Cash crunch impacts negatively on new radio stations

cash crunch

Bongani Ndlovu, Chronicle Correspondent
THE prevailing foreign currency shortage is hindering the operations of newly licensed local commercial radio stations as they are failing to timeously import equipment.

This was said by the chairman of the Parliamentary Portfolio Committee on Information, Media and Broadcasting Services, Cde William Dhewa, during a tour of Skyz Metro FM studios in Bulawayo last Friday.

Due to the shortage of foreign currency, the Reserve Bank of Zimbabwe came up with a policy under which those who want to import have to apply to the apex bank for foreign currency.

However, due to the high demand for foreign currency, many applicants have been waiting for long periods for their allocations.

The Broadcasting Authority of Zimbabwe (BAZ) put a condition that newly licensed stations that did not go on air by September last year, would have their licences revoked.

Some radio stations started broadcasting using makeshift equipment to beat the deadline.

Cde Dhewa said the committee would engage Government to remedy the problem.

“Most of the radio stations are not fully operational except maybe for Skyz Metro. Some of them have makeshift studios. The reason is not that they do not have the money but they are failing to access foreign currency to bring in their equipment that is required. As a committee it’s something that we have to look into and urge Government to prioritise that area,” he said.

Cde Dhewa said his delegation toured Hevoi FM in Masvingo, Ya FM in Zvishavane, Diamond FM in Mutare, Skyz Metro FM and Breeze FM in Victoria Falls.

He said some radio stations wanted to expand their operations beyond the 40KM radius.

“The common issues that we have found with these stations are that they all want to expand. They think that the radius that they were given by BAZ is not enough. As a committee we shall deliberate but we think it’s too early to try and determine that there is a need for an expansion in terms of coverage.

“We still think there are strategies that they can come with in terms of trying to raise revenue and sustain the stations within the 40KM radius, especially in Harare and Bulawayo,” said Cde Dhewa.

He said instead they would recommend that BAZ issues more licences for other areas.

“When the licences were advertised we were supposed to get 18 radio licences of this kind. We want to urge Government to issue the remaining 10 to other places that have not benefitted from this kind of venture such as Gwanda, Marondera and Chinhoyi. We think they should benefit and it will help in terms of the variety that is provided for in this kind of environment,” said Cde Dhewa.

He urged newly licensed radio stations to be viable business entities.

“We want the radio stations to be viable. These are business entities; they should not be misconstrued for community radio stations as we’ve not come to that yet. These are commercial entities and we expected them to do proper management to sustain the existence of these stations,” said Cde Dhewa.

On community radio stations, Cde Dhewa said there is no statute for them to be set up yet. “That will have to wait because of the current statutes. We need the ministry of (Information, Media and Broadcasting Services) to come up with a new statutory instrument that will guide us to come up with a definition of a community radio. After that it can be possible for community radios to be licensed.”

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