Small and independent news publishers and broadcasters across South Africa are struggling to survive amid changing media landscapes. To support these vital local voices, Google has provided R114 million over three years to establish the Digital News Transformation Fund, aimed at helping small, local, and independent publishers strengthen their digital operations and sustainability. This fund, initiated by the Association of Independent Publishers (AIP) in partnership with Google, is administered by Tshikululu Social Investments.
Despite the fund’s promise, controversy has arisen around the administration costs, with a local publisher calling the estimated R16 million in fees over three years “obscene.” These fees are viewed as excessive by some in the sector, who argue that such a large portion of the funding could instead directly support numerous small publishers struggling to remain afloat.
The small news sector comprises roughly 120 community-based publishers, many with annual turnovers under R250,000 and small teams of about five staff members earning low wages. Traditionally, these publishers relied on local business advertising revenue, but the rise of digital platforms like Google Ads and Facebook Marketplace has disrupted these models, threatening their viability and the future of local news coverage.
Google’s grant aims to reverse this decline by assisting publishers in growing their digital presence, increasing audience engagement, and improving the financial sustainability of their journalism. An example is the Limpopo Mirror, a local newspaper recognized for its award-winning journalism under publisher Anton van Zyl. Despite the fund’s goals, van Zyl voiced serious concerns over Tshikululu’s large share of the fund, arguing that the amount earmarked for administration could sustain multiple small publishers for years and questioning Tshikululu’s understanding of the media sector’s challenges.
In response, the AIP acknowledged Tshikululu’s high fees but explained that the organization was selected after an extensive search due to its capacity to manage complex grant distribution and support inexperienced grantees. They also mentioned plans to renegotiate fees for the fund’s second and third years, noting that the initial year involves setting up infrastructure.
Tshikululu defended its fees, highlighting the broad responsibilities beyond simple grant administration, including accountability and supporting the sustainability of small and medium publishers. The organization emphasized its commitment to transparency and responsible fund management based on a cost-recovery model that accounts for the complexity and risk involved.
Leadership of the fund includes Leanne Kunz as the day-to-day head, with governance by Vincent Maher, CEO of Broadband, and Anetta Mangxaba, chair of the AIP. The fund plans to open its application process in late August, with disbursements expected by December, aiming to provide critical financial support to a struggling sector.
