of until the early
1990s, when significant investment was made to enhance production, circulation and distribution by
the Harare-based major record labels Gramma Records and the Zimbabwe Music Corporation.
Smaller recording labels exist both in Harare and Bulawayo, but their production and circulation
capacity is fairly limited.
Express Toll is the only specialist music retail outlet in the country and is only present in
Bulawayo and Harare. Distribution of music product is primarily driven through the informal
market, and actively supported by record labels. Broadcasters play a significant role in supporting
emerging talent and promoting local content. Other delivery mechanisms such as live performance
are fairly undeveloped, as live music venues are not readily equipped with quality PA systems,
which limits livelihood opportunities for artists. The Harare International Festival of the Arts has
been an important music event.
Foreign exchange regulations mean that access to music instruments, recording and public
address equipment is literally impossible for most actors. Similarly, inflation has considerably
decreased affordability levels, thereby reducing unit sales and, in turn, the financial viability of the
recording industry. This situation is aggravated by the fact that whereas most industrial equipment
is treated as capital goods, music equipment is treated as a luxury good and carries a 25% import tax
at the time of writing this report.

Areas for intervention

Developing regional markets
Because of the high level of economic strain affecting the local context, actors are already
examining ways in which to limit their dependency on the national market by seeking export
opportunities of music products and live performances contracts outside of Zimbabwe. Whilst this
risks precipitating further the attrition of the local market, it also offers a number of opportunities.
For example, Zimbabwes production facilities could be utilized by record labels or distributors
operating in the region whose access to production facilities in their country of origin is limited.
This concept would require quite an extensive marketing drive of Zimbabwean actors who, in
coordination with other industry actors in the region, could co-host a series of industry infrastructure
and network marketing processes.
Supporting access to the tools of the trade
Access to finance for purchasing and importing basic music equipment is currently lacking in
Zimbabwe at the time of writing this report. However, given the recording infrastructure and
dedicated body of musicians, enhancing access to the tools of the trade would contribute to at least
maintaining the existing musical assets base. This would aim to stem the loss of productive capital,
currently emanating from the inability of industry actors to import music equipment. Specific
support measures may include considering rating musical instruments as capital goods exempt from
the luxury import tax, developing micro-lending arrangements for musicians and live venues, and
supporting musical equipment rental and sharing facilities.

56

Annex 4
Intellectual property, copyright and related rights and
collective management of rights
Intellectual property
Intellectual property (IP) relates to the type of property that results from the creations of the
human mind, the intellect (creativity). The law that protects such creations is known as intellectual
property law. This is to say once an individual or an enterprise considers that he/it has made such a
creation it is important to take measures to legally protect the creation. Such measures are known as
acquisition of IP rights. Once IP rights are acquired the creator would have exclusive right to legally
use the creation for commercial purposes (economic gains). Others can lawfully use the creation for
commercial purposes only after the owner of the IP right has granted consent, usually after an
agreement of some form of remuneration (usually known as royalties). The effective use of such IP
rights would not only enhance the competitiveness of the holder, be it an individual, small, medium
or large enterprise, it will also create opportunities that would lead to benefits that can ultimately be
translated into financial gains. IP is usually divided into two branches known as industrial
property and copyright. Different types of IP rights can be used in order to maximize the benefits
resulting from protected creations (product/work). For more information on the existing types of IP
rights visit the following web site http://www.wipo.int/sme/en/ip_business/acquire_protection.htm

What is copyright?
Most of the creations (works) in the cultural sector/industry are protected by copyrights and
other rights related to copyright generally known as related rights or in some cases neighbouring
rights.
When a person creates a literary, musical, scientific or artistic work, he is the owner of that
work and is free to decide on its use. That person (called the creator or the author or owner of
rights) can control the destiny of the work. Copyright is a legal term describing rights given to that
person for his literary and artistic works. Copyright protection covers literary works such as novels,
poems, plays, reference works, newspapers, computer programs, databases, films, musical
compositions; and artistic works such as paintings, drawings, photographs, sculpture; architecture;
advertisements, maps and technical drawings.
The economic rights are the rights of reproduction, broadcasting, public performance,
adaptation, translation, public recitation, public display, distribution, and so on. The moral rights
include the authors right to object to any distortion, mutilation or other modification of his work
that might be prejudicial to his honour or reputation. Both sets of rights belong to the creator who
can exercise them. The exercise of rights means that he can use the work himself, can give
permission to someone else to use the work or can prohibit someone else from using the work. The
general principle is that copyright protected works cannot be used without the authorization of the
owner of rights. Limited exceptions to this rule, however, are contained in national copyright laws.
In principle, the term of protection is the creators lifetime and a minimum of 50 years after his
death.
These legal aspects are specified in international conventions to which most countries are now
party. On their accession, member States should have national legislation that is in line with the
international standards. At the international level, the economic and moral rights are conferred by
the Berne Convention for the Protection of Literary and Artistic Works, commonly known as the
Berne Convention. This Convention, which was adopted in 1886, has been revised several times
to take into account the impact of new technology on the level of protection that it provides. It is
administered by the World Intellectual Property Organization (WIPO), one of the specialized
international agencies of the United Nations system. Angola, Mozambique and Seychelles are the
only SADC member states, which are yet to accede to the Berne Convention, though all SADC
member states have national copyright legislation.

57

A created work is considered protected by copyright as soon as it exists. There is no formality

to be complied with, such as registration or deposit, as a condition of that protection. Mere ideas in
themselves are not protected, only the way in which they are expressed. According to the Berne
Convention literary and artistic works are protected without any formalities in the countries party to
that Convention. However, many countries have a national copyright office and some national laws
allow for registration of works for the purposes of, for example, identifying and distinguishing titles
of works. In certain countries, registration can also serve as prima facie evidence in a court of law
with reference to disputes relating to copyright. It is important to note that ownership of copyright
of a creation does not necessarily mean physical ownership of the said creation e.g. ownership of a
copy of a novel does not mean ownership of the copyright of the said novel.
The 1994 Agreement on Trade-Related Aspects of Intellectual Property Rights (or TRIPS
Agreement), which is administered by the World Trade Organization (WTO), as well as the WIPO
Copyright Treaty (WCT) incorporate this international protection.
For more information visit the following web site:
http://www.wipo.int/treaties/ip/berne/index.html

What are related rights?

Whereas the rights provided by copyright apply to authors, related rights, also known as
neighbouring rights concern other categories of owners of rights, namely, performers, the
producers of phonograms and broadcasting organizations. Related rights differ from copyright in
that they belong to owners regarded as intermediaries in the production, recording or diffusion of
works. The link with copyright is due to the fact that the three categories of related rights owners are
auxiliaries in the intellectual creation process since they lend their assistance to authors in the
communication of the latters works to the public. A musician performs a musical work written by
a composer; an actor performs a role in a play written by a playwright; producers of phonograms
or more commonly the record industry record and produce songs and music written by authors
and composers, played by musicians or sung by performers; broadcasting organizations broadcast
works and phonograms on their stations.
At the international level, related rights are conferred by the International Convention for the
Protection of Performers, Producers of Phonograms and Broadcasting Organizations, better known
as the Rome Convention. This Convention was adopted in 1961 and the United Nations
Educational, Scientific and Cultural Organization (UNESCO), the International Labour
Organization (ILO) and WIPO jointly administer it. As of February 15, 2002, among SADC
member states only Lesotho had acceded to this convention. However several SADC member states
do have national legislation on related rights.
The basic related rights granted are, in general, the following:

Performers: are provided the rights to prevent fixation (recording), broadcasting and
communication to the public of their live performances without their consent, and the right to
prevent reproduction of fixations of their performances under certain circumstances; the rights
in respect of broadcasting and communication to the public may be in the form of equitable
remuneration rather than a right to prevent. Due to personal nature of their creations, some
national laws also grant performers moral rights, which may be exercised to prevent
unauthorized uses of their name and image, or modifications to their performances that present
them in an unfavourable light.

Producers of phonograms: are granted the rights to authorize or prohibit reproduction,

importation and distribution of their phonograms and copies thereof, and the right to equitable
remuneration for broadcasting and communication to the public of phonograms.

Broadcasting organizations: are provided the right to authorize or prohibit rebroadcasting,

fixation and reproduction of their broadcast.

Also, the WIPO Performances and Phonograms Treaty (WPPT) grants protection to the
performers in sound performances and producers of phonograms, particularly in the digital
environment.
Though the duration of protection of related rights may differ from country to country the
minimum period provided by the Rome Convention is twenty years. However the WTO agreement

58

on Trade Related Aspects of Intellectual Property Rights (TRIPS) and the WPPT provide 50 years
of protection to the rights of performers and producers of phonograms.
The 1994 Agreement on Trade-Related Aspects of Intellectual Property Rights (or TRIPS
Agreement), which is administered by the World Trade Organization (WTO), incorporates or refers
to this international protection.
For more information visit the following web site: http://www.wipo.int/treaties/ip/rome/
index.html

Collective management of rights.

The exclusive right of the author to exploit his work or authorize others to do so is the basic
element of copyright, and such a right, where recognized, is also important for the beneficiaries of
related rights. An exclusive right can be enjoyed to the fullest extent if the owner of the right
himself may exercise it individually. In such a case, the owner maintains his control over the
dissemination of his work, can personally take decisions on the economic conditions of its
exploitation and can also closely monitor whether his rights are duly respected. As early as at the
time of the establishment of the international copyright system, there were, however, certain rights
that their owners were unable to exercise individually, and later, with the ever newer waves of new
technologies, the field in which individual exercise of rights was impossible or, at least, impractical,
became constantly wider.
The reason for which, in a number of cases, copyright and related rights cannot be exercised
individually is that the works and/or the objects of related rights are used by a great number of
different users. An individual author or other rights holders, in general, does not have the capacity to
monitor all the uses, to negotiate with users and to collect remuneration. In such a case, collective
management of rights is the appropriate solution. It is obviously a great advantage also for users
since it decreases their administrative costs and facilitates lawful use. The importance of collective
management societies is crucial especially where they provide one stop shop services, a
coordinated collective management of all relevant rights, established on a global basis. These can go
as far as the organization of public awareness campaigns, training and providing legal advice and
assistance on issues such as the signing of contracts between the owners of copyright and related
rights works and users of such works, where implications of intellectual property must be taken into
account.
Given the importance of this aspect of the protection of copyright and related rights, a new
WIPO guide on Collective Administration of Copyright and Related Rights is under preparation
and will be published soon. It describes the main fields of collective management, analyses the most
important issues of this form of exercising rights, including the digital environment and offers some
basic principles for the establishment and operation of collective management organizations. All of
the SADC member states except for Angola, Botswana, Lesotho, Seychelles and Swaziland have
copyright societies. Namibia, South Africa, Zambia and Zimbabwe have private copyright
collecting societies, while the rest have either parastatals or State-funded societies. In most cases,
the parastatal collective management societies have dual responsibility i.e. that of administering
the economic rights of their members but also that of enforcing the provisions contained in the
national legislation e.g. in Malawi, Mauritius and the United Republic of Tanzania.
For more information visit the following web site:
http://www.wipo.int/africa/en

Current status of copyright protection

in the SADC countries
WIPO has a long history of cooperation with SADC countries in the field of Copyright in
which it has provided legal advisory and technical assistance aimed at modernizing and/or
establishing national copyright protection regimes.
As of 30 April 2002, none of the SADC States had ratified either the WPPT or the WCT.
However it is important to note that initiatives are underway in Mauritius, Malawi, United Republic
of Tanzania and soon it is hoped Botswana and Mozambique to ratify the two treaties.

59

All SADC countries, with the exception of Angola, Mozambique and Seychelles, are party to
the Berne Convention. Swaziland is the only SADC country that, according to WIPO records, does
not have copyright legislation. In the remaining Member States, copyright is protected as described
in the list below:

Angola Copyright Act N 4/90 of 10 March 1990.

Botswana Copyright and Neighbouring Rights Act No. 8 of April 2000.

Democratic Republic of Congo Copyright and related rights are protected by Order No. 86033 of 5 April 1986.

Lesotho Copyright Order No. 13 of 1989, which is currently being reviewed.

Malawi Copyright Act No. 9 of 26 April 1989, which is currently being amended to comply
with current international norms.

Mauritius Copyright Act No. 12 of July 1997.

Mozambique Copyright Act No. 4 of February 1997.

Namibia Copyright and Neighbouring Rights Act No. 6 of 14 April 1994.

South Africa Performers Protection Act No. 11 of 1967, Copyright Act No. 98 of 1978, as
amended by respective Copyright Amendments Acts No. 56 of 1980, No. 66 of 1983, No. 52
of 1984, No. 39 of 1986, No. 13 of 1988, No. 61 of 1989 and No. 1125 of 1992, Intellectual
Property Laws Amendments Act of 1997.

Seychelles Copyright Act No. 25 of 29 December 1982 and the Copyright (Registration)
Regulations No. 12 of 14 February 1984.

United Republic of Tanzania Copyright and neighbouring Rights Act No. 7 of 2 June
1999.

Zimbabwe Copyright Act of 2001.

Zambia Copyright and Performance Rights Act No. 44 of 31 December 1994.

60

Annex 5
National copyright offices in the SADC region
Angola
Ministry of Culture
National Institute for Cultural Industries (INIC)
National Directorate of Entertainment and Copyright
Address
Rua Civilo de Conceio 72 andar
Luanda
Mailing address
Caixa Postal 1252
Luanda
Telephone: (244 2) 33 13 71
Telefax: (244 2) 33 13 62

Botswana
Ministry of Commerce and Industry
Department of the Registrar of Companies,
Business Names, Trade Marks, Patents and Designs
Address
P.O. Box 102
Gaborone
Telephone: (267) 580 754
Telefax: (267) 371 539; 580 987
Telex: 2674 TRADE BD
Email address: [email protected]

Democratic Republic of the Congo

Ministry of Culture and the Arts
Directorate of Research, Planning and International Cultural Relations
Secretariat General of Culture
Address
B.P. 3090
Kinshasa I

Lesotho
Office of the Registrar General
Copyright Office
Address
P.O. Box 52
Maseru 100
Telephone: (266) 31 30 34
Telefax: (266) 31 01 94
Telex: 4228 SADCTU LO

61

Malawi
Ministry of Sports and Culture
Copyright Society of Malawi (COSOMA)
Address
P.O. Box 30784
Lilongwe 3
Telephone: (265) 751 148; cellphone: 865 211
Telefax: (265) 752 717
Email address: [email protected]

Mauritius
Ministry of Arts and Culture
(Mauritius Society of Authors (MASA))
Address
7th Floor, R. Seeneevassen Building
Maillard Street
Port Louis
Mauritius
Telephone: (230) 212 5848
Telefax: (230) 212 9366
Email address: [email protected]

Mozambique
Ministry of Culture and Sports
National Institute of Books and Records
Department of Copyright
Address
Av. 24 de Julho 1921
Maputo
Mailing address
P.O. Box 4030
Maputo
Telephone: (258 1) 42 02 57; 42 03 73
Telefax: (258 1) 42 02 09

Namibia
Ministry of Information and Broadcasting
Copyright Services
Address
Government Offices
Provost Building
Windhoek
Mailing address
Private Bag 13344
Windhoek, 9000
Telephone: (264 61) 22 22 46; 22 10 77
Telefax: (264 61) 22 49 37
Telex: 665

62

Seychelles
Ministry of Youth and Culture
Address
Ministry of Youth and Culture
P.O. Box 1383
Victoria
Mahe
Telephone: (248) 321 333
Telefax: (248) 322 113
Telex: 2305 MINED SZ

South Africa
Department of Trade and Industry
Office of the Registrar of Patents, Trade Marks, Designs and Copyright
Address
Private Bag X400
Pretoria 0001
Mailing address
Zanza Buildings
116 Proes Street
Pretoria 0001
Telephone: (27 12) 310 8700
Telefax: (27 12) 323 4257
Telex: (9) 35-0168 TRIN
Email address: [email protected]

Swaziland
Ministry of Justice
Registrar Generals Office
Address
3rd Floor, Justice Building
Mbabane
Mailing address
P.O. Box 460
Mbabane
Telephone: (268 40) 46 010/9
Telefax: (268 40) 43 531

63

United Republic of Tanzania

Copyright Society of Tanzania (COSOTA)
Business Registrations and Licensing Agency (BRELA)
Ministry of Industry and Trade
Address
Cooperative Bldg.
Lumumba Street
Dar es Salaam
Mailing address
P.O. Box 9393
Dar es Salaam
Telephone: (255 22) 812 760839 (Mobitel);
Direct lines: (255 22) 2180048; 2180139; (255 22) 2180141
Telefax: (255 22) 2180371; 2184727
Telex: 41689 INDIS TZ
Email address: [email protected]

Zambia
Ministry of Information and Broadcasting Services
Copyright Administration
Address
P.O. Box 51025, Lusaka
Telephone: (260 1) 25 17 73; 25 17 66
Telefax: (260 1) 25 34 56; 25 34 57; (260 1) 25 17 67
Telex: 40113 INFORM ZA

Zimbabwe
Ministry of Justice, Legal and Parliamentary Affairs
Office of the Controller of Patents, Trade Marks and Industrial Designs
Address
Private Bag 7704
Causeway
5th Floor Forner House
Corner Leopold Takawira Street and Samora Machel Avenue
Harare
Telephone: (263 4) 775 544/6; (263 4) 773 443; (263 4) 781 835
Telefax: (263 4) 772 999; 772 993
Email address: [email protected]

64

SEED Working Papers

1.

Home Work in Selected Latin American Countries: A Comparative Overview (Series on

Homeworkers in the Global Economy), Manuela Tomei, 2000

2.

Homeworkers in Paraguay (Series on Homeworkers in the Global Economy), Mara

Victoria Heikel, 2000

3.

Homeworkers in Peru (Series on Homeworkers in the Global Economy), Francisco

Verdera, 2000

4.

Job Quality and Small Enterprise Development (Series on Job Quality in Micro and
Small Enterprise Development), 1999

5.

The Hidden MSE Service Sector: Research into Commercial BDS Provision to Micro and
Small Enterprises in Viet Nam and Thailand (Series on Innovation and Sustainability in
Business Support Services (FIT)), Gavin Anderson, 2000

6.

Home Work in Argentina (Series on Homeworkers in the Global Economy), Elizabeth

Jelin, Matilde Mercado, Gabriela Wyczykier, 2000

7.

Home Work in Brazil: New Contractual Arrangements (Series on Homeworkers in the

Global Economy), Lena Lavinas, Bila Sorj, Leila Linhares, Angela Jorge, 2000

8.

Home Work in Chile: Past and Present Results of a National Survey (Series on
Homeworkers in the Global Economy), Helia Henrquez, Vernica Riquelme, Thelma
Glvez, Teresita Selam, 2000

9.

Promoting Womens Entrepreneurship Development based on Good Practice

Programmes: Some Experiences from the North to the South (Series on Womens
Entrepreneurship Development and Gender in Enterprises WEDGE), Paula Kantor,
2000

10. Case Study of Area Responses to Globalization: Foreign Direct Investment, Local
Suppliers and Employment in Gyr, Hungary (Series on Globalization, Area-based
Enterprise Development and Employment), Maarten Keune, Andrs Toth, 2001
11. Local Adjustment to Globalzation: A Comparative Study of Foreign Investment in Two
Regions of Brazil, Greater ABC and Greater Porto Alegre (Series on Globalization, Areabased Enterprise Development and Employment), Glauco Arbix, Mauro Zilbovicius, 2001
12. Local Response to Globalization: MESTA Region, Bulgaria (Series on Globalization,
Area-based Enterprise Development and Employment), Hanna Ruszczyk, Ingrid Schubert,
Antonina Stoyanovska, 2001
13. Ethnic Minorities Emerging Entrepreneurs in Rural Viet Nam: A Study on the Impact
of Business Training on Ethnic Minorities, Jens Dyring Christensen, David Lamotte,
2001
14. Jobs, Gender and Small Enterprises in Bangladesh: Factors Affecting Women
Entrepreneurs in Small and Cottage Industries in Bangladesh (Series on Womens
Entrepreneurship Development and Gender in Enterprises WEDGE), Nilufer Ahmed
Karim, 2001
15. Jobs, Gender and Small Enterprises: Getting the Policy Environment Right (Series on
Womens Entrepreneurship Development and Gender in Enterprises WEDGE), Linda
Mayoux, 2001
16. Regions, Regional Institutions and Regional Development (Series on Globalization,
Area-based Enterprise Development and Employment), Maarten Keune, 2001

65

17. ICTs and Enterprises in Developing Countries: Hype or Opportunity? (Series on

Innovation and Sustainability in Business Support Services (FIT)), Jim Tanburn and
Alwyn Didar Singh, 2001
18. Jobs, Gender and Small Enterprises in Africa and Asia: Lessons drawn from Bangladesh,
the Philippines, Tunisia and Zimbabwe (Series on Womens Entrepreneurship
Development and Gender in Enterprises WEDGE), Pamela Nichols Marcucci, 2001
19. Jobs, Gender and Small Enterprises in the Caribbean: Lessons from Barbados, Suriname
and Trinidad and Tobago (Series on Womens Entrepreneurship Development and
Gender in Enterprises WEDGE), Carol Ferdinand (ed.), 2001
20. Jobs, Gender and Small Enterprises in Bulgaria (Series on Womens Entrepreneurship
Development and Gender in Enterprises WEDGE), Antonina Stoyanovska, 2001
21. Women Entrepreneurs in Albania (Series on Womens Entrepreneurship Development
and Gender in Enterprises WEDGE), Mimoza Bezhani, 2001
22. Ajuste Local Globalizao: um estudo comparativo do investimento estrangeiro direto
no ABC e na Grande Porto Alegre (Srie sobre Globalizao, Desenvolvimento de
Empresas ao Nvel Local e Emprego), Glauco Arbix, Mauro Zilbovicius, 2002
23. Small Enterprises, Big Challenges: A Literature Review on the Impact of the Policy
Environment on the Creation and Improvement of Jobs within Small Enterprises, (Series
on Conducive Policy Environment for Small Enterprise Employment), Gerhard Reinecke,
2002
24. Mthodes et Instruments dAppui au Secteur Informel en Afrique Francophone, Carlos
Maldonado, Anne-Lise Milot, Cheikh Badiane, 2003 (forthcoming)
25. Artisanat et Emploi dans les Provinces de Settat et El Jadida, Grard Barthlemy, 2002
26. Employment Creation and Employment Quality in African Manufacturing Firms,
Micheline Goedhuys, 2002
27E. An Information Revolution for Small Enterprise in Africa: Experience in Interactive
Radio Formats in Africa (Series on Innovation and Sustainability in Business Support
Services (FIT)), Mary McVay, 2002
27F. Une rvolution de linformation pour les petites entreprises en Afrique : Lexprience en
matire de formats radio interactifs en Afrique (Srie Innovation et viabilit des services
dappui aux entreprises), Mary McVay, 2002
28. Assessing Markets for Business Development Services: What have we learned so far?
(Series on Innovation and Sustainability in Business Support Services (FIT)), Alexandra
Overy Miehlbradt, 2002
29. Creating a Conducive Policy Environment for Micro, Small and Medium-Sized
Enterprises in Pakistan (Series on Conducive Policy Environment for Small Enterprise
Employment), Small and Medium Enterprise Development Authority of Pakistan
(SMEDA), 2002
30. Creating Market Opportunities for Small Enterprises: Experiences of the Fair Trade
Movement, Andy Redfern and Paul Snedker, 2002
31. Creating a Conducive Policy Environment for Employment Creation in Small Enterprises
in Viet Nam (Series on Conducive Policy Environment for Small Enterprise
Employment), Pham Thi Thu Hang, 2002
32. Business Training Markets for Small Enterprises in Developing Countries: What do we
know so far about the potential? (Series on Innovation and Sustainability in Business
Support Services (FIT)), Akiko Suzuki, 2002

66

33. Organizing Workers in Small Enterprises: The Experience of the Southern African
Clothing and Textile Workers Union (Series on Representation and Organization
Building), Mark Bennett, 2002
34. Protecting Workers in Micro and Small Enterprises: Can Trade Unions Make a
Difference? A Case Study of the Bakery and Confectionery Sub-sector in Kenya (Series
on Representation and Organization Building), Gregg J. Bekko and George M. Muchai,
2002
35. Creating a Conducive Policy Environment for Employment Creation in SMMEs in South
Africa (Series on Conducive Policy Environment for Small Enterprise Employment),
Jennifer Mollentz, 2002
36. Organizing in the Informal Economy: A Case Study of Street Trading in South Africa
(Series on Representation and Organization Building) Shirin Motala, 2002
37. Organizing in the Informal Economy: A Case Study of the Clothing Industry in South
Africa (Series on Representation and Organization Building), Mark Bennett, 2003
38. Organizing in the Informal Economy: A Case Study of the Building Industry in South
Africa (Series on Representation and Organization Building), Tanya Goldman, 2003
39. Organizing in the Informal Economy: A Case Study of the Minibus Taxi Industry in
South Africa (Series on Representation and Organization Building), Jane Barrett, 2003
40. Rags or Riches? Phasing-Out the Multi-Fibre Arrangement, Auret van Heerden, Maria
Prieto Berhouet, Cathrine Caspari, 2003
41. Flexibilizing Employment: An Overview, Kim Van Eyck, 2003
42. Role of the Informal Sector in Coping with Economic Crisis in Thailand and Zambia,
Gerry Finnegan and Andrea Singh (eds.), 2003
43. Opportunities for SMEs in Developing Countries to Upgrade in a Global Economy
(Series on Upgrading in Small Enterprise Clusters and Global Value Chains), John
Humphrey, 2003
44. Participation in Global Value Chains as a Vehicle for SME Upgrading: A Literature
Review (Series on Upgrading in Small Enterprise Clusters and Global Value Chains),
Cathrine Caspari, 2003
45. Local Implementation of Quality, Labour and Environmental Standards: Opportunities for
Upgrading in the Footwear Industry (Series on Upgrading in Small Enterprise Clusters
and Global Value Chains), Lizbeth Navas-Alemn and Luiza Bazan, 2003
46. Industrial Renewal and Inter-firm Relations in the Supply Chain of the Brazilian
Automotive Industry (Series on Upgrading in Small Enterprise Clusters and Global
Value Chains), Anne Caroline Posthuma, 2003 (forthcoming)
47. The Competitive Advantage of Buying Networks in Wood Products Value Chains
(Series on Upgrading in Small Enterprise Clusters and Global Value Chains), Jeff
Readman, 2003 (forthcoming)

67

48. High Road Upgrading in the Third Italy: Lessons for Integrated Small Enterprise
Development and Good Labour Conditions in Developing Countries (Series on
Upgrading in Small Enterprise Clusters and Global Value Chains), Alberto Criscuolo,
2003 (forthcoming)
49. Promoting the Culture Sector through Job Creation and Small Enterprise Development in
SADC Countries: The Music Industry (Series on Upgrading in Small Enterprise Clusters
and Global Value Chains), Cecile Ambert, 2003
50. Promoting the Culture Sector through Job Creation and Small Enterprise Development in
SADC Countries: The Ethno-tourism Industry (Series on Upgrading in Small Enterprise
Clusters and Global Value Chains), Steven Bolnick, 2003 (forthcoming)
51. Promoting the Culture Sector through Job Creation and Small Enterprise Development in
SADC Countries: Crafts and Visual Arts (Series on Upgrading in Small Enterprise
Clusters and Global Value Chains), The Trinity Session, 2003 (forthcoming)
52. Promoting the Culture Sector through Job Creation and Small Enterprise Development in
SADC Countries: The Performing Arts and Dance (Series on Upgrading in Small
Enterprise Clusters and Global Value Chains), Annabell Lebethe, 2003
53. Promoting the Culture Sector through Job Creation and Small Enterprise Development in
SADC Countries: Television and Film (Series on Upgrading in Small Enterprise Clusters
and Global Value Chains), Avril Goffe and Natalie Jacklin, 2003 (forthcoming)
54. Promouvoir un environnement de dveloppement des micro et petites entreprises
guinennes favorable la cration demplois dcents (Srie Cadre stratgique favorable
lemploi dans les petites entreprises), Moussa Kourouma, 2003
55. Creating a Conducive Policy Environment for Employment Creation in Micro and Small
Enterprises in Tanzania (Series on Conducive Policy Environment for Small Enterprise
Employment) Paul Tibandebage, Samuel Wangwe, Moses Msuya, Darlene Mutalemwa,
2003
56. Public Policy and Employment in Micro and Small Enterprises in Peru (Series on
Conducive Policy Environment for Small Enterprise Employment), Juan Chacaltana, 2003
(forthcoming)
57. Business Centres for Small Enterprise Development: Experiences and Lessons from
Eastern Europe, Merten Sievers, Klaus Haftendorn, Astrid Bessler, 2003
58. Promoting Female Entrepreneurship in Mauritius: Strategies in Training and
Development, (Series on Womens Entrepreneurship Development and Gender Equality
WEDGE), Patricia Day-Hookoomsing, Vedna Essoo, 2003
59. Facilitating Youth Entrepreneurship, Part I: An analysis of awareness and promotion
programmes in formal and non-formal education, Klaus Haftendorn, Carmela Salzano,
2003 (forthcoming)
59. Facilitating Youth Entrepreneurship, Part II: A directory of awareness and promotion
programmes in formal and non-formal education, Klaus Haftendorn, Carmela Salzano,
2003 (forthcoming)

68

60. Organizing in South Africas Informal Economy: An Overview of Four Sectoral Case
Studies (Series on Representation and Organization Building), Tanya Goldman, 2003
(forthcoming)
61. Creating a Conducive Policy Environment for Employment Creation in MSEs in Chile
(Series on Conducive Policy Environment for Small Enterprise Employment), Carolina
Flores, 2003 (forthcoming)
62. Quels facteurs influencent la croissance et lemploi dcent dans les petites enterprises en
Guine? (Srie Cadre stratgique favorable lemploi dans les petites entreprises),
Moussa Kourouma, 2003 (forthcoming)

69