presentation to select committee on labour and public enterprises 7 september 2011

Presentation to Select

Committee on Labour and

Public Enterprises

7 September 2011

Agenda

1 Provincial Landscape

Turnaround Strategy

Universal Access

Provincial input

Digital Migration

2

3

4

5

1. Programming2. Platform Management3. News and Current Affairs4. Governance5. Human Capital Services6. Financial Management7. Stakeholder Relations and Provinces

SABC Corporate Pillars

4

The Board has adopted a set of Corporate Pillars that informs the SABC’s Strategic Focus areas and operational plans

The Board has adopted a set of Corporate Pillars that informs the SABC’s Strategic Focus areas and operational plans

Agenda


Turnaround Strategy

Universal Access

Provincial Input

Digital Migration

2

3

4

5

• Putting broadcasting and broadcasters back in the forefront of what the organisation is about and editorial integrity back into the platforms and programmes of the SABC in particular News.

• Building brands that reflect excellence and the South African identity in every way

• Building a digital SABC and integrating the digital future into all plans and actions

• Having an operating model that is simple and easily understood, supported by an organisational design that assigns accountability directly to those charged with execution of the Enterprise plans and good governance

• Building an organisation that is economical, efficient and effective• Focusing on the performance of the Enterprise at every level and holding

individuals accountable for delivery• Managing and reporting on strategy development and implementation,

operational performance and risk management

SABC’s Strategic Intent

6

The organisation through its turnaround and operational plans has identified seven key drives of value which form its strategic intent as it enters into its medium term

planning.

The organisation through its turnaround and operational plans has identified seven key drives of value which form its strategic intent as it enters into its medium term

planning.

Pillars of the Turnaround StrategyLeadership & Governance

Leadership & Governance

Ensuring effective leadership that ensures that there is governance in the organisation

Financial Management

Financial Management

• Provide improved cash flows through; balance sheet restructuring, strict profit & loss control and tight working capital management, • Ensure enhanced management reporting that can provide business units with

information that is both accurate and relevant• Enhanced operational efficiency

Reorganisation & people alignment

Reorganisation & people alignment

• Creating a more efficient, effective and economical enterprise, through:o Review of IT systems to ensure alignment with business needso Embedding a performance management culture linked to reward o Ensure human capital alignment into the digital future

Business Optimisation

Business Optimisation

• Focusing on the core business of the SABC, broadcasting, and the improvement thereon• To highlight, develop and implement specific interventions that will effectively

position the SABC for its digital future.

Restoring credibility and brand equity

Restoring credibility and brand equity

• A Enterprise stakeholder management to more effectively manage all stakeholders• Restoration of the SABC brand and reputation of the SABC• Creating public value and thereby delivering on public service broadcasting

Agenda

1

2

3

4

5

SMF Update March 2011

• 85% of South Africans have access whilst 15% have no access to signal

distribution we thus request the Select Committee on Labour and Public

Enterprises to assist the SABC in its quest to respond to the challenge.

• Provinces in partnership with Sentech continuously identify communities

without access.

• The SABC has so far identified over 250 sites and areas through field trips

earmarked for low power transmitter rollout

– 100 sites per annum from March 2012 to March 2014.

• The impact will be 1.5 million people which is 3 % of the population outside

coverage areas will have access.

• Latest to be switched on Friday 9, September 2011 is Sannieshof in NW.

Universal Access

9

Putting Broadcasting and Broadcasters back in the forefront of what the organization is about and editorial integrity back into the platforms and programmes of the SABC Putting Broadcasting and Broadcasters back in the forefront of what the organization is about and editorial integrity back into the platforms and programmes of the SABC

• Excel DocCopy of Aug2011_Ver04_Low_Power_TX_List 101 (2).xls

Universal Access

10

Putting Broadcasting and Broadcasters back in the forefront of what the organization is about and editorial integrity back into the platforms and programmes of the SABC Putting Broadcasting and Broadcasters back in the forefront of what the organization is about and editorial integrity back into the platforms and programmes of the SABC

• On the whole the SABC Provinces has met the target of 2% of people living

with disabilities .

• On our platforms we offer dedicated programmes by people living with

disabilities – SA FM, Radio 2000, Ligwalagwala FM Phalaphala FM and Thobela

FM.

• Accessibility to our buildings is disability friendly, however more still need to

be done.

• DTT will offer us the ability to offer improved subtitling capability.

• DTT will potentially provide Audio descriptions capability and close signing.

People living with Disabilities

11

SABC’s Approach to People living with Disabilities SABC’s Approach to People living with Disabilities

Agenda


Turnaround Strategy

Universal Access

Provincial Input

Digital Migration

2

3

4

5

PROVINCE

EASTERN CAPE

• The sitting of Eastern Cape Provincial Government is in Bhisho under the stewardship of Premier Noxolo Kiviet.

• The Eastern Cape covers approximately 168 580 sqm, and is the second largest Province in the Republic of South Africa. According to the community survey, conducted by statistics SA, the total population of the Eastern Cape is 6, 815 454.

• SABC Provincial Office is based in Port Elizabeth in the Nelson Mandela Bay Metropolitan. The Province is the home of two PBS Radio Stations, one national Umhlobo Wenene and Tru-fm which is regional. The radio stations are based in Port Elizabeth and Bhisho respectively. Umhlobo Wenene is the second largest PBS radio station in the country and Tru-fm is based in Bhisho, the seat of the Provincial legislature.

Provincial Input

14

Eastern Cape Province – Mr. Zola YeyeEastern Cape Province – Mr. Zola Yeye

• The Bhisho office provides programming and current affairs as well as an office in the Legislature which services the provincial government.

• Racial composition of Eastern Cape • Africans 5 993 797• Whites 273 673• Coloreds 522 606• Indian/Asian 25 414

• Main Economic Sectors:• Automotive industry, Manufacturing, Agriculture & Forestry, Commercial &

Transport Services, Food Processing, Mohair & Wool Textile &Clothing.

Provincial Input

15


• Political Landscape:• Home to both former Presidents, and some of the country’s most powerful

political figures such O.R. Tambo, Walter Sisulu, Raymond Mhlaba, Nelson Mandela, Govan and Thabo Mbeki, Steve Biko, Robert Sobukwe, Chris Hani and many others. The Province has been a symbol of resistance to minority rule.

• SABC Services available – Radio– TV

• Size of employees– Staff compliment of 177 permanent– 17 interns – 103 Independent contractors– Total = 297

Provincial Input

16


PROVINCE

FREE STATE & NORTHERN CAPE

Provincial Input

18

Free State and Northern Cape Province – Mr. Thabang TsoenyaneFree State and Northern Cape Province – Mr. Thabang Tsoenyane

The PGM is responsible for two Provinces:

Free State Northern Cape FS is in the center of SA and NC is more to the north

Geographic Size

FS: 129 825 km2 NC: 372 889 km2

Population Size

FS: 2,9 milNC: 1.1 mil

• An analysis of the economic situation & indicators reflects opportunities for potential growth in the following sectors & opportunities for SABC to grow business:

• Agriculture (FS & NC)• Fishing & Mari-culture (NC)• Mining and Mineral processing (FS & NC)• Manufacturing and Tourism (FS & NC)• Petro chemical down streaming (FS)• Bio-Fuels (FS)• Wine exports (NC)

Provincial Input

19



• Size of employees– Staff compliment of permanent 133– interns 9 – Independent contractors 21– Total = 163

Provincial Input

20


PROVINCE

WESTERN CAPE

Provincial Input

22

Western Cape Province – Ms. Shouneez MoosajeeWestern Cape Province – Ms. Shouneez Moosajee

• The SABC WC comprises of NEWS, Sales & Marketing, Technology (RBF & TVOB),

GHFM, SAFM, RSG, Umhlobo Wenene, Support Services, Finance, HR,

Communications and Parliamentary Liaison

• Our offices are situated in Sea Point, Montague Gardens, George and

Parliament.

• Our potential listenership/viewership is 3.33 million people (AMPS 15+)

• Cape contributes to 20% of the SABC revenue and that equates to R 750m p.a.

• Advertisers have restored faith in the SABC.

• We are the biggest News contributor outside of Johannesburg across Radio and

television

• GHFM has a current listenership of 632 000 (p7d)

• RSG, SAFM, Radio 2000 and Umhlobo Wenene has a strong presence in the

province and a number of programmes are presented in our studios

• Our Technology departments provides support to all the Radio and Television

platforms, SABC News and Sport, and are in the process of digitising the

studios.

• The TVOB have 200 to 300 productions per year. They have also broadcast

from unique venues such as Table Mountain, Robben Island.

• The uniqueness of the province has resulted in the province being host to

many national and international events.

Provincial Input

23



• Size of employees– Staff compliment of permanent 170– interns 13 – Independent contractors 107

• Total = 290

Provincial Input

24


PROVINCE

MPUMALANGA

• Mpumalanga the place of the rising sun, is located adjacent to South Africa’s economic heartland, Gauteng and also shares borders with Swaziland, Mozambique, and the provinces of Kwa Zulu Natal and Limpopo.

• The Maputo Development Corridor, linking the province with Gauteng and Maputo is the first international toll road in Africa this international initiative emphasizes Mpumalanga’s excellent location as a logistics and transport hub.

• Future growth aspects identified by the provinces leaders are:– The establishment of a university– The establishment of a academic hospital

• More than 80% of South Africa's coal is sourced in Mpumalanga with the town of Witbank being the center of the industry.

• The internationally acclaimed, Kruger National Park is home to the Big Five • The Capital city of Mpumalanga is Mbombela.

Provincial Input

26

Mpumalanga Province – Ms. Sully MotsweniMpumalanga Province – Ms. Sully Motsweni

• SABC Mpumalanga is the home of Ligwalagwala FM, which is the second smallest province in the country.

• Total surface area,79 490 km², Population density 37.8 km² slightly higher than the country’s 36.1 km² (Gauteng 385km² ).

• Only 39.1% lives in urban, 60.9% non-urban. Unemployment at 26.9%, Literacy rate 79%. Forestry & agriculture 15% of SA’s output. Generate 75% of SA’s electricity & 84% coal

• Languages– Isiswati– Afrikaans– IsiNdebele– Northern Sotho– Tsonga

Provincial Input

27


Provincial Input

28


SABC Services available • Radio• TV

Size of employees• Staff compliment of permanent 80• interns 4 • Independent contractors 87

Total = 171

PROVINCE

GAUTENG

Provincial Input

30

Gauteng Province – Ms. Mmabatho RamagoshiGauteng Province – Ms. Mmabatho Ramagoshi

• The Capital of Gauteng is Johannesburg • The people of Gauteng have the highest per capita income level in the

country.• Gauteng is the financial capital of Africa: more than 70 foreign banks have

their head offices in the province,• The province has the most important educational and health centers in the

country:-• Pretoria boasts the largest residential university in South Africa, the University

of Pretoria, and what is believed to be the largest correspondence university in the world, the University of South Africa, or Unisa.

• The JSE in Johannesburg is among the top 20 stock exchanges in the world by market capitalization.

• The Provincial Office is located in the City of Tshwane

• Total Population – 11.2 Million• Population Groups

– Black 75.2%– White 18.4%– Indian/ Asian 2.7%

• Official Languages– Zulu 21%– Afrikaans 14%– English 12%– Sotho 13 %– Northern Sotho 11.2 %

Provincial Input

31


• The Provincial office is the home of Ikwekwezi FM, the Ndebele radio station which has a footprint in Gauteng, Mpumalanga, Limpopo and North West.


• Size of employees– Staff compliment of permanent 95– interns 7– Independent contractors 47

• Total = 147

Provincial Input

32


PROVINCE

NORTH WEST

• North West is a province of South Africa located to the west of major population center of Gauteng and it’s capital is Mahikeng.

• The mainstay of the economy of North West is mining which generates more than half of the province’s gross domestic product and provides jobs for a quarter of it’s workforce.

• The chief minerals mined in the province are as follows:• Mineral Place

– Gold Orkney and Klerksdorp– Uranium Klerksdorp– Platinum Rustenburg and Brits– Diamonds Litchtenburg, Christiana and Bloemhof

• Agriculture is one of the economic spinoffs in North West province. • Tourism is a key economic driver in the Province with Sun City as the draw card

Provincial Input

34

North West Province – Mr. Tlotlo SeruNorth West Province – Mr. Tlotlo Seru

• Population– Total 3,271,948

• Population groups– Black African 90.8%– White 7.2%– Coloured 1.6%– Indian/Asian 0.4%

• Languages– Tswana 64.8%– Afrikaans 9.2%– Xhosa 7.2%– Sotho 6.8%– Tsonga 3.4%

Provincial Input

35


• North West is a province of South Africa located to the west of major population center of Gauteng and it’s capital is Mahikeng.

• SABC North West is situated in Mahikeng, capital city of the North West province.


• Size of employees– Staff compliment of permanent 92– Interns 14 – Independent contractors 62

• Total = 178

Provincial Input

36


PROVINCE

KWA – ZULU NATAL

Provincial Input

38

Kwa Zulu - Natal Province – Ms. Zamambo MkhizeKwa Zulu - Natal Province – Ms. Zamambo Mkhize

• Our Province boasts of Sun, Sea & Sand whilst hosting 2 gigantic Radio

stations - Lotus and Ukhozi at the Durban office.

• It is home to approximately 10.2 million people with a rich cultural mix;

whilst, English and Zulu are widely spoken languages

• The SABC Provincial office enhances Public value to those who walk in for

various services or to partake in our activities

• KZN boasts a number of excellent tertiary institutions and university

colleges offering a range of careers in both academic and practical

orientation: technical, the arts, business catering, tourism and relevant

degrees from the universities

• The economic prosperity of the region is largely influenced by the busiest ports in Africa, based in Durban and Richards Bay, handling 58% of all

shipment of goods and materials to other provinces and the rest of SADC.

• The recently established King Shaka International/ Dube Trade Port has seen unprecedented passenger figures and is expected to attract industries such as automotive components, electronics, clothing and textiles, perishables and value added logistics --- which would inject much needed economic prosperity in the province.

Provincial Input

39



• Size of employees– Staff compliment of permanent 158– interns 15 – Independent contractors 55

• Total = 228

Provincial Input

40


PROVINCE

LIMPOPO

Provincial Input

42

Limpopo Province – Mr. Victor RavhuanzwoLimpopo Province – Mr. Victor Ravhuanzwo

• Access to education has not in all areas translated into quality education

• In many villages, the celebration of water piping has not translated into actual

conveyance of this precious resource

• Even during years of high economic growth, we barely dented the rate of

unemployment

• Three quarters (75%) of the unemployed are young people, with major macro-

social implications for the nation as a whole

• The most invasive and terrorizing of crimes such as violent robberies in the

streets, homes and business premises are not being reduced.

• Teenage pregnancy delays learning activities thus affecting growth and

development strategy of Limpopo province and the country

Provincial Input

43


• Mining opportunities:

• Coal mining and Petrochemical cluster on the East-West Corridor

• Platinum Mining and Mineral conversion on the Dilokong Corridor..

• Fruits and Vegetable (horticulture) cluster on the Phalaborwa and Trans-

Limpopo Corridor.

• Logistics cluster, Polokwane International Airport and SADC supply chain on

the Trans-Limpopo Corridor.

• Forestry cluster on the Phalaborwa and Trans-Limpopo Corridor.

• Eight tourism sub-clusters at a number of high- potential destinations on

every corridor.

• Red and White meat cluster on all the corridors

Provincial Input

44


• Northern Sotho speaking people constitute 57%,

• XiTsonga speaking people constitute 23% and

• Tshivenda speakers constitute 12%

• SABC Services available

• Radio

• TV

• Size of employees

• Staff compliment of permanent 200

• Interns 15

• Independent contractors 65

• Total = 280

Agenda


Turnaround Strategy

Universal Access

Provincial Input

Digital Migration

2

3

4

5

• The SABC’s move to DTT is driven by the following:• A government mandated process for all analogue terrestrial broadcasters to migrate to DTT

and for the resulting migration from analogue to digital to be completed by December 2013• The SABC needs to remain competitive (for audience and revenue) in a multi-channel, multi-

platform, digital environment• The SABC’s content strategy to leverage the content and rights acquired more effectively by

being able to distribute this content across multiple channels• The SABC’s strategy to increase its focus on public service delivery which requires the rollout

of more services and the use of new technologies to enable better language delivery, for example.

• The SABC’s intention to position itself as a leader in digital broadcasting in Africa and as an innovative public broadcaster.

• The commercial launch of the DTT platform is a key project for the SABC - not only will it provide consumers with a greater and more enhanced service from the SABC it will also require the SABC to think and behave as a digital broadcaster in a multi-platform, multi-channel environment.

Digital Migration

46

to ensure a successful commercial launch of the DTT platform it will be critical for the SABC –as the national public broadcaster - to embrace and lead on the transition to

digital in order to ensure its continued success and viability going forward



• The SABC will make all SABC radio services available on the DTT platform as well as ancillary and interactive services. Ancillary services include the ability to do multiple subtitles and multiple audio, as well as audio description. Interactive applications include information services, children’s and educational games and weather services.

• The inclusion of these services will not only drive platform value, but can be used to deliver public services in areas such as language delivery, education, and news, and, over a period develop revenue and job opportunities through new inventory and innovative commercial offerings such as interactive advertising

• In order to make the migration to DTT, the SABC will be investing in an upgrade of its broadcast facilities, including the upgrade of the analogue Final Control Centres (FCC) and the development of a new multi-channel playout facility.

• Lastly, the move to digital enables the SABC to improve TV license collection (or offset collection costs) by using STB Control technology to enhance collection. Should TV Licenses not be a source of funding for the SABC in the future, DTT will offer the impetus for public funding as it will enable an increased delivery of the SABC public service mandate

Digital Migration

47





• Excel DocCopy of Outstanding Provincial Government (3).xlsx

TV LICENSES

48

Outstanding TV License Revenue Outstanding TV License Revenue

• as Provinces our approach is it ensure that we offer an extension of the SABC

services to the provinces.

• 1/3 of SABC business resides in the Provinces, around 82% of the SABC

audiences are found outside Gauteng and 32% of SABC’s revenue is derived

from the Provinces .

• Out of the 18 Radio Stations, only 5 are based in Auckland Park.

• SABC News is the only source of news and information– and in many others

the only media in the community’s home languages, 83% of News content.

• The Public Broadcaster therefore plays an important and a special role in

people’s lives especially in rural communities.

Conclusion

49

Thank You

50

presentation to select committee on labour and public enterprises 7 september 2011

Documents