NEF backs Power FM

Established by the National Empowerment Fund Act No 105 of 1998, the NEF is a driver and a thought-leader in promoting and facilitating Black economic participation through the provision of financial and non-financial support to Black empowered businesses, as well as by promoting a culture of savings and investment among Black people.

Since 2004 to date the NEF has approved funding to a total of 221 black businesses amounting to R5,05bn, and has created an estimated 44,000 jobs, at least 21,5% of the businesses funded are owned by women.

Power FM is majority owned by MSG Afrika Media (Pty) Ltd headed by businessman Given Mkhari. The Company was awarded a Gauteng based sound broadcasting licence by the Independent Communications Authority of South Africa ("ICASA") at the end of December 2011, after a fierce competitive bidding process, to broadcast throughout the Gauteng primary market.

Seeking funding

MSG Afrika approached the NEF in 2012 to assist in funding Power FM, which would be a direct competitor to existing commercial radio stations in South Africa that either are owned by the public broadcaster or are privately owned.

Power FM, which will air on the frequency 98.7, aims to create a radio platform that is to be a catalyst and comfortable place for what is seen as a long overdue frank talk about key issues and concerns in the hearts and minds of its target audience. Power FM is expected to create at over 100 jobs.

"Our funding was based on the project meeting the NEF's mandate by having a black-owned, controlled, and managed business. Power FM is 92% owned by black people, including MSG Afrika Media, Ndalo Media, AIH Media and station management" says NEF Divisional Executive Corporate Finance and Venture Capital Hlengiwe Makhathini.

Insufficient transformation

"There really has not been enough transformation in the commercial radio market. Typically the few stations that exist for a black audience tend to stereotype the black market to certain types of behavioural assumptions. Power FM's introduction into the commercial radio market is adding to efforts to transform media, which is in line with the NEF's mandate, and to celebrate and showcase how much the black market has evolved since South Africa's emancipation.

"The black middle class today is a group of dynamic individuals with strong buying power; they are procuring various types of goods from property to JSE listed shares, and are very aware of South Africa's socio economic issues. They have opinions and want to debate about how the country's status quo affects them," Makhathini adds, "If you give this type of market a platform backed by an experienced group such as MSG management you have a strong media space assured of success."

Power FM was due to launch officially on air this morning, Tuesday 18 June at 0600.