Financial constraints, tech shift key challenges for media in Rwanda – officials
Wednesday, October 16, 2024
Kelvin Katuramu, CEO and Chairman of Capital Media Group

Officials from local media houses say financial constraints and the rapid evolution of technology, particularly the rise of social media, are some of the key challenges facing the sustainability of traditional media in Rwanda.

A 2023 report by the Rwanda Governance Board (RGB) showed that 44.5 percent of staff across all media house categories in Rwanda are paid a monthly salary of Rwf 200,000 and below, while 15.8 percent earn a monthly salary of Rwf 100,000 or less.

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The report also highlighted that a vast majority of media owners (87 percent) and journalists (77.8 percent) acknowledge that salaries in the sector are not competitive when compared to other industries.

Such lack of competitive pay is attributed to the limited financial capacity of media houses, making it difficult for them to attract and retain high-quality journalists.

Speaking during the Media sustainability Dialogue, a meeting that brought together media houses and Rwanda Governance Board (RGB) officials on Wednesday, October 16, Kelvin Katuramu, CEO and Chairman of Capital Media Group, attributes some of the financial struggles to the fact that Rwanda’s private sector is still developing and is not in proper position to support the media through advertisement and so on.

"Right now the private sector is much better than how it was 17 years ago, but it hasn’t reached a level whereby it can sustain media development,” he noted.

For him, if the situation of financial challenges faced by media houses does not change, many private media outlets are likely to stop operating or the quality of content will suffer, since quality production requires resources.

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He pointed out that platforms like YouTube offer potential revenue streams for traditional media houses, but there is need for sustainable daily operations to make such ventures profitable.

Emmanuel Habumuremyi, Executive Secretary of the Rwanda Journalists Association (ARJ), spoke about the issue of low salaries, stating that many media employees are paid significantly less than their counterparts in other industries.

A study carried out by ARJ last year through interactions with various media houses across the country pointed at the need to build capacity in content digitisation, management, and establish mechanisms for its monetisation.

It also recommended the exoneration or reducing the rate of VAT for non-profit media houses, as well as the exoneration or reducing the rate of tax on media equipment

Jean Bosco Rushingabigwi, the Head of Media Sector Coordination at RGB, also acknowledged the challenges faced by traditional media, as he pointed to the evolving technology which is competing against media as we know it.

For example, he said media outlets are struggling to secure advertisement deals due to competition from social media influencers and content creators.

"Media houses still rely heavily on advertising, but now they face competition from platforms like YouTube. For instance, an advertiser might prefer a YouTube channel with 1 million followers over a radio station,” he said.

He emphasised the need for traditional media to adapt to technological changes.

"Media outlets need to ask themselves how they can leverage technology for their benefit. In today’s world, do they have staff who understand AI or know how to create YouTube content?” he pointed out.