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KEYWORDS
distribution
video halls
marketing
Porters Five Forces
Model
film value chain study
MARTIN R MHANDO
Murdoch University
LAURIAN KIPEJA
Zanzibar International Film Festival (ZIFF)
Creative/Cultural industries
financing in Africa:
A Tanzanian film value
chain study
ABSTRACT
In recent years we have seen significant changes in the structural characteristics
of film market systems against the background of globalization and integration of
African film suppliers into the global market. These have included changing mar-
ket relationships and market structures from production through to retail. The
Tanzanian film industry faces numerous barriers to local and global market par-
ticipation, including lack of production facilities, poor market organization, inad-
equate rules and regulations, limited understanding of global markets, the problem
of language, and lack of bargaining power and commercial relationships. Hence,
the majority of local film-makers and producers are isolated and left to operate in
marginal economic areas such as micro and informal enterprises. Their problems are
magnified by the lack of access to networks that can help them compete in the global
film business.
JAC 2 (1) pp. 325 Intellect Limited 2010
Journal of African Cinemas
Volume 2 Number 1
2010 Intellect Ltd Article. English language. doi: 10.1386/jac.2.1.3_1
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Martin R Mhando | Laurian Kipeja
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INTRODUCTION
This article questions the models used to finance cultural industries in Africa.
It proposes that the arts have a better impact on societys development than
the economic paradigms currently in use. This, it is argued, is a perception
that needs to be broadened in order to maximise future diverse economic
development (Cunningham 2004).
Questioning the finance models would allow two things to happen. First,
artists from developing countries would be setting their own agenda for
development, instead of having to accept the ready-made agendas provided
by developing countries and supported by local economic-rationalists who
typically express that which theyve learnt through their education. Second,
funding agencies from developing countries would be forced to look at the
discourse of their funding models more closely since, however well intended
they may be, they are only responding to impulses that they understand
from their cultural-economic imperatives. This article recognizes the place
and importance of culture in defining the ways we approach change and
development.
FUNDING THE ARTS AND DEVELOPMENT
On 20 October 2005, the UNESCO General Conference adopted the
Convention on the Protection and Promotion of the Diversity of Cultural
Expressions. The approval of this international treaty, which seeks to protect
and promote cultural diversity, is considered to be a moral victory in the long-
running fight to preserve the worlds cultural richness. In recent times the
question of funding the arts has engaged development studies and the social
science departments of many universities and colleges. But this is no mean
academic exercise. The reason this questioning came to the fore is because it
was realized that creativity is important to the economies of most developed
nations, and to developing countries as well. (These arguments are well docu-
mented and we do not have the time to go through them.)
The preliminary results of a study we are currently undertaking have
shown that there is a need to assess funding models that are applied to cul-
tural industries in developing countries. This can be achieved by gathering
data that will provide information on indicators of success or failure or capacity
for take-up of the various funding models within the creative industries in an
under-globalized economy. An under-globalized economy (our own term)
refers to those communities in developing countries that seem to escape the
influence of globalization almost with impunity, making a farce of the global
village concept. These include communities for whom even the Negroponte
$100 laptop would be seen as a luxury, and for whom being called globalized
is tantamount to saying they do not exist because their own conditions of
communication are being under-utilized and disregarded.
The creative industries are a growing sector of the national economy that
focuses on activities of individual creativity, skill or talent that could create
wealth or social economic impact through the generation and exploitation
of intellectual property, or by providing creative services to other businesses
(Preston 2001; UNCTADX1 2004). As an area of growing interest within the
global economy and even in academia, we would argue that adoption of the
models of funding of creative industries is often linked to assumed access
to global markets, though we should clearly be aware of the struggle that
developing countries face in that market (Cunningham et al. 2004). To some
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Creative/Cultural industries nancing in Africa
5
developing countries, that inclusion contrasts with the realities of the processes
of globalization, and these arguments only appear hypothetical (Sheehan and
Lan 2002).
The problem that remains is that of identifying the variables that exist
within funding or financing models (and within society) that will allow for
more targeted access of funds in order to deliver clearly identified growth
values that are currently not apparent from a globalized world perspec-
tive (Cunningham 2004). (It is argued, for example, that micro-financing of
Indigenous Australian creative industries enhances international niche mar-
kets, while remaining quite oblivious to other roles the industry plays in those
communities.)
We begin from the premises that:
1. The limited view of creative industry funding being associated with only
traditional, official and national cultural perceptions needs to be expanded
in order to make the most of the under-globalized social structures.
2. The under-globalized market systems provide society with the required
social integrations that globalized structures do not.
3. Funding the under-globalized structures would deliver more purpose-
ful and lasting social-economic impacts than those of the globalized
structures.
In discussing the above parameters we hope to show that these factors need
to be given greater importance if the funding/financing that is received is to
lead to greater impacts on development. At the same time we hope to suggest
a mode of assessing the impact of a given model of funding cultural activity
that would help both the donor and the recipient.
LIMITED VIEW OF CREATIVE INDUSTRY FUNDING
There is, we believe, an intrinsically limited view of funding creative industries
in the world because principally they are still linked to the commercial model
and paradigms. These models, varied as they may be, still do not recognize
the type of countries and communities for whom any funding of creative arts
has to assume a completely new face.
In developing countries we currently see mixed modes of funding. These
include what Cunningham et al. (2004) have termed as:
Shifts from a state-centred to a mixed financing model (China)
Reliance on foreign finance leading to weaknesses in value chain and how
private partnerships can overcome systemic distribution barriers (Latin
America)
Micro-financing model that confronts hurdles facing and lessons learned
for developing international niche markets (indigenous Australia)
An enveloping limited view of creative industries is that which sees the arts
as being un-assessable except in its qualitative nature. This perspective gives
short shrift to many admirable and successful home-grown attempts at com-
mercial success, as well as enhancing the otherwise low social capital accorded
to the arts. These attempts are often found within the periphery of national
economic and social planning due to the devastating effects of the reform of
national economies, especially those that were meted out to African countries
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Martin R Mhando | Laurian Kipeja
6
1. Please see full poem
Available at http://
worldmusiccentral.
org/artists/artist_page.
php?id=1105 accessed
on 31
st
May 2010.
2. The research was
funded by Murdoch
University of Western
Australia, the Swiss
Development
Corporation and
the Commonwealth
Foundation, who
sponsored the ZIFF
Soko Filam programme
during ZIFF 2007.
Mr Laurian Kipeja and I
conducted the analysis
of the Tanzanian film
market during the
period between May
and October 2007.
in the 1980s by the International Monetary Fund. These measures have taken
their toll on the major economic pillars of nations, but only now do we see
their devastating effects on cultures. The demise of cinema culture in most
African countries is testament to the effects of the liberalization of the econo-
mies in which such socially cohering activities were deemed luxuries.
The result has been a slow take-up of the video industry in Tanzania by
young people, who have grown up with only a modicum of film presence.
Even those with an entrepreneurial spirit could not afford to take up the cin-
ema businesses that were collapsing. These risks made entrepreneurs hesitant
to invest in the industry, particularly because the financial organizations in
many countries viewed these industries as un-bankable.
Additionally, industries that are culturally based often fail to compete
in overseas markets further discouraging even the precariously spirited.
However, African countries need to take into account the competitive advan-
tage that cultural industries have over other industries in the national econ-
omy. Indeed the under-globalized market systems provide society with the
kind of required social integrations that globalized structures do not provide.
A hidden advantage of the under-globalized market system is its knowledge
base, which is explained by the saying we know best and we do our things at
our own rhythm (Salif Keita)
Happiness isnt for tomorrow
Happiness isnt for tomorrow. Its not hypothetical, it starts here and now
[].
1

There are two good examples of successful home-grown enterprises in
East Africa:
1. The hip hop scene
2. The video stall (Kideo or Bibanda)
These have both been criticized from a modernist perspective, which pays
no respect to the knowledge base that spawned them. We view these entre-
preneurial outcomes as language systems groups recognizing a sameness of
purpose, value and projection. They communicate over and above other value
systems. They are home-grown. They need respect.
It is under these precepts that the Tanzanian value chain study was
undertaken, and this article presents the initial results of the study to perpet-
uate its key argument: under-globalized market systems provide developing
society with the kind of required social integrations that globalized structures
do not.
Research objectives
The Tanzanian film market research study has two specific objectives.
2
The
first is to develop a basic understanding of the film market in Tanzania (who
are the participants in the market, what kind of films are currently marketed,
what are the general trends for supply and demand). The second objective is
to use Porters Five Forces Model to analyse the competitive forces that coor-
dinate and control the Tanzanian film market and to identify the resources
and relationships needed for success in the Tanzanian film market. The results
of the value chain are designed to benefit those already in the market in the
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Creative/Cultural industries nancing in Africa
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3. Theterms film and
video are used
interchangeably in
this article. Our view
is that film provides
the language through
which the technology
of video has been
predominantly utilized
in the film industry, and
that it will continue to
do so for a long time to
come.
development of new strategies to improve their business or assist others who
are considering entry into the film industry.
Participants in the research
Through interviews, we surveyed Tanzanian film businesses in Dar es Salaam,
the commercial capital of Tanzania. We surveyed the value chain from pro-
ducers and wholesalers, to retail outlets and consumers (independent film-
makers, private company producers, distributors, film and video retailers,
television, cinema and the Kideo hall). Along the value chain, some of the
companies (GMC) are vertically integrated, being involved in two or more
steps in product conversion.
TANZANIAN FILM INDUSTRY
Recent years have seen significant changes in the structural characteristics of
film market systems against the background of globalization and the inte-
gration of Tanzanian film suppliers into global markets. These include the
changing market relationships and market structures at different stages in
the marketing chains: from production through to retail. The Tanzanian film
industry faces numerous barriers to local and global market participation,
including lack of production facilities, poor market organization, inadequate
rules and regulation, limited understanding of global markets, the problem of
language, and lack of bargaining power and commercial relationships. Hence,
the majority of local film-makers and producers are limited to operating in
marginal economic areas such as micro and informal enterprises. While they
face these challenges, their problems are magnified by lack of access to the
networks that can help them compete in the global film business. There is also
a deficiency in coordination mechanisms between government policy-makers,
private sectors and civil society.
This study aims at providing an overview of the current status quo of the
Tanzanian film industry, focusing on marketing and distribution. It thus pro-
vides a useful tool for independent film-makers, producers, commissioners,
broadcasters, funding bodies and development institutions involved in audio-
visual work. Most trade is now based on coordinated forms where one or
more actors in the value chain have the capacity to define quantities, product
and process standards. Therefore, it is important to understand how these
relationships are coordinated, what the rules of the game are, who takes the
relevant decisions and what these imply for the inclusion or exclusion of sub-
ordinate trading partners. The question is thus not if, but how to integrate
value chains in a way that allows for incorporation of a growing number of
players and increasing levels of productivity and incomes. Through under-
standing these relationships, it is possible for private and public agencies
(including development agencies and practitioners and policy-makers) to
identify points of intervention to (1) increase efficiency and thereby increase
total generated value, and to (2) improve the competence of film producers to
increase their share of the total generated value.
PROJECT DESCRIPTION
This study covers the marketing and distribution of films/videos by low-
income companies in Tanzania.
3
We surveyed the value chain, from
independent film producers to wholesale and retail outlets, and determined
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Martin R Mhando | Laurian Kipeja
8
who the Tanzanian film market participants are, the array of films that are
currently being marketed, and the supply and demand trends. To better
understand the market, we analysed the forces that drive competition and
determined the factors that influence the interaction of the film market,
the characteristics of the value chain, and the relative power of the value
chain participants, potential substitutes for Tanzanian films, and the level of
rivalry in the market.
FILM VALUE CHAIN PARTICIPANTS
Independent film producers
Wholesalers/distributors/television
Retailers /festival/cinema hall/ Kideo hall
Individual consumers
Constraints of research
There were a number of limitations to the research with regard to inform-
ants and the choice of whom to interview. Some video stall-holders and video
sellers were not willing to be interviewed, and therefore we needed time
to cultivate the confidence of the interviewees in order for them to speak
Figure 1: Kideo Hall Mtwara, Photo by F. Lyons.
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Creative/Cultural industries nancing in Africa
9
4. For a good
understanding of the
Model please refer to
Porter (1980).
freely. Likewise, since the business itself is illegal there were always
fears that we were police informers who would sell out the interview-
ees. This was a hindrance at the beginning, but once we were able to
cultivate the trust of a number of stall-holders and Kideo assistants,
we were able to cross-check the information. Finally, our failure to obtain
interviews with the management of GMC Wasanii Promoters and Distributors,
Dar es Salaam, meant that we lacked authenticated figures on the business at
the investor level. However, this was offset by interviewing the less success-
ful or poorly performing businesses, which were, however, not unrepresenta-
tive of other entities. The sensitive nature of some information means that it
needed to be protected through ethical agreements.
RESEARCH METHODOLOGY
To identify the forces within the film business we developed a three-step
research methodology.
In the first step we identified the market participants using available sec-
ondary information from the Tanzanian film authority, private film consult-
ants, and initial contacts with businesses in the film industry. We developed a
database of forces participating in the film market, listing basic identification
information (company name, contact person, address, phone and e-mail), and
the part played by participants in the industry.
In the second step we developed a questionnaire-based survey that was
administered by various means to the identified participants. Based on these
surveys we created a quantitative picture of the five forces acting on the film
marketplace. Analysis of the results from the survey guided the development
of a more qualitative survey.
The third step in the research process was based on a set of interviews admin-
istered to a sample of the respondents that agreed to participate in the follow-up
interview. Interviews were conducted using a semi-structured questionnaire with
more open-ended questions. We conducted interviews with individual consum-
ers and managers and owners/managers of businesses in the film market.
Porters Five Forces Model was used to develop and analyse both the
e-mail survey and the phone survey.
FIVE FORCES MODEL
Porters Five Forces Model (developed by Dr Michael Porter of Harvard
University) serves as a framework for examining competition that tran-
scends industries, particular technologies or management approaches.
4

The underlying fundamentals of competition go beyond the specific ways
individual companies go about competing (i.e. strengthsweaknesses
opportunitiesthreats (SWOT) analysis; and the 4Ps of marketing: product,
price, place and promotion). Underpinning of this framework is the analy-
sis of the five competitive forces acting upon an industry and their strategic
implications.
The Five Forces Model looks at five areas of competition in the
marketplace:
1. Entry of competitors. How easy or difficult is it for new entrants to start
competing and what barriers exist.
2. Threat of substitutes. How easily can a product or service be substituted,
especially made cheaper.
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Martin R Mhando | Laurian Kipeja
10
3. Bargaining power of buyers. How strong is the position of buyers?
4. Bargaining power of suppliers. How strong is the position of sellers? Do
many potential suppliers exist or only a few potential suppliers and is
there a monopoly?
5. Rivalry among the existing players. Is there strong competition between the
existing players? Is one player dominant or are all equal in strength and
size?
In addition to the five forces, a sixth force, government policies, is added to
Porters model because of its influence on all the other forces. This will be
reflected in the discussion about the many roles that the government has been
left to play in the industry. By understanding the competitive forces within the
film industry, participants in the market can develop successful strategies to
influence the forces to their own benefit.
FORCES DRIVING INDUSTRY COMPETITION
The survey respondents were predominantly located in Dar es Salaam. We
opted for Dar es Salaam given the easy capacity to examine the character of
the urban film viewer, the style of marketing and the politics of choice in the
commercial capital of Tanzania. In a region that was once a commercially via-
ble distribution point for films, Dar es Salaam has seen the complete and total
dismantling of cinemas, coming to rely entirely on video distribution for visual
entertainment in this sprawling city of nearly five million people.
For the Kideo hall business, the research was undertaken within the Dar es
Salaam suburb of Mbagala, a sprawling ward of Temeke (one of three munici-
palities of Dar es Salaam). Mbagala is home to almost an eighth (over 450,000)
of the residents of Dar es Salaam. We opted to research in Mbagala because
it is a new suburb and has a self-contained feel, since it is the reservoir for
labour for most low-paid workers. It is also where much of the activity of the
Kideo is predominant. Mbagala has over 65 Kideos and employs around 1000
people dealing directly with the industry. These include owners of Kideos,
projectionists and assistants, video sales assistants, and street video vendors.
We engaged a group of five research assistants, students from the
University of Dar es Salaam, led by Daniel Manege, a second-year engineering
student at the university. The researchers were able to interview independent
film producers, wholesalers/distributors, retailers: five television stations, 25
cinema halls, individual consumers and over 24 Kideo projectionists. We also
interviewed three owners of Kideos and over 60 street video vendors. This was
undertaken over two major research periods lasting five days each. Research
was undertaken from 4 to 10 June 2007 and then from 15 to 18 July 2007.
Research analysis was undertaken between August and September 2007, and
this also included the third step of our research process where we adminis-
tered follow-up interviews with open-ended questions. However, there were
some difficulties in reaching some participants since they maintained their
operations under very secretive circumstances and the information we did
glean was often anecdotal.
Overall, we interviewed approximately 220 people over the various
research visits during the JanuarySeptember 2007 period. We had pre-
organized questions for each cohort of interviews and a few questions
were added just for the opening or conclusion of the interviews. The ques-
tions were sometimes modified to suit the interview situation. We also had
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Creative/Cultural industries nancing in Africa
11
5. For more information
on the Uganda Bibanda
industry, please see
Katerina and van
Oosterhout (2006),
Survey of Content and
Audiences of Video
Halls in Uganda 2005,
Research funded by
Embassy of the United
States of America,
Public Affairs Section,
Kampala Uganda.
what we called intra-views this is when we were able to have partici-
pants (owners or patrons) discussing issues and asking each other questions
from which we could glean information. These were encouraged, since they
allowed us to also see the characters involved in the activities. Only rarely
did this happen, but we felt it gave us valuable data since it became obvi-
ous to us that the intra-viewers knew how to glean more information from
the interviewee. Please find attached the sample of questions used for both
interviews and intra-views.
A comparative study was also used when we had the opportunity to discuss
this trend with the Bibanda/Kideo owners in Uganda during Dr Marin Mhandos
two visits in Uganda in March 2006 and May 2007.
5
Some comments pertaining
to this comparison are added; however, a more concerted effort at studying this
phenomenon from an East African perspective needs to be undertaken.
To augment the debriefing sessions and the observations that the research-
ers made, we also recorded a short video to show where the video halls were
located. One of the problems we had (which we had anticipated but did not
expect to encounter to the extent that we did) was some of the key respond-
ents refusal to be filmed. In these cases we decided that it was not worth
pursuing the interviews because these respondents thought we were con-
nected with the government and that they could be implicated and arrested
for pursuing illegal activities (Kideos are illegal).
Figure 2: Gulu Video Hall Uganda, Photo by M. Osterhout.
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Martin R Mhando | Laurian Kipeja
12
VALUE CHAIN POSITION IN THE TANZANIAN FILM MARKET
In the research process we also discussed with industry players and stake-
holders in film production, co-production and local content, financing, fund-
ing, and training and development. Below are some of the key findings of the
current general position of the industry.
Production
Tanzanian film accounts are an insignificant share of world entertainment
Theatrical film-making is present but on video only
Film productions are inadequately funded and generally do not conform
to international standards
The commercial production industry is performing poorly
There is inadequate film production and distribution. Tanzanian and thus local
film-makers are not exposed to significant film developments in world cinema
The local content regulations are inadequately optimized
Financing
There exists a free market economy approach to film production coupled
with a subsidy structure supported by the MFUKO
The financial services industry remains defensive about the film industry
as a viable investment
There is an emerging domestic and international interest in the Tanzanian
film industry
There is visible growth in local and international co-productions
The historical experience of film investment in Tanzania still carries a neg-
ative association
Film financing facilities are emerging but very slowly
Marketing and distribution
Tanzanian film and video distributors are not structurally organized and
are insignificant in the regional arena
There are no current international marketing strategies for the industry
Local producers focus on making and not selling films
There is a severe lack of audience development
Local films have difficulty in accessing markets
Training and development
The few existing training institutions in Tanzania have done little to
address imbalances in the film industry
There is a newly re-regulated broadcasting industry that still needs well-
defined monitoring mechanisms to drive measurements regarding local
content quotas
The conditions under which Tanzanian film-makers operate need to be
thoroughly understood before one can cast any aspersions on them or even
make any value judgement on their products. Most of the film-makers have no
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Creative/Cultural industries nancing in Africa
13
formal training in film, and just want to produce for the sake of producing: to
reach the next viewer who they believe only wants to see the same old thing.
Many of the people now making films were motivated to go into the industry
due to the possibility of owning a VHS camera on which images could be
captured cheaply, edited quickly and exhibited to audiences who know no
better. The stories are made on the go, mostly with the belief that film stories
made by Hollywood or Bollywood will translate easily.
ANALYSIS OF THE FORCES THAT DRIVE COMPETITION IN THE
TANZANIAN FILM MARKET
To reflect on these market forces we shall apply Porters Five Forces model.
Force 1: Threat of new entrants (barriers to entry)
Barriers to entry are perceived differently by participants already in the market
and those trying to enter the market. The more difficult the barriers are to
overcome, the better they protect the companies already in the market from
potential new entrants. The survey respondents identified the following barri-
ers to entering the film industry.
Capital requirements were perceived as the most significant barrier to enter-
ing the film industry. Indeed, entry into the business is characterized by very
low capital base investment and technological capacity. A company entering
the market would need to have the capacity to provide the minimal produc-
tion costs to film producers in Dar es Salaam to begin with (the current prin-
cipal producer budgets his feature films at $15,000). This essentially means
that the basic outlay for entering this market requires a capital outlay of some
$60,000 to create a viable production base. The production costs fall away very
steeply and the capital base is subsumed in the production costs of $15,000
within a period of a year, or after the production of six films.
High production costs and increasing promotional costs make market
entry limited. The only existing production company, GMC, seems to have
obtained initial capital through self-financing or personal loans.
Lack of knowledge and experience was the second most important barrier
to entry. To successfully enter the film industry one must have knowledge
about it. Knowledge about how to establish and maintain relationships along
the value chain helps to ensure both entry and survival in the film business.
Film is unique regarding its management and processing, and, because of this
uniqueness, a specialized knowledge base is required from market participants.
In order to enter the market, a new participant would have to understand
the social aspects of the market and develop strong transactional relation-
ships. While acting as a barrier for potential entrants, this factor favours the
companies already in the market that have cultivated and maintained strong
relationships with their producers and customers.
Access to inputs and access to markets. One clear threat that the market cur-
rently faces is limited access to distribution channels. This threat is linked to
the new entrants access to new consumers. However, for start-up companies,
entry becomes difficult due to problems with accessing capital and identifying
and securing markets, which seem to be very important for successful entry
and survival in the Tanzanian film business.
Each new entrant to the market will have to take into account that there
will be some consumer-switching costs in order to ensure themselves a
smooth supply of consumers. There is no real expectation of brand loyalty
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Martin R Mhando | Laurian Kipeja
14
since these are all essentially petty traders who are in the business for the
small profits they might make for themselves. Unless the various customers
down the line develop some other loyalty due to an enhanced relationship
(developed through other intangible ties like ethnicity, etc.) they will only stay
loyal to the low cost of the videos and the frequency of production.
Economies of scale was identified by some respondents as a barrier to
entry, but less important than other factors already discussed. The industrys
high cost of production deters entry of small, start-up film businesses in the
Tanzanian film industry. The existence of such economies of scale has created
a barrier to local entry, leading to the maintenance of local monopoly.
Forces 2 and 3: The bargaining power of suppliers and buyers
The value chain in the film industry starts with the film producer that supplies
the film and video and ends with the retailer/television/festival that ultimately
reaches the final consumer. Most of the participants are involved in buying
films and videos.
Suppliers: According to the study, GMC is the largest producer of films in
the Tanzanian market, followed by a number of independent film produc-
ers. As noted earlier this operation was very difficult to research. One can see
three major production structures in the country:
1. Private productions by GMC (GMC is not an acronym). This is the pre-
dominant regular production system in the country, which makes it pos-
sible for individual film-makers to produce on the terms of the producer,
GMC. The directors and cast receive no royalties, have no copyright own-
ership and are paid on a one-off basis. It has been reported that some of
the cast are not even paid, on the grounds that they are getting exposed
to the market. Some of the more prominent actors have now acquired the
level of stars and can now be paid. However, their fees remain a pittance.
GMC supplies the videos to retailers who then sell them to households
and Kideo businesses, which are in every city and town of Tanzania. This is
where GMCs control comes from. In fact, GMC exerts great influence on
production and distribution, in that it sets the cost matrix of the industry.
The control of GMC is so complete that not even the actors are willing
to speak about their terms, fearing the loss of opportunity to work with
GMC productions. GMC, it must be said, has produced quite a number of
interesting films that have captured the attention of Tanzanian audiences,
and has slowly been able to build a following. Typical production quantity
is about 6000 copies per film, which is very small compared to the market
potential.
Actors in the films are those who perform in theatre groups and who
work towards getting themselves on television so that they can be exposed
to audiences who will then come to their theatre performances, from
which they will make more money. These actors would work for nothing
in film and television for a while in order to enhance their status in the
industry before they can begin to ask for payment. So great is the dream
of becoming a star that many of the actors even pay to be cast in films.
These film-makers include such names as George Tyson (Girlfriend, 2005;
Sabrina, 2004 and Dilemma, 2003), regarded as one of the best commer-
cial film-makers in the country, and Mussa Banzi. Another production
company that produces these commercial films is the Tamba Arts Group
JAC 2.1_art_Mhando_03-26.indd 14 6/26/10 1:30:10 PM
Creative/Cultural industries nancing in Africa
15
(Lete Mambo Productions), which has produced such films as Fungu La
Kukosa (The Have Nots) (2004).
2. Independent film producers fall within a very eclectic group which
includes experimental and festival-circuit film producers of the calibre of
Augustin Hatar, Imruh Bakari, Beatrix Mugishagwe, Maria Sarungi, Farida
Nyamachumbe and Martin Mhando. These are film-makers who source
funds from development corporations and other international sources and
are able to produce films of somewhat higher calibre than the first group
because they are not simply engrossed with copying the Hollywood or
Nollywood styles. They attempt to make films with an individual signa-
ture. However, these are films that are still partial to the terms and canon-
ization of the foreign film festivals and to the corresponding perspective
of what constitutes an Africa film. Unfortunately, many of these films
remain unseen by the majority of Tanzanians, as they are never released
commercially.
3. The last group is that of independents . They do not work under the GMC
type of productions but aim towards achieving the same level of audience
acceptance and acclaim as the GMC types. These include Dickson Kaombwe
(Safari, 2003) and Omar Semindu (African Tales, 2005) who swing between
television production (as television producers with TVT the national
broadcaster in Tanzania) and the independent film producers (as part of
the Tanzanian Screenwriters Group African Tales productions).
General trends for film industry supply
Since the adoption of a free market economy in the 1990s, additional rivals
entering the market have become a threat to the Tanzanian film industry.
Now films from Nigeria, Hollywood, Asia and Latin America are monopoliz-
ing the television market.
The survey has shown that there is a preference for Nigerian films over
local products. This has been caused by the growth of the Nigerian film mar-
ket on local television stations. The stations argue that these are cheaper than
Tanzanian films. Nigerian films have also influenced Tanzanian film audi-
ences leading to a marked change in their tastes: they have started craving
African stories.
The local product has a small production capacity, and whatever exists
still does not reach the market or at least does not satisfy the market need.
Only recently has there been growth in Swahili films, which are commercially
rather than artistically driven. This is a slow trend in Tanzania and only one
company, GMC, has managed to build a modicum of production trend a
capacity to produce films on a continuum and therefore the ability to satisfy
what is currently only a curiosity about the local story.
Today the local story is being captured in Nigerian films. This phenom-
enon, which has captured the imagination of the rest of Africa, has allowed
audiences who have hitherto been completely hooked on the Euro-America
product to be weaned off it and begin a slow but sure addiction to the African
product. Nigerian films are driven more by authentic projections of the soap
opera-like stories found in day-to-day melodramas of urban living, and have
found a niche in distribution markets all over Africa. This has even taken place
in South Africa, where, although Nigerian films were looked down upon
for their low production values, they have slowly been able to permeate the
working class and build themselves a market.
JAC 2.1_art_Mhando_03-26.indd 15 6/26/10 1:30:10 PM
Martin R Mhando | Laurian Kipeja
16
6. http://www.
africanhiphop.com/
index.php?module=subj
ects&func=viewpage&p
ageid=169. Accessed
7 September 2007.
7. Another distributor,
who runs her own
four Kideos, has also
begun producing
Swahili films, and she
has a cut-off figure of
2000 films, which she
acknowledges is only
limited by her own
market reach.
It is worth noting that the Tamba Arts Group, under GMC, feel that they
will soon be able to compete against the Nigerian films that so dominate the
Tanzanian film and television scene. The Tamba production company pro-
duces commercial films, such as Fungu La Kukosa (2004). As one producer
noted, To be honest the film will be very good and interesting too. We want
to compete with our rivals, the Nigerian films, Tamba noted. He added that
in future Lete Mambo Productions aspire to produce quality films.
6
However, the local or even the Nigerian product is still very hard to obtain
compared to the thousands of Hollywood and Bollywood products. It is
instructive to note that the survey showed that many of the patrons are hun-
gry for the local product and were even willing to pay a slightly higher price
for them than the normal cost of a Euro-American video. Indeed, the price of
videos show this clearly.:
Type/Genre Cost (2007)
Hollywood TSH 5000
Bollywood TSH 30004000
Nigerian TSH 30004000
Tanzanian TSH 6000
During the research process it was evident that the local product was in
great demand but was not available. Following a specific Tanzanian film we
found out that the production house actually produced the films for less than
Tsh15,000,000 (ccaUS$12000) and produced about 6000 VHS tapes on the
first day of release. (DVD is not yet a format for sales, since few people and
few Kideo distribution points have DVD players.)
These videos are sold, on the first day, to no less than 500 distributors
street sellers who also have their own core markets to whom they deliver the
videos on the first day at the nominal fee of TSH 5000. This results in only 500
TSH profit, but since these are assured markets they can be certain of selling
at least four copies on the first day of sales. The figure of 6000 was established
as the basic production quantity by GMC, and was still in place at the time of
research in 2007.
7
This is good business for GMC. If we assume that there are at least 1000
Kideo halls and at least 2000 vendors in the country we realize how much
employment Kideo activity alone provides the nation. Apart from this, if each
video sells only 50 per cent of all videos produced, i.e. 3000, we can calculate
that each production brings in TSH 18 million. This gives the owner a basic
return on his investment, but this is only at the level of video sales and
this is at 50 per cent of the minimal production base. This would add up to
a handsome business proposal if the number of Kideo halls were to increase
and the total sales of video were raised to even twice as many videos. The
6000 videos figure is considered optimum due principally to piracy. This is
because piracy increases with time and with each tape that is sent outside Dar
es Salaam. Dar es Salaam has an increasing number of patrons, and there-
fore the 6000 videos are sold within a short time. However, beyond the first/
second week sales of the VHS tapes and DVDs the distributors are faced with
crass second-tier producers who make copies of the first run of videos and
JAC 2.1_art_Mhando_03-26.indd 16 6/26/10 1:30:10 PM
Creative/Cultural industries nancing in Africa
17
send them to the interior of the country. The cost and reach of this second-
and third-tier (generation) of video are not easy to evaluate. Suffice it to say
that one would invariably find any of the films produced in Dar es Salaam in
any urban town in Tanzania within a fortnight of the premiere. At the rate
of one film per month, which GMC projects to be its capacity at this time, it
would appear that GMC makes a good profit even within the prevailing con-
ditions. Together with single (GMC) local market monopoly and the shortage
of start-up capital, the lack of film script development knowledge is seen to be
a major factor in local film failure in the market.
The most preferred genre by viewers is action-packed drama. This is fol-
lowed by martial arts films, Nigerian films with their occult (magic) and love-
story films. These are followed by comedies (especially Swahili comedies),
and then Bollywood and other genres. With virtually all of the financing, pro-
duction and distribution of films in Tanzania now in the hands of one large
company, GMC, this means that the industry has high prevalence for vertical
integration since GMC, as the market monopoly, is involved in two or more
steps in product conversion. Vertical integration allows GMC to have more
control over independent film-makers.
Buyers: Characteristics of the value chain from the buyers
perspective
The predominant group of video buyers that the research identified is Kideo
business video vendors, followed by individuals, television stations and finally
film and cultural festivals.
However, the Kideo hall is where most Tanzanians have access to films.
The Kideo business reveals that its comparative advantage and key market-
ing tactic lies in its low entry fee. Audiences pay as little as 200 Tanzanian
shillings (less that 20 cents). This allows one to watch a full-length film and
sometimes the owner might even allow one to watch two films at the cost
of the single entry fee in order to attract them initially and ensure they will
return. Compare this with the Tanzanian shillings 6000 (US$5) that one now
pays to see a movie at the New World Theatres in Dar es Salaam.
The Kideo hall business, a haphazardly organized and managed crop of
small video-shacks in the high-density suburbs of metropolises like Dar es
Salaam, is a growing phenomenon in Tanzania. It has no common name
but in the Swahili lingo of the trade they are known as Kideo. A deriva-
tive of video, the term suggests what people watch (videos) and is linked
to the cinema hall where people watched cinema. In Swahili most peo-
ple watch sinema rather than filam/film, and therefore Kideo has come to
encompass both the product and the location of the activity. These shacks,
in the real sense of the word, function as cinema halls for the urban poor
and unemployed youth, and resting places for many residents of over-
crowded communities.
Currently, this business does not pay tax to the government because there
is no registration for Kideos and no enforcement of trading regulations within
each municipality. This means that if these Kideos were managed properly
they would also become a tax earner for the councils and the country in gen-
eral. Currently the video owners are the only winners in this game as they pay
a paltry salary to the players in the chain and they are in total control since
workers under them have no other source of employment and would do
anything to keep this source of revenue.
JAC 2.1_art_Mhando_03-26.indd 17 6/26/10 1:30:10 PM
Martin R Mhando | Laurian Kipeja
18
Most vendors, who are also regarded as stall distributors and street sellers,
buy their videos from GMC immediately after production. The vendors have
their own core markets to whom they deliver the videos on the first day at the
nominal fee of TSH 5000. This gives then only 500 shillings profit, whereas the
end retailers sell at TSH 6000.00 to Kideo halls and individual consumers. The
control that these buyers have is indicated by how many street vendors they
can put in the streets and how many stalls they control. If these are few and
remain under the control of a single individual then the threat is substantially
reduced. The effect of quality (as in low quality) is negligible to both the sup-
pliers and the vendors, as we found no product differentiation reflected in the
type of films produced, the numbers available and the number of suppliers.
The second group that can be regarded as a buyer is television stations.
There are five television stations in Tanzania at the moment, excluding cable
stations. While Independent Television (ITV) commands the highest audience
rates in general it is sad to note that no links have been forged between the
television stations and film producers. To date producers remain outside the
purview of television marketing for a number of reasons:
1. The television stations see themselves as extensions of the international
television markets and only market to the middle- to high-class viewers.
These are people who can afford television sets it is calculated that there
are at least 300,000 owners of television sets in a country of over 35 million
people. This means that the reach of television is very minimal and apart
from the national television stations (TVT and TVZ) the other commercial
stations are all targeted towards middle-class viewers.
2. These stations have no co-production or even pre-sale agreements with pro-
ducers. Producers still have to buy time on television or obtain sponsorship
for their programmes from corporate bodies or donor agencies, and govern-
mental and non-governmental organizations. Indeed, the stations argue that
it is cheaper for them to buy the Hollywood products that the middle-class
pines for far cheaper than to produce local programmes or even buy ready-
made local programmes. These foreign programmes find sponsors easily as
the middle class has developed a taste for them and the programmes are an
expression of their upward social mobility. However, there is also a strong
demand for local programmes, as identified by corporates local sponsorship
of specific programmes. As was the case in Nigeria and Ghana even five
years ago, the collaboration between television stations and film producers
was limited to time allocation for local programmes, and the winner was not
the local producer but the television station. Anyanwu (2004) comments that
What really happens in the form of collaboration is that the television
stations ask filmmakers to give them their new film to be aired free of
charge on television in exchange for placing an advertisement for them.
The third buyer group is the festival circuit, which is where the independent
film-makers show their films. Unfortunately, many of these films remain unseen
by the majority of Tanzanians, as they are never released commercially.
Television, film producers and the Kideo phenomenon
One of the purposes of the value chain is to identify key elements of the phe-
nomenon as regards content, audience perception and trends. The nature and
JAC 2.1_art_Mhando_03-26.indd 18 6/26/10 1:30:10 PM
Creative/Cultural industries nancing in Africa
19
fascination of the Tanzanian film market demand is that it is not static. While
we are prone to generalizing (for example, we list Hollywood films, Nigerian
films, and Latin American and Asian soap operas as the Big 4 and assume
their dominance), we have also seen the film industry change since the era of
Bollywood films in Tanzania.
At present, certain large-volume retailers insist that Nigerian films are
their best-sellers, meaning that the Nigerian film industry is taking the lead.
What was clear in our survey was also the audiences desire for documen-
taries, which they regarded as educational films. These included films that were
not necessarily documentaries but contained messages of development and
health. It was obvious that such films were seen as important because they gave
information to viewers who could use it to explain issues that are still questioned
in the communities where they come from. Therefore, the knowledge gained at
the Kideo hall would not only stand them in good stead as knowledgeable mem-
bers of their communities, but also help raise their general status in the com-
munity. Many of the interviewees spoke of Nigerian films as educational. They
defined the social messaging that was present in the stories as directly didactic,
offering audiences valuable lessons in social communication.
However, with the current globalization of technology, the film indus-
try (like the entertainment and communications industries) is in flux.
Figure 3: Kideo Hall Mbagala, Dar Es Salaam, Photo by Martin Mhando.
JAC 2.1_art_Mhando_03-26.indd 19 6/26/10 1:30:10 PM
Martin R Mhando | Laurian Kipeja
20
Telecommunication companies, computer firms and entertainment compa-
nies are merging and forming strategic alliances that re-map the information
terrain. The dynamism of the Tanzanian film market will therefore have to be
driven by innovation, as we have now started experiencing the domination of
western soccer leagues on all the television channels.
With the existing unhealthy relationship between television and film pro-
ducers, and the few and inaccessible film exhibition sites that are outside the
reach of the majority of Tanzanians, the result has been the problem of audience
development, and marketing of local films. This is exacerbated by the concen-
tration of theatres in metropolitan areas only, and the general lack of culturally
specific and community-based film exhibition points. What sometimes happens
is that television stations ask film-makers to give them their new film to be
aired free-of-charge in exchange for placing an advertisement for them.
However, with Kideo hall comes a phenomenon that could usher in the
growth of a new local cinema scene in the country. The existence of the Kideo
hall shows that the local film scene is now growing and the value of the local
audiences is identified and nurtured. This can be regarded as a key factor in
the development not only of the Tanzanian film industry, but also of the tel-
evision industry. What our survey has shown is that the Kideo phenomenon,
like its counterpart in Uganda (and in Kenya as well) is a large untapped dis-
tribution network of infotainment to underprivileged (grass root) commu-
nities and can be used and developed to serve the needs of integrated film,
television and other creative economy sectors (Bibanda survey 2006). Indeed,
the power to communicate must also be seen in the power to be seen, and
until Tanzanians are able to control the capacity and the extent to which they
see themselves on the various screens, the alienation of people from them-
selves (fostered by the initial subjection under colonization) will continue.
Indeed, the survey results enabled further investigation into demand trends
and the factors that influence them.
For example, we analysed future demand trends based on film quality given
the current industry trends. Most of the respondents (76 per cent) believed that
the demand for good-quality film would increase, while 20 per cent felt that the
demand for good-quality films would remain the same and 4 per cent felt that
the demand would decrease. The logical conclusion is that demand for good-
quality film will increase and demand for poor-quality will decrease. This trend
is expected, as the film industry continues to upgrade its standards to produce
higher-quality films. In the future, the focus should be on good-quality film.
Current industry trends that have increased the demand for films include
the introduction of television, the free market economy adopted in the 1990s
the recent influx of foreign soccer league matches on television, and the
importation of substitute films.
Therefore, based on the results of the surveys, very little bargaining power
is exerted along the value chain. At the level represented by vendors there is
little to no power. The films shown are not differentiated by cost in order
for buyers to switch from one film type to another. With a film importer
adding value to the film (through Swahili subtitling or through foreign-language
subtitling), bargaining power could possibly increase along the chain. From
the buyers perspective, very little, if any, bargaining power is exerted. There
does not appear to be one single retailer that purchases large volumes of films.
However, it should be noted that foreign importers were not included in the
surveys. It is possible that they would have some bargaining power over suppli-
ers, due in part to their large volume and customer exposure.
JAC 2.1_art_Mhando_03-26.indd 20 6/26/10 1:30:12 PM
Creative/Cultural industries nancing in Africa
21
Force 4: Threat of substitute products
The Tanzanian film industry has various potential substitutes. Following the
survey, the conclusion was that, in general, films that are a must-see at these
venues (both cinema hall and Kideo hall) range from Hollywood dramas, to
Hong Kong kung fu, to Nigerian dramas and Swahili-language films. The
new type of films that are shown also include the many soccer matches that
attract huge audiences. The English FA Cup, Union of European Football
Associations matches and African Club Championship matches are key
attractions at these Kideo venues. It is worth noting that during the World
Cup the fee is increased to between 300 and 1000 Tanzanian shillings, and
that the shows are always full. The number of video showings in the streets
also increased during this limited period. These were essentially one-off
business attractions. During such primetime shows the Kideo halls easily
fill up to their full capacity. That said, because of these distinctive products,
the Tanzanian film industry is perceived to be a niche in itself, because of its
many close substitutes. The industry also faces competition from soap operas,
which household television viewers watch on most of the television channels
in Tanzania. This also has an impact on the industry through viewer diversion,
thus affecting pricing.
Force 5: Rivalry among existing films
Porters Five Forces Model shows that rivalry among existing competitors can
be fierce. Companies can never stop learning about their industry, their rivals
or ways to improve or modify their competitive position.
When studying the Tanzanian film market, the survey provided us with
information about who the players in the film market are, and, by using a
few targeted questions, we obtained some information about the competitive
environment in the film industry.
Research respondents indicated that competitors are attracted to the
Tanzanian film industry because of two factors. Generic factors such as the
perceived uncompetitive nature of Tanzanian films offer loopholes for com-
petition. Specific factors for the film industry, such as the unavailability of
Tanzanian and Swahili films and the fact that this is a growing niche market,
could attract other competitors. This was clearly reflected in the market as
consumers freely switch from one film genre to another, thus showing that
there is a struggle to capture consumers for the Tanzanian film industry due to
the existing low switching costs.
As regards consumers, most stated that they preferred foreign films
because of their high-quality. However, it was difficult to contact GMC for
their reaction to this. Based on the responses from the survey, the level of
rivalry in the film industry is relatively high. One reason for this conclusion is
the high number of foreign films competing in the Tanzanian market.
The larger number of films available has increased rivalry because more
films now compete for the same consumers. The presence of Hollywood,
Bollywood and Nollywood films and soap operas from Latin America and Asia
creates a diversity of rivals. This rivalry has intensified, leading to a struggle
for market leadership. The low level of film differentiation between Nigerian
and Tanzanian films, however, creates an even higher level of rivalry. With
the Nigerian film industry selling a large quantity of films at lower prices,
this makes the Tanzanian film industry, which has higher production costs,
fight for this markets share. Only good marketing communication and good
JAC 2.1_art_Mhando_03-26.indd 21 6/26/10 1:30:12 PM
Martin R Mhando | Laurian Kipeja
22
relationships with the producers and consumers will ensure the protection of
the Tanzanian film industry from new competitors.
Additional market forces: Policy
Although government policy is not recognized as a force per se, the Five
Forces Model acknowledges that policy influences all the forces in the model.
Several policies were mentioned during preliminary interviews that were per-
ceived to have had some impact on the film industry. Those policies include:
Colonial-era controls and influences
The ban of television importation into Tanzania in the 1970s
The adoption of a free market economy
The establishment of MFUKO
These policies were all perceived to have some effect on the potential sup-
ply of, and the demand for, Tanzanian films. Through follow-up surveys and
interviews it was determined that the policies that were presumed to have the
greatest impact had little or no impact on the market.
The Tanzanian film industry (if there could be said to have been an indus-
try at any time) began in 1945 with the Bantu Kinema Experiments (Smyth
1985), during colonial rule. Later, the colonial government worked to manip-
ulate local film-making through infusing colonial ideologies. For example,
there was the Colonial Film Unit, which was the first training ground for the
budding and eventually trained film-makers of the future. These include Mzee
Cyril Kaunga, who was later trained in India and produced such films as Vita
vya Kagera (The Kagera War)(1989).
After independence, although there was the usual acceptance of film as a
tool for communication and more importantly for documentation, the govern-
ment did not fully engage with the film industry. The government was appre-
hensive of the production costs involved and the clear inferiority complex that
lay beneath the bureaucracy. Their thinking can be surmised as follows: Our
own film-makers would never be able to make a film like the James Bond
007 types, so why waste our energies and money. That was enough to kill
the industry. There were also ideological reasons that supported this sense
of self-denigration; these reasons were associated with the first president of
Tanzania, Julius Kambarage Nyerere, who was against the establishment of
television broadcasting in the country.
It was presumed that with the ban on television broadcasting, the demand
for films would impact the market in a positive way. However, several fac-
tors minimized the effect of this ban. First, although television had been
banned, foreign culture indoctrination was still readily available in the cinema
hall and video retail outlets. This provided the foreign film industry with an
opportunity to invade the local market (note the presence of Bollywood and
Hollywood films), shown through the demand for such films in the Tanzanian
market in the 1970s and 1980s.
Significant changes in film industry trends were seen in the mid-1980s
when Tanzania experienced the liberalization of the economy, associated with
the introduction of television channels. In a country that once had a thriving
and commercially viable distribution circuit for films, Tanzania has seen
the complete and total dismantling of cinemas, coming to rely entirely on
video distribution for visual entertainment in most of the major towns in the
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Creative/Cultural industries nancing in Africa
23
country. In the 1990s audience attendance at Tanzanian cinemas dropped to
its lowest level as a result of the popularity of television and a scarcity of good
films appealing to Tanzanians, to the extent that exhibitors had to close down
cinemas. Some independent cinemas in townships, such as Tivoli Cinema and
Liberty Cinema in Mwanza, were converted to offices, bars and churches. By
1988 there were eight cinemas in Dar es Salaam alone but attendance dropped
significantly, and there was a danger of the industry collapsing.
In the survey, respondents identified the establishment of television
channels and the languages and cultures shown in films as other reasons for
declining attendance. Most films communicated by means of filmic symbols
that had little multi-cultural communication value, thus undermining iden-
tity. This shows that Tanzanians wanted their ideals visualized in these films.
There is an idealistic conservatism in the country characterized by an attach-
ment to the past, to ideals of linguistic and cultural purity, and moral norms.
Together with the existing free market economy being associated with the
influx of commercial banks and finance institutions, there is still a limited view of
the importance and need for financing the film industry in Tanzania. At present
it is not possible to obtain bank loans, as most banks do not consider the film
business viable. This makes it hard to establish credit with financial institutions.
GMC seems to have obtained initial capital through self-financing or personal
loans. However, the free market economy approach has been coupled with a
subsidy structure supported by MFUKO. This institution was established in
the mid-1990s, with the objective of contributing towards a strong, competi-
tive and dynamic cultural sector with the capacity to promote national identity
and contribute towards overall national development and poverty alleviation
(MFUKO website). The creation of MFUKO was regarded as a landmark for the
Tanzanian film industry, with the underlying assumption that funding should
go towards all types of film, and that a diversity of film types would make the film
industry as a whole more healthy commercially and culturally. MFUKO is the
only film and arts development funding body in East Africa, and it has contin-
ued to play an important role in film development in Tanzania.
CONCLUSIONS
The value chain approach has helped to identify the segments that contribute
to the production of films and their distribution, as well as the actions needed
to support these segments. Through identifying the various and divergent
components of the industry, the value chain approach brings together stake-
holders from different sectors and at different stages, to create productive dia-
logues. Indeed, global integration is increasingly taking place through these
sorts of structured exchange relations.
The analysis of the competitive forces has helped us to identify the
resources and relationships needed to be successful in the film market.
Critical resources needed to successfully compete in the Tanzanian mar-
ketplace include access to capital and market, market knowledge (where and
how to sell films and videos that come from producers), financial resources
(even if it is possible to start small and grow the business in time), and the cul-
tivation of personal relationships among players in the market value chain.
To gain an edge over foreign films in the marketplace, producers must
build competitive advantages. A competitive advantage can be a better price
for the value offered, a higher and consistent quality, a recognized brand
name, or additional services (availability, on-time delivery, convenience and
JAC 2.1_art_Mhando_03-26.indd 23 6/26/10 1:30:12 PM
Martin R Mhando | Laurian Kipeja
24
reliability). Understanding of the coordination, control and relationships
within the market can also be a valuable competitive advantage.
Indeed we have found that film producers must drive the initiative and that
more investment should flow into marketing and distribution. A television part-
nership for film production is also crucial. A climate needs to be created for the
growth of small independent production companies by increasing the number of
productions that are commissioned. The establishment of a regular cycle of com-
missioning of works by all the broadcasters, perhaps twice a year, could contrib-
ute to this climate. Further, film producers must actively pursue co-production
treaties with fellow Tanzanian and other international film industries.
Concentrating on small market niches, knowing where the resource can
be found, having good management and a trained work force, building strong
relationships with producers and retailers/consumers (including televisions),
and watching for competition are some factors that help production compa-
nies to be successful in the marketplace.
This research has shed some light on the inner workings of the film indus-
try. We hope that this value chain study will assist the government, develop-
ment agencies, non-government organizations and organizations like ZIFF to
begin more thorough research and planning around the film industry from a
local perspective and, in this way, engage with the entrepreneurial spirit that
remains hindered by both fear of the globalized industry and its own insular
and unethical trade culture.
ACKNOWLEDGEMENTS
This article would not have been possible without the financial and concep-
tual support of The Swiss Agency for Development Corporation, Murdoch
University and the Commonwealth Foundation. The authors take responsibility
for any degree of inadequacy in the article and are grateful to all who contrib-
uted to the research, especially Daniel Manege and Farida Nyamachumbe.
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Knowledge Economy, in P. Sheehan, Xue Lan, B. Grewal and F. Sun
(eds), Chinas Future and the Knowledge Economy, Melbourne: Centre for
Strategic Economic Studies (English).
JAC 2.1_art_Mhando_03-26.indd 24 6/26/10 1:30:12 PM
Creative/Cultural industries nancing in Africa
25
SUGGESTED CITATION
Mhando, M. R. and Kipeja L. (2010), Creative/Cultural industries financing in
Africa: A Tanzanian film value chain study, Journal of African Cinemas 2: 1,
pp. 325, doi: 10.1386/jac.2.1.3_1
CONTRIBUTOR DETAILS
Martin Mhando is Associate Professor of Media Studies at Murdoch University
in Australia. He is Chair of the Screen and Media Program and heads the
Participatory Media Hub of the National Academy for Screen and Sound at
Murdoch University. His study areas include indigenous cinema and indig-
enous knowledge. He is also Festival Director of the Zanzibar International
Film Festival, Zanzibar, Tanzania and the inaugural Festival Director of the
Armadale International Film Festival, Perth, Australia.
Contact: Murdoch University, South Street, Murdoch, 6150 Western
Australia.
E-mail: m.mhando@murdoch.edu.au
Laurian Kipeja is a Marketing and Resources Manager at the Zanzibar
International Film Festival (ZIFF). Kipeja holds a Masters Degree in events
management and marketing from the Norwegian University of Sport. He is
also the director of a marketing services company, Micronet Tanzania Ltd. His
interests include film marketing and distribution and festival management.
Contact: P.O. Box 3032 Zanzibar, Tanzania.
E-mail: marketing@ziff.or.tz
JAC 2.1_art_Mhando_03-26.indd 25 6/26/10 1:30:12 PM
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