COSBOTS reveals 2022 financial challenges
Nnasaretha Kgamanyane | Tuesday April 25, 2023 06:00
Speaking at the COSBOTS annual general meeting (AGM) in Gaborone on Saturday, Makwinja revealed that the total revenue for the organisation decreased by seven percent from the previous year.
He said the decrease was due to several factors among them non-compliance of licensees and late payment by some members.
He also highlighted that prudent cost management measures enabled COSBOTS to maintain their expenses at reasonable levels, resulting in the organisation decreasing its negative balances carried from 2021 still maintaining high distributable revenue in comparison to 2021. “Our commitment to transparent and responsible financial management is reflected in our meticulous approach to analysing and reporting our expenses. Our administration expenses encompass a range of significant items including our provision of P2 million for COVID relief for our esteemed members.
As an organisation, we recognise the challenges that our members faced during the pandemic and we made it our mission to provide them with the support they needed to navigate these difficult times successfully. We also invested P1 million towards members’ advocacy activities to ensure that we achieve the 80/20 local content quota by capacitating content associate producers on both television and radio as well as joint projects with ministries and parastatals in collaboration with the Department of Broadcasting Services,” he said.
He further explained that investment in capacity-building exercises reflects unwavering commitment to delivering high-quality services to their clients and stakeholders.
Makwinja also stated that COSBOTS began initial steps for a strategic shift of direction in the middle of 2021. He added that if they wanted to be among the best collective rights management societies in the world in five or 10 years, they must recognis that what qualifies them today may not qualify them in future. He added that when they compare themselves with other collective rights management organisations, they evaluate themselves by means of some classic benchmarks and parameters.
Furthermore, Makwinja stated that despite the unpredictable nature of the economy post the pandemic and consequent disruption to their operations, COSBOTS remained steadfast in its commitment to delivering exceptional value to their members and stakeholders in 2021-2023. Taking a new organisational structure as their springboard, he said they would act on the basis of three focus areas being growing membership by registering all sector disciplines, market expansion and revenue growth through strict enforcement and licensing and improved partnerships relations. For her part, COSBOTS chairperson Balanga Mahoko indicated that 2022 was challenging for their members.
However, she stated that compared to other CMOs throughout the world, they had gotten off lightly. She explained that many CMOs had seen their revenues fall by 30% or more forcing them to significantly curtail or discontinue pay-outs. She, however, pointed out that COSBOTS managed to pay P6.5 million as a relief to their members during COVID and post COVID. “Despite the challenges we faced, we achieved a remarkable year-on-year increase in Net Distributable Royalties.
This outstanding feat has elevated Botswana to a coveted position in the top three African countries that collect and distribute the highest amount of royalties to its members, as stated in the 2022 Global Performance Rights Financial Reports by The International Federation of Photographic Industry (IFPI). As a global representative of the recording industry, the IFPI’s recognition is a testament to our exceptional efforts,” she stated. She said even though 2021 was characterised by poor business reputation from both the office and members, they worked diligently to turn things around by upholding their commitment to corporate governance practices going forward.
She pointed out that they launched several new initiatives aimed at ensuring that COSBOTS adheres to the highest standards of corporate governance practices going forward. The deputy Permanent Secretary (Information and Broadcasting) in the Ministry for State President, Oshinka Tsiang said the cooperation of COSBOTS and the Department of Broadcasting Services created an enabling environment where creators could thrive by enforcing a culture of compliance in paying royalties as per the relevant tariffs, ensuring that creators receive fair compensation for their efforts.
He added that their effort bore fruits in various projects including the DBS Road Show that aimed to enhance and empower the creative industry. “We entered into a Memorandum of Understanding (MoU) with COSBOTS to achieve the following objectives; implementing an 80/20 local content quota to ensure that local artists enjoy more airplay and earn more royalties, proper archiving and documentation of works, including music, films or any other audio and visual creations. This will safeguard our creative works in Botswana, particularly folk music and dance and protect our national culture and heritage. Digitalising all creative works seamlessly, making registration easier and more efficient,” he ended.