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ISBN 978 - 9987-9684-1-1

CULTURE AND DEVELOPMENT EAST AFRICA

VALUE CHAIN REPORT

Contents 1.0 Introduction ....................................................................................................................................... 2 2.0 Value Chain Analysis.......................................................................................................................... 2 3.0 Study Rationale ................................................................................................................................... 3 3.1 Research Methodology .................................................................................................................3 4.0 Findings................................................................................................................................................... 4 4.1 Background of the Music Industry in Tanzania................................................................................ 4 4.2 Beginnings........................................................................................................................................ 5 4.2.1 Current Trends.......................................................................................................................... 5 4.2.2 Opportunities...............................................................................................................................6 4.2.3 Challenges..................................................................................................................................... 6 4.2.4 Recommendations.................................................................................................................... 7 4.3 Production.........................................................................................................................................................7 4.3.1 Current Trends............................................................................................................................7 4.3.2 Opportunities............................................................................................................................. 7 4.3.3 Challenges..................................................................................................................................... 8 4.3.4 Recommendations.....................................................................................................................8 4.4 Circulation....................................................................................................................................................... 8 4.4.1 Current Trends.......................................................................................................................... 9 4.4.2 Opportunities............................................................................................................................. 9 4.4.3 Challenges.................................................................................................................................... 9 4.4.4 Recommendations................................................................................................................. 10 4.5 Delivery Mechanisms............................................................................................................................... 10 4.5.1 Current Trends........................................................................................................................ 10 4.5.2 Opportunities........................................................................................................................... 11 4.5.3 Challenges................................................................................................................................. 11 4.5.4 Recommendation................................................................................................................... 12 4.6 Audience Reception and Feedback.................................................................................................... 12 4.6.2 Opportunities.......................................................................................................................... 12 4.6.3 Challenges................................................................................................................................. 12 4.6.4 Recommendations................................................................................................................. 13 4.7 Key Players and Value Added in Music Sector.............................................................................. 13 5.0 Main Recommendations for Improving Music Industry in Tanzania.................................. 14 5.1 Policy and Regulatory Framework..................................................................................................... 14 5.1.1 Copyright Protection and Collection Systems........................................................... 14 5.1.2. Convergence of Internet, Broadcasting and Telecommunications.................. 15 5.2 Education and Training........................................................................................................................... 15 5.3 Establishing a Facilitative Framework for Industry Growth................................................... 15 5.4 Government Collaboration with Privately Owned Governing Bodies................................. 16 5.5 Investment Opportunities for the Music Industry....................................................................... 17 5.6 Possible Funding Mechanism for Music Industry........................................................................ 17 6.0 CDEAâ€™s Support Role Based on Research Findings................................................................... 17 7.0 Annex.............................................................................................................................................................. 18 7.0 References.................................................................................................................................................... 23

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1.0 Introduction Culture and Development East Africa (CDEA) is a Creative Think Tank that provides services to artists, cultural leaders, creative entrepreneurs, cultural of�icers and urban planners, development and corporate organizations, civil society organizations and academics in cultural development and development planning & implementation in Tanzania, and wider East African Region.

CDEA implements two programmes: Culture and Governance and Documentary and Future. The Culture and Governance Programme focuses on promoting inclusive or participatory governance in decision-making along the creative value chain as well as advocating for culture’s role in Sustainable Development by interweaving of cultural policies and other public policies. The Documentary and Future Programme aims to enhance the link between our cultural heritage and modern culture through the arts and creative industriesprinted word, music and �ilm.

Through its Midundo Online Radio and East African Vibes Concert (EAVC), CDEA provides a platform for emerging conscious music from the East African region. With support from CKU-Danish Centre for Culture and Development, CDEA is implementing a two-year project titled ‘Research in Culture and Creative Industries focusing on the �ilm and Music sub-sectors contribution to creative economy in Tanzania and EAC Common Market’. Through this research, CDEA will generate data and information for the �ilm and music sectors through using the value chain analysis and mapping studies. CDEA hopes that the research �indings will contribute providing an enabling environment for investment in various steps of the creative value chain in Tanzania. 2.0

Value Chain Analysis

The Creatives industries Value Chain : where and how is wealth created 1. BEGINNINGS The idea, the context, the rich heritage, the project funds and �inance for development, promotion, recording and exhibition. 5. AUDIENCE RECEPTION Journalists, trade journals, festival commentary, awards, academies.

Training Development

2. PRODUCTION The people, the processes, the sites of productions, the facilities, the equipment and the supplies, the designers.

SME Support

4. DELIVERY MECHANISMS Exhibitors, broadcasters, retail outlients, live venues, performance spaces, gallery / exihibition space.

Regulation and Policy

3. CIRCULATION/ DISTRIBUTION Distributors. agents, marketers and intermediaries.

Core problems : Absence of business savvy, poor intergration with other economic sectors (tourism) lack of appropriate training and mentoring support speci�ically for arts and culture managers, administrators and programing staff, poororganisation, lack of clustering and inadequate networking.

A value chain is de�ined as a chain of activities that combine to create a product within a speci�ic sector. Products pass through the chain, gaining value at each activity. These activities can range from research and development, to manufacturing and packaging, marketing and distribution. The point of analysing a value chain is to understand the role played by market participant, as well as their respective strengths, weaknesses, challenges and solutions to these challenges.

The cultural or creative industry value chain can be conceived as one in which the crea¬tor or artist begins with a creative idea which is then combined with other inputs to produce a cultural good or service that passes through stages in which value is added, until it reaches the consumer. Charles Landry, in his work for Comedia , modi�ied the �ive elements of the value chain developed by Michael Porter: product development, manufacturing, distribution, marketing and sales, and after-sales serv¬ices. He outlined the �ive-column model for cultural industries comprising beginnings, produc¬tion, circulation, exhibition and audience feedback.

The value chain approach has been useful in showing the relationship between the “pure” or traditional arts and commercial or industrialised arts and culture by seeing them as “stag¬es” of the process in the production of economic and cultural value.

A typical music and a creative industry product pass through a number of stages as it gains its value. The �irst phase is focused on composition, conceptualization and business development. The second phase is concerned with production, while the �inal phase focuses on distribution of the product through publicity and marketing. 3.0 Study Rationale In Tanzania the visibility of the Cultural and Creative Industries( CCI’s) is a big challenge because there is no data to elaborate the role players in the entire production chain and their value chain networks, their industrial organization and contribution in terms of employment, revenue and exports, indicators for development planning and monitoring as well copyright infringement.

Since there is no literature that explains all dimension of ‘the creative value chain’ of music industry in Tanzania, this value chain analysis aimed to add to the body of knowledge of the Creative Economy in Tanzania by establishing the current trends, opportunities, challenges, and recommendations of each stage of the music industry value chain. The study aimed to provide generic recommendations to improve the music industry in Tanzania. In addition, the study aimed to provide a direction to CDEA on which areas to invest its capacity development services and investment to the music sector. 3.1 Research Methodology The study was done in both qualitative and quantitative research methods. Secondary research was done �irst to gather the current industry information before proceeding to the qualitative and quantitative phase. A total of 250 respondents were interviewed across 3 key towns: Dar es Salaam, Arusha and Dodoma.

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A semi-structured questionnaire was administered to each respondent across the towns. 15 In-Depth Interviews were also conducted. These interviews were based upon key respondents only in the music industry who were interviewed in Dar es Salaam. 4.0

Findings

4.1 Background of the Music Industry in Tanzania Music is among the leading genres of creative arts in Tanzania. In Africa, Nigeria is the biggest consumer and producer of local content when it comes to their own music. The trend is growing in Tanzania since the inception of the local urban music in the 1980’s.

Although music production in Tanzania is still on the rise, over the years, Tanzania has managed to export its music to various countries of the world. This has put Tanzania on the world map thus accelerating the growth trend. Although export of music has mostly been in the East and Central Africa region, Tanzanian music has reachedEuropean countries via the diaspora community with taste for home-grown music. Tanzania has virtually no recording labels and has a history of the 1970’s and 1980’s being dominated by the national broadcast Radio Tanzania Dar es Salaam (RTD) providing the service to bands. The �irst music craze in Tanzania can be traced to the early 1930s. This is when Cuban Rumba was widespread. This period also saw young Tanzanians organizing themselves into dance bands, like the Dar-es-Salaam Jazz Band, which was founded in 1932. Bands like Morogoro Jazz and Tabora Jazz were formed during the same period. After independence in 1961, the socialist governance system set up led to state-owned bands like the National Union of Tanganyika Workers (NUTA) Jazz Band (currently known as Msondo Jazz Band or BanaMwambe), the Dar-es-Salaam District Council (DDC) Jazz Band, the Usa�iri Dares-Salaam (UDA), a public transport company, Jazz Band, the Prisons Department (Magereza) Jazz Band, and many more. During this period, the musicians were paid salaries plus a percentage of the gate collection, and worked for various government departments.

Once or twice a year, bands came to its (RTD) one-track studio for a session, recording about �ive songs at a time. This enabled both parties involved in the process to bene�it; on the one hand the broadcaster accessed music cheaply, whilst the bands were able to bene�it from the publicity that the broadcaster provided for their live performances. The rise of piracy in the region, however, soured this relationship. For example, RTD recordings were often pirated and released in neighbouring countries such as Kenya. As a matter of fact almost all releases featuring Tanzanian bands in the last 10 to 15 years have used tapes stolen or illegally copied from the library of RTD, without the permission of the bands or any remuneration accruing to the band. In more recent years, some internet based companies have begun distributing music, some of them without the permission of the composer. In the 1990s, Tanzania saw the emergence of the independent music industry, driven by producers such asMaster Jay who operated from small studios. Tanzania Film Value Chain Report | 04

In order to expand the supply of music on the Tanzanian market, Master J purchased a duplicating machine and began to participate in distribution of music. Today, the music industry is dominated by a number of these small production studios, but the major distribution channels are through FM stations and live performances.

In the past few years, the Tanzanian music industry has seen many changes. The changes have brought a mix of in�luences from other countries, along with the original feel of local musical traditions. Tanzania boasts some of the best artists in East Africa such as Diamond, Prof Jay, Mr Blu, Q Chief and many more. The local musicians have developed a new stylecommonly known as “Bongo�leva”, which is a blend of all sorts of melodies, beats, rhythms and sounds. Tanzanian music consumers have developed a preference for products from their local artists, who sing in Kiswahili.

“A system where an audio producer also bene�its whenever the song is played is what is currently needed” - Stated Paul Matthysse ( P Funk)

Over the years, the music industry in Tanzania has evolved to a mix of all genres of music. The industry has also seen the mushrooming of hip-hop and reggae artists producing these genres in the Kiswahili language. This has led to Tanzanian artists being celebrated outside the country. Tanzanian music has also been in�luenced by music from the Democratic Republic of Congo, which has contributed to the development of mixed-genre music. 4.2 Beginnings This is the �irst stage of the value chain. It usually involves the song writers, music composers, learning and supporting institutions. Support organizations such Music MayDay are involved in training young artists to study an instrument, voice and/or music management or recording technology. Action Music Tanzania, on the other hand, is a country-wide network of music schools and music teachers that captures and documents Tanzanian music traditions and is an important regional hub for music teacher training. The Tanzania Music Federation organizes workshops animated by experts for musical performers on a yearly basis. Music education is part of the curriculum of TaSuba/Bagamoyo College of the Arts, while music business education has been provided by the British Council. Similarly, some established musicians make use of their international exposure and networks to promote emerging artists or to develop recording infrastructure in Tanzania. Organizations such as Culture and Development East Africa (CDEA) provide internship opportunities for students of music through its online radio. 4.2.1 Current Trends There lacks a system that monitors the rights of the creative people in the music industry. Most of creative actors end up with a one-off pay after production is complete. Very few bene�it from their creativity as the song receives airtime. They get discouraged and henceforth decide to quit the industry. Most of these producers get frustrated when they see their work excel but returns are very little. Tanzania Film Value Chain Report | 05

Shortage of funds to the governing bodies supporting the musicians as well as poor organizational capacity of governing bodies has been a strong constraint. Most musicians are self-sponsored and this has hindered the growth of great talents who could not afford to showcase their talents due to lack of funds. 4.2.2 Opportunities • There are organizations such as Music in Africa an information and exchange web portal dedicated to the African music sector that have provided publicity for Tanzanian music. Music MayDay, is the �irst non-governmental training centre for music and dance in Tanzania. With support from the EU, Music MayDay provides support for 60 local talents with 2-year training program in music. The recipients of the scholarship are chosen in public music competitions.

The project aims to promote and strengthen the Creative Industries in Tanzania by fostering capacity development in music performance, technology and music management skills. The project partners with the Goethe-Institut, MuDa Africa and other stakeholders in the �ield of culture to provide a long-term training center in music and dance. The SautizaBusara Festival, in Zanzibar also provides a platform for showcasing Tanzanian music to an international audience • Bongo Star Search is a popular competitive televised talent search programme that has seen many singers from key towns in Tanzania participate in the competitions • Tanzania House of Talent (THT) also provides a pathway in identifying musicians for Bongo Flava niche • The African continent has recently seen the emergence of new voices from Tanzania. Tanzanian musicians such as Diamond, Ali Kiba, A.Y, Vanessa Mdee and many more have either been nominated for or won international awards. This has caught the eyes of the many henceforth putting the local industry on the global and continental map. This is a huge opportunity for the music industry players 4.2.3 Challenges • Tanzania currently lacks enough equipped music schools that can enable artists acquire proper song writing techniques. Considering the fact that most of these artists do not have a formal education, most of them end up having little music knowledge which in turn limits their growth capabilities.

• Currently laws that protect song writers or composers are unclear. Due to this, many writers have opted to sell their lyrics rights to singers. Normally they charge between USD 50 and USD 100 for a song. The fee does not cater for the returns depending on how big the song gets. There is lack of clear copyright remuneration for songwriters, musicians and music producers.Due to lack of formal music education, most of the actors in this stage lack originality as well as credible content that is capable of competing in the international scene. • Most musicians in Tanzania still lack the international exposure. This applies to getting this exposure within the country or abroad. This results in many artists not being competitive at international level Tanzania Film Value Chain Report |06

4.2.4 Recommendations • Government should prioritise music education through the formal system and provide conducive environment for private sector and NGOs to provide music education to out of school learners • Awareness creation to composers on their copyright and neighbouring rights • Through international cooperation agreements, ensure exposure visits for musicians in Tanzania to more developed countries that use advanced technology to create music.

“It does not really matter with how expensive your equipments are, if you lack education on how to run them and how to manage that business, then your work might not reach anywhere” - Jonson Sululu (Jors Bless)

4.3 Production Production refers to the process whereby a product or service is produced. In the music industry, the production process comprises different activities in respect of the recording industry and the live-performance industry. Both involve the composition, practice and rehearsing of songs, as preliminary steps in the process, which can be referred to as pre-production. However, studio recording and editing are steps associated with the recording process that may not be required in terms of live performance. In the recording industry subsector, production refers to both the creation of a master in a recording studio and to the mass production of cassettes or CDs in a manufacturing plant. 4.3.1 Current Trends

In recent years, a host of small independent studios has emerged in Tanzania and has enabled musicians to make use of local facilities. It is believed thatthere is a recording studio in every region. Most of these studios, however, are still amateur with few equipment and most musicians have to employ the services of more established recording studios for product �ine-tuning.

Studios such as Bongo Records, MJ Productions, Mawingu Studios, Aegies Records were the pioneers and most of them still exist today. Today we have a host of recording studios such as AM records, Tongwe Records, Ebo Studio and many more. Most of the well-equipped studios are in Dar es Salaam. 4.3.2 Opportunities

• A number of independent music producers have emerged in Tanzania, mainly focusing on producing hip hop, gospel and R&B music

• According to the Tanzania Investment Centre, 2014 (TIC) Guide, some speci�ic areas that can attract broadcasting players in the music value chain include: • Provision of local content television channels for local market • Digital audio equipment (for production and processing) • Archiving (for the storage of audio and text) • Automation (for scheduling and control) • The proposed East African Community Creative and Cultural Industries Bill 2015 proposes tax emption for investors in audio-visual sector

• There is opportunity for recording labels to investment in artists in Tanzania, since there are already established clusters around music genres such as Hip Hop. RnB, Reggae and Gospel

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4.3.3 Challenges

“In reality, our audio recording studios are just home studio in developed nations”. - Paul Matthyse (P Funk )

• More than 60% of the current music producers do not have a formal music education. This hinders the growth of the industry as most of the production ends up being below standard. Taxes imposed on the music instruments have proven to raise the costs of these instruments beyond what the musicians can afford. This has acted as a limiting factor in music sector growth. Many recording houses are still seen as “home recording studios” as described by Paul Matthyse (P Funk) a well-known audio-recording producer and composer. Affording high quality audio production facilities has been almost impossible to many of those who would want to invest in music production. Due to this challenge, we have seen very few well-established music schools being established and those established having either old or low quality equipment or are funded by donors. • Recording cost is still very high in Tanzania. Considering that most of the local artists are not signed at any recording label, the cost for music production proves to be very costly for them. The music producers on the other hand, claim that they charge only for their studio time but do not charge for recording the song because the artists would not afford it.Majority of people working at this stage still lack the formal education to assist them in producing a good quality production work. The low skilled professionals end up producing low quality products. “If you are an upcoming artist, it is almost impossible to afford production costs.” Stated Fresh P, an upcoming music artist • Limited exposure to technology that affects the quality music • High cost of production equipment • There is lack of business incubators for music/entertainment entrepreneurs, • Lack of suitable lending facilities for artists and organizations involved in the music industry 4.3.4 Recommendations • Skills development courses for producers to keep them competitive • Government should lower taxes on the importation of music equipment • Domestication of the East African Community Creative and Cultural Industries Bill, 2015 that will provide the policy incentives for attracting investment in the audio-visual industries • Establishment of business incubators for music and entertainment entrepreneurs • Creation of innovative funding mechanism for music industry actors • Establishment of non pro�it production houses are essential. Tanzania House of Talents is among a few non-pro�it music organizations providing music,dance and theater lessons to young Tanzanians for enjoyment, education and employment opportunities. Such organizations may greatly assist young artists in exploring their talents and business opportunities. 4.4 Circulation

Circulation involves actors such as music buyers, exporters and importers of international products. Distributors of international music,wholesale distributors like STEPS who sell to hawkers and small retail outlets play a critical role in the circulation process through informal trading networks.

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4.4.1 Current Trends Corruption especially by the broadcast actors has seen good talents being lost and poor performers who can afford to bribe the broadcasters to get airplay. Since the broadcasters have been seen as the major distribution/delivery channel, they have a tendency of dictating the songs that will be aired. This has created a culture of paying bribes in exchange for an artist’s song being aired. “Emergence of many radio stations have greatly reduced song airing in radio stations, nevertheless, bribes still exists and i remember we used to give bribes to radio presenters of up to 4 radio stations.

If you were an upcoming artist without a sponsor, then it would have been very dif�icult to have your song played.” - Mkoloni, Wagosi wa Kaya

The circulation of music products in Tanzania and across borders is often contingent on reciprocal licensing and distribution deals signed between artists and Tanzanian online distributors such as Mkito.com and Mziiki with a payment system that would work for Tanzania through mobile money which is dominant among users, as well as Mdundo in Kenya. Telcoms and media �irm Millicomhas partnered with a music streaming service, Dezeer to take Tigo music to 5 markets in Africa including Tanzania. Dezeer offers a list of locally-produced content, which Tigo markets and distributes through its smartphone users by buying data packs. Millicom has also partnered with Africori, a South African Company to fund, acquire and manage music rights through African Music Rights (AMR).

Meanwhile,.Airtel has now introduced Wynx music on smartphones, while Vodacom has an app, mziki.app that enables clients to download East African music and create their own apps. Vodacom has also collaborated with Mkito.com to circulate East African music as Mkito-plus. The digital platform is gaining ground as a major music distribution platform as it provides the best way of tracking the songs both within and outside the country In established markets, the circulation aspects of the recording industry are highly sophisticated. In Tanzania, where the market for music is primarily live performances and/or piracy-driven DVDs, the legal circulation networks for recorded music are weak and marketing and publicity rarely happen, although intricate circulation networks have been developed for parallel processes.

As a result of the piracy in Tanzania, most artists do not record albums but prefer to produce singles that they market online and through live performance. The circulation actors include individuals operating as agents to speci�ic artists, to musicians’ associations active in placing musicians and negotiating with venues, promoters who bring a speci�ic artist or event to perform in a set of venues. 4.4.2 Opportunities

• There are 49 radio stations and 29 television stations in Tanzania. The broadcasting system has an important role to play in fostering the local music industry. From commissioning jingles to using tracks as theme songs for local television productions, public and private broadcasters can contribute to the livelihood of musicians and composers

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• The establishment of Copyright Management East Africa (CMEA) whose main goal is to manage copyright collection in Tanzania and in the near future East Africa. Working closely with Copyright Society of Tanzania (COSOTA), CMEA will collect data of all played songs within the East African region and provides it to COSOTA, who in turn will pay the artist the required royalty. 4.4.3 Challenges

“This is great platform which will acknowledge the work of every player in the chain. Even the composer, for the �irst time will be acknowledged by receiving a cut of the royalties.” -Paul Matthysse ( P Funk ), CEO, CMEA

• Local broadcasters do not honour the copyright of composers and lure them to sell-out their rights on commissioned works at an attractive fee. This is due to lack of effective protection of the intellectual property right for local artists • In Tanzania, there are provisions of 60% for local content broadcasting by Tanzania Communication and Regulatory Authority (TCRA). However, the institutional capacity to ensure that public and private broadcasters pay royalties to musicians is weak • The Tanzania Revenue Authority (TRA) has failed establish a mechanism to track the performance of sale of the local songs. This has made it dif�icult for artists to know the number of records as well as the number of albums sold • There is lack of access to modern infrastructure and appropriate technology and the tools of the trade 4.4.4 Recommendations

• Awareness creation on copyright and neighbouring rights to musicians • Need for a conducive policy environment to enhance copyright enforcement 4.5 Delivery Mechanisms

Delivery mechanisms for the music industry in Tanzania includes informal retail networks, broadcast, live performance and online. Informal retail networks. These networks are extremely signi�icant in terms of the role that they play in bringing legal products to consumers. Many producers in Tanzania play the role of delivering music to the customer. Informal traders retail music products at a more affordable than formal retailers, and distribute products in parts of the region that are not serviced by formal retail. However, they often obtain their music products via the intermediary of pirate producers. Internet distribution networks active in promoting and exposing artists to new markets. These are sometimes directly linked to the production segment of the value chain and bypass the circulation aspects 4.5.1 Current Trends

The enforcement of intellectual property rights is weak in Tanzania and the distribution of pirated products takes place in direct competition with the legal distribution process.

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In Tanzania, Mkito.com is such an internet baeed distributor. Recently, Africori.com, a distribution, licensing and rights collection organization based in South Africa has attracted Tanzanian musicians like Vanessa Mde. Africori.com has collaborated with Dezeer and Tigo in Tanzania to bring a wide range of music to the Tigo mobile user audience and ensure that the artists get rewarded in royalties. Africori plays role of mediator to license music on a 50/50 split of licensing fees for TV and commercials and music videos to various TV channels and video services in Africa.

Some composers and artists are also using the Internet, via yotube as a means to promote and market themselves directly to the public without having to gothrough an intermediary. 4.5.2 Opportunities

“We have seen a rise of online music selling. None of them really looks at the music producer”. - E Max (Music Producer, Nakiete Records)

• Streaming of music through telecoms and purchased via data bundles • Online distribution of music by online aggregators such as Mkito.com 4.5.3 Challenges

Piracy is an international problem which impacts directly on the performance of the music industry by undermining value generation for all those who invest in the development of music products, from musicians and composers, producers, sound engineers, distribution and delivery actors.

The Copyright Society of Tanzania (COSOTA), working under the Ministry of Industry and Trade, has been given the mandate to combat piracy. However, its operations seem to face numerous limitations and potential con�licts. For example, local distribution companies have been accused of being part of the problem. According to the Distribution of Sound and Audio-visual Recordings Regulation of 10th February 2006, COSOTA together with the Police and other stakeholders of copyright issues have managed to conduct anti-piracy operations across the country and managed to seize various equipment which were used in production of pirated works such as computers, printers, scanners, duplicating machines, paper cater, CD maker, VHS player, DVD players DVD ROMs, Inlays, compact disk, microphones and speakers and different pirated CD/DVDS and VHS. Those operations have been conducted across Tanzania seizing 65,072 pirated works in the form of DVDs, VHS’,VCDs and CDs. However, COSOTA’s operations seem to face numerous limitations and potential con�licts.

Due to lack of proper revenue collection structures, TRA decided to only charge the event organizer 15% of the performance fees of the artists that will perform. To date, the authority has failed to �ind a way in taxing the artists individually. This discourages a lot of people to organize a music concert as the performance fee is usually high. Lackof proper music delivery structures with reputation of transparency

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4.5.4 Recommendation TRA to establish a mechanism to raise revenue from individual artists via online distributors Awareness creation to musicians to limit the distribution of their music via frees online so as to limited chance of piracy and free downloads 4.6 Audience Reception and Feedback

Audience reception and feedback allow for the reformulation of investment strategies on the basis of audience responses. In Tanzania, audience reception is evaluated through music reviews in newspapers, people choice awards and the tracking of record sales online.

The feedback from the audience, may determine what level of investment should go into production based on tastes of the market. 4.6.1 Current Trends

“We managed to launch an album, which unfortunately brings more pride than money to artists in Tanzania. From that album, we decided no more albums and we will just be promoting singles” Dr John, Wagosi wa Kaya

It should be noted that mechanisms for supporting audience reception and feedback in Tanzania are extremely underdeveloped, since there are no record label sales to monitor, which means that actors in the industry lack valuable information on which to base investment decisions. 4.6.2 Opportunities

• The fact that Tanzania has managed to host a number of music concerts in a year is proof that the market is willing and able to pay for a performance. The entrance fees are relatively high compared to the living costs and the national GDP but never the less, the market has been able to cater for that high cost • In Tanzania, festivals as a tool for audience development include Bagamoyo Festival of the Arts, SautizaBusara and Karibu Music Festival. These multi-cultural and trans-regional festivals have an auspicious role to play in developing new markets for local and regional artists and their products across the region. SautizaBusara is often the platform to launch new sounds that are not mainstream. In fact, Santuri Safari is an idea that focuses on concepts of innovation, collaboration and creativity within the East African music scene usually uses SautizaBusara as a platform for experimentation, learning and expression for musicians, DJs, curators, and sound engineers. 4.6.3 Challenges

• While festivals play a pivotal role in audience building for emerging artists, a key challenge of such festivals is sustainability. This year, SautizaBusara announced that they will not host a festival in 2016 due to lack of funding. Nevertheless, SautizaBusara hopes to build relationships with key partners to have long-term funding arrangement to secure positioning of the festival on East Africa’s cultural calendar • While digital media is a viable distribution channel, the internet speed in Tanzania is relatively slow • There is still limited options from local content and the medial class opt for music from international market Tanzania Film Value Chain Report | 12

4.6.4 Recommendations • Government should provide incentives such as tax rebates for private sector organizations that invest in festivals and other music concerts that create jobs and promote cultural tourism • Government should investment in high-speed �ibre optic technology that will stimulate the consumption of music with easily 4.7 Key Players and Value Addedin Music Sector

Figure 2, shows the value added across the value chain in a typical �ilm value chain. The values are obtain after looking the costs of production at each stage and comparing it with what the players in the stages along the chain. The general public being the �inal consumer of the product is the ultimate receiver of all the costs. Production, at 60% is the most valued stage of the value chain while broadcast distribution at 10% is the least valued stage in the chain.

Creation

The Artist Song Writers - 10% Production Artist Managers, Audio Producer, Video Producer, Music Arrangers - 50%

Delivery Mechanism Broadcasters, Music Stores, Deejays, Event Organizers, Marketers/ Booking Agents, Record Lables - 30% Distribution Film Theatres, Broadcasters (TV, Regional Buses), Internet - 10% Audience Reception General Public 100% Figure 2: Key players in the Music Industry Creative Value Chain and Value Added

The production phase has more value across the chain. However, better production equipment and highly trained personnel will enhance the value and increase international market competition. As the population of Tanzania is expected to rise by more than 15% (approximately 52 Million people) in the next �ive years, the demand for music is also expected to rise. The main question however is, will the supply of music be able to cater for this demand by the next 5 years? Different factors accrue to the quality production of music which will be able to satisfy the internal and external demand by then. Competing with the international demand and music is also attributed to these factors.

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5.0 Main Recommendations for Improving Music Industry in Tanzania 5.1 Policy and Regulatory Framework Legislative and policy issues impact on the nature and performance of the value chain in different contexts. In Tanzania, signi�icant attention need to be given to setting up supportive policy frameworks, which typically entail promoting music and music business education, economic support for the arts and provisions for local content regulations of broadcasting. For example, in spite of the fact that Tanzania rati�ied the UNESCO 2005 Convention on the Promotion and Protection of the Diversity of Cultural Expressions, the government of Tanzania doses not currently have a �inancial policy measure to invest in creative industries, after the collapse of MFUKO: Tanzania Cultural Trust Fund.

“Due to lack of proper revenue collection structures, TRA only charge the event organizer 15% of the performance fees of the artist that will perform”. -Ayeta Anne Wangusa, Director CDEA

Legislation on local content is being regulated by the Tanzania Communication Regulatory Authority (TCRA). The regulations for the Broadcasting Services Act point out that a minimum of 60% of all content provided by the licensee, measured as a weekly average over the period of a year, must be content produced by: (a) A natural person who is a citizen of, and permanently resident in, the United Republic; (b) A legal person, the majority of whose directors or shareholders are citizens and permanently residing in the United Republic; (c) The licensee There is need to make sure this is enforced, so that local fair airplay on local airwaves.

In addition, when the proposed East African Community Creative and Cultural Industries Bill 2015 is enacted into law, the government of Tanzania should domesticate it as national law. This is because the Bill proposes tax emption for investors in audio-visual sector, which can only come into force when integrated in legislation and regulations governing of the �ilm industry in Tanzania. Speci�ic policy and regulations that need to be addressed include: 5.1.1 Copyright Protection and Collection Systems

In December 2005, Rulu Arts Promoters, with support from BEST–AC carried our research and advocacy aimed at amending Tanzania’ Copyright and Neighbouring Rights Act, No.7 of 1999 (CAP 218 RE 2002), to give more authority to institutions aimed at enforcing copyright protection through legislation. A proposal was once made by the artist community during a training conducted by CDEA in collaboration with BASATA that COSOTA should provide a sample contract within the revised Copyright and Neighbouring Rights Act, No.7 of 1999 (CAP 218 RE 2002). In Tanzania, mechanical and performance rights are not protected, remuneration of musicians occurs as a one-off buy-out payment with no claim to royalties. In terms of live performance, remuneration arrangements range from a �lat fee to a percentage or even to the whole of gate takings. Negotiations for contractual arrangements in the music sector are hampered by lack of professionalism and the inaccessibility of support actors such as lawyers and managers to musicians and composers. This impacts negatively on the conditions of employment for musicians in Tanzania, and are not in line with the UNESCO recommendation concerning the status of the artist

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The research established that a key challenge is on the implementation and enforcement stipulated by that law. For instance, in 2006 the Minister of Industry signed a regulation which allows the use of “antipiracy device” signals in musical works but the regulation has not entered into operation. In addition, there are regulations which stipulate that the mass media must pay less than 10% of what they earn from exploiting work, but the media does not do this.

The formation of the Copyright Management East Africa (CMEA) that will monitor airing of music through broadcast media in Tanzania is welcome response for the need to separate roles of Copyright Society of Tanzania (COSOTA )as both a the royalty collection and the management body of copyright in Tanzania. There is also need for awareness creation of copyright protection and collection systems applicable in the artists’ respective countries of origin, as well as in those regions where artists’ intellectual property is distributed 5.1.2. Convergence of Internet, Broadcasting and Telecommunications

Digital media provides the opportunity for the convergence of internet, broadcasting and telecommunications that creates an opportunity for services like music streaming. According to Andrew Fraser, the former head of Sony Mobile South Africa, “Internet streaming is a serious competitive threat to broadcast television in South Africa, but the technology is hamstrung by cost challenges,” as quoted by Balancing Act, an analytical report on telecoms, internet and broadcast in Africa. In Tanzania and East Africa streaming technology is still a challenge because of the cost of data is high. If telecommunication companies in Tanzania and East Africa lowered the cost of data, then internet streaming would become a viable competitor to broadcast television. Currently, clients of Tigo in Tanzania are bene�iting from the partnership between Deezer and Tigo to be able to access 36 million songs through pre-paid bundles. 5.2 Education and Training Enhancing the skills base of actors and stakeholders along the music value chain could seek to achieve the following targeted objectives: • Trainedmanagers such as lawyers, and �inancial advisors with suf�icient industry-speci�ic knowledge to interact meaningfully in the process of negotiating contracts and sourcing �inancial support. • Trainedcomposers and musicians who can manage their careers effectively and in the absence of existing management actors 5.3 Establishing a Facilitative Framework for Industry Growth

Additional interventions are also needed to ensure that the context in which industry actors and stakeholders operate is an enabling one. The role of de�ining and implementing these measures is one where governments should take the lead. To ensure the sustainability of such a process, extensive participation with industry actors and stakeholders would need to occur. Interventions could include:

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• Setting up an enabling environment for industry growth: This may include enabling access to music infrastructure and business incubators, facilitating access to import permits for music equipment and provision of tax and VAT exemption on music equipment may also be considered. • Discovering local and promoting audience development: This can be done through competitions broadcast through the mass media. • Regulation bodies’ coordination: There should be coordination between government departments (departments of trade and industry, culture, education and labour) and National Bureau of Statistics so that they can work to achieve common objectives for the growth of the industry in the region and in its respective countries. • Intellectual property and rights management: There is need for revision of Copyright and Neighbouring Rights Act, No.7 of 1999 (CAP 218 RE 2002) to strengthen the institutions that can curb legal reproduction and/or distribution of music products and copyright collection and management. • Local content: Need to ensure that promotion of local content through the broadcasting systems and digital channels, as a result of digital migration, does not mean exploiting the composers and musicians. • The development of statistics and indicators to measure the industry: The WIPO (2012) study has indicated that the data for the music sector is not well disaggregated to show which sector of value chain contributes more to GDP, employment and Trade. There is need for the government to set up a cultural desk at the National Bureau of Statistics committed to disaggregating this data based on International Standard Industrial Classi�ication (ISIC) Codes and trending the data. 5.4 Government Collaboration with Privately Owned Governing Bodies Currently the government of Tanzania is in-charge of all royalty distribution. However, a new company Copyright Management East Africa (CMEA), has emergedwhose main goal is to manage copyright collection in Tanzania and in the near future East Africa. Working closely with Copyright Society of Tanzania (COSOTA), CMEA will collect data of all played songs within the East African region and provides it to COSOTA, who in turn will pay the artist the required royalty. CMEA will compute the royalties by calculating how much revenue a radio or TV stations gets from the advertisements using the available rate cards and then deduct 10% paid to musicians based on the frequency of airplay. Usually an artist is paid about USD 0.095 every time their song is played. CMEA is the �irst company to provide such services here in Tanzania. The company also aims at acknowledging the composers and producers of the song when distributing the royalties. CMEA also tracks the amount of advertising done in a speci�ic media and calculates the amount of royalty that the media house is supposed to provide. This will go on to even when an artist decides to quit his or her music career; they will be able to receive royalties when their music is played in any of the media houses. Such initiatives will help to shape the royalty collection in Tanzania.

If the government and other development partners work closely with such companies, then musicians, composers, and producers will be receiving the desired income thus boosting the economical aspect within the company. Furthermore, with a well detailed database that such companies could have, it could be easier to eventually formalize the industry.

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5.5 Investment Opportunities for the Music Industry According to the Tanzania Investment Centre, 2014 (TIC) Guide, some speci�ic areas that can attract broadcasting players in the music value chain include: • Provision of local content television channels for local market • Digital audio equipment (for production and processing) • Archiving (for the storage of audio and text) • Automation (for scheduling and control)

In addition, some of the stakeholders interviewed mentioned that there is need for investment in professional production studios, as well as technical training in voice, performance, sound engineering, instruments, as well as music festivals 5.6 Possible Funding Mechanism for Music Industry

Investment in these stages of the music value chain calls for application of unique funding mechanisms such as: • Bank Credit (domestic �inancial instruments) • Public-Private Investments • Foreign investments (Private Equity and Impact investment funds) • International assistance (based on UNESCO 2005 Convention) • Impact investment: (Incubators and business acceleration) 6.0 CDEA’s Support Role Based on Research Findings

CDEA will continue to provide its services to music stakeholders in the creation, production and distribution stages of value chain. Beginning stage • Hosting an audio-visual incubator for emerging conscious musicians • Improving the skills of musicians through training and exposure programmes • Improving business skills of conscious musicians and managers • Connecting conscious musicians with promoters in the East Africa region • Awareness creation on artists rights conscious musicians of their rights Production stage • Production of digital content and entertainment apps for the East African Market

Circulation/Distribution stage • Distribution of conscious music via Midundo Online Radio • Hosting an annual East African Vibes Concert focusing on providing a platform for emerging musicians to share a platform with more established musicians •On going research and advocacy in the �ilm industry • Setting up infrastructure for arts development and the performing arts • In partnership with selected East African arts organisations will set up an East Africa Arts Organisations Endowmment Fund that will also invest in the production of short �ilms in Tanzania.

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ANNEX A : SAMPLE QUESTIONNAIRE A

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Expression of Interest Music | 02

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ANNEX A : SAMPLE QUESTIONNAIRE B

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SAMPLE DISCUSSION GUIDE

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7.0 References Ambert, C. (2003) â€˜Promoting the Culture Sector through Job Creation and Small Enterprise Development in SADC Countries: The Music Industryâ€™ in Seed Working Paper No.49: ILO, Geneva EAC (2015), The East African Community Creative and Cultural Industries Bill, 2015

Joffe and Jacklin (2003) International Labour Organisation research in the Southern African Development Community (SADC) region Landry, C. (2008)The Creative City:Earthscan, London

Nyariki, D. et al., WIPO The Economic Contribution of Copyright-Based Industries in Tanzania, 2012, pg.29

Porter, M. (1995) Competitive Advantage: Creating and Sustaining Performance: The Free Press Wallis. B at al (2001), Best practice cases in the music industry and their relevance for government policies in developing countries http://musicinafrica.net/directory/tanzania-house-talents-tht

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ISBN 978 - 9987-9684-1-1

Report Prepared by CDEA-Culture and Development East Africa Postal address: Plot No. 421, House 1001, Mikocheni B, P.O Box 13355, Dar es Salaam, Tanzania Landline:+255 22 2780087 Email: secretariat@cdea.or.tz cdea.tanzania@yahoo.com We welcome donations through this email: cdea.tanzania@yahoo.com www.cdea.or.tz

This report has been made possible with support from CKU â€“Centre for Culture and Development

SAMPLE DISCUSSION GUIDE

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