Khanyiselani Art Studios Business Plan Targets Youth Employment

Isibindi Art Studios Business Plan
[Type text]2015
Khanyiselani Art Studios
Business Plan
Prepared by: Zupi Industries (Pty) Ltd
Khanyiselani Art Studios is a creative arts development project targeting out-of-
school and unemployed youths to attract them to the creative arts industry sector.
The project aims to at empower creative artists and communities from Kokstad and,
more broadly, the Harry Gwala district to tell their own stories, as well as own and
control communication mediums, and to participate in the mainstream
entertainment industry. The vision is to build an entertainment economy that acts as
a catalyst for employment creation and skills development through establishing
Kokstad as a leading entertainment production and tourism destination.

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"Opportunity is
missed by most
people because it
comes dressed in
overalls and looks
like work."
-Thomas Edison

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1.0 Executive Summary…………………………………………………………………………..5
1.1 Objectives……………………………………………………………………………..6
1.1.1 Fighting Economic Exclusion through Creative Arts Development...6
1.2 Mission………………………………………………………………………………....7
1.3 Key to Success………………………………………………………………………..8
2.0 Project Summary………………………………………………………………………………8
2.1 Project Start-up Summary……………………………………………………………9
2.2 Company Location and Facilities……………………………………………………11
3.0 Services…………………………………………………………………………………………11
3.1 Service Description…………………………………………………………………….13
3.2 Project’s Unique Value Proposition…………………………………………………..14
3.3 Enterprise and Entrepreneurship Development…………………………………….15
3.4 Future Services…………………………………………………………………………15
4.0 Market Analysis Summary
4.1 Background on Greater Kokstad Municipality……………………………………….16
4.2 Map of Kokstad………………………………………………………………………..17
4.3 The Opportunity………………………………………………………………………18
4.4 Economic Analysis…………………………………………………………………..19
4.5 Growing the Creative Industries……………………………………………………20
4.6 Requirements for a Sustainable Creative Arts Industry in Kokstad……………21
4.7 The Three Project Success Factors………………………………………………21
4.8 Proposed Start-up Programmes for KAS………………………………………...21
4.8.1 5 Minute Film Project………………………………………………….22
4.8.2 Kokstad Film & Television Commission……………………………..22
4.8.3 Labour base Improvement Programme……………………………...22
5.0Project Implementation Plan……………………………………………………….23
5.1Project Management………………………………………………………...23
5.2Project Consultants ………………………………………………………….24
5.3Project Steering Committee…………………………………………………25
5.4Operational Plan……………………………………………………………..26
5.5Operational Plan – Process Flow Diagram……………………………….27

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5.6Project Steering Committee………………………………………………28
6.0The Future of the Kokstad Music, Film and Television Production Sector….28
6.1 Kokstad as a Music, Film and Television Production and Tourism Destination..29
6.2 The Growth Imperative……………………………………………………….30
6.3 Market Segmentation…………………………………………………………31
7.0 Distribution and Exhibition……………………………………………………………30
7.1 KwaZulu-Natal Film Commission……………………………………………31
7.2 Digital Film Distribution……………………………………………………….32
7.3 Digital Screens by Operator…………………………………………………32
7.4 Number of Cinemas per Province…………………………………………..32
7.5 The DVD and Video Industry………………………………………………..33
7.6 DVD Rental Outlets…………………………………………………………..33
7.7 Provincial Spread of DVD Rental Outlets………………………………….34
7.8 South African Programming on Television………………………………..34
7.8.1 Public Broadcasting Services………………………………….34
7.8.2 e-TV………………………………………………………………35
7.8.3 DStv (Multichoice)………………………………………………35
7.8.4 Community Broadcasting Services……………………………36
7.9 Television Audience Share………………………………………………….37
7.10 Digital Migration………………………………………………………….37
8.0 Economic Contribution……………………………………………………………….37
8.1 Target Market Segment Strategy………………………………………….39
9.0 Strategy and Implementation Summary…………………………………………..39
9.1 Pricing Strategy……………………………………………………………..39
9.2 Sales Strategy………………………………………………………………40
10.0 Management Summary………………………………………………………..40
10.1 Recruitment Strategy………………………………………………….40
10.2 Financial Management ……………………………………………….41
11.0 Project Organisational Structure……………………………………………..41
11.1 Television ………………………………………………………..41
11.2 Digital Distribution…………………………………………………….43

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11.3 Khanyiselani Art Studio’s Integrated Services Model………………43
11.4 Value-Chain Enterprise Development Opportunities……………………...44
11.4.1 Advertising Agencies…………………………………………………44
11.4.2 Television Commercials………………………………………………45
11.4.3 Events Management………………………………………………….45
11.4.4 Catering Services……………………………………………………..46
11.4.5 Digital Marketing………………………………………………………46
11.4.6 Beauty Services……………………………………………………….46
11.4.7 Fashion Designers…………………………………………………….47
12.0 Management Team …………………………………………………………………….47
12.1 Key Job Descriptions…………………………………………………………..47
12.2 Personnel Plan…………………………………………………………………51
12.3 KAS’s Technology and Staff Plan……………………………………………52
12.4 Skills /Roles Targeted for Development…………………………………….52
13.0 Skills Development Initiatives…………………………………………………………53
13.1 Film Education and Training in South Africa………………………………..53
13.2 The South African Qualifications Authority (SAQA)………………………..54
13.3 Sector Education Training Authorities……………………………………….54
13.4 On-the-Job Training……………………………………………………………54
13.5 Mentorship………………………………………………………………………55
13.6 Learnerships…………………………………………………………………….56
14.0 Financial Plan……………………………………………………………………………56
15.0 Conclusion………………………………………………………………………………..57
16.0 Appendix 1A................................................................................................58
17.0 Appendix 1B………………………………………………………………………………60

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1. Executive Summary
Khanyiselani Art Studio is a local economic development, NGO-led initiative aimed at
drawing a significant number of unemployed Kokstad youths into productive work in the
creative arts sector. The aim of the studio is to empower independent creative artists through
the establishment of an integrated music, film and television studio at Khanyiselani Resource
Centre.
The Khanyiselani Art Studio project calls for the establishment of an integrated media studio
covering music, film and television production in Bhongweni to targeting unemployed and out
of school youths. Although Khanyiselani is the project owner, it is the youth of Kokstad that
will benefit from the facilities, equipment and support services provided by the studio.
Khanyiselani is a community centre whose role is to support social development in general
and amongst youth in particular.
Many youths who operate in the informal creative arts market, and hence do not earn a living
from their works, expressed the view that their socio-economic conditions would be
materially improved if they had access to professional production equipment, technicians
and skilled marketing agents to promote their works.
The ultimate objective of the art studio is to provide arts with professional music recording,
film and television equipment so they can enter the formal entertainment industry. Moreover,
the art studio aims to contribute substantially music, film and television production education
and skills development amongst the youth of Kokstad. Khanyiselani Art Studios will further
invest human and capital resources towards enterprise development initiatives within the
creative sector through targeted enterprise support programmes supplying goods and
services to artists and production companies operating in the creative sector – in Kokstad
and beyond.
The long term goal is for creative artists, as well as skilled and semi-skilled youths, to take
advantage of opportunities within the creative sector. The Khanyiselani Arts Studios’
intention is to advances the spirit of entrepreneurship, community-led employment
generation initiatives and utilizing innovation to add value to economy of South Africa.

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To fund the studio’s development, Khanyiselani plans to engage all three spheres of
government, as the initiative has the potential to provide employment opportunities and skills
development to the unemployed in general, and youths in particular.
1.1. Objectives
Khanyiselani Art Studios’ founding objectives are:
 Develop an integrated music, film and television production studio;
 Establish a thriving creative arts industry in Kokstad and Harry Gwala; and
 Promote entrepreneurship amongst unemployed and out-of-school youths.
1.1.1. Fighting Economic Exclusion through Creative Arts Development
In a country like South Africa, where there are significant challenges of
unemployment, poverty and inequality, it is critical to understand the nature and
extent of barriers to entry in the economy, in order to ensure that progressive steps
are taken to systematically remove these barriers and equip our people with
economic participation tools.
Today, across the private and public sectors, the possession of a post basic
education qualification is increasingly being listed as a requirement for employment.
This is true across all industries and sectors of the South African economy, and this
poses a great challenge for all development agencies and government. The history
exclusion of the black majority from quality education and the spatial dislocation of
millions in the homelands mean that South African citizens lack some of the basic
skills and expertise required by the globalized economic systems.
The Khanyiselani Studios initiative is truly innovative in its approach. The studio aims
to tap existing skills, creative arts, to drive the sustainable development of small
business enterprises supplying goods and services into a thriving local creative
industry that provides employment to skilled, semi-skilled and unskilled workers
across the value chain.
Moreover, youths can easily acquire the skills from existing musicians, producers,
cinematographers, graphic designers and other expertise through undergoing
apprenticeships with experienced entrepreneurs already operating successfully in

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these fields. Should a small business or group of youths decide to acquire formal
qualifications, the board of Khanyiselani Centre and the managers of the studio will
organize the writing of trade tests by these apprentices to assist them acquire formal
qualifications
The socio-economic demographics of the youth in Kokstad reflect the demographics
of the youth in KwaZulu-Natal as a whole. The town has high incidences of child
headed households, high basic education drop-out rates and a disproportionately
high, relative to the national average, adult illiteracy rate. All of these combine to
create a vicious poverty cycle which, when left unchecked, becomes
intergenerational with the children facing the same or worse socio-economic
conditions as those faced by their parents.
These challenges manifest themselves most in social ills afflicting the community,
and the townships of Bhongweni, Horseshoe, Bambayi, Shayamoya, Franklin and
Swartberg in general, and youths in particular.
The occurrence of high numbers of poor households, particularly child headed,
orphaned and single parent households, means that many youths are unable to
leave the area to pursue economic opportunities outside Kokstad because many
have to support their families who rely on them for financial resources and survival.
1.2. Mission
Khanyiselani’s Art Studio’s (KAS) mission is to offer unemployed and out-of-school
youths a second chance at developing the skills necessary to join the formal economy
through facilitating the establishment of a local creative arts industry. The studio will
accomplish this by providing the youth of Bhongweni, Horseshoe, Shayamoya, Bambayi
and other township youths with access to professional music, film and television
production equipment and facilitates at the Khanyiselani Resource Centre.
Furthermore, KAS plans to target youth-owned entrepreneurs supplying products and
services to independent artists’, groups and production companies for enterprise
development support services. The projects aims to assist young entrepreneurs formally

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register their enterprises, so they run their businesses professionally and receive
business development support.
1.3. Key to Success
The key to the success of the Khanyiselani Art Studio are:
 Professional music, film and television production equipment and facilities;
 Management possessing excellent production skills and experience;
 Leveraging clustering of music, film and television production into one site to
reduce costs, improve sharing and promoting collaboration.
 Investing in building the capacity of the local informal sector entertainment
industry through education and skills development, enterprise and artist
development programmes.
2. Project Summary
Khanyiselani Art Studios is a green field creative industry development project proposed to
be established at the Khanyiselani Resource Centre. The Khanyiselani Resource Centre is
an established non-government organization that is based in Bhongweni Township, Kokstad
and has been operating for over a decade.
Kokstad town has many unique and attractive qualities, with easy access to social facilities
and shops, and strong links to nature and the surrounding farmland. However, it is spatially
and socially fragmented with disparities between the ‘old’ settlements and the newer housing
projects developed after 1994 as part of government’s Reconstruction and Development
Programme. The second group experiences challenges in securing employment or any
sustainable forms income generating forms of economic activity. This is caused by a
confluence of issues but can mainly be attributed to the high percentage of unskilled labour
amongst both adults and youths.
Kokstad town has attractive prospects for economic growth given the town’s unique spatial
location. The tourism sector has the potential to be one of the highest non-state sector
employers and contribute to local economic growth and attract investment into other sectors
of industry.

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However, and notwithstanding these opportunities, the tourism sector underperforms and is
spatially dislocated from the poorest communities’ of Kokstad. Private tourism
establishments are able to attract game, hunting and sport event tourists but the benefits of
these initiatives do not directly benefit the poorest communities. Given that the government
has identified South Africa’s primary obstacles to socio-economic transformation as
unemployment, poverty and inequality, the town of Kokstad is compelled to develop
development and growth strategies that benefit more people and remove barriers to enter
the mainstream economy.
The establishment of a local creative arts industry is seen as a potential solution to the
distorted economic development patterns of the past. This is because of the low barriers to
entry for unskilled, semi-skilled and unemployed graduates with creative skills to be able to
establish businesses and supply products and services into the production companies.
The Khanyiselani Art Studios project is unique in that it acts as an incubator of art and non-
art related enterprises. The studio will promote opportunities for entrepreneurs in various
sectors and industries that require whatever skills unemployed and under-employed youths
possess. Moreover, the studio will also engage government and private training providers on
education and skills development opportunities relevant to creative arts in general and
enterprise development in particular.
Therefore the studio will not function exclusively to promote, produce and distribute
entertainment content. Beyond the core function of the studio, many more opportunities will
be unlocked for youths to partake in formal economic development and participation
initiatives. The National Development Plan calls for the creation of 11 million jobs by 2030,
with small businesses contributing the majority. In order to reach this target, all development
agencies and organization need to prioritise entrepreneurship development.
2.1. Project Start-up Summary
The total start-up expense (including professional fees, studio design and other
expenses) comes to R 1,882,891. Start-up assets required include music recording
studio, and film and television production equipment worth studio and related equipment

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worth R 1,083,980 and professional fees (project conception, business plan development
and project implementation) of R 182,960.
2.1.1 Table: Project Funding for Khanyiselani Art Studio
Requirements Cost
Software products R 43,667
IT Equipment & Installation R 68,335
Stationery R 12,560
Marketing (incl. Website & Signage) R 37,858
Office & Studio Furniture R 45,790
Studio Fittings R 173,660
Electrical Works R 126,340
Electrical Appliances & Accessories R 78,216
Legal R 29,525
Professional Fees R 182,960
Music recording studio1 R 635,000
Film & Television equipment2 R 599,510
Total Project Start-up Expenses R 2,033,421
Proportional Representation of Expense Items
1 See Appendix 1Afor full list of music recording studio equipment.
2 See Appendix 1B for full film and television equipment list.
Project Start-up Costs
Stationary
Marketing
Office Furniture
Studio Fittings

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Film and television equipment is the single largest expense item, followed by the music
recording studio, studio fitting, professional fees, office furniture, stationery, marketing and
legal expenses.
The Khanyiselani Resource Centre is the project owner. The centre will own, operate,
manages and maintain the art studio for the benefit of Kokstad’s youth involved in the
creative arts industry.
2.2. Company Location and Facilities
The art studios will be situated on the Khanyiselani Resource Centre offices, in
Bhongweni Township, which is a 5 minute drive from the Kokstad CBD.
The facilities of the studio will feature:
1. Professional Music Recording Studio;
2. Film and Television Production Equipment; and
3. Post-Production Editing Room – for film and television productions.
3. Services
Khanyiselani Art Studio will provide professional music, film and television production
services at low prices to the youths of Kokstad. The studio will also provide lessons to
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total Project Expenses
Film and Television
Equipment
Music Studio
Professional Fees
Legal
Studio Fittings
Office Furniture
Marketing
Stationery

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out-of-school youths on how to use the studio’s equipment and facilities to generate
oncome generating activities.
In developing the arts in Kokstad and develop entrepreneurs in the entertainment and
creative arts industries. Zupi Industries, a specialist fundraising consultancy, was
mandated to prepare this business plan document so to create a vibrant local creative
arts media production economy. Khanyiselani is a non-governmental organisation based
in Kokstad focused on supporting community based workers, orphaned children and out
of school youths.
From creative jobs and youth entrepreneurs supplying services and products to the
music, film and television productions at Khanyiselani Art Studio, the vision is to make
the youth of Kokstad and beyond recognise and take full advantage of opportunities in
the creative industries. The studio will act as an incubator of critically acclaimed
musicians, television and film producers, directors and art directors.
Moreover, the development of a thriving television and film production industry in
Kokstad is expected to yield additional opportunities in the areas of entertainment
tourism, as the locations of the region will be featured prominently in television and film
productions.
Khanyiselani Art Studios is a creative arts movement that will owned by the youth of
Kokstad, the primary role of Khanyiselani Community Centre is to facilitate the
establishment of the basic infrastructure, maintain the facility and coordinate enterprise
development and skills development initiatives to build capacity of creative artists to
empower them to earn sustainable income from their talents.
The East Griqualand landscapes, people and way of life will appear on televisions, movie
screens and on digital devices the world over. Fans of Kokstad productions will boost
tourism in pursuit of an “authentic prairie” experience. The work of Kokstad film crews
and technicians will grace the credits of film viewed in leading international film festivals
and extract addition investment into the local film and television production industry.

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Khanyiselani Art Studio as a socio-economic development initiative was conceived as
strategy to build infrastructure for creative artists on the one hand, and to promote
entrepreneurship development on the other. The board of Khanyiselani sort a solution
some of the issues afflicting Township communities’ within Kokstad.
The Arts was chosen for its closeness and relevance to young audiences, as well as for
its ability to attract out of school and unemployed youths into the productive economy. To
achieve this grand vision of moving the Townships of Kokstad forward requires the
development of shared socio-economic goals that are meaningful to the people of our
communities and that have a direct impact on decreasing the high levels of
unemployment amongst the youth.
At the core, the over-arching socio-economic development goal of the Khanyiselani Art
Studios is to foster resilience and agility in the face of high levels of unemployment,
HIV/AIDS and number of unskilled youths and adults within the community of Kokstad
and more generally within our Harry Gwala district municipality. The strategies and plans
contained in this business plan are intended to create a solid foundation for the radical
transformation of the livelihoods of ordinary members of our community and breaking
through the barriers of economic exclusion in all its manifestations for an equal and
prosperous community.
3.1. Service Description
The Khanyiselani Art Studio initiative is meant to provide crucial infrastructure to the
youth of Kokstad, and Harry Gwala district, to enable them to produce professional
music, film and television productions. The project owner, Khanyiselani Resource
Centre, is in the process of seeking grant funding to fund the project as a youth-focused
creative arts and enterprise development project.
3.2. Project’s Unique Value Proposition
Unique to Kokstad, the studio will develop creative industry education, skills, enterprise
and supply-chain development programmes that aim to integrate unemployed and out-
of-school youths into the formal economy.

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KAS is structured as a creative arts-focused incubator programme that will empower
youths to take the charge of their lives through guiding them to innovative income
generating opportunities within the creative industries.
3.3. Enterprise and Entrepreneurship Development
Khanyiselani Art Studios is a broad enterprise and economic development project aimed
at building the capacity of independent artists and assisting entrepreneurs operating
within the creative arts to establish sustainable livelihoods through facilitating the
development of a vibrant entertainment economy within Kokstad – as well as throughout
the Harry Gwala district.
Moreover, Khanyiselani will provide an environment where artists and local
entertainment entrepreneurs will receive critical training and skills development support
to ensure that they remain nationally competitive through providing them with a well
capacitated media development, promotion and distribution infrastructure that can be
used by all the youths of the district.
The Khanyiselani recording studio main thrust is to create an environment where
independent creative artists are able to earn sustainable incomes and lead dignified lives
from their work as artists. The Khanyiselani Centre recognises, and deals on a daily
basis with, the many social ills affecting the communities of Bhongweni, Shayamoya,
Horseshoe, Bambayi, Franklin and many other townships throughout the district. The
vision of the art studio is to empower out of school and unemployed youths through
building an entertainment economy in the district around the creative arts.
Through our research, we have identified then following opportunities within the creative
arts industries:
 Licensing of locally based music, video and film entertainment content ;
 Developing a strong distribution network for various music, film and dramatic art
genres to ensure that our artists’ entertainment is highly sought after within their
respective markets;

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 Augment these solutions with highly targeted campaigns aimed at promoting the
local entertainment industry in South Africa and positioning Kokstad as a highly-
competitive entertainment tourism destination.
The Khanyiselani Resource Centre board believes these are the more urgent capacity
issues which need to be addressed to provide a supportive environment for existing
independent artists. Furthermore, the initiative will have a much broader positive social
and economic development impact for the local and regional economy through building
Kokstad as a progressive entertainment content production destination in South Africa.
Research further points to boundless opportunities for both creative artists as well as
unemployed graduates, unskilled workers and other service industries within Kokstad
that stand to benefit from a more prosperous entertainment industry in Kokstad. The
benefits of a thriving music, television and film production town are shared by other
sectors of economy through the supply of labour, products and services to musicians,
production crews, film companies and distributors.
It is also clear that Kokstad, and the broader Harry Gwala district in general, possesses
great depth of talent and as demonstrated by the sheer number of high-calibre artists’
living within the Kokstad and the Harry Gwala district.
Therefore, and in keeping with Khanyiselani’s founding mission, we are committed to
working with all social partners to ensure that an environment is created to ensure that
Kokstad becomes a nationally recognised creative arts production destination.
As an organisation, Khanyiselani is very clear on how it aims to accomplish these bold
targets. This business plan provides some of the financial, production and marketing
resources the centre needs to bring us closer to our mission of building a sustainable
entertainment industry in Kokstad for current and future generations of creative artists’.
3.4. Future Services
In the future, KAS will apply to the Department of Higher Education & Training to become
an accredited trainer with the ICT and Motion Picture SETAs. It is important that skills

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within the creative industry are prioritized and community development organizations
lead the charge in being accredited as training providers.
Furthermore, in future KAS will promote the services of Kokstad-based graphic
designers, musicians, film and television production crews and other enterprises relevant
to the creative industry. This part of KAS’s vision of promoting Kokstad a leading
entertainment production and tourism destination by 2030.
4. Market Analysis Summary
KAS will focus on promoting the economic, social and personal development opportunities
available to young people who pursue careers in the creative arts. The plan calls for the
targeting all artists and for the arts to be used to combat some of the many social ills
afflicting Kokstad.
4.1. Background on Greater Kokstad Municipality
Greater Kokstad Municipality is located to the South western tip of KwaZulu-Natal
Province. The municipality is bordered by Matatiele Local Municipality and Lesotho to the
West, KwaSani Local Municipality to the North, Umziwabantu Local Municipality to the
South East and Umzimvubu Local Municipality (Eastern Cape Province) to the East. The
N2 traverses the municipality linking KwaZulu- Natal with the Eastern Cape Province.
Greater Kokstad Municipality has three urban nodes – Kokstad town, Swartberg and
Franklin. Kokstad town is the major economic centre due to its strategic location in terms
of transport network, economic and administrative activities. The national route (N2) links
the area to the major economic nodes such as Port Shepstone and Durban in the
KwaZulu Natal Province and Mthatha in the Eastern Cape Province. The R56 links
Kokstad to Ixopo and Pietermaritzburg. The strategic location of Kokstad creates
opportunities for economic growth.
The Khanyiselani Art Studios will be located in Bhongweni Township which is situated
just south of the Kokstad town CBD across the river. The Greater Kokstad municipality
has eight (8) wards; the project will be located in ward 8. The Khanyiselani Art Studio will
share the premises with its mother body, the Khanyiselani Community Centre. The
centre is located within a 500 m radius of Carl Malcomas Secondary School (grade 6-

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12), itself across the road from Xolo Xolo Senior Primary School (grade 5-7) and Kokstad
Public Primary (grade R-4)
Kokstad’s population is relatively young with 87% of the population below the age of 39.
The majority of the economically active population falls within the youth category; aged
14-35 which coincidentally experiences disproportionately bares high burden
unemployment.
The studio will generate creative industry jobs and retain youth through increased
employment; it will attract high-profile projects with a need for Kokstad’s goods and
services, all of which contributes to the building of Kokstad’s national brand. Other
positive contributions include the cultivation of indigenous storytellers and the fostering of
a culture of innovation and entrepreneurialism. The sector’s performance will help to
define a town that makes citizens of the province and the nation proud.
Notwithstanding these opportunities, the sector faces challenges in developing the
industry which requires clear planning and the development of the requisite infrastructure
to meet the standards of a modern creative industry.
4.2. Map of Kokstad
Source: Google Maps

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4.3. The Opportunity
Given Kokstad’s strategic spatial location, the town continues to hold great promise as
an entertainment production and tourism destination. The region enjoys unique tourism
assets that can be leveraged by a thriving local film and television industry to attract
more tourists to visit these unique attractions as well as to witness the filming of film and
television productions in Kokstad.
Currently, Kokstad a well-developed tourism accommodation infrastructure as a result of
investments made ahead of the 2010 FIFA World held in South Africa. Therefore, the
studio will be in constant engagement with the Kokstad Tourism Organisation about
investigating areas of mutual interest going forward.
The challenge with this opportunity is that many township youths in Kokstad are unable
to take advantage of opportunities in the creative industries sector because they do not
possess sufficient education, skills and lack the basic infrastructure to participate.
Many youths come from poor backgrounds and are thus unable to afford the expensive
professional music and videography equipment required to start out as independent
musicians, film makers and other media related enterprises.
The Khanyiselani initiative aims to build the infrastructure and then subsequently embark
on a concerted effort to promote the creative industries as an alternative to seeking
employment, encourage skilled entrepreneurs to take advantage of entrepreneurial
opportunities within the space and facilitate education and skills development amongst
participants who want to acquire formal qualifications.
It was from this backdrop that the Khanyiselani Community Centre in Bhongweni, one of
the poorest townships in Kokstad, decided to embark upon a project to identify youths
from disadvantaged backgrounds to be given an opportunity to pursue career and
entrepreneurship opportunities within the entertainment and media industry.

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Map courtesy of Google Maps
4.4. Economic Analysis
The area has three potential economic growth pillars, Tourism, Agriculture and Industrial
and Manufacturing. Agricultural production is the most popular compared to the other
pillars. This is evident from land coverage assessment in the area which shows that the
highest land utilisation is agriculture. In addition to these sectors, entertainment tourism
has the greatest potential for growth going forward. However, to realise this growth
potential, there needs to investment in entertainment production, the development of
uniquely local entertainment assets and for the town to be positioned as the foremost
music, film and television production and tourism region in KwaZulu-Natal outside of
Durban.
The foundation of this vision lie in the diverse creative artistic talents which are available
in Kokstad, a reflection of the diverse groups and cultures residing in Kokstad in line with
the historical development of Kokstad as a town of migrants from all directions, races
and cultures.
Beyond the building the capacity of the local music, film and television creative
industries, Kokstad is facing challenges in terms unemployment and highly dependent on
the state for the provision of employment, social and basic services. The board of
Khanyiselani articulated that they have a vision of Kokstad as a progressive destination

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in South Africa that produces entrepreneurs in all sectors of the economy and a youth
that is pioneering in the creative arts and beyond.
Kokstad town’s regional service status is well established. However, and in the face of
ever increasing emigration from surrounding rural areas, it is imperative that local
economic development programmes targeting youths be established to reduce social ills,
criminality and build social cohesion amongst the diverse groups residing in Kokstad.
The Khanyiselani Art Studio project looks to pioneer new sectors and industries that can
be promoted to youths who are self-starters and motivated to become their own
liberators.
4.5. Growing the Creative Industries
Kokstad-based producers have the potential to attract tens of hundreds of thousands of
rands of regional and national investment to the Harry Gwala district every year. The
goal is to attract 90% of music, film and television production funding from outside the
Harry Gwala district. This requires Kokstad producers to be promoted across South
Africa for their work to be recognised on the national entertainment map. The local
production sector must further develop cost-competiveness and develop a unique set of
skills that can be used by non-Kokstad production houses that would be attracted by
Kokstad’s unique geographic location and a highly-competent base of technicians,
producers and crews.
However, long-term success in film and television production is increasingly a function of
the ability to maximise the sales of a local copy-righted content with high quality
production values and strong authentic stories. Production development timeframes can
be rationalised through increasing investment in integrated studios such as Khanyiselani
Art Studios, where there is an easy cross-pollination of production talent and expertise.
Such a strategy will increase the competitiveness of Kokstad music, film and television
productions in the national entertainment market. Moreover, an integrated production
value-chain allows producers to work collaboratively to secure investment from diverse
sources as well as motivate each other to improve their business management practices.

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4.6. Requirements for a Sustainable Creative Arts Industry in Kokstad
The predominant strength of the creative industry sector is the existence of what has
been described as the “three success factors”.
 Khanyiselani Art Studios;
 High quality content produced by independent artists; and
 Enterprise Development
4.7. The Three Project Success Factors
Each success factor is integral to the sustainability of the sector and each has areas where
improvements can be made or new ideas can be implemented. Within each factor, there
needs to be a clear strategy to take the creative arts to the next level.
This business plan prioritises the development of these three factors and proposes
strategies that can be implemented by the studio’s management ensure the project attains
its mission and objectives.
4.8. Proposed Start-up Programmes for KAS
4.8.1. 5 Minute Film Project
Enterprise
Development
Independent
Artists
Khanyiselani
Art Studios

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 Initiate a competition at schools where students are asked to use their cell
phones to produce a 5 minute film.
 The winning film in each school will be awarded a R1000 as well as being
given the opportunity to write and direct a 35 minute short film project with the
assistance of Khanyiselani Art Studios.
 The aim of this project is to promote the film production amongst youths and
to promote the services offered at the studio to school-going teenagers.
 The Khanyiselani board wants to see even high school students being
actively involved in music, film and television productions.
4.8.2. Kokstad Film & Television Commission
 Lobby for policies, by-laws and incentives to make film and television
productions competitive with other towns and cities in South Africa.
 Represent all film and television producers in government and other
structures.
 Be composed of local film and television producers/production houses.
 Examine opportunities to advance the sector in Kokstad and beyond.
 Explore post production, animation and digital media outsourcing
opportunities with other major film and television producers/production
houses from across South Africa.
 Continue monitoring, assessing and marketing Khanyiselani’s competitive
position
4.8.3. Labour base Improvement Programme
 Increase training and career development opportunities through collaborative
partnerships with educational institutions, unions, guilds and Motion picture
SETA
 Expand business and management training for producer, artists and
designers.
 Continuous local industry labour base education and skills development.
 Expand access to information through free broadband-enabled e-learning
programmes.

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 Equip local artists, musicians, designers, marketers and producers on
project/production budgeting to develop programming of high quality output.
5. Project Implementation Plan
The project will be built at the Khanyiselani Community Centre in Bhongweni
Township, which is centrally located and easily accessible to the youths of
Bhongweni, Horseshoe, Bambayi and other townships via the main road from
Kokstad CBD. Furthermore, Khanyiselani has a history of conducting arts
development initiatives on their premises. They had to cease these activities
however, when they had to create space for an Early-Childhood Development
Centre.
The project has a budget of R 2,033,421.
The project calls for:
 The establishment of a music recording studio;
 Building of a television editing and production room;
 The acquisition of mobile film and television production equipment;
 Training of managers to handle technical equipment;
 Purchase and installation of film and television equipment storage units; and
 Entrepreneurship development programmes targeting young people.
5.1.Project Management
The project will be managed by the board of Khanyiselani, with the board
delegating specific tasks and activities to the project coordinator and lead
consultant, Zupi Industries, until the art studio is fully established at which point a
permanent executive team will be appointed by the board to conduct the day-to-
day operation of the studio.

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It is envisaged that once funding has been approved for the project, the
Khanyiselani board, at a sitting after securing approval, select a project steering
committee. The steering committee with be composed of 3 people, with the
project Coordinator as an ex officio member with no voting or decision making
rights.
It was determined prudent to allow the steering committee to direct the process
because it is a representative structure and is elected by members of the War
Room who know the needs of their community. The steering committee is
empowered to make financial, candidate selection and other operational
decisions after consulting with the project coordinator and the appointed service
provider that are in the best interests on the Khanyiselani Community Centre as
part of its normal course of business.
5.2.Project Consultants
The project Consultants, led by Mr Ntuthuzelo Mdledle, is only serving in the role
of coordinator. Mr Mdledle is the managing director of the project’s fundraising
consultants, Zupi Industries, and is a resident of Kokstad that has been placed in
charge of championing the project and securing funding for the studio.
In addition to function and tasks delegated to the consultant by the board, the
coordinator will also be responsible for preparing reports for project funders and
keeping detailed records of all financial transactions.
It will be the responsibility of the coordinator to:
 Prepare a business plan.
 Brief and update the board on project status.
 Review performance of the steering committee.

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 Draft finalised terms of reference to appoint service providers as well as
assist the board assess suppliers of equipment and in appointing
managers of the completed studio.
 Interact with service provider on issues of non-contract nature.
 Prepare service level agreement for signing by the service provider.
 Oversee compliance of the service to the terms of reference.
 Liaise with all stakeholders to ensure smooth implementation of the
project.
 Prepare and present reports to project funders as and when requested.
5.3.Project Steering Committee
Between board meetings, the project steering will be the supreme decision-
making body. After considering the submissions by board members’, the project
coordinator and any representations that might be made by any of the project
funders, the steering committee will select draft appoint a service provider/s and
suppliers of equipment after a normal competitive process – to be determined by
the board and in line with conditions set by project funders.
It is very important to note that the project budget is a close estimate to establish
feasibility, the final cost will not exceed R 1,882,891 and all service providers and
suppliers will have to deliver within this budget limit.
In addition, the project steering committee, working with the project coordinator
will be responsible for vetting service providers and suppliers to ensure they meet
all requirements, deliver under budget and up standard.
The Khanyiselani board is committed the community of Kokstad and has
successfully bringing about social support programmes such as home based
care, foster care services and feeding teenagers from poor households, the
studio will managed applying the values of Ubuntu and community.

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The project aims to reduce employment amongst the youth, increase the
economic value add within the local creative industry and contribute towards the
creation of downstream jobs and enterprise opportunities.
Moreover, the project also hopes to launch the careers of many local artists. The
infrastructure that will be built at Khanyiselani Community Centre is meant to
benefit all the residents of Kokstad and, more broadly, the youth of the Harry
Gwala District.
5.4.Operational Plan
In previous years, Khanyiselani Community Centre hosted various art exhibit and
training programmes on its premises. However, due to the growth of the centres
Early Childhood Development centre, management and the board were forced to
cancel the music, drama and poetry activities that took place in the hall.
The reputation of the centre is well known amongst creative artists in the town of
Kokstad and succeeded in producing some of the town’s most prominent poets,
musicians, actors and dancers. This proud tradition will be the foundation on
which the new Khanyiselani Art Studios will be built for an even brighter future for
the next generation of creative artists and entrepreneurs’.
The goal is to empower youths with the basic infrastructure for them to be able to
produce world-class entertainment content and be able to build sustainable
livelihoods for themselves and their families.
The project coordinator will submit periodic progress reports to the War Room Steering,
project funders and the War Room. This is important in that the entire War Room has a
direct interest in seeing this project become a success and beneficiaries be assisted to
meet the project’s outcomes. These reports will be guided by the set operational plan
and be measured against targets set by the Steering Committee.

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5.5.Operational Plan – Process Flow Diagram
Project Process Flow
Appoint Project Coordinator/Consultant This is the first step, a consultant has to be
appointed to prepare the project business
plan, champion the project and fundraise for
project.
Review the Business Plan The Khanyiselani board will review the
business plan, consider all presentations by
consultant and stakeholders and determine a
way forward. The steering committee will
make the final decision as to whether the
project should go ahead, based on its
assessment of the findings contained in the
business plan.
Appoint Service Provider/Suppliers Service Providers and suppliers be
appointed by the steering committee based
on submission by at least three competing
bids
Appoint Project
Coordinator
•To Produce
Business Plan
•Raising
Project
Funding
Review Business
Plan
•Determine feasibility
& scope of project
Appoint Service
Provider/Suppliers
•Coordinator to submits
quotation and
recommendatios to board

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The project steering committee, in consultation with the project coordinator, will
manage most aspects of the operational plan. Whereas the coordinator is in
charge of the smooth implementation of the operational plan and meeting of all
project goals, the steering committee makes all of the major strategy, contractual
and other executive decisions. The board will receive and consider reports
submitted by the project coordinator who will also produce reports for project
funders to track progress and evaluate performance against funding agreement
terms.
5.6.Project Steering Committee
6. The Future of the Kokstad Music, Film and Television Production Sector
The global economic downturn and the fundamental shifts in film/TV production sector sales
and distribution trends will challenge Kokstad producers’ ability to maintain a consistent
output of high quality music, film and television productions.
In order to maintain global competiveness, KAS’s crop of artists and content producers will
have to strike a balance between consumers’ preference for high-budget blockbusters, and
the growing demand for local music, film and television productions.
Chairman
Member 1
Member 2
Coordinator
Ex Officio
Steering Committee
3 Members + 1
Coordinator

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In addition, the local industry’s competitiveness has to ensure that Kokstad production
companies capture a larger share of a weakening market that characterises the current
economic downturn.
However, in spite of the effects of the recession, the economic structure of the film/TV
production sector is sound; and Kokstad producers will have adequate opportunities to prove
their resilience.
Members of Kokstad’s Film and Television Commission will continually evaluate strengths,
weaknesses and levels of competitiveness of the sector while planning for continued
success.
After a thorough process of consultation, evaluation and strategic analysis, the Kokstad Film
and Television Commission should produce a Production Sector Plan that provides insights
and suggestions on how stakeholders can jointly move forward and continue to grow the
sector.
6.1. Kokstad as a Music, Film and Television Production and Tourism Destination
Khanyiselani Art Studios is committed, as a social development organisation from
Kokstad to:
 Contribute to the building a globally competitive town investing on enterprise
development initiatives.
 Providing the right basic support, service, media production infrastructure.
 Utilising work and skills programmes to promote economic inclusion amongst
unemployed and out of school youths.
 Leveraging the creative sector to develop downstream SMEs supplying goods and
services to a thriving local media industry.
 Broadening economic participation to marginalised communities and the poorest of
the poor for an equal and socially cohesive Kokstad by 2030.

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6.2. The Growth Imperative
This requires that the town of Kokstad shifts gears and prioritises the creative sector as a
core strategic focus area, particularly the town’s Integrated Development Plan (IDP).
Until now, few small municipalities and towns have recognised the potential of
developing the creative arts to combat the triple challenges of unemployment, inequality
and poverty.
Over the past few years, and in the face of increasing migration patterns into Kokstad,
the town has focussed its attention on immediate service delivery issues and on
improving its own institutional processes and functions. The economy remained the
domain of a relatively small, and under-resourced, department and a few external
agencies, which led to and approach to economic development that was fragmented,
parochial and unambitious.
6.3. Market Segmentation
KAS will be focusing on unemployed, out-school and ox-offender youths residing in the
Greater Kokstad Local and Harry Gwala District municipalities. The age group is fourteen
(14) to thirty-five (35) years.
7. Distribution and Exhibition
Distribution and exhibition in South Africa is widely dominated by foreign products. The
Hollywood distribution model continues to have a stronghold in markets across the world,
with 50% of its revenue generated outside the United States. The local industry consists of
three major players – Ster-Kinekor, Nu-Metro and United International Pictures (UIP) – and a
few independents that have a small share of the market. Local filmmakers are quite unable
to compete with this overpowering foreign competition owing to the largely production-led
nature of our industry, which dedicates very low budgets to distributing and marketing films
to a potentially large film audience3.
3
Dearham, M. Film and Democracy in South Africa (2001). Available: www.fru.co.za accessed on 19th February 2007.

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7.1. KwaZulu-Natal Film Commission
The KwaZulu-Natal Film Commission (KZNFC) was set to be established in 2005 to
promote and develop the film industry in Durban and KwaZulu-Natal.
It is meant to operate both as a specialist agency marketing and promoting the region as
a destination for local and international filmmakers, and as a regional trade
association/networking body for the industry. 49 The goal of the Commission was to
open up the global film industry market to the KZN region by creating 5 000 new jobs
and 30 new business enterprise by 2008, thereby reinforcing economic growth, social
stability, black enterprise development and skills upliftment for the province.
The Durban Film Office established in October 2003 by eThekwini Municipality is
responsible for film-related interests of the Metropolis.
The office is the official advocate for the feature films, television, video, commercial and
stills photography production industry in Durban and the region.
7.2. Digital Film Distribution
The digital era brings possibilities that will impact on accessibility, protection and lower
costs for the distribution of film products. The conversion from analogue to digital cinema
technology means that filmmakers no longer have to shoot on 35mm cameras or convert
High Definition into 35mm to guarantee theatrical release. Post-production costs will also
be lowered because of the inexpensive nature of digital technology.
A single 35mm print costs between R15 000 to R45 000 and the cost multiplies with the
number of prints and screens. The elimination of the 35mm print will, in turn, allow local
distributors and producers to recoup some production costs from theatrical releases and
widen a film’s exhibition platform.
Digital cinema can also be encrypted, stored and played from the exhibitioner’s server to
avoid the possibility of piracy. This eliminates the high storage and transportation costs
that 35mm print requires.

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7.3. Digital Screens by Operator
Source: Cinemark
By the end of December 2006, there were 62 digital screens across the country. Of
these, 60% were operated by Ster-Kinekor, 31% by Nu-Metro, 7% by Cine Centre, while
M@ operated 2%. Most screens are located in Gauteng.
7.4. Number of Cinemas per Province
Source: Cinemark Attendance Report (2011)
Table 9 illustrates that 49% of cinemas are found in Gauteng, 20% in the Western Cape, and
15% in Kwazulu-Natal. Limpopo has the least number of screens, with only 1%.
7.5. The DVD and Video Industry
Nigerian films dominate the informal DVD market, with some evidence of an emergence
of independent filmmakers who exhibit straight to DVD. Research undertaken by the

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NFVF indicates that in Gauteng, Johannesburg’s city centre is a thriving platform for a
variety of informal distributors and exhibitors. They range from street vendors who rent
out copies of Nollywood titles and pirated local and international titles on DVD, to outlets
that have viewing, rental and duplication facilities. These mostly screen Nollywood titles
and popular Hollywood blockbusters.
There is also a thriving informal exhibition culture, where old cinemas show two films for
the price of one during the week, and cheaper Sunday specials, where customers pay as
little as R5 for one movie. These outlets are frequented mostly over the weekends.
7.6. DVD Rental Outlets
Source: NFVF database
The NFVF database reflects a total of 474 DVD rental outlets. Most DVD rental businesses
are registered as close corporations while some are franchises, mostly dominated by Mr
Video with 42 outlets, followed by Vee’s Video with 30 outlets. There are a number of retail
outlets that distribute DVDs, who were not able to supply information at the time of writing
this report.

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7.7. Provincial Spread of DVD Rental Outlets
Source: NFVF database
7.8. South African Programming on Television
The South African broadcasting system is divided into three tiers – public, commercial
and community broadcasting – and is regulated by ICASA. Chapter 9 of the ECA applies
to broadcasting services licensees and provides for programming obligations that include
language, local content quotas, programming requirements etc. The current
broadcasting landscape has the following players: Multichoice (Dstv), SABC and etv.
The South African broadcasting landscape is occupied by diverse broadcasting services.
This section highlights some of these services and their role in the development of the
local independent production sector.
7.8.1. Public Broadcasting Services
The SABC is the only public broadcaster in South Africa. Since its establishment, it
has undergone a number of changes ranging from its objectives to its role within
society.
In 2003 ICASA published the Position Paper on Regional Television Broadcasting
Services. The aim of the paper was to introduce Regional Television Broadcasting
Services as determined by Section 2 of the Independent Broadcasting Authority Act
(IBA) no 153 of 1993. 59 The SABC has been granted two regional licensees under
its public service division.

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The SABC published a policy on local content guided by various legislations,
including the ICASA Act, Broadcasting Act and the relevant ICASA regulations. 60
The policy is underpinned by values such as developing and protecting national
culture and character, and the need to support the production of local content by
South Africans, particularly historically disadvantage citizens. The SABC is also
bound by Local Content Quotas prescribed by ICASA; these quotas prescribe the
percentage of air-time to be allocated to local content and the type of genres to be
screened during that time.
7.8.2. e-TV
E-SAT is 100% owned by SABIDO Investments, whose main operating investment is
etv, South Africa’s first private, free-to-air channel. No details were available about
their monthly subscription or content.
7.8.3. DStv (Multichoice)
MultiChoice Africa is a wholly owned subsidiary of MIH. It provides television
entertainment through its Dstv, Dstv Indian and Dstv Portuguesa bouquets, to over
1 311 531 subscribers in South Africa. MultiChoice has terrestrial analogue and
digital, direct-to-home, satellite television platforms. Via satellite, the company
imports channels (for the most part from Britain and the US) and packages them
along with local channels originating from the countries in which it operates. The
announcement of the new satellite pay-TV licenses signals the end of MultiChoice’s
long monopoly of the market.
7.8.4. Community Broadcasting Services
Previously, only Trinity Broadcasting Network operated a community television
broadcasting service. Although ICASA has granted the public broadcaster a regional
television broadcasting service (a licence to operate SABC 4 and SABC 5), ICASA
will only issue the licensees to the SABC once funds have been secured to operate
the new services.

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One temporary community television broadcasting service licence has been awarded
to Soweto TV, a volunteer community television initiative based in Soweto. Soweto
Community TV is an interactive “talk radio on television” concept, where both
presenters and producers of all shows engage with Soweto viewers about issues
relevant to Sowetans.
The programme line-up includes gospel music, spiritual talk, sports, entertainment,
women’s talk, Soweto Today (current affairs around Soweto); a Youth interactive
show; and live news feeds every hour on the hour from The Sowetan newspaper.
The Cape Town Community Television Collective, at the time of writing, was in the
process of applying for a license from ICASA.
7.9. Television Audience Share
Source: AMPS
In general, all channels increased their reach over the 2004 to 2006 period. SABC 1
has the major audience share (76.1%), followed by SABC 2 (63.6%) and etv (62.5%).
SABC 3 (49.5%) is included in the top four channels vying for television audience. M-
Net and Dstv have lower audience shares (12.0% and 7.5% respectively).

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7.10. Digital Migration
The Department of Communications (DOC) has developed a digital migration strategy
that aims to introduce a policy framework for the transition of broadcasting systems, from
analogue to digital. The Digital Migration Working Group (DMWG), established in 2005
by the Minister of Communications, delivered its report of recommendations to the
Minister in November 2006. The DOC announced that ‘digital switch-on’ would come into
effect from 1 November 2008. However, as of 2015, the final date has still not been
communicated. It was announced that there will be a three-year period of dual
illumination. Analogue frequencies will be discontinued three years from the initial launch
of digital broadcasting.
8. Economic Contribution
Film is generally viewed purely from an entertainment perspective, with a disregard of its
economic value and contribution. This view is challenged by the advent of the information
age and the accompanying notion of the information economy. The film industry in South
Africa has been identified through ASGISA as a sector with excellent potential for growth,
contributing to the economy and creating jobs. The film industry by its very nature creates a
commodity that has enormous export value.
The film industry is not classified as a sector in its own right in the national accounts, which
makes it difficult to isolate film and television related activities. It falls within three categories
in the SIC – under community, personal and social services (major division 9), hospitality,
catering and accommodation (major division 6), and transport, storage and communications
(major division 7). Relevant economic data is highly aggregated and, therefore, cannot be
used in assessing the economic importance of the film and television industry.
The result is that it is difficult to quantify accurately the economic contribution of the film
industry throughout the value chain to the gross domestic product (GDP) of the South
African economy.
The South African film and television industry has come a long way from the conservative
and propaganda tool that it was engineered to be by our early government. Today, South
Africa has a growing film industry that is increasingly competitive internationally. Local and

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foreign filmmakers are taking advantage of the country’s diverse cultures, unique location,
low production costs and favourable exchange rates. The constitutional regime also provides
a dynamic environment where ideas, views and diversity is encouraged and tolerated.
The government has also developed a number of policies that recognise the economic
potential of the cultural industry, and specifically film, as a potential growth area capable of
creating employment and enterprise development. However, the film industry remains
underfunded despite a number of government agencies such as the NFVF who has been
created to spearhead the growth and development of the industry.
The Department of Communications has developed a digital migration strategy that aims to
introduce a policy framework for the transition of broadcasting systems from analogue to
digital.
Content creation will be vital in this environment and present enormous opportunities for the
independent production sector.
South Africa has also entered into a number of co-production treaties aimed at the
development of cultural, skills and economic exchanges. Currently, four treaties have been
signed. While these arrangements are cumbersome from an administrative point of view,
they do provide for better opportunities to enter into other markets and to raise finance.
However, the ability to secure finance is vital to creative control, and South African
producers are still lacking in this area as most projects are originated by foreign co-
producers.
The distribution and exhibition landscape is still dominated by foreign products. Local films
struggle to capture the local audience, making it difficult for the majority of South African
films to enjoy box office success or recoup production costs from exhibition. While there are
a number of reasons that can be attributed to this, it is vital to ensure that filmmakers tell
stories that are universal; stories that will find audiences both locally and in foreign
territories. While it has been proved with television programmes that ‘local is lekker’, the
opposite seems true with cinema.

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8.1. Target Market Segment Strategy
The projects target market will be captured through special projects, competitions and
close collaborations with local community, church, political and traditional leaders.
KAS’s manager will work with the Department of Social Development and Justice to
incorporate youths engaged in court diversion programmes to become active
participants.
Furthermore, the rates for hiring the studios music, film and television equipment and
facilities will be kept at a minimum to broaden access to youth from poor backgrounds.
Many artists cannot afford to travel to and pay for professional music, film and television
production facilities in cities like Durban and Johannesburg.
There are numerous informal music recording studios operated by entrepreneurs in the
Kokstad’s CBD and the townships. The challenge is that these studios do not produce
commercial quality products. As a result, many musicians engage in music production
more as a hobby then a serious economic activity.
In video production, Kokstad also has a host independent videographers catering to
private and public events and functions. Film and television productions are non-existent.
The reason for behind this is that most of these videographers possess basic video
equipment that is not well-suited to motion picture productions. To produce broadcast
ready content, much more sophisticated filming and editing equipment is required.
The Khanyiselani Art Studio is meant to tackle these challenges. More than contributing
to the development of the creative arts, the initiative hopes to upgrade the existing
technical production skills base as part of positioning Kokstad as a leading entertainment
production and tourism destination.
9. Strategy and Implementation Summary
9.1. Pricing Strategy
KAS will offer the use of its studio at developmental prices that will be determined by the
board in consultation with management from time to time. The goal is not to generate
high rates of return on the capital invested in the studio, or accompanying equipment, but

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rather to produce mass-market entertainment content that can be syndicated to
commercial radio stations, broadcasters and international film and television distributors.
9.2. Sales Strategy
The studio’s marketing and advertising policy will be set at the executive level.
Khanyiselani Art Studio has a very unique structure in that it features three different,
albeit complimentary, units all operating under studio that is headed by a common,
centralised, management team. Therefore the studio will benefit from this dynamic
relationship through the development of synergetic opportunities to maximise the positive
economic benefits and materially improve the conditions of youths active in the creative
arts industry.
KAS will focus market its services to independent artists, schools, and out-of-school and
unemployed youths. In addition, the managers will promote the creative arts as an art
form, encouraging youths confronted by challenges brought on by social ills to find
creative ways of expressing themselves and dealing with life’s challenges.
The studio will also promote the studio in the Harry Gwala district. The goal is to
leverage the unique skills and talents of locals as well as of the people of Harry Gwala to
create compelling stories that will captivate audiences the world over.
10. Management Summary
10.1. Recruitment Strategy
Recruitment of management at the executive level will be done by the Khanyiselani
board, and will only commence once project funding has been secured and a detailed
project implementation plan has been adopted by the board.
Currently, all energies and resources are focused on preparing a business plan to be
submitted to government departments and agencies to apply for financial and grant
assistance to establish Khanyiselani Art Studios. However, it is envisaged that there will
be a broad consultative process in the recruitment phase. Priority will be given to youths
residing within the Harry Gwala region. This is in keeping with Khanyiselani’ commitment

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to build a “Regional Production Studio” which is representative of the community it
serves.
10.2. Financial Management
There can be no success without the continued financial support of our listeners,
advertisers, media and social partners. At Khanyiselani Art Studio, and realising the
intrinsic link between the studio and the community, the board has taken a holistic
approach to financial management issues. In such an environment, community issues will
inevitably find expression in the content produced by local artists. What this means is that
the community are not only stakeholders, but also partners in the studio.
As part of this realisation, KAS will commit itself to disclosure requirements and report as
much information about the studio as the board deems appropriate to ensure
transparency and provide assurance to project funders, project partners and ordinary
members of the community that the studio in a run in a socially responsible manner.
In addition, the studio is committed to the maintenance of proper filing and archiving
systems, which will ensure efficient access to such documents for reporting in the
ordinary course of its business, and in line with procedures set out by the board of
Khanyiselani Resource Centre.
11. Project Organisational Structure
The vision of establishing a music, film and television production studio in the township of
Bhongweni is deliberate strategy to cluster the physical, equipment and human capital
together. The logic behind this model is that creative artists and SMEs should be able to
easily access each other. It is hoped that clustering the creative arts movement onto one
location will yield efficiency and spur the rapid mobilisation of artists, technicians and youth
graduates with a passion for music, film and television to adopt this project as their own and
lead it.
11.1. Television
The inclusion of television production was seen as an important complement to the
music recording studio. The Khanyiselani studios’ board requested the inclusion of

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television production in the art studio so that the people of Kokstad in general, and the
communities through Harry Gwala in particular, can be able to tell the unique stories of
our people through the television.
Television is the most influential medium amongst the youths in all countries. The
Khanyiselani board wanted to experiment with this medium in Kokstad to see if it could
inspire youths to look beyond their current challenges circumstances and dream of a
better life for themselves.
The final television genres and projects will be approved by studio managers and sent
through to the board for their consideration. The plan calls for the production of music,
variety, talk show, educational, drama, sport and gospels television shows that will have
a positive impact on the moral fabric of all of South Africa.
Furthermore, television is critical in promoting the musical talent that will be recording
music. Many entertainment careers have been launched by combing the reach of
recorded music and television to build up a market for the artists ‘recorded music. Both
of these are self-reinforcing.
Television will also enable regional customs sustained through adaptation to drama
series for syndication with any of the major broadcasting companies in South Africa and
beyond.
It will be the responsibility of Khanyiselani Studios to procure distributors for all television
projects who will be mandated to secure syndication of Khanyiselani’s television
production library.
Finally, the television production crew will benefit from the music recording studio in post-
editing for activities such as dubbing, sound effects and special effects. This is another
key variable that was considered by the board of Khanyiselani when they requested the
inclusion of television as part of the studio project.

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11.2. Digital Distribution
The growth of digital media production and distribution, combined with the broader
broadband internet access, provides Khanyiselani with the option of considering
opportunities within community television stations in the future.
Government has also undertaken various initiatives and programmes to ensure that
broadcasting and other media opportunities are opened to up to previously
disadvantaged communities. Moreover, and given that the fact that the production studio
will be situated in a predominantly rural area, Khanyiselani Studios could potentially be a
beneficiary of such reforms and receive financial and institutional support to conduct
television and film education and skills development programmes for youths with in
television and film.
Although Kokstad might be situated in predominately rural areas, this has in no way
inhibited our capacity to dream of a progressive future for the youth of Kokstad.
11.3. Khanyiselani Art Studio’s Integrated Services Model
•Studio Production
•Studio Musicians
•Mastering
• Copyright Issues
•Mechanical Licensing
Music Recording
•Original Programming
•Third-party filming
•Synidation of film & Television projects
•Corporate vidoes
•Advertisements
Film & Television

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11.4. Value-Chain Enterprise Development Opportunities
Enterprise Development Opportunities within local Film and Television Market
Source: NFVF
Secondary Business Activities
Source: NFVF
The unique structure of the studio, combined with the advantage of working with a
diverse group of creative artists, means the initiative will also be able to develop media
entrepreneurs in the areas of:
11.2.1 Advertising Agencies

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Over the past ten years, the Independent Communications Authority of South Africa
(ICASA) has issued many community radio station licenses. This has led to an
increase in demand for professionally produced radio commercials from businesses,
particularly small businesses, as well as from radio stations who require
professionally produced ads to flight on their stations to generate revenue for
themselves.
Khanyiselani Studios will encourage unemployed marketing and media studies
graduate to take up the opportunities created within this space. Kokstad is
surrounded by two community radio stations – Ugu and Alfred Nzo radio stations.
Furthermore, and as the youths gain confidence, the graduates could assemble
themselves into teams to start registering advertising agencies that conceptualises,
produces and syndicates advertising campaigns for major consumer goods and
services companies throughout South Africa looking to tap local knowledge to grow
their business in the Harry Gwala district.
11.2.2 Television Commercials
South Africa is currently undergoing an analogue to digital transmission of television.
This migration is expected to open up the airwaves for additional spectrum sales to
facilitate the entry of additional terrestrial and pay television provides in South Africa.
An opportunity exists for youths with television production skills to enter the
infomercial, corporate video and digital media broadcasting markets. Over the past
few years, South Africans have embraced the digital revolution, witnessed evidenced
by the rapid expansion of smartphone devices and reduced data connection charges
across all the major mobile network providers.
Khanyiselani Studios, as a television and film studio, will be well placed to encourage
youths to pursue opportunities within this space.
11.2.3 Events Management
This enterprise development opportunity will naturally flow from event promoters
‘interaction with the diverse music recording artists who use Khanyiselani’s music

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recording studio. Khanyiselani’s management will take an active interest in ensuring
that recording artists are represented by reputable and experienced event promoters.
The concert business, when planned intelligently, can have secondary local
economic development within the entertainment tourism sub-sector. Furthermore,
selected Khanyiselani recording artists will be promoted as far as Durban,
Johannesburg and Cape Town so they can expand the reach of their talents.
Emerging concert promoters will be also provided with support by Khanyiselani
Studios.
11.2.4 Catering Services
The television and film industry depends to a great degree on unique locations
almost as much as the unique talents of the actors, production crews and directors.
Opportunities will be created for youth-owned catering enterprises to service
production crews, actors and support personnel when they film on-location and
during long-shooting days.
11.2.5 Digital Marketing
Recording artists, television and film producers rely on creative graphic designers to
produce artwork for the music, television and film projects. The opportunity exists for
graphic designers to become long term supplies to musicians, production companies,
advertising agencies, small businesses in Kokstad and beyond for the talented
graphic designers.
In addition, many small businesses operating outside the creative industries require
the services of graphic designers for corporate artwork, logos, marketing materials
and product/brand promotion.
Khanyiselani managers will actively market the services of graphic designers on
Khanyiselani’s database as well as encourage unemployed youths to undergo
apprenticeship with the more experienced graphic designers.
11.2.6 Beauty Services

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Mark-up artists ‘and hairstylists are a pivotal part of any television or film production
crew. The television and film industry has great demand for beauty services that will
stimulate further enterprise development opportunities for unemployed and under-
employed youths to pursue.
Ordinarily, individual productions or actors have their own make-up and hair stylists,
which equates to more individual business opportunities for beauty technicians.
11.2.7 Fashion Designers
Costume designers, or fashion designers, possess a unique set of skills that are
critical to the delivery of realistic television film projects. Beyond designing clothes to
be worn by actors in productions, costume designers are often the chief architects of
sets through their detailed portrayal of eras since passed. The gifted costume
designers can become an integral of any television or film production through the
emotions they evoke with their masterfully planned garments.
12. Management Team
Management Team
 Manager
 Assistant Manager
 Head of Creative
 Financial Administrator’
 Head of Sales
 Production Supervisor
 Special Project Coordinator
12.1. Key Job Descriptions
12.1.1. Manager
 Responsible for Khanyiselani Studio’s day-to-day operating activities.
 Function as a goodwill Ambassador for the station, carry out the vision. Act as
the liaison between all staff – music recording, television and film production
crews – to ensure they conduct business in line with Khanyiselani’s board
directives.

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 Motivate all staff members so that they attain their desired goals.
 Interact with local political, religious, community and youth leaders to
communicate the opportunities provided by the studio and what stakeholders
can do to take advantage of these opportunities.
 Manage the creation and execution of the annual operating plan and budget.
 Supervise the implementation of the budget and exercise the proper restraint
when necessary.
 Build relationships with regional, provincial and national industry leaders to
draw attention and sustainable revenues to the studio.
 Insure studio compliance with all governmental regulatory agencies such as
SAMBRO, RISA, Employment Equity Act, Skills Development Act as well as
any commitments with professional association bodies.
 Demand that the content produced by the studio remains competitive and
relevant to challenges faced by the youth of Kokstad and the Harry Gwala
district.
 Keep all short and long term goals on target.
12.1.2. Assistant Manager
 Reviews and analyses all financial reports.
 Directs the studio with respect to meeting budgetary and financial goals.
 Implements organisation’s business strategies to grow revenue and
acceptance of its creative content across music, television and film.
 Develop, establish, and direct the execution of operating policies to support
overall organisational objectives.
 Oversee business policies and accounting practices.
 Support and advise the Manager in the decision making process.
 Oversee reporting and monitoring of organisational performance metrics.
 Ensures that relevant financial data is presented to the Manager and the
production team.
 Direct short-term and long-range planning and attendant budgets to reach
these strategic goals.
 Lead and support organisational budgeting process.
 Review all organisational legal agreements.
 Interact will all suppliers, vendors etc. relative to legal matters.
 Work to continually improve the studio’s infrastructure and overall efficiency.
 Seek ways to increase the studio’s revenues through expanding markets for
recorded music, syndicated television and film projects.

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12.1.3. Head of Creative
 Develop and consult with management team on designing Khanyiselani
Studio’s financing structure and strategic investment planning.
 Participate in implementation of investment plans for the studio particularly
with regard to grant and commercial sources of financing.
 Establish and implement short and long term departmental market
development goals for the organisation.
 Find and discuss with management team opportunities of expansion and
future organisational growth.
 Bring global best practice points of view and dimension in business and/or
operational plans, projects, programs and systems into the studio.
 Supervise and negotiate national carriage and licensing agreements.
 Ensure liaison with regional and national licensees and partner suppliers’.
12.1.4. Financial Administrator
 Responsible for all financial and fiscal management aspects of the studio.
 Provide leadership and coordination of the administrative, business planning,
accounting and budgeting efforts of the organisation.
 Ensure compliance with relevant compliance reporting requirements across
the organisation’s music recording, television and film projects.
 Establish and maintain oversight and internal safeguards of finance,
accounting, billing and auditing procedures.
 Coordinate the preparation of all financial statements, financial reports, and
analysis and information reports.
 Interact with management team in a consulting fashion to keep production
crews within the constraints of their respective budgets.
 Develop and direct the implementation of strategic business and/or
operational plans, projects, programs and systems.
 Analyse cash flow, cost controls and expenses to keep overall organisational
operating efficiently.
 Establish and implement short and long term financial goals for the studio.
 Represent the studio with outside vendors, suppliers and the general public
as it relates to financial matters.
 Recruit, train, supervise and evaluate subordinate members of the financial
staff.
 Prepare all tax reporting documents across all productions.

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 Supervise investment and raising funds for the studio across its music
recording, television and film units.
 Find and discuss with management team opportunities, expansion and future
organisational growth.
12.1.5. Head of Sales
 Establish yearly budgetary goals and devise a plan to achieve them.
 Develop relationships with industry organisations such as the South African
Advertising Research Foundation to stay in the forefront as an industry
leader.
 Assist in the preparation and execution of all sales collateral materials.
 Establish relationships with music publishers, commercial and community
radio station owners, and satellite and pay television providers with the view
to gaining favourable carriage terms for all of Khanyiselani Productions
Studio’s produced content.
 Interact with the traffic departments across radio and television departments
so that all commercials are prioritised properly and that advertising clients are
offered packaged deals – with discounts being offered to clients who utilise
our creative content to advertise across on radio and television platforms.
 Work out contracts with qualitative and quantitative rating services such as
the South African Advertising Research Foundation, so that the studio and
artists are armed with the necessary knowledge to adequately sell the
entertainment content they produce across multiple channels and benefit from
Khanyiselani’s unique multi-medium operational model.
12.1.6. Production Supervisor
 Manage day-to-day internal productions.
 Assign and supervise work on all internal productions from concept to post
production.
 Schedule all production work, editing and develop a time line and budget for
each.
 Work with the Head of Programming to develop on-air productions and
promotions for the studio.
 Oversee scheduled workload to see that time lines are being met.
 Handle editing of all syndicated and/or purchased programs to see that tapes
are re-formatted to meet the studio’s needs.
 Meet deadlines for all projects responsible for.
 Secure supplies such as equipment, tapes studios etc.

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 Develop new programming ideas.
 Work with subordinates in getting jobs scheduled and completed in a timely
fashion.
 Supervise movement of programming from studios to uplink facility.
 Maintain a tape library (inventory of all programs).
 Maintain a spot library (inventory of all commercials).
 Write, produce and direct (or assist in doing) all in-house productions.
12.1.7. Special Projects Coordinator
 Book guests & talent for all in-house programming.
 Coordinate Production and Post-Production Schedules.
 Prepare all Program run-down Sheets, Scripts & Teleprompter Copy.
 Serve as Floor Director on in-house productions.
 Secure all Release Forms.
 Coordinate all production crews.
 Develop and maintain music recording, television and film project log sheets.
 Manage use of all studio equipment.
 Make necessary arrangements for all productions with location personal;
coordinate with producers.
12.2. Personnel Plan
KAS’s management, working with government agencies and various departments will
explore the following education and training opportunities:
 Learnerships
 Internship
 Training of trainers
 Short Courses
The initiative hopes to inspire youths to take up the education and skills development
programmes made available by the government and the various agencies. It is only
through increasing the capacity of local artists, technicians, designers and managers that
the local industry will grow and be sustainable over the long term.

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12.3. KAS’s Technology and Staff Plan
The studio is committed to make maximum use of new media and technology in ensuring
that community members have access to information about KAS’s business, operations and
career development opportunities within the media and entertainment industry.
The studio intends developing an integrated approach to skills development through
engaging youth residing within the Harry Gwala region to pursue career opportunities in
creative industries sectors of the economy. This will be accomplished through engaging the
youth on all online platforms and other forms of online media.
Moreover, management is committed to developing a comprehensive training strategy and
implementing a plan that will see the creation of new skills within residents of Harry Gwala
as the Khanyiselani transitions from being an integrated entertainment studio, to building its
capacity to be an entertainment industry skills and enterprise development incubator.
This commitment should be seen in context of the high number of low-level skills with the
Southern KwaZulu-Natal region. Khanyiselani will endeavor to ensure that bursary and other
education, training and skill development opportunities are facilitated through Khanyiselani
Studio for the benefit of the many unemployed and out of school youths in Kokstad.
Khanyiselani recognises importance of developing the education and skills levels of creative
artists in order that Kokstad develops into a vibrant entertainment production and tourism
destination within the Southern KwaZulu-Natal region.
12.4. Skills /Roles Targeted for Development
12.4.1.1. Producers
 Work with large production budgets
 Possessing knowledge of regional markets and working on co-production deals
 Possessing good distribution and sales skills
 Ability to access and manage funds
 Developing good entertainment legal background/training
 Having good project management skills
 Specialists in drama, feature film, dubbing and new media
12.4.1.2. Screenwriters

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 Creative breath
 Good writing skills that are on par with international standards
 Writing for broader audiences
 Position of knowledge of different genres
 Having strong creative ideas
 Specialists in indigenous languages
12.4.1.3. Cinematographers
 Good creative lightning skills
 Possession of good colouring and framing skills
 Unique storytelling technique
 Ability to shoot on both film and digital cameras
12.4.1.4. HOD’s
 Ability to work with large budget feature films
 Good project management skills
 High creative and technical abilities
12.4.1.5. Editors
 Specialising in TV drama, documentaries and feature films.
 Good creativity (storytelling ability).
 Good technical skills.
13. Skills Development Initiatives
13.1. Film Education and Training in South Africa
Accordingly, section 29(1) (b) of the South African Constitution Act 108 of 1996 provides
for the right to further education, which the state, through reasonable measures, must
make progressively available and accessible.
13.2. The South African Qualifications Authority (SAQA)
SAQA was established by the South African Qualifications Authority Act No. 58 of 1995
and was appointed by the Ministers of Education and Labour. The Authority’s mandate is
threefold; to create a national framework to identify and measure learning achievements;
develop the quality of education provision in South Africa, and facilitate the redress of
past, unfair discriminations in the context of education.

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13.3. Sector Education Training Authorities
Section 9(1) of the Skills Development Act No 97 of 1998 makes provision for Sector
Education and Training Authorities (SETAs). The film and electronic media sector is
supported by the Media, Advertising, Printing, Publishing and Packaging (MAPPP)
SETA. MAPPP SETA offers learnerships in audio-visual production from NQF 4 to NQF
7 levels.
SETAs are required to register as ETQAs and, in so doing, take on the associated
responsibilities of providing support for, and assessing, training provision. With specific
reference to skills development, a SETA is also required to develop a Sector Skills Plan
(SSP) within the framework of the National Skills Development Strategy (NSDS) .
Khanyiselani Art Studios’ skills development strategy aims to:
 To prioritise and communicate critical skills, for sustainable growth, development
and equity;
 To promote and accelerate quality training in the workplace; and
 To promote employability and sustainable livelihoods through skills development.
Section 10(1) (b) (ii) of the Skills Development Act introduced the Workplace Skills Plans
(WSP) that describe employers’ plans for the training and development of employees in
the forthcoming year. This is based on the analysis of business requirements and the
skills needs of staff.
13.4. On-the-Job Training
In order for KAS to possess sustainable skills development programmes, management
and the board must develop a clear skills development plan. Once the studio is well-
established and has fairly high production volumes, the need to develop skills will be
critical. As a consequence, the studio needs to take steps very early on to ensure that
funds are secured to train new entrants or upskill existing practitioners.
Skills development within Kokstad’s creative industries will be dictated by skills
deficiencies that have had a negative impact on production capacity and business
growth. Beneficiaries of KAS’s enterprise development programmes will further be

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encouraged to train practitioners according to their required level so that they can
maximise their own production volumes and quality.
On-the-job training varies from informal to structured training formats. Assistantship,
which involves a lower-skilled practitioner working with a highly skilled practitioner who is
able to transfer skills during production, is considered most favourable because
experience in the industry is seen as more relevant than formal training. The assistant is
able to learn new skills while gaining experience and, sometimes, earning an income.
The assistant is gradually skilled up to a level where he or she is able to handle work
independently. In a stable environment, the assistant is able to move up the rungs,
getting higher positions and rates.
However, this can be difficult when low budgets do not allow for the employment of
assistants and companies cannot afford to pay practitioners anything outside the
production budget.
Through the Kokstad Film Commission, production companies will be encouraged to
acquire new graduates who have enough technical skills to be able to perform jobs on
productions. These graduates, eager to acquire industry experience, are usually paid
entry-level rates. This works favourably for new entrants who are able to gain industry
experience and then seek better employment with higher pay.
13.5. Mentorship
Mentorships will be structured to ensure that highly skilled practitioners transfer skills to
lower-skilled practitioners. Mentorships will not necessarily be structured and might be as
casual as having new entrants job shadowing crews, producers and technicians around
the production office or set, and contributing to productions.
Mentors have to be truly willing to transfer skills, as opposed to being forced to do so.
This is because it is very difficult mentoring new entrants who did not have the same
“background” as experienced practitioners.
13.6. Learnerships

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Section 17 (1) of the Skills Development Act defines a learnership agreement as an
agreement entered into between a learner, an employer or a group of employers and a
training provider accredited by SAQA or a group of such training providers for a specified
period. A learnership entails three components. Firstly, the learner is placed within an
employment environment where he or she is employed for a specified period. Secondly,
the employer then provides the learner with the specified practical work experience.
Thirdly, the learner attends a specified education and training course provided by a
training provider. As long as the above conditions are met, learnerships may take place
within formal training-provider settings or at the work place. The following are different
kinds of skills development initiatives that will be investigated by the studio’s
management in pursuit of the vision of positioning Kokstad as a leading entertainment
production and tourism destination.
New entrants into the creative arts will be placed into structured learning environments,
with particular emphasis on on-the-job training. In most instances, learners will be paid a
monthly stipend and supervised by experienced practitioners. Learnerships will further
have a structured curriculum that involves performance assessment throughout the
duration of the programme. Learnerships are mostly funded by the MAPPP SETA that
take place over a period and can vary month-to-month in any given year.
Most Learnerships are geared towards entry-level training that usually entails the
recruitment of aspirant practitioners who have little or no experience in the industry.. The
goal is use Learnerships to ensure sustainable skills transfer and employability.
14. Financial Plan
The growth of Khanyiselani Studios and the realisation of the vision of developing Kokstad
as an integrated creative arts production and tourism destination depends on the
organisation building a strong financial foundation.
Unlike privately owned music, television and film studios, Khanyiselani will not rely on well
capitalised shareholders to sustain the studio. On the contrary, the studio will have to sustain
itself through its own revenue generated in leasing the studio as well as production

Khanyiselani Art Studios Business Plan Targets Youth Employment

Khanyiselani Art Studios Business Plan Targets Youth Employment

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