Foreign ownership in media capped

Dar es Salaam. But The government yesterday published the Media Services Regulations, which limit foreign ownership of print media houses to 49 per cent.

According to the regulations, which have been published following the enactment of the Media Services Bill (MSB) in November last year, there would be no limitation in the percentage of ownership for individual citizens or a group of citizens.

But a foreigner seeking a print media license “shall be required … to submit to the [responsible authorities] a list of shareholders with a minimum of 51 per cent local ownership.”

The foreign ownership requirement is in tandem with the Information and Broadcasting Policy, 2003 which directed that foreign ownership on media houses not exceed 49 per cent. The Broadcasting Services Act, 1993 already stipulated that a company applying for a broadcasting license should have 51 per cent local shareholding.

The regulations have also given more powers to the director of the Information Services Department (ISD) over licensing of newspapers. According to the regulations the director of ISD will be responsible for the registration of print media in the country. The initial licensing fees has been set at Sh1 million. The license will be renewed annually at a fee of Sh1 million. The director of the ISD has also been given powers of imposing a Sh100 million bond to any private individual seeking to establish a print media house in the country.

The change in shareholding structure for companies with foreign shareholding should only be done after seeking the approval from the director of ISD, according to regulations.

In conjunction with the powers provided for by the Media Services Act (MSA) the director of ISD can “reject an application which does not comply with the prescribed requirements for licensing; suspend or cancel the license in the event of failure of a licensee to comply with the prescribed conditions of a license.”

The ISD has also been designated by the regulations as the government’s “advertising agent”. This means that all government ministries, departments, agencies, institutions, local government authorities as well as projects with over 50 per cent government funding would have to channel their adverts through the ISD for “synchronisation before being published or broadcasted.” The director of ISD shall will, therefore, have the sole and exclusive authority to decide which medium to use in publishing or broadcasting the submitted adverts subject to budget set for by the accounting officers, the regulations say. “The ISD will also charge up to 10 per cent of the total cost of the adverts at market rate obtained from the service vendors at that particular time as administrative commission for the service, the regulations add.

As far as accreditation of journalists is concerned the regulations have provided room for issuance of press cards for both “normal” accreditation and life membership accreditation even to “members of the public with outstanding service for the media profession.”

The regulations also add that “the [Journalist Accreditation Board] may, in its own discretion and from time to time, award life membership accreditation to distinguished members of the society” or individuals who have “significantly contributed to the development of media industry and journalism profession.”