As someone who has spent a significant part of my career as the editor of Finweek and later as the MD of Moneyweb before it was de-listed from the JSE, I’ve witnessed firsthand the transformative shifts that have taken place within the South African media sector. In recent years, these shifts have been anything but kind. The decline in traditional advertising revenue has left many media outlets in dire straits, with some closing their doors entirely. This trend has left a void in the marketplace, particularly in the realm of business and financial journalism, which plays a critical role in holding corporations and governments accountable.
The decline in South African media is not just a loss for the industry; it’s a loss for our democracy. Investigative journalism, such as the work done by the Daily Maverick in uncovering corruption, or the multi-decade efforts by Ryk van Niekerk and the Moneyweb team in tracking the Sharemax collapse, has been instrumental in exposing malfeasance and holding power to account. Without a robust media sector, these stories might never have seen the light of day.
The landscape of media funding has changed drastically, with a large portion of advertising budgets being diverted to global tech giants. This has left South African media platforms scrambling to find alternative funding models, many of which have proven unsustainable. The closure of once-thriving publications is a stark reminder of the challenges we face. However, I believe there is a potential lifeline that could not only preserve but also revitalise our media sector: Environmental, Social, and Governance (ESG) funding.
ESG funding has been gaining traction globally as investors and companies alike recognise the importance of aligning financial performance with broader societal and environmental impacts. According to a PwC report on ESG, the integration of these factors into corporate strategy is no longer a “nice-to-have” but a necessity for long-term sustainability. South Africa, with its unique socio-economic challenges and opportunities, is well-positioned to tap into this growing pool of ESG-focused capital to support our media industry.
But how does ESG funding fit into this picture? The key lies in recognising that media is not just a business; it’s a public good. As such, it deserves to be supported by those who have a vested interest in a well-informed, transparent, and accountable society. ESG investors are increasingly looking for opportunities to fund initiatives that have a positive impact on society, and sustainable media could be one of them.
A document published by the Council of Europe highlights good practices for sustainable media financing in sub-Saharan Africa. It points out that traditional funding models, such as advertising, are no longer sufficient to sustain the media in this region. Instead, it suggests a diversified approach that includes philanthropic funding, public subsidies, and innovative financing mechanisms like ESG bonds or impact investments. These models have the potential to provide the financial stability that South African media outlets desperately need.
As someone who has been deeply involved in business journalism, I can attest to the importance of financial media in promoting transparency and accountability in the corporate sector. However, without adequate funding, our ability to continue this work is under threat. This is where ESG funding could make a significant difference. By attracting capital from investors who are committed to sustainable development, we can ensure that our media platforms not only survive but thrive.
In a recent LinkedIn post, I discussed the role of ESG in business journalism. I argued that as companies increasingly adopt ESG principles, there is a growing need for media outlets that can provide rigorous, independent coverage of these issues. This is not just about reporting on corporate social responsibility initiatives; it’s about holding companies accountable for their impact on society and the environment. To do this effectively, we need media platforms that are well-funded and independent.
The call to action is clear: We need to support business and financial media in South Africa. This is not just about preserving jobs or maintaining a profitable industry; it’s about safeguarding our democracy and ensuring that the public has access to accurate, unbiased information. ESG funding presents an opportunity to do just that, by providing the financial resources necessary to sustain our media sector in the face of ongoing challenges.
In conclusion, the revitalisation of the South African media sector is not just a possibility; it’s a necessity. By tapping into ESG funding, we can ensure that our media outlets remain strong and independent, capable of continuing the vital work of informing the public and holding power to account. Let’s not wait until it’s too late to act. The time to support our media is now.