Primedia signs funding agreement with MDDA

The MDDA is a statutory development agency for promoting, supporting and ensuring media development and diversity, set up as a partnership between the South African Government and major print and broadcasting media companies, in terms of the MDDA Act No. 14 of 2002.

The MDDA's funding partners have been the SABC, Primedia Broadcasting, MNET, Kagiso Broadcasting, MIDI TV, Media 24, CTP, Independent Newspapers and AVUSA.

Primedia's new agreement will commence on 1 April 2009 for as long as the company holds individual commercial sound broadcasting licences in terms of the Electronic Communications Act. The agreement will enable the company to comply with the ICASA Regulation prescribing annual contributions of licensees to the MDDA or the Universal Service and Access Fund.

The company will accordingly contribute 0.2% of its annual turnover, derived from its licence activities to the MDDA. The Agency will allocate 90% of this contribution to broadcast media projects and 10% to administrative costs.