Kenya’s Collective Management Organisations Conduct Study Visit to South Africa Music Business

Dan Wanyama Sitati, Member of Parliament and Chairperson of the Parliamentary Departmental Committee on Arts and Culture

Kenya’s Collective Management Organisations Conduct Study Visit to South Africa Music Business

By Jacklyne Wabuko
Published March 18, 2023

Kenya Association of Music Producers (KAMP), Music Copyright Society of Kenya and Recording Industry of Kenya (RIKE) traveled on a study visit to the South African music industry companies March 7 – 10, 2023.

The delegation was led by Dan Wanyama Sitati, Member of Parliament and Chairperson of the Parliamentary Departmental Committee on Arts and Culture and supported by the International Federation of the Phonographic Industry (IFPI), the global voice of the recording industry, working to promote the value of recorded music, campaign for the rights of record producers and expand the commercial uses of recorded music globally.

The visit sought to afford the Kenyan CMOs inspiring perspectives to enhance their
operations, governance, and independence; and critical regulatory and policy practices that will
facilitate sustainable licensing practices in the interest of the holders of the rights to music.

Implementation of trade agreements between South Africa and Kenya is viewed as being
critical to the recorded music business.

Dan Wanyama Sitati, Member of Parliament and Chairperson of the Parliamentary Departmental Committee on Arts and Culture The visit saw the Kenyan delegation hold critical discussions not only withSouth African Music Performance Rights Association (SAMPRA), the CMO mandated to license the economic rights of producers and performers and Southern Africa Music Rights Organisation (SAMRO), the CMO mandated to administer the economic rights of composers, authors and publishers, but also with the Recording Industry of South Africa (RISA), the trade body for the recording industry which hosts the acclaimed South African Music Awards (SAMAs); drives the industry charts and certification, and administers within South Africa the International Standard Recording Code (ISRC), the unique identifier code that is critical to the management of sound recordings and music videos.

The delegation further held both collective management and policy discussions with Universal Music, Sony Music Entertainment Africa and Warner Music Africa, the African offices of the three major record companies that represent over 75% of the global recorded music market, now comprising mainly of digital use and performance rights (broadcast and public performance).

In the wider context of the Africa Continental Free Trade Area (AfCFTA) Agreement, music business
stands to massively benefit from the prioritisation of digital trade and investment protection, and
elimination of trade barriers or unclear policies such as the current tax that subjects to 16% VAT digital
music, among other export digital goods and services.

While global recorded music grew by 18.5% to US$25.9 billion in 2021 (according IFPI’s Global Music
Report 2022), the Sub-Saharan Africa region registered growth by 9.6%, primarily driven by adsupported streaming which rose by 56.4%. However, broadcast, and public performance revenue for sound recordings from select seven Sub-Saharan Africa countries (including Kenya and South Africa) in 2021 was only US$12.9 million, with South Africa accounting for 81.5% of the region’s performance rights revenue. Kenya’s broadcast licensing market potential for the year 2020 was US$8.6 million for composers, music publishers, record producers, and performers (which is one tenth of the radio broadcast advertising revenue US$86 million reported by PwC Entertainment and Media Outlook Report.

MP Dan Wanyama Sitati stated: “This was an insightful study visit, we agreed that there is need to initiate policy and regulatory changes that align the music industry with the evolving technological realities, trade alliances between Kenya and South Africa as well as the AfCFTA. This is the role I will take on as the Chairperson of the Sports and Culture Departmental Committee of the National Assembly.”

The Regional Director of IFPI in charge of Sub-Saharan Africa and KAMP Chairperson Angela Ndambuki noted: “it was resolved to improve governance policies and practices to enhance CMO performance and accountability; and initiate collaborations between respective Kenyan and South African CMOs through memoranda of understanding including technical support for the Kenyan CMOs.”