Analysis of Industry-specific Framework Conditions Relevant for CCIs Growth in Tanzania

ISBN 978 - 9987 - 9684 - 3 - 5

TANZANIA FILM AND MUSIC INDUSTRIES A N A LY S I S O F I N D U S T R Y - S P E C I F I C F R A M E W O R K C O N D I T I O N S RELEVANT FOR GROWTH AND INVESTMENT

PUBLISHER: Culture and Development East Africa (CDEA) Plot 421, House 1001, Mikocheni B, P.O Box 1335, Dar es Salaam, Tanzania Tel: +255 22 2780087| +255 784 856 866 Email: Secretariat@cdea.or.tz Website: www.cdea.or.tz

The Research in Culture and Creative Industries project is made possible through the generous support from CKU-Centre for Culture and Development. Š Culture and Development East Africa (CDEA) September, 2015

Contents

Executive Summary..................................................................................................................... ............... 01 1.0 Introduction ..........................................................................................................................................

1.1 Background to the Research in Creative Industries............................................

1.2 Objectives, Scope and Methodology of the Study.................................................

1.3 Methodology ........................................................................................................................

1.4 Analysis and Data...............................................................................................................

06 07 07 08 08

3.0 Industry Analysis of the Framework Conditions of the Film and Music Industries in Tanzania..............................................................................................................................................

3.1.Industrial Development Stages.....................................................................................

3.2 Analysed Framework Conditions.................................................................................

3.3 Precursor Stage: First Stage in the Music and Film Industries.......................

3.4 Embryonic stage: Second stage in the Music and Film Industries ...............

3.5 Nurture Stage: Demonstrating Sustainable Business Potential.....................

16 17 17 19 24 25

2.0 The Film Music and Film Industries in Tanzania...................................................................

2.1 Value Chain Analysis.........................................................................................................

2.2 Key Actors of the Creative Value Chain.....................................................................

2.3 Generic Challenges for the Creative Industries in Tanzania............................

2.4 Clusters in Creative Industries.....................................................................................

09 09 10 12 15

4.0 Survey On Industry Speci�ic Framework Conditions............................................................ 27 4.1Tanzania Average Comparison of the Framework Conditions for the Film and Music Industries............................................................................................................. 28 5.0 Conclusions And Policy Recommendations.............................................................................. 29 References....................................................................................................................................................... 34 Annex A_: Questionnaire ......................................................................................................................... 35

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Executive Summary This study has been done as part of an on-going two-year research 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’, supported by the CKU-the Centre for Culture and Development, The key of objective of the study is to carry out analysis of the framework conditions for the �ilm and music industries in Tanzania is to provide evidence-based investment and policy recommendations for the industry development stages for these two industries of the creative industries

In order to obtain a realistic picture of the framework conditions relevant for the emergence and development of the �ilm and music industries, the concept of industry’s dynamic nature was put in the centre of the analysis. This t analysis is built along the �irst three stages of the industry’s life cycle, i.e. stages relevant for emerging industries: (1) Precursor, (2) Embryonic; (3) Nurture;. The fourth stage, (4) Growth, was not analysed due to the nascent stage of the �ilm and music industries. Key data sources include extensive desk-research and interviews from key industry stakeholders.

The analysis con�irmed that the role and importance of the relevant framework conditions changes with new stages of the industry’s life cycle. However, all identi�ied framework conditions prove to have a long-term impact and are relevant for more than one stage.

Financial

Scale (E.G Size, Sales )

Figure 1 presents the result of the mapping exercise of the analysed framework conditions for film and music industries in Tanzaia. This model was adopted from the PWC analysis of industry-specific framework conditions study

Guarantee System Availability of venture capital Critical mass of content creators

Industrial

Physical retailers Providers of Intermediate

Market

Customer proximity

Mass of creators and entrepreneur people

Cultural

Advanced research

Knowledge Defined copyright system Neighbouring rights Regulatory Framework

Measure supporting start-ups Stimulate Innovation Mobility of artists Flexible labour market Physical and social creative Dedicated cluster

Support

INDUSTRY DEVELOPMENT STAGES

Framework Conditions

Precursor

Embryonic

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Time

Nurture

01

Growth

Key policy recommendations per industry development stage are as follows.

Policy Recommendations for Precursor Stage

The Precursor stage is the �irst stage in the industry’s lifecycle implying the �irst interest in the emerging industry. Policy makers can stimulate the development of �ilm and music industries at the Precursor stage in the following ways: • Guarantee systems and other �inancial engineering mechanisms The government together with research and non-governmental organizations need to create awareness on the economic value that these two industries provide. The government can provide the regulatory reforms that can attract investment in entrepreneurial training, business incubation and innovation through a creative innovation fund.

• Critical mass of content creators and physical retailers

The government should use instruments such as the UNESCO 2005 Convention to attract international cooperation to support in knowledge and skills exchange for �ilm makers and musicians.

• Presence of music and �ilm screening, recording, distribution platform

Policymakers should establish an enabling environment, guided by the Tanzania Investment Centre Guide (2014) for the broadcasting sector.

• Critical mass of creative and entrepreneurial people in the Tanzania

Need for public-private partnerships to provide business support and entrepreneurial skills training through existing creating incubators and accelerators for the �ilm and music industries • Measures supporting creativity through education

Government needs support to equip existing public �ilm and music schools and institutions with better and modern music and �ilm equipment. This will in turn produce better creative and entrepreneur people. It also needs to incorporate arts courses in curriculum from the primary education level.

• Clearly de�ined copyright system that assigns an equivalent of property to new creative products

There is need for on-going copyright awareness by the Copyright Society of Tanzania (COSOTA) raising to the public, �ilm and music stakeholders so that all parties aware of copyright infringement implications.

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• Neighbouring rights that protect performers, recording producers and broadcasting organizations Policy measures supporting creative start-up companies The government together with research and non-governmental organizations need to create awareness on the economic value that these two industries provide. The government can provide the regulatory reforms that can attract investment in entrepreneurial training, business incubation and innovation through a creative innovation fund.

• Policy Measures Supporting Creative Start-Up �ilm and music companies • There is need for policy measures that promote creative innovation that attracts social impact investments from a cross-section of stakeholders which includes seed funds and collaborative funds and incubator support funds • Presence of Physical and Social Creative Environment According to the East African Community Creative and Cultural industries Bill, 2015 that was passed in August 2015, if domesticated by the government of Tanzania will provide an enabling environment for the establishment cultural infrastructure as illustrated below.

(2) Where an approved producer referred to under subsection (1) is desirous of establishing facilities for the production of audio-visual and motion pictures that approved producer shall be (a) allowed to set off approved capital expenditure incurred on such facilities against income derived from the audio-visual and motion industry over a period of 10 years commencing in the year following completion of the facilities; (b) exempt from the payment of property transfer tax on the initial purchase of any property acquired for the speci�ic purpose of providing such facilities ; (c) eligible for interest rate subsidies on funds borrowed from the private sector lending institutions for the establishment of such facilities.

Policy recommendations for Embryonic stage

The Embryonic stage is the second stage in the industry’s lifecycle implying the activities that support the improvement of the reliability and performance of technology and services to a point where it can be demonstrated in a market environment. Speci�ically, this stage implies activities that help to demonstrate the commercial potential of technology and services in the region through revenue generation. This stage is associated with an even higher role of policy makers than during the Precursor stage. Policy makers can stimulate the development of creative industries by ensuring: Availability of Seed and Venture Capital for Film and Music Companies

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Government should provide and enabling environment for �inancial institutions to introduce new risk pro�iles that are speci�ic and appropriate to the creative sector. In addition, there is need for public private partnerships to make impact investments that could serve to mitigate the risk pro�iles and maximize impact outcomes from the �ilm and music industries in Tanzania.

• Critical mass of creative and entrepreneurial people in the Tanzania

However, just like the precursor stage of industrial development, there is need for public-private partnerships to provide business support and entrepreneurial skills training through existing creating incubators and accelerators for the �ilm and music industries Nurture Stage: Demonstrating Sustainable Business Potential Policy recommendations for Nurture stage The Nurture stage corresponds to the activities that help to improve sustainable business potential. Speci�ically, this stage implies developing a market with mass growth potential.

Tanzania’s �ilm and music industries are not yet at this stage, but policy makers can stimulate their development by ensuring/supporting the presence of: • Measures Supporting Creativity Through Education

From a policy perspective, there is need for the government of Tanzania to do skills mapping for the market needs and human resource plan and strategy for the creative industries, so that theright skills are developed through the educational system for �ilm and music industries, which are the priority creative industries in Tanzania.

Other policy measures can include:

• Support the professional development of teachers of �ilm and music training • Encourage learning between educational institutions for �ilm and music training and the corporate sector; • Develop environments that favour creativity and innovation by promoting multi-level cooperation, intercultural dialogue and cultural production for �ilm and music training; • Promote the development, exchange and dissemination of good practice on evidence-based education policies relating to creative and innovative skill in �ilm and music training • Policy Measures Promoting the Mobility Of Artists

Policy makers could remove the barriers for regional mobility by liberalizing trade in services and goods within the creative industries and provide for free movement of natural persons.

This include setting up a mobility fund that can ensure travel at regional and continental level festivals industry markets like

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the DoaDoa Performing Arts Market in Kampala Uganda, to meet industry stakeholders in the music industry or the Pan African Film and Television Festival (FESPACO) in Ouagadougou, Bukina Faso Conclusion

The policy measures identi�ied to not touch on the growth stage of the �ilm and music industries, because they have not gotten to that stage. There is need for the development partners, the government of Tanzania and private sector to work together to transform the �ilm and music industries. The government needs to provide the enabling environment for social impact investment, while service organizations like CDEA need provide knowledge on the �ilm and music industries to development banks, foundations and investors This calls for the government to trigger a process that will mobilize resources to build capacity of �ilm and music enterprises, incubators and accelerator �irms supporting �ilmmakers and musicians, mobilize direct investments, offering guarantees and providing funding to government for regulatory reforms.

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1.0 Introduction

Culture and Development East Africa (CDEA) is a creative think tank that provides cultural and Pan-African thought leadership for creative, social and scientist innovators to create and innovate through structured workplace learning, incubation, research & advocacy and capacity building for social change. We also innovate on how space can be used to enhance sustainable workplace productivity and green community lifestyles.

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 supported by our Audio-visual Incubator, Design Incubator and Writers Lounge.

We work through partnerships to provide capacity development services for social change.

Through its Midundo Online Radio and East African Vibes Concert (EAVC) platforms, CDEA provides an opportunity for emerging conscious music from the East African region to be known and expand their market in the region.

Mashariki Journal serves as a space for connecting artists, researchers, policy makers and organizations working on diverse aspects of culture and peace building; a venue for conversations about the critical challenges confronting peace building in the region and showcasing how culture-based interventions can lead to social cohesion.

Mashariki Flix Data is an information repository and marketplace portal for services in the �ilm industry in East Africa. The portal consolidates information dedicated to news and opportunities, pro�iles of �ilm industry professionals, market research and services like licensing and value chain process facilitation for the �ilm sector in East Africa 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 industries through using the value chain analysis, industrial analysis of the framework conditions,�inancial landscape analysis of the �ilm and music industries. CDEA hopes that the research �indings will contribute to providing an enabling environment for investment in various segments of the �ilm and music value chain in Tanzania.

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1.1 Background to the Research in Creative Industries In recent years, there has been growing emphasis on the increasing importance of Tanzania’s creative industries to the economy. The status and roles of National Arts Council of Tanzania/BASATA, Copyright Society of Tanzania (COSOTA) and Copyright Society of Zanzibar (COSOZA) have slowly been acknowledged as support structures to cultural and creative industry in Tanzania.

With the admitted potential for commercial output of the creative industries, as revealed in the “Bongo Flava” and “Bongo movies” industries, there are also many challenges as regards to the design and delivery of support structures to improve the production and delivery of cultural goods/products and services to the larger global market. There is therefore need to provide a basis for determining the best strategies for enhancing creative industries performance in the Tanzanian economy.

Among the documents which engage with the issues of the cultural and creative industries in Tanzania, it can be said that Creative Industries: A Tanzanian Future provides a critical overview. This document makes reference to studies initiated by the British Council, the EU and UNESCO in Dar es Salaam, that have in recent years sought to address the arts and the potential of in Tanzania within the context a changing development agenda.

Bakari (2012), in a UNESCO report on Cultural and Creative Industries: A Plan for Strategic Action proposed a strategic framework with three objectives namely: • A comprehensive national cultural and creative industries policy • The mainstreaming of culture and the creative industries in economic and social thinking.

• Securing the potential of the creative economy for the national economy, social well-being, and national interests.

Based on this background, this research projectaims at adding to the body of knowledge on the creative industries in Tanzania, an analysis of industry-speci�ic framework conditions relevant for the development of the �ilm and music industries in Tanzania.

1.2 Objectives, Scope and Methodology of the Study 1.2.1Key Objective The key of objectiveof the study is to carry out analysis of the framework conditions for the �ilm and music industries in Tanzania is to provide evidence-based investment and policy recommendations for the industry development stages for these two industries of the creative industries.

1.2.2Scope The scope of the study was of 3 key regions in Tanzania where music and �ilm activities are widely carried out: Dar es Salaam, Arusha and Dodoma. The study carefully looked on different aspects of music and �ilm so as to come up with a detailed report demonstrating how the music and �ilm sector have evolved with time as well as demonstrating the conditions that requires attention best.

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The analysis therefore aims to maximise policy relevance and produce evidence-based policy recommendations on how to support the development of speci�ic emerging industries in Tanzania.

1.3 Methodology

This study relied on two main sources, secondary data collected from various institutions and literature review of international research papers, literature from governmental and nongovernmental institutions. Some of the government institutions visited were the Tanzania Revenue Authority (TRA), the National Bureau of Statistics (NBS), the Bank of Tanzania (BOT), and the Tanzania Communication Regulatory Authority (TCRA), Tanzania Economic Survey and as well as data collected from the �ield work as primary data.

This research carried out using the framework for mapping industrial emergence, Technological Forecasting and Social Change (2011), to analyse the music and �ilm sectors in Tanzania. The analysis has been built along the �irst four stages of the industry’s life cycle, i.e. stages relevant for emerging industries: (1) Precursor, (2) Embryonic; (3) Nurture; and (4) Growth.

Tanzania 1.3.1 Data collection procedures

• Training of data collectors • Piloting • Secondary and primary data collection

.1.4 Analysis and Data

When studying emerging industries, their dynamic nature should not be ignored.

The dynamic nature here refers to a continuous evolution of an industry and its periodical transitions from one stage to another. This is the case for the creative industries that largely informal in nature and the government has just initiated the process of formalizing the two industries through tax collection, 1.4.1 Data and Survey Challenges

• Analysis of the creative industries has limited data • Tight budget • Fragmented data by the Tanzanian data system • Unwilling agencies to provide info • Little or no regional data information

Figure 1 presents the analytical framework for characterising different stages of the development of emerging industries. The framework illustrates the growth/decline of an industry while it goes through the six main stages of its life cycle ((1) precursor, (2) embryonic; (3) nurture; (4) growth; (5) mature; and (6) decline/renewal), including three transition periods (Science -> Technology; Technology -> Application, and Application -> Market). The framework was adapted from Phaal et al. (2011) because of its comprehensive structure and high relevance to the scope of the current study. As can be seen from the Figure, sometimes an emerging industry’s �irst stage builds on the last stage of a mature industry.

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FIGURE 2: Life Cycle of Industrial Emergence

Source: Adapted from Kristina Dervojeda, FabianNagtegaal, Mark Lengton&PeyoushDatta, PwC Netherlands (2013), 2.0 The Film Music and Film Industries in Tanzania The �ilm and music industries in Tanzania]arerecognized by the government as having the potential to contribute to the GDP of the nation. According to a study carried out by CDEA (Tanzania Film Value Chain Report, 2015) from 2012-2015, the Tanzania Revenue Authority (TRA) had collected Tzs 17,365,165,754 on �ilm and music tax stamps on tapes. Likewise, WIPO (2012) report on the shows that from 2007-2010, the copyright industries, of whhich �ilm and music industries are a signi�icant part of, the value added ranged from TZS 391.635 billion to TZS 680.990 billion, which represented 3.0 and 4.6% of the total GDP of Tanzania, with the year 2009 recording the highest contribution. Table 1.1 illustrates how Tanzania has been to exporter of its music and �ilm internationally with the East Africa region being the biggest buyer of her products.

2.1 Value Chain Analysis

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 creator 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

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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, and 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 “stages” of the process in the production of economic and cultural value.

For example, a typical �ilm/ television product passes through a number of stages as it gains its value. The �irst phase is focused on script development, conceptualization and business development. The second phase is concerned with production before, during and after �ilm shooting. The �inal phase focuses on distribution of the product through publicity and marketing, On the other hand,

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 2.2 Key Actors of the Creative Value Chain

Figure 3, highlights the key actors that fall in the �ive stages of creative sector for the �ilm and music sector.

Figure 3. The Creative Value Chain

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The key actors in �ilm industryin Tanzania include following:

Figure 4, future breaks down below: • Location selection • Permits and agreements • Casting • Script �inalization

Pre-Production

Production

Production

• Casting • Location and set organizing • Cameras • Sound • Lighting • Sound editing • Picture editing • Music composition • Putting subtitles • Previewing • Critiquing

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Figure 5, Jobs in the Film Industry The key actors in the music sector in Tanzania include following:

2.3 Generic Challenges for the Creative Industries in Tanzania Key challenges across the creative industries is the misperception of the sector being risk and transitional, lack of entrepreneurial knowledge, lack of industry speci�ic professionals and seasoned entrepreneurs, problems accessing capital to build the means for production and lack of infrastructure to nurture the right talent for the creative industries.(GIA Reader, 2015) In Tanzania, lack of �inance is also is a problem to event organizers and the government institutions as well. Lack of �inance in these institutions has led to poor industry management thus hindering the growth of great talents across the country. Outside Dar es Salaam where opportunities are even less, access to �inancial and business support is more appalling.

Currently, the banking sector does not have the necessary �inancial instruments to access the business models for the creative industries.

At regional level, it is only the African Development Bank (AFDB) that has seen the importance of investing in the creative industries especially in textile/fashion, food and �ilm industries through the �inancing for impact mechanisms such as mobilizing foreign direct investment, offering guarantees and providing and providing funding to governments for regulatory reforms (AFDB, 2015) In 2015, AFDB started a number of initiatives to support the textile and fashion industries.

2.3.1 Key Challenges of the Film Industry

Creation Formal education is not really common at this stage. Many script writers for instance lack the formal education resulting to poor scripts which hardly compete in the international scene.

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The players at this stage also lack the international exposure which would have given them an edge and creativity to compete.

The industry is subdivided into“Bongo Movies” and the mainstream “Swahiliwood”. The script writers normally charge differently depending on the sector the producer is in. This makes it hard for one to have a one fee for their services.

Production

The industry still lacks quality production equipment. Although there are some �ilm makers who believe that the equipment exists but people to operate them are the ones that are missing. Nevertheless, due to low quality production equipment, the industry has seen a lot of half-baked �ilms being produced.

Due to high production costs, most of the �ilm producers ask for �inancial assistance. In the process they end up selling their �ilm ownership rights to these sponsors. A better platform that will seek to assist the �ilm makers is needed to protect their ownership.

Distribution

The �ilm industry is faced with dif�icult laws and regulations from the revenues authority. This therefore creates a barrier when a �ilmmaker wishes to export their �ilms or invite an international �ilm maker to screen their �ilms. This is characterized by the high taxes imposed on the �ilm making process. Due to this, the industry is �illed with pirated copies since the black market has a way of evading these taxes.

The black market makes it even harder for these authorities to track sales. Tanzania Revenue Authority (TRA) has decided to put stamps on the hard copies of these �ilms as a way of tracking sales. The stamps do not apply to �ilms sold via the internet or the growing pirated copies. With the current little information regarding these �ilm copies, the TRA has a huge cliff to climb to ensure maximum collection on these �ilm products.

Delivery Mechanism

There are few screening venues in Tanzania. The available venues at festivals are open spaces like amphitheatres. It has proven to be very costly if a �ilmmaker decides to screen their �ilms in the high-tech movie theatres.

Limited digital platforms for knowledge and distribution channels, is another factor. Digital �ilm distribution is still not well utilized. Even though the digital world is growing, the �ilm makers are yet to use this opportunity.

Audience Reception

Consumers have very little information on which product is genuine and which is not. Most of the consumers end up purchasing pirated �ilm products without the knowledge. The few who are aware tend to purchase the pirated products claiming that the genuine products are expensive and the quality is all the same. This is a huge challenge for consumers and �ilmmakers to create awareness on the bene�its of purchasing a genuine product.

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2.3.2. Key Challenges of the Music Industry Creation Tanzania currently lacks enough equipped music schools that can enable artists acquire proper song writing techniques. 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.

Currently there are no laws that protect song writers or composers and the agreement between the Copyright Society of Tanzania (COSOTA) and Copyright Management East Africa (CMEA) on copyright management is being challenged on the basis of transparency and accountability by most musicians in Tanzania.

Most musicians in Tanzania still lack the international exposure. This results in many artists not being competitive at international level Production

More than 60% of the current music producers do not have a formal music education. This means they have limited exposure to technology that affects the quality music and hinders the growth of the industry as most of the production ends up being below standard.In addition to that, taxes imposed on the music instruments have proven to raise the costs of these instruments beyond what the musicians can afford.

Most of the local artists are not signed to any recording labels and so the cost for music production proves to be very costly for them.

The �inancial landscape is characterized by a lack of business incubators for music/ entertainment entrepreneurs and lack of suitable lending facilities for artists and organizations involved in the music industry.

Distribution

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.

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Delivery Mechanism 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.

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 with regards to management of the whole country.

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.

There is also lack of proper music delivery structures with the reputation of transparency Audience Reception

While festivals play a pivotal role in audience building for emerging artists, a key challenge of such festivals is sustainability. SautizaBusara, for instance, 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 genre options from local content and the midlle class opt for music from international market.

2.4 Clusters in Creative Industries

The National Arts Council of Tanzania/ BASATA has clustered the arts in four categories.

• Arts and Craft • Film • Performing Arts • Music

According to our mapping study, �ilm and music is the big cities music and �ilm activities are widely carried out: Dar es Salaam, Arusha ,Mwanza, Dodoma and Kigoma.

However, with regards to industrial location, the production studios for �ilm and music arescatteredin the suburbs of major cities and do not have co-location tendencies to share services. Music and �ilm equipment for these industries is mostly imported and no attempt had been made to locally assemble it. However, SoundThread a UK-based organization that Framework Conditions for the Film and Music Industries in Tanzania |

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runs training programmes in East Africa and builds cultural infrastructure would like to prototype the �irst audio system in Tanzania and the East African region. This will be one cost-effective way of providing a service to music promoters in the country. This will also be the �irst case study in which the music innovates to address a key challenge for festivals and music events.

There are no production �irms with high-tech equipment for �ilming music videos. Some musicians have to �ly to South Africa to do music videos.

The most concentrated clusters for the �ilm sector is the audiences in low income settlements who access local �ilms through makeshift cinemas throughout the country , music, on the other hand is easily accessible via FM radios and music videos through various digital television channels.

2.5 PAY-TV / FTA Broadcasting in East African Community

The �ive countries of the East African Community (EAC) had a total population of 146.89 million end-2014, with 33.61 million households and a TV household penetration rate of 23%.

Kenya is the most developed market in the region with 12.04 million households and a TV household penetration rate of 32%. Uganda has 7.35 million households and a TV household penetration rate of 25%, followed by Tanzania with 7.35 million households and a TV household penetration rate of 17%.

Pages:114;Figures:94 Pay-TV services accounted for approximately 1.61 million households meaning that free-to-air broadcasting is still the primary access method in over 79% of TV households.

Tanzania has the largest Pay-TV base in the region with 592,700 users accounting for 36% of the EAC total. Kenya was second with with 561,000 users, followed by Uganda with 359,000, Burundi with 62,500 and Rwanda with 38,000.

DTT has an overall 53% market share of total Pay-TV users, followed by DTH with 43% and the remainder on CATV systems in Kenya and Tanzania. StarTimes edged MulitChoice in terms of overall market share with 39% against 38%. The largest single platform was StarTimes DTT with 34% market share, followed by the MultiChoice DSTV satellite offering (20%) and its GOtv DTT service (18%). StarSat, the StarTimes DTH offering, accounted for a further 4%.

There were 6.16 million FTA users across the EAC end-2014. Analogue terrestrial was by far the largest access method accounting for 68% of total users. DTT had a 26% market share, followed by DTH with 6%. Rwanda was the only country to have completely turned off analogue, although Tanzania was scheduled to go digital-only in February, 2015, followed in March by Kenya.

3.0 Industry Analysis of the Framework Conditions of the Film and Music Industries in Tanzania

In order to obtain a realistic picture of the framework conditions relevant for the emergence and development of the �ilm and music industries in Tanzania, the notion of industry’s dynamic nature was put in the centre of the analysis. This notion implies that the role and importance of the relevant framework conditions is likely to change with every new stage of the industry’s life cycle.

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The current analysis is built along the �irst four stages of the industry’s life cycle, i.e. stages relevant for emerging industries: (1) Precursor, (2) Embryonic and (3) Nurture.. Key data sources include desk-research and interviews with industry stakeholders in the music and �ilm stakeholders in Tanzania.

3.1.Industrial Development Stages

According toDervojeda, K. et al (2013)the �ive stages of industrial development are described as follows; Stage 1 Precursor implies activities that support the development of a certain scienti�ic phenomenon, business concept and/or underpinning service/technology platform in the region, which stimulate industrial interest and investment in particular market-directed feasibility studies.

Stage 2 Embryonic refers to activities that support the improvement of the reliability and performance of technology and services to a point where it can be demonstrated in a market environment.

Stage 3 Nurture includes activities that help to improve the price and performance of applications to a point where sustainable business potential can be demonstrated.

Stage 4 Growth implies activities that support marketing, commercial and business development leading to sustainable industrial growth in the region.

Stage 5 Mature includes activities that help to re�ine established applications, production processes and business models.

Stage 6 Renewal refers to activities that help to renew the industry through the development/ adoption of new technologies that repeat the above phases.

3.2 Analysed Framework Conditions

For the analysis of the �ilm and music industries in Tanzania, the conditions to be analysed against the relevant stages of industry life are: • Financial framework conditions • Industry framework conditions • Cultural framework conditions • Market Frame work condition • Knowledge framework conditions • Regulatory framework conditions • Support framework conditions

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Table 1: Detailed Summary Statistics of Survey Responses for the Film and Music Industries in Tanzania Framework Conditions

Relevant Stages P

E

N

G

M

Financial framework conditions Guarantee systems and other �inancial engineering mechanisms Availability of seed and venture capital for creative industries companies Industrial framework conditions

Critical mass of content creators Critical mass of physical retailers Critical mass of providers of intermediate inputs and tools Cultural framework conditions

Critical mass of creative and entrepreneurial people in the region Knowledge framework conditions

Broad educational and research landscape focusing on both Creative and technical disciplines Measures supporting creativity through education Regulatory and policy framework conditions

Clearly de�ined copyright system that assigns an equivalent of property to new creative products Neighbouring rights that protect performers, recording producers and broadcasting organizations Policy measures supporting creative start-up companies Policy measures to stimulate innovation in �ilm and music industries Policy measures promoting the mobility of artists Policy measures supporting �lexible labour markets Framework Conditions for the Film and Music Industries in Tanzania|

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Support framework conditions Presence of physical and social creative environment Dedicated cluster organization Market Framework Condition Costomer Proximity Consolidated overview of the identified framework conditions for the film and music industries (the acronyms in the table refer to the specific stages of the industry lifecycle: P = Precursor Stage; E = Embryonic Stage; N = Nurture Stage; G = Growth Stage; M = Maturity Stage).

3.3 Precursor Stage: First Stage in the Music and Film Industries Framework conditions relevant to the development of �ilm and music industries in Tanzania will be elaborated in this section. Precursor is the �irst stage of the industry lifecycle. We shall discuss the conditions and their implications in detail for investors and policy makers.

The following framework conditions have been identi�ied as particularly relevant for this stage of industry’s development: • Guarantee systems and other �inancial engineering mechanisms (Also applies for Embryonic stage) • Critical mass of content creators(Also applies for Embryonic stage) • Critical mass of physical retailers (Also applies for Embryonic stage) • Critical mass of providers of intermediate inputs and tools • Presence of music and �ilm screening, recording, distribution platform • Critical mass of creative and entrepreneurial people in the region • Measures supporting creativity through education • Clearly de�ined copyright system that assigns an equivalent of property to new creative products (Also applies for Embryonic stage and Nurture) • Neighbouring rights that protect performers, recording producers and broadcasting organizations(Also applies for Embryonic stage) • Policy measures supporting creative start-up companies • Presence of physical and social creative environment 3.3.1 Guarantee Systems and other Financial Engineering Mechanisms

This is a �inancial condition and it entails the availability of �inancial instruments such as guarantees and other risk sharing instruments that are delivered through market players e.g., crowd funding – crowd funding sites help gathering small-scale investors, for example, for independent �ilm �inancing or through social impact investment from foundations that have a shared social vision and just return on investment.

Tanzania music and �ilm industries have the potential to grow and require support in form of guarantee systems and other �inancial engineering mechanisms condition sets to strengthen the �inancial capacity of the �ilm and music sector throughout the life cycle.

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Across the value chain for music and �ilm industries, �inance has proven to be a great challenge.

Currently, the production of Bongo movies is dominated by funding support from STEPS, a distributor of �ilms in Tanzania, ranging from TZS 10m -30m for budget �ilm production.

The government together with research and non-governmental organizations need to create awareness on the economic value that these two industries provide. The government can provide the regulatory reforms that can attract investment in entrepreneurial training, business incubation and innovation through a creative innovation fund.

3.3.2 Critical Mass of Content Creators and Physical Retailers

The current framework condition implies the presence of a suf�icient mass of supply chain actors in the Tanzania including content creators and retailers.

The �ilm industry enjoys a greater share when it comes to content creators in Tanzania. Across the value chain, �ilm producers are able to get script writers, location managers, and marketers to market their �ilm. Unlike the �ilm industry, music industry is slightly different. Song writers are still not popular in Tanzania; however, the music industry has mass of production facilities such as recording studios. Due to its emerging in nature, the music industry still faces the challenge of having poor and low quality recording facility.

Content creators are very essential in any emerging market. They provide important input to a quality product and growth of any creative industry. We have seen most of Tanzanian music being rejected on the international scene even though they may have an outstanding theme.

Diamond’s popular song Number One which was produced in Tanzania, improved in a South African recording studio and released as a collabo with Nigerian artist Davido, for it to be accepted and get airplay across the globe.

The government should use instruments such as the UNESCO 2005 Convention to attract international cooperation to support in knowledge and skills exchange for �ilm makers and musicians.

3.3.3 Presence of Music and Film Screening, Recording, Distribution Platform

This framework condition implies suf�icient supply of music and �ilm screening, recording, distribution platforms including theatres, cinemas, recording studios and production facilities.

These conditions are what make the industry �lourish or fall. Over the years we have seen great developments and changes concerning these conditions. However, most of these studios still lack adequate resources to produce quality products. Distribution is still a challenge in Tanzania for both �ilm and music. When these conditions are well handled, they will help the growth of the �ilm and music industry. Failure to have proper screening and pitching venues in Tanzania really hinders the growth of the �ilm industry. Zanzibar International Film Festival (ZIFF) is the largest �ilm festival in East Africa and screens �ilms from Tanzania and abroad. However, ZIFF is screened at an amphitheatre which makes it hard for pitching to potential investors. Digital distribution is promising and on the rise but since it is not well structured in terms of paying the royalties, most of the �ilmmakers and music artist therefore prefer to distribute their products physically.

Policy makers should establish an enabling environment, guided by the Tanzania Investment Centre Guide (2014) for the broadcasting sector.

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3.3.4 Critical Mass of Creative and Entrepreneurial People in Tanzania This framework condition implies the presence of a suf�icient mass of creative and entrepreneurial people across �ilm and music industries.

In an emerging market, strong creative and entrepreneur people are very essential. These provide a backbone for the industry throughout the stages. Usually, the creatives in a �ilm or music industry depend on another. For instance, a good �ilm needs a good script writer, but it also needs a good videographer and editor. The same applies to music, for a song to be good, a number of creatives need to be at their best as well. Good entrepreneurs also need to be on their toes to sell and market the products.

However, there is lack of proper infrastructure to develop the right talent to run businesses ef�iciently and effectively. There is also hardly any support interventions that emphasise business model innovation by business incubators and accelerators that would mitigate some the risks for investors. There is however, one Audio-visual incubator hosted by CDEA that focuses on knowledge transfer through trainings, an information portal and brokering linkages to industry professionals and opportunities.

Need for public-private partnerships to provide business support and entrepreneurial skills training through existing creating incubators and accelerators for the �ilm and music industries.

3.3.5 Measures Supporting Creativity Through Education

This framework condition implies the integration of creativity focus into the research programmes of local universities and other relevant education institutions.

Education plays a vital role in the development of any creative sector. Music and �ilm are still considered as informal sectors, this explain the fact that more than 60% of Tanzanian artists lack music or �ilm education. Lack of arts education and entrepreneurial training n for artists has led to a lot of challenges, piracy and copyright right infringement being among them. Very few players are even aware of the laws that protect them, leave alone the royalties they are to receive from broadcast airplay. It is as well essential to educate customers about the �ilm and music products. Consumers in Tanzania are still unable to differentiate between a genuine and fake music and �ilm products. But on the other hand, few also know where to get the enuine products even if they would want to. This has stimulated piracy further as consumers now purchase any �ilm or music product that is near to them.

Recently however, music and �ilm schools have started to emerge supporting the growth of these two industries. 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 Framework Conditions for the Film and Music Industries in Tanzania |

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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.

Government needs support to equip existing public �ilm and music schools and institutions with better and modern music and �ilm equipment. This will in turn produce better creative and entrepreneur people. It also needs to incorporate arts courses in curriculum from the primary education level.

3.3.6 Clearly De�ined Copyright System That Assigns an Equivalent Of Property To New Creative Products

Copyright protection provides a vital incentive for the creation of many intellectual works.

Without copyright protection, it would be easy for others to exploit these works without paying any royalties or remuneration to the owner of the work.

Copyright protection provides bene�its in the form of economic rights which entitle the creators to control use of their literary and artistic material in a number of ways such as making copies, performing in public, broadcasting, use on-line, etc. and to obtain an appropriate economic reward. Creators can therefore be rewarded for their creativity and investment.

In Tanzania, under the Copyright and Neighbouring Rights Act No. 7 of 1999 Cap 218 R.E 2002., the Copyright Society of Tanzania (COSOTA) has the legal mandate to register the rightful owners of a creative work and are entitled to several bene�its that go along with the registration of the work. However, a key challenge has been in management of copyright collection. COSOTA entered an agreement with Copyright Management if East Africa (CMEA) to monitor and record all musicians’ works being aired on various electronic media. The airplay reports are supposed to support COSOTA to pay royalties. However, agreement with COSOTA has come under attack by a group of musicians asking the government to revoke the agreement stating con�lict of interest from the owners of CMEA. However, recently a Dar es Salaam court awarded two Tanzania musicians TZS 2.18 billion in special damages in a landmark ruling that could set a precedent in the application of copyright law in the country. The huge amount was won by Bongo Flava artists Ambwene Yessaya (AY) and Hamisi Mwinjuma (MwanaFA) who had sued MIC (Tigo) Tanzania for unauthorized use of music as caller tunes. (Citizen Newspaper, May 2016).

Copyright protection is largely undervalued by some �ilmmakers who hand over their master tape to a major distributor in Tanzania who happens to be a key investor in �ilm production in Tanzania.

There is need for on-going copyright awareness by the Copyright Society of Tanzania (COSOTA) raising to the public, �ilm and music stakeholders so that all parties aware of copyright infringement implications.

3.3.7 Neighbouring Rights That Protect Performers, Recording Producers and Broadcasting Organizations Neighbouring Rights are rights related to the public performance of master Framework Conditions for the Film and Music Industries in Tanzania|

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recordings. In order for recording to be publically released in public, a license must be obtained from the owner of the sound recording.

Neighbouring rights protect performers, recording producers and broadcasting organisations (the holders of neighbouring rights) and enable them enjoy the exclusive right of reproduction, distribution and public communication of their performances/CDs/ DVDs/broadcasts.

In Tanzania, the National Arts Council/BASATA issue performance licenses to public event promoters. However, there is no regulatory framework for the collective exploitation of neighbouring rights, such as on blank CD’s and DVD’s.

There is need for the establishment of a regulatory framework to facilitate the protection of neighbouring rights in Tanzania.

3.3.8 Policy Measures Supporting Creative Start-Up Companies Of recent, policymakers have come to recognize creativity as one of the most important drivers of sustainable economic development and innovation. According the British government, for instance, de�ines the creative industries as “those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property” The space for innovation in Tanzania has been embraced by the government but with emphasis on technological innovation that have the potential to have social impact in the education, heath, and water sectors .

Currently, there no policy measures to support creative social enterprise or innovation in Tanzania. The Tanzania Cultural Fund,(Mfuko ), which operated within the framework of cultural policy of Tanzania (1997). It is generally agreed that the Cultural Policy document of 1997 is inadequate and in need of revision to capture the current rhetoric of the creative industries and creative economy.

There is need for policy measures that promote creative innovation that attracts social impact investments from a cross-section of stakeholders which includes seed funds and collaborative funds and incubator support funds.

3.3.9 Presence of Physical and Social Creative Environment This framework condition pertains to the supporting environment for emerging creative industries. With physical and social creative environment we refer to the spatial dimension such as the presence performance spaces and cinemas, rehearsals studios and shooting locations.

The cultural infrastructure to support the sector is thin, with some arts spaces like Nafasi Arts Space and CDEA being located in residential areas, risk the possibility of contravening noise pollution regulations. Most rehearsals take place in private Framework Conditions for the Film and Music Industries in Tanzania |

23

homes as there no facilities for these activities. Most cinemas show foreign movies, so local �ilms are watched at home via DVD, terrestrial TV or satellite TV.

There is need for urban planners in cities to allocate land for facilities for the production of audio-visual productions and motion picture, when allocating land in new settlements.

According to the East African Community Creative and Cultural industries Bill, 2015 that was passed in August 2015, if domesticated by the government of Tanzania will provide an enabling environment for the establishment cultural infrastructure as illustrated below.

(2) Where an approved producer referred to under subsection (1) is desirous of establishing facilities for the production of audio-visual and motion pictures that approved producer shall be (a) Allowed to set off approved capital expenditure incurred on such facilities against income derived from the audio-visual and motion industry over a period of 10 years commencing in the year following completion of the facilities; (b) Exempt from the payment of property transfer tax on the initial purchase of any property acquired for the speci�ic purpose of providing such facilities ;

(c) Eligible for interest rate subsidies on funds borrowed from the private sector lending institutions for the establishment of such facilities.

3.4 Embryonic stage: Second stage in the Music and Film Industries

The Embryonic stage is the second stage in the life cycle and it corresponds to the activities that support the improvement of the reliability and performance of technology and services to a point where it can be demonstrated in a market environment. Speci�ically, this stage implies activities that help to demonstrate the commercial potential of technology and services in the region through revenue generation.

The following framework conditions have been identi�ied as particularly relevant for this stage of industry’s development: • Availability of seed and venture capital for creative industries companies • Critical mass of content creators • Critical mass of physical retailers • Critical mass of providers of intermediate inputs and tools • Critical mass of creative and entrepreneurial people in the region • Broad educational and research landscape focusing on both Creative and technical disciplines • Clearly de�ined copyright system that assigns an equivalent of property to new creative products

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24

• Neighbouring rights that protect performers, recording producers and broadcasting organizations • Policy measures supporting creative start-up companies • Policy measures to stimulate innovation in �ilm and music industries • Policy measures promoting the mobility of artists 3.4. 1 Availability of Seed and Venture Capital for Film and Music Companies While governmental funding is an important prerequisite for the emergence of creative industries, private funding is increasingly important in the development of the industries in later phases of the industry’s lifecycle. Private funding in this context includes an array of solutions such as preferential lending by banks, social impact funding, availability of venture capital and private equity, Most SMEs access seed capital from family and friends, and advance from the distributor, in the case of the �ilm industry. Banks view the creative industries as risk averse and not willing to advance debt.

Venture capatial can be accessed by broadcasting houses , but not embroyic production houses that charactize most of the production and recording studios in Tanzania.

Government should provide and enabling environment for �inancial institutions to introduce new risk pro�iles that are speci�ic and appropriate to the creative sector. In addition, there is need for public private partnerships to make impact investments that could serve to mitigate the risk pro�iles and maximize impact outcomes from the �ilm and music industries in Tanzania.

3.4.2 Critical mass of creative and entrepreneurial people in the Tanzania

This framework condition implies the presence of a suf�icient mass of creative and entrepreneurial people across �ilm and music industry.

In an emerging market, strong creative and entrepreneur people are very essential. These provide a backbone for the industry throughout the stages. Usually, the creatives in a �ilm or music industry depend on another. Fo instance, a good �ilm needs a good script writer, but it also needs a good videographer and editor. The same applies to music, for a song to be good, a number of creatives need to be at their best as well. Good entrepreneurs also need to be on their toes to sell and market the products.

However, just like the precursor stage of industrial development, there is need for public-private partnerships to provide business support and entrepreneurial skills training through existing creating incubators and accelerators for the �ilm and music industries.

3.5 Nurture Stage: Demonstrating Sustainable Business Potential

The following framework conditions have been identi�ied as particularly relevant for this is nurture stage of industry’s development:

Framework Conditions for the Film and Music Industries in Tanzania |

25

• Measures supporting creativity through education (knowledge; relevant also for Growth stages); • Copyright system (regulatory and policy; relevant also for Growth and Maturity stages); • Neighbouring rights (regulatory and policy; relevant also for Growth and Maturity stages); • Policy measures promoting the mobility of artists and cultural practitioners (regulatory and policy; relevant also for Growth and Maturity stages); • Policy measures supporting internationalization (regulatory and policy; relevant also for Growth and Maturity stages); • Strategy documents and roadmaps for the development of creative industries in the region (support; relevant also for Growth stage); • Dedicated cluster organisation (support; relevant also for Growth stage) • Guarantee systems and other �inancial engineering mechanisms (�inancial; relevant also for Embryonic stage); • Availability of seed and venture capital for creative companies (�inancial; relevant also for Embryonic and Growth stages); • Critical mass of supply chain actors (industrial; relevant also for Embryonic and Growth stages) • Customer proximity (market; relevant also for Embryonic stage); • Policy measures supporting interdisciplinary cooperation (regulatory and policy; relevant also for Embryonic, Growth and Maturity stages); • Policy measures supporting creative start-up companies regulatory and policy (relevant also for Embryonic and Growth stages); • Critical mass of creative and entrepreneurial people in the region (cultural; relevant for all stages); • Broad educational and research landscape focusing (knowledge; relevant for all stages) • Presence of physical and social creative environment (support relevant for all stages

3.5.1 Measures Supporting Creativity Through Education

The current framework condition implies the integration of creativity focus into the research programmes of local universities and other relevant education institutions. The University of Dar es Salaam, University of Dodoma and the College of Arts, Bagamoyo all offer arts education courses with focus on �ilm and music.

Education has a dual role in in�luencing the emergence of creative industries. From a supply side perspective education might spur enrolment into creative and cultural jobs. From a demand perspective education can stimulate demand for service and products from these industries.

From a policy perspective, there is need for the government of Tanzania to do skills mapping for the market needs and human resource plan and strategy for the creative industries, so that the right skills are developed through the educational system for �ilm and music industries, which are the priority creative industries in Tanzania Framework Conditions for the Film and Music Industries in Tanzania|

26

Other policy measures can include: • Support the professional development of teachers of �ilm and music training • Encourage learning between educational institutions for �ilm and music training and the corporate sector; • Develop environments that favour creativity and innovation by promoting multi-level cooperation, intercultural dialogue and cultural production for �ilm and music training; • Promote the development, exchange and dissemination of good practice on evidence-based education policies relating to creative and innovative skill in �ilm and music training

3.5.2 Policy Measures Promoting the Mobility of Artists

This framework condition includes policy measures promoting the mobility of artists and cultural practitioners. Mobility of artists and cultural practitioners within the creative industries refers to movement of natural persons across regions and borders for shorter or longer periods. It includes internships, secondments but also permanent mobility. The essence of this framework condition is that mobility promotes the dissemination of fresh ideas and values, understanding of other cultures and traditions, as well as mutual learning.

Mobility can directly impact positively on the performance of musicians and �ilmakers by opening up new market opportunities through schemes which improve industry export strategiesand collaborative productions.

In Tanzania, one of the issues that came up through the mapping study was lack of international exposure by sample of the musicians interviewed.

Policy makers could remove the barriers for regional mobility by liberalizing trade in services and goods within the creative industries and provide for free movement of natural persons.

This include setting up a mobility fund that can ensure travel at regional and continential level festivals industry markets like the Doa Doa Performing Arts Market in Kampala Uganda, to meet industry stakeholders in the music industry or the Pan African Film and Television Festival (FESPACO) in Ouagadougou, Bukina Faso.

4.0 Survey On Industry Speci�ic Framework Conditions The aim of this analysis is to develop a snapshot picture of the presence of the analysed framework conditions in the �ilm and music industries in Tanzania. Such an analysis enables policy makers to assess gaps between relevant framework conditions and the presence of these conditions in the country.

4.1 Tanzania Average Comparison of the Framework Conditions for the Film and Music Industries

The chosen method for analysing and comparing the presence of framework conditions in the regions was performed per category of framework conditions. We therefore averaged the Framework Conditions for the Film and Music Industries in Tanzania |

27

results per individual framework condition and subsequently averaged the results per type of framework condition. Figure 5 presents the results as a spider diagram.

FIGURE 6: Presence of Framework Conditions for the Film and Music Industries in Tanzania

Financial framework conditions 2.4

Support framework conditions

2.3 2.2

Industrial framework conditions

2.1

Average

2.0 1.9

Regulatory and policy framework conditions

Market framework conditions

Knowledge framework conditions

Cultural framework conditions

Baseline Values on a scale of 1-5 is:(1)poor, (2) fair, (3) good, (4) very good, (5 )excellent Figure 5, shows a pattern of selected framework conditions in Tanzania. The average is still low across theframeworkconditions because the �ilm and music industries are still emerging.

With score 2.4the market framework conditions are the most favourable in Tanzania, while the Regulatory and policy framework conditions and the Support framework conditions have scoring 1.9 and 2 respectively.

Policy and service support inventions are needed to secure these conditions as they are very essential in securing a positive growth for both �ilm and music industries.

Table 2 : Detailed Summary Statistics for Survey Responses for The Film And Music Industries

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Framework Condition

n

Financial framework conditions

Guarantee systems and other �inancial engineering mechanisms Availability of seed and venture capital for creative industries companies

Industrial framework conditions

Mean

Min

Max

70

2.3

1

5

70

2.2

1

5

Critical mass of content creators Critical mass of physical retailers Critical mass of providers of intermediate inputs and tools

70

2.3

1

5

70

2.1

1

5

70

2.3

1

5

Customer proximity

70

2.3

1

5

70

2.4

1

5

70

2.4

1

5

1

5

Market framework conditions

Cultural framework conditions

Critical mass of creative and entrepreneurial people in the region Knowledge framework conditions

Broad educational and research landscape focusing on both creative and technical disciplines Measures supporting creativity through education

Regulatory and policy framework conditions

Clearly de�ined copyright system that assigns an equivalent of property to new creative products Neighboring rights that protect performers, recording producers and broadcasting organizations Policy measures supporting creative start-up companies Policy measures to stimulate innovation in �ilm and music industries Policy measures promoting the mobility of artists Policy measures supporting �lexible labour markets Policy measures supporting internationalization Support framework conditions

Presence of physical and social creative environment Strategy documents and roadmaps for the development of creative industries in the region Dedicated cluster organization

70

2.1

1

5

70

2.1

1

5

70

2.2

1

5

70

2

1

5

70

2.2

1

5

70

1.9

1

5

70

2.1

1

5

70

2.2

1

5

70

2.2

1

5

70

2.1

1

5

70

2.1

1

5

5.0 Conclusions And Policy Recommendations This analysis concludes by elaborating speci�ic recommendations with regard to how policy makers can support the development of �ilm and music industries in Tanzania in the three stages of industry’s development namely, Precursor, Embryonic and Nurture stages.

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Scale (E.G Size, Sales )

Financial

Guarantee System Availability of venture capital Critical mass of content creators

Industrial

Physical retailers Providers of Intermediate

Market

Customer proximity

Cultural

Mass of creators and entrepreneur people

Knowledge

Advanced research Defined copyright system Neighbouring rights

Regulatory Framework

Measure supporting start-ups Stimulate Innovation Mobility of artists Flexible labour market Physical and social creative Dedicated cluster

Support

INDUSTRY DEVELOPMENT STAGES

Framework Conditions

Precursor

Embryonic

Time

Nurture

Growth

Policy Recommendations for Precursor Stage The Precursor stage is the �irst stage in the industry’s lifecycle implying the �irst interest in the emerging industry. Policy makers can stimulate the development of �ilm and music industries at the Precursor stage in the following ways: • Guarantee systems and other �inancial engineering mechanisms The government together with research and non-governmental organizations need to create awareness on the economic value that these two industries provide. The government can provide the regulatory reforms that can attract investment in entrepreneurial training, business incubation and innovation through a creative innovation fund.

• Critical mass of content creators and physical retailers

The government should use instruments such as the UNESCO 2005 Convention to attract international cooperation to support in knowledge and skills exchange for �ilm makers and musicians.

• Presence of music and �ilm screening, recording, distribution platform

Policymakers should establish an enabling environment, guided by the Tanzania Investment Centre Guide (2014) for the broadcasting sector.

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• Critical mass of creative and entrepreneurial people in the Tanzania Need for public-private partnerships to provide business support and entrepreneurial skills training through existing creating incubators and accelerators for the �ilm and music industries • Measures supporting creativity through education

Government needs support to equip existing public �ilm and music schools and institutions with better and modern music and �ilm equipment. This will in turn produce better creative and entrepreneur people. It also needs to incorporate arts courses in curriculum from the primary education level.

• Clearly de�ined copyright system that assigns an equivalent of property to new creative products

There is need for on-going copyright awareness by the Copyright Society of Tanzania (COSOTA) raising to the public, �ilm and music stakeholders so that all parties aware of copyright infringement implications.

• Neighbouring rights that protect performers, recording producers and broadcasting organizations Policy measures supporting creative start-up companies

The government together with research and non-governmental organizations need to create awareness on the economic value that these two industries provide. The government can provide the regulatory reforms that can attract investment in entrepreneurial training, business incubation and innovation through a creative innovation fund.

• Policy Measures Supporting Creative Start-Up �ilm and music companies

• There is need for policy measures that promote creative innovation that attracts social impact investments from a cross-section of stakeholders which includes seed funds and collaborative funds and incubator support funds • Presence of Physical and Social Creative Environment According to the East African Community Creative and Cultural industries Bill, 2015 that was passed in August 2015, if domesticated by the government of Tanzania will provide an enabling environment for the establishment cultural infrastructure as illustrated below.

(2) Where an approved producer referred to under subsection (1) is desirous of establishing facilities for the production of audio-visual and motion pictures that approved producer shall be

(a) Allowed to set off approved capital expenditure incurred on such facilities against income derived from the audio-visual and motion industry over a period of 10 years commencing in the year following completion of the facilities; Framework Conditions for the Film and Music Industries in Tanzania |

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(b) Exempt from the payment of property transfer tax on the initial purchase of any property acquired for the speci�ic purpose of providing such facilities ; (c) Eligible for interest rate subsidies on funds borrowed from the private sector lending institutions for the establishment of such facilities.

Policy recommendations for Embryonic stage

The Embryonic stage is the second stage in the industry’s lifecycle implying the activities that support the improvement of the reliability and performance of technology and services to a point where it can be demonstrated in a market environment. Speci�ically, this stage implies activities that help to demonstrate the commercial potential of technology and services in the region through revenue generation. This stage is associated with an even higher role of policy makers than during the Precursor stage. Policy makers can stimulate the development of creative industries by ensuring: Availability of Seed and Venture Capital for Film and Music Companies

Government should provide and enabling environment for �inancial institutions to introduce new risk pro�iles that are speci�ic and appropriate to the creative sector.

In addition, there is need for public private partnerships to make impact investments that could serve to mitigate the risk pro�iles and maximize impact outcomes from the �ilm and music industries in Tanzania.

• Critical mass of creative and entrepreneurial people in the Tanzania

However, just like the precursor stage of industrial development, there is need for public-private partnerships to provide business support and entrepreneurial skills training through existing creating incubators and accelerators for the �ilm and music industries Nurture Stage: Demonstrating Sustainable Business Potential Policy recommendations for Nurture stage The Nurture stage corresponds to the activities that help to improve sustainable business potential. Speci�ically, this stage implies developing a market with mass growth potential.

Tanzania’s �ilm and music industries are not yet at this stage, but policy makers can stimulate their development by ensuring/supporting the presence of: • Measures Supporting Creativity Through Education

From a policy perspective, there is need for the government of Tanzania to do skills mapping for the market needs and human resource plan and strategy for the creative industries, so that the right skills are developed through the educational system for �ilm and music industries, which are the priority creative industries in Tanzania.

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Other policy measures can include: • Support the professional development of teachers of �ilm and music training • Encourage learning between educational institutions for �ilm and music training and the corporate sector; • Develop environments that favour creativity and innovation by promoting multi-level cooperation, intercultural dialogue and cultural production for �ilm and music training; • Promote the development, exchange and dissemination of good practice on evidence-based education policies relating to creative and innovative skill in �ilm and music training • Policy Measures Promoting the Mobility Of Artists

Policy makers could remove the barriers for regional mobility by liberalizing trade in services and goods within the creative industries and provide for free movement of natural persons.

This include setting up a mobility fund that can ensure travel at regional and continental level festivals industry markets like the DoaDoa Performing Arts Market in Kampala Uganda, to meet industry stakeholders in the music industry or the Pan African Film and Television Festival (FESPACO) in Ouagadougou, Bukina Faso Conclusion

The policy measures identi�ied to not touch on the growth stage of the �ilm and music industries, because they have not gotten to that stage. There is need for the development partners, the government of Tanzania and private sector to work together to transform the �ilm and music industries. The government needs to provide the enabling environment for social impact investment, while service organizations like CDEA need provide knowledge on the �ilm and music industries to development banks, foundations and investors This calls for the government to trigger a process that will mobilize resources to build capacity of �ilm and music enterprises, incubators and accelerator �irms supporting �ilmmakers and musicians, mobilize direct investments, offering guarantees and providing funding to government for regulatory reforms.

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References

AFDB (2015), ‘Fashionomics: How Can the Creative Industries work for job creation and growth for all in Africa?’ AFDB Group blog Citizen Newspaper, ‘Tigo ordered to pay singers over 2bn in copyright row’, May 12, 2016 East African Community, Creative and Cultural industries Bill, 2015

Dervojeda, K. et al (2013) Creative industries Analysis of Industry-specific Framework Conditions Relevant for the Development of World-class Clusters for Extension of the European Cluster Observatory, Promoting better Policies to Develop World-class Clusters in Europe Contract N° 71/PP/ENT/CIP/11/N04C031 Phaal R., et al. (2011) ‘A framework for Mapping Industrial Emergence, Technological Forecasting and Social Change’, Volume 78, Issue 2, February pp. 217-230

Trapp, R. (2015) The Creative Social Enterprise: An Impact Investment, GIA Reader Vol26, No.2

WIPO (2012) The Economic Contribution of Copyright-Based Industries in Tanzania, Creative Industries Series No. 7 http://dataxis.com/pay-tv-fta-broadcasting-in-east-african-community/

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Annex A_: Questionnaire Good Morning/afternoon/evening, my name is…………………….I work for CDEA: Culture and Development East Africa. Our aim is to put culture in the centre of development. Today we are conducting a research survey on the value for music and �ilm in the country. The key aim is to evaluate the business ecosystem for the creative industries (Music and Film)in Tanzania and establish skills capacity gaps within each value chain .May I ask you a few questions? This will take about 10 minutes.

RESPONDENT DETAILS

Questionnaire serial number Towns

Dar es Salaam

1

Respondent’s Name

Respondent’s Title Respondent’s Title Phone(Landline)

DEMOGRAPHICS, PSYCHOGRAPHIC & ECONOMIC DETAILS

E-mail

Mobile

INTERVIEWER: SC1 Record gender of the respondent (DO NOT ASK) Gender Male Female Framework conditions 1.

Please indicate to what extent the following conditions are applicable to your region (1 = the condition is hardly applicable to the region; 3 = the condition is to some extent applicable to the region; and 5 = the condition is highly applicable to the region).

1. Financial framework conditions 1.1. Guarantee systems and other �inancial engineering mechanisms (e.g., availability of innovative �inancial instruments such as guarantees and other risk sharing instruments that are delivered through market players (e.g., crowd funding – crowd funding sites help gathering small-scale investors, for example, for independent �ilm �inancing, indiegogo.com) 1.2. Availability of seed and venture capital for creative industries companies

2. Industrial framework conditions 2.1. Critical mass of content creators

2.2. Critical mass of physical retailers (e.g., music and �ilm rental outlets) 2.3. Critical mass of providers of intermediate inputs and tools (e.g., software products)

1

2

3

4

5

3. Market framework conditions 3.1. Customer proximity (i.e., critical mass of consumers of creative industries which is especially relevant for e.g. artists) 4. Cultural framework conditions

4.1. Critical mass of creative and entrepreneurial people in the region (e.g., availability of people from different creative industries; availability of people from different complementary industries, e.g., telecom industries etc.)

5. Knowledge framework conditions

5.1. Broad educational and research landscape focusing on both creative and technical disciplines (proximity of universities, research centers, schools) 5.2. Measures supporting creativity through education (e.g., targeted training; extra-curricular education; vocational education related to creative industries) 6. Regulatory and policy framework conditions

6.1. Clearly de�ined copyright system that assigns an equivalent of property to new creative products 6.2. Neighboring rights that protect performers, recording producers and broadcasting organizations (the holders of neighboring rights enjoy the exclusive right of reproduction, distribution and public communication of their performances/CDs/DVDs/broadcasts)

6.3. Policy measures supporting creative start-up companies

6.4. Policy measures to stimulate innovation in �ilm and music industries (e.g., innovation programmes; innovation vouchers; creative broker facilities; creative business incubators) 6.5. Policy measures promoting the mobility of artists

6.6. Policy measures supporting �lexible labour markets

6.7. Policy measures supporting internationalization (e.g., funding creative cross-border events; industry-to-industry dialogue; scouting missions; market intelligence; collective representation in international fairs) 7. Support framework conditions

7.1. Presence of physical and social creative environment (e.g., arts galleries, coffee shops, work-live spaces at affordable prices) 7.2. Strategy documents and roadmaps for the development of creative industries in the region

7.3. Dedicated cluster organization (cluster manager or similar) to coordinate the development of music and �ilm in the region

THANK RESPONDENT & CLOSE INTERVIEW

ISBN 978 - 9987 - 9684 - 3 - 5