Programme Director,
Chairperson of Moshito, Mr Sipho Sithole,
Distinguished Moshito Board Members;
International guests,
Local Music sector,
Officials from various government structures,
Ladies and Gentlemen,
All protocol observed.
It is my pleasure to address the opening of Moshito 2014. We gather here today in the full understanding that music is a global business that contributes to the international economy and, above all, creates employment, fights poverty and enables a decent standard of living for musicians and other professionals.
The purpose of this conference is for us to have frank conversations to strengthen and consolidate the business of music to move humanity and the world forward. It is said that between 2002 - 2008 the cultural industries exports gained shares in global total exports, increased from 7.31 percent to 7.53 percent, growing at annual rate of 14 percent. It is now an open secret that the creative industries contribute billions to the economies of Western countries like United States, the United Kingdom and Germany, among others. But what about the developing world?
We have come together again to play catch up and thus define alternative plans to access the new opportunities in the creative industries global market. We will have failed to fulfil our historical mission if we do not manage the impact of globalisation in a way that will protect, preserve and advance our interests in the global market.
It is now time for us to answer hard questions on what how we use the arts to contribute to the upliftment of our economies and, at the same, create self-determining nations in the developing world.
How far have we gone not only in terms of developing but implementing policies on intellectual property, heritage, and the cultural industries that will contribute to radical economic transformation and thus change the lives our artists in the sector.
As the policy formulating Department, we continue to mainstream and highlight the role and contribution of the arts sector in the economy. It is almost 20 years ago in 1998 when we released the Cultural Industries Growth Strategy to advance the cultural industries landscape. Significantly, this included the introduction of several legislative framework and regulations, establishment of various institutions, support and promote diversity in cultural production and expression, support for community arts and culture and recreation facilities, scaling up support for arts education and skills development, expand export initiatives through participation at international markets, as well as expanding cultural cooperation with various countries across the world.
It was three years ago in 2011 when the Department adopted the Mzansi Golden Economy (MGE) strategy to unleash the economic potential of the creative sector through large scape investment. In a significant development, Parliament adopted the National Development Plan (NDP) which requires us to use the creative industries to grow an inclusive economy, build skills and to promote active citizenry, leadership and partnerships, among others. As government, we have, indeed, identified the creative industries to create employment, fight poverty, provide skills and economic self-reliance among artists.
We believe that artists, especially musicians, are small and big business men and women! Thus through our Mzansi Golden Economy programme, we will continue provide real support for future growth of the sector. We will do this through formation of cultural incubators for content production, talent development, establish a Venture Capital Fund, value capturing and value circulation.
To contribute towards the radical economic transformation of the creative sector, we will continue to support small businesses such as the independent record companies and producers, provide support for cultural events such as concerts and festivals and touring ventures, development and refurbishment of community arts centres and provide real support to arts education and skills development programmes.
We have embarked on the establishment of the National Skills Academy for the creative arts. This center of excellence will be registered as a public-private partnership project, and the academy will encompass the total spectrum of needs for the sector. This will be done in collaboration with the national institutions of higher learning. A project team is currently in place to develop and explore ways to implement all that is proposed.
The fast growth of the information super highway has seen the internet become the enemy of music industry. It has facilitated piracy and knocked CD sales through people who download single songs instead of buying them by the dozen. But today the very same internet the tool gives executives something to sing about.
In an April report, the International Federation of the Phonographic Industry (IFPI) indicates that digital sales alongside with license services are increasingly dominating the scene across the globe. The industry’s digital revenues grew by 4.3% in 2013 to US$5.9 billion. Globally, digital now accounts for 39 per cent of total industry revenues.
While the US remains on the top of digital music sales, there is strong growth projection in the developing world including Africa. South Africa - which is currently the African region’s largest market - has seen digital music revenues doubled in 2013 reaching 107% growth, and accounting for 14% of the total market worth US$63 million.
Emerging markets remain a priority given the sheer size of the opportunity. The potential is unlocked by the widespread adoption of technology and the creation of models that monetize music in ways that fit with local demand.
With the rapid growth of smartphones, broadband and the introduction of digital terrestrial television services in Sub-Saharan, the prospect of digital growth is more staggering. This really shows an industry that is on the move.
The task now is for us to tap on this opportunity in order to achieve sustainable growth. Through partnership with the Department of Trade and Industry and the Industrial Development Corporation (IDC), we are finalising a national strategy for the music industry. I believe this strategy will give us the real tools to provide the much needed support.
At the same time, we should not get carried away. We are still faced with obstacles to development in most emerging markets. A fair playing field, supported by strong laws and effective enforcement, remains the key attention. We are involved in discussions with delivery partners to firm up issues of our copyright legislation and regulations to deal with issues such as labour related matters and protection of local content quota. Pronouncement on these matters will be made very soon.
Ladies and gentlemen, we all know that the President of the Republic, Honourable Mr Jacob Zuma has taken a special interest in the sector. Thus we have to provide updates on developments. What is important to note is that the head of Government is willing to assist in the transformation of the sector.
It is unfortunate that there is lack of unity and coherence when dealing with broad issues affecting the sector.
The urgent need for effective organisation cannot be more emphasized. It is for this reason that we have provided resources for creation of the Cultural and Creative Industries Federation. The creative sector must assume responsibility and take leadership on its own issues. We want to see this is structure speedily resolve the disunity, lack of organisation to quickly present us with an organisation that will engage the State to ensure rapid service delivery.
As government, we are ready and willing to hear and support the sector in a solution oriented approach to finding better ways of dealing with the prevalence of unfair business practices across the arts and culture sector.
There is no doubt that the existence of Moshito is to advance the industry away from its divided past. This country is still reeling from the legacy of colonialism of a special type. As a result, many practitioners in the music industry have limited access to credible business intelligence. The advances in technology makes their abilities to make informed decisions worse. We applaud Moshito as a platform to give the disadvantaged access to credible business intelligence that will see them build a defendable competitive advantage for their companies.
As we celebrate 20 years of democracy and freedom, Moshito will need to strengthen and redefine its role to help move forward towards radical economic transformation. It has spread its network and now has partners coming from beyond our borders. We wish to welcome practitioners from around the African continent, Asia, Europe, Latin America and others parts of the world. We will always need to work together to transform the local industry so that it can make its own contribution to making the world a better place through the business of music.
This event is taking place in Africa and may be the biggest of its kind in the continent. This marks an important development in elevating the role of the arts, especially music, in the continent. We are looking forward to celebrate the Congo cultural experience and establishing closer ties with a country that has been in the forefront of internationalising the distinct sounds of African music.
We are looking forward to your participation during Africa Month next year where we will launch the biggest event to celebrate African arts from the continent and the Diaspora. We envisage that the event will draw African artists from all over the world to take their rightful place as champions and custodians of the continent’s soul and future vision.
We have set out on the mission to use the creative sector as an instrument of radical economic transformation. We can only fulfill this mission or betray it. In the last decade of its existence, Moshito has resisted the erosion of the human rights of the artist. Let us take the struggle forward to use the arts, culture and heritage sector to deliver a better life for all, especially the artists themselves.
On behalf of the government of the Republic of South Africa, its people and artists, I welcome you all to Moshito 2014. Enjoy the beauty of the country and join us in the celebration of 20 years of freedom and democracy.
Thank you.
