There was little empowerment activity, in terms of equity transfer, in the media sector during 2005. This is despite a wave of charter finalisation in many other sectors. But there were two positive developments: the publication of the draft information & communication technology sector charter and the publication of the department of trade & industry's second phase of the codes of good practice for black economic empowerment.
The relative quiet in the media sector could be because media companies are not under pressure to conclude equity deals to secure contracts.
Connie Molusi, CEO of Johnnic Communications (Johncom) and president of Print Media SA and the Newspaper Association of SA, says the media sector needs to be more empowered, and concedes there has been little movement on equity transfer.
"Though many corporations have not concluded any transactions, most are at an advanced stage of transacting. What we have been able to achieve is a smooth transition without embarking on a time-consuming and most likely acrimonious process."
The media industry does not have a sector charter, and does not seem keen to have one. Some commentators believe that a charter that prescribes specific empowerment targets for the media might undermine media ownership and is likely to be misinterpreted as media interference.
However, the lack of a specific sector charter does not necessarily mean that media companies are disregarding the empowerment process.
Molusi says: "I don't think you need a sector charter. The codes of good practice are a sufficient guide to the broader sociopolitical and policy expectations on empowerment - without making the process so onerous as to produce a half-hearted approach to economic empowerment."
Johncom is also struggling to conclude its own equity transaction.
Media companies tend to focus on empowerment from procurement, training, skills development and employment equity.
Primedia is once again ranked as the most empowered listed media company and 34th overall, a slight tumble from 21st overall last year.
The company has the Mineworkers Investment Company, with a stake of 20%, as its empowerment partner.
Kagiso Media scored 14% on ownership compared with Primedia, which scored 6,2%. But that is the only segment of the survey where Kagiso has scored better than Primedia.
Molusi believes equity transactions will come soon, barring any financial difficulties. He says all the institutional pillars are in place to drive empowerment. "Now t here has to be a will to transact."
