By Des Erasmus
The Association of Independent Publishers (AIP) has raised procedural concerns over a Google-backed R114-million fund for small media outlets, even as the first grantees move closer to receiving support for digital transformation.
In a statement issued on Thursday, the AIP board said the Digital News Transformation Fund (DNTF) remained “an essential intervention” for a sector facing severe sustainability pressures.
But it also said it had received “a significant number of concerns and complaints” from members about aspects of adjudication and due diligence in the first funding round.
The board said it was gathering and verifying information “to determine whether material breaches of procedure have occurred” and would seek clarity in a meeting with the DNTF board.
It welcomed a commitment by the fund to publish a clear public report on its processes and said that such should be released urgently.
According to the DNTF’s explainer of its adjudication process, 164 applications were received in the first call, with requests totalling nearly R163-million.
From an allocation of R10.7-million, 23 projects were initially recommended for funding. Of these, 21 went on to meet all due-diligence requirements and were approved.
The 21 approved publishers are expected to share about R10.5-million in the first cohort of grants.
Google announced the three-year, R114-million initiative in partnership with the AIP in 2024, saying it was a lifeline to help small, local and independent publishers strengthen digital operations, grow audiences and diversify revenue.
The fund is independently administered by social investment manager Tshikululu Social Investments.
South Africa’s small-scale media sector has been under strain for years. Reporting by GroundUp on an AIP-commissioned survey conducted by Wits in 2023 found that, among 40 community publishers sampled, most had annual turnover of less than R250 000, employed about five staff — or fewer — on low wages, and published weekly or monthly.
Many serve township and rural communities in print, online or via community radio. Publishers say these pressures have intensified as advertising shifts to global digital platforms.
The fund has already sparked debate over its administration fees.
GroundUp’s earlier coverage of the DNTF showed that some publishers viewed the fees as excessive, with one describing them as “obscene”.
Tshikululu, in response to questions reported by GroundUp and other outlets, said its responsibilities extended “well beyond basic grant administration” and included compliance, monitoring and capacity-building support for small publishers, including those accessing donor funding for the first time.
It said its remuneration was based on a cost-recovery model that considered the complexity, resource demands and risk of managing the fund, and that it was “committed to transparency and good governance” in all the funds it administers.
AIP executive director Kate Skinner previously told GroundUp that Tshikululu had been selected after an extensive search as the only organisation with the experience and capacity to handle a high volume of small grants.
She acknowledged that the fees were high, saying they would be renegotiated after the first year, when most of the set-up and infrastructure costs would have been incurred.
In its latest statement, the AIP said transparency, accountability and sector-wide dialogue were essential if the initiative was to “enjoy the confidence of the publishers it aims to support”.
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