ParMA Network StudiesThe Financesof African NewspapersAn Overview of the Financial Situationof Selected NewspapersStudy Co-ordinated by Anne PerrinLayout: Hélène Gay (Gret). Translated by Lara Colo (Gret). February 2002.Table of ContentsIntroduction OBJECTIVES AND METHODOLOGY5 Obtaining Reliable Figures on the Finances of African Newspapers5 Survey Methodology and Study Contours5 Survey Sample Selection5 Researchers6 Respecting Anonymity in Publishing Results6 Study LimitsPart 1 PROFILES AND REMUNERATION OF NEWSPAPER STAFFIN SELECTED AFRICAN COUNTRIES7 Profiles of People Surveyed7 Survey of Journalists7 Journalists’ Environment: Training and Legal Framework8 Remuneration10 Survey of Freelancers10 Environment10 Remuneration10 Survey of Directors of Publications10 Who are Directors of Publications?10 Director of Publication: A Management Job?11 Remuneration11 Survey of Non-Journalist StaffPart 2 FINANCIAL ANALYSIS OF PRESS ENTERPRISES13 Difficult Access to Financial Information13 The Difficulty of Evaluating Property 313 The Difficulty of Separating Integrated Activities in the Accounts14 Analysis of Financial and Quantitative Data14 Turnover: Amount and Distribution16 Revenues, Unit Prices and Volumes16 Management Intermediate Balances19 Lessons Learnt19 A Profitable Activity at or above a Certain Threshold20 An Ideal Activity for Businessmen?21 Striking Differences between French- and English-Speaking Countries23 ...
An Overview of the Financial Situation of Selected Newspapers
Study Co-ordinated by Anne Perrin
Layout: Hélène Gay (Gret). Translated by Lara Colo (Gret). February 2002.
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Table of Contents
IntroductionOBJECTIVES AND METHODOLOGY Obtaining Reliable Figures on the Finances of African Newspapers SurveyMethodology and Study Contours Survey Sample Selection Researchers Respecting Anonymity in Publishing Results Study Limits
Part 1PROFILES AND REMUNERATION OF NEWSPAPER STAFF IN SELECTED AFRICAN COUNTRIES ProfilesofPeoplerSvueyed Survey ofoJurnalists Journalists’ Environment: Training and Legal Framework Remuneration SurveyofFreaelncers Environment Remuneration SurveyofDierctorsofPublications Who are Directors of Publications? Director of Publication: A Management Job? Remuneration SurveyofNon-oJurnalistStaff
Part 2FINANCIAL ANALYSIS OF PRESS ENTERPRISES Difficult Access to Financial Information The Difficulty of Evaluating Property The Difficulty of Separating Integrated Activities in the Accounts Analysis of Financial and Quantitative Data Turnover: Amount and Distribution Revenues, Unit Prices and Volumes Management Intermediate Balances
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Lessons Learnt A Profitable Activity at or above a Certain Threshold An Ideal Activity for Businessmen? Striking Differences between French- and English-Speaking Countries
Conclusion
Appendices Appendix 1: Researchers Appendix 2: Terms of Reference Appendix 3: Country Indicators Appendix 4: A Short Technical Glossary
Introduction
OBJECTIVESANDMHEOTDOLOGY
OBTAINING RELIABLE FIGURES ON THESURVEY METHODOLOGY AND STUDY CONTOURS FINANCES OF AFRICAN NEWSPAPERS Survey Sample Selection The springtime of the press that saw the emergence ofpluralismandamovementtowardgreaterdeTmhoec-studywascarriedoutinsixAfricancountries racyinmanycountriesinAfricahasended.Si(tnwceoanglophoneandfourfrancophone).Itcovered themid-1990s,increasingcompetition,thela1s4si-newspapersandmorethan80mediaprofes-tudeofreaderswhoarelesseagerfornewss(iaondals. To keep sample variability within reason-sometimesdisappointedbythepoorqualityofatblhelimits it focused on the written press. Selection newspapers),difficulteconomicconditions(cnriot-eriaforcountriesandnewspapersdidnotaim tablywiththedevaluationoftheCFAfranc)htoavreflect a general situation in Africa but to reflect ledtothecrisisnowfacingalargenumberofAfriticsadniversity. newspapers.−minimum of two newspapers were selectedA Though this crisis is acknowledged, it has not beeineach country. analyzed. Indeed, there is not much on the fina−smedianceangeofrediwatcelferdteecelsesrintCuo ofAfricannewspapersorontheeconomicsitua-developmentinAfrica(Cameroon,Côted'Ivoire, tionofjournalistsandothermediaprofessionalsG.hana,Kenya,Niger,Senegal). With so little information available, it is difficult−foridffrenetearyveyervofnisreparusehtewspN developmentorganizationstocarryouteffectivseizes.Thelargestisadailywithacirculationof programsthatcorrespondtotheneedsofthepremsosrethan100,000whilethesmallest,aweekly, media. has a circulation of 1,000; the number of per-Theobjectiveofthisstudyistoprovidedonorswitshonnelvariesfrommorethan100staffandfree-information to facilitate their decisions on how to lance journalists to six. best support the media in Africa. To do this, we aimed to examine the financial situation of p−dnavirpetaserps.eherTaabiseoflanclicpubsers enterprises and, more specifically, journalists' re-5 muneration.Researchers Given the sensitive nature of the study, there was an obvious advantage in using local researchers who are experienced journalists and who are also well-respected by their peers. They were therefore well-placed to help us identify the newspapers that met the criteria of the study and who could establish
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Introductio and Methodologyn Objectives
relationships of trust with media professionals.StTuhdey Limits study was carried out from July to November 2001 and the surveys were done between JulyandA Sensitive Subject that Inspires W.aTrihneess September. survey could not be carried out in equal detail in The researchers received specific instructionsareveht,,llawoh.eserOvoucrintlluobtdsdichersearere the survey and each had a dual job to do: obtain substantial and quite precise data on a topic −lrnfyowdtsoeenswapeprosit(sienuqueriannahtsitlerivatyelbotaOo.Tshedulcadeevruniy alltypesofmediaprofessionals(staffjourKneanl-yaandCameroon)wereunwillingtoprovide ists,freelancejournalists,directorsofpublfiicna-ncial data. tions, and non-journalist staff). Its purpose was to obtain information on types and levels ofnreew-spaperMostofbstehceaunseew(swpitahptehrseseuxrcveepytieodnaorfeKperniyvaate muneration for media professionals, other sourcesofincome,jobmobility,etc.ewrhnemreetnhtepraepaerrestneongdoevdenrnotmteonrtensepownsdpatopetrhse),qguoevs--−Another component of the questionnairetreainnoiar-. geted administrative and financial managersaIntd not possible to obtain precise information newspapers' accounts. Its objective was to an-was alyze financial performance (structure of opoenrj-ournalists’ “non-salary inc(osummessof money atingexpenditureandincome,proportiontfehosefsyiomnayrecdeiievmesaasnpdarotthoferthpeay“pmeernktssionfetxhcehirapnrgo-salaries in operating expenditure, income, profit , per e margins,etc.).forlaarirteisc)l.esW,eetdce.citdheadtcnootmtpoeinnssaistteofnortihnissupfofiicnitetnot Finally,inadditiontothesurvey,eachresearscaher submittedashortanalysisthatnotedthemaicanovormied-maornoupsriancgtitchees,msiustcrhusatsopfeinrtdeirevimeswaeneds.pBauytmtheenste sultsinlightoftheirownexperienceandknorewcl-eivedfromoutsidebodiesinexchangeforarti-edgeofthesector.Thesesummariesweretcalkees,nneedtobeinvestigatedingreaterdetail. into account in the final analysis. Numerical data is deliberately reported in its raw state so that readers will have maximum freedom Respecting Anonymity in Publishing Resuilntsinterpreting it. To obtain the maximum numerical data, it was nec-ess to andanryewspgaupaerrasnitnetehethseuravneoy.nTyhmeitryesouflttshceolpleecotpeFldeorpracticalpurposes,dataisreportedin arethereforetreatedglobally.ThisdoesnotalloEwuros.Forotherrates,seethecurrencycon-forthemostpreciseanalysisbutitwasthesinequvaertersite(ww.oanda.com)forOctober2001. non for obtaining the information requested.