.....Vision sets the pace for media in Uganda

 

ON May 15, Vision Group celebrated the roll-out of a successful multi-media expansion programme, which has consolidated the company’s position as the leading media house. Arthur Baguma interviewed Robert Kabushenga, the Chief Executive Officer, about the importance of the event in the company’s history.

 

Q: Why is Vision Group celebrating in the middle of the year?
A: We are celebrating the achievement of our current multi-media status and completion of our TV studio, factory and installation of a new ultra-modern printing press. We completed a $14m expansion project with the switching on of a new ultra-modern printing press recently. The $9m (sh18b) printing press is housed in a purpose-built $5m (sh10b) factory.

Where did the money for such an enormous investment come from, considering this investment was undertaken during the economic recession when some companies were closing and downsizing to cut costs?

In October 2007, we approached our shareholders and told them that it was important to fulfill our vision to expand as a dominant multi-media company. The problem we faced then was that we were only a print media company publishing newspapers and magazines as well as online editions.

We needed to invest in other platforms like television and radio. In addition, we needed to upgrade our capacity to operate efficiently in print media. We asked the shareholders to give us money to invest in expansion and diversification of our media platforms and to set up a modern printing press and a purpose built factory. We did this through the rights issue. From the rights issue we raised sh29b. But we needed sh28b for the expansion project.

The new factory building which houses the state-of-the-art printing press

 

We started with the acquisition of Radio West, and later we established Bukedde FM. After which we established Etop and Rupiny radios in Soroti and Gulu respectively. We built these radios to compliment our regional newspapers in those areas. And the synergies have been very successful. We also launched Bukedde television with overwhelming success. It now dominates viewership for the central regions. We are going to do the same for the west where we have a local radio station, Radio West and the Orumuri newspaper.

What does the installation of the new machine mean for the employees?

The new printing press will improve deadlines and delivery times. We are going to be more efficient. Our working hours are going to greatly improve, even working conditions should be much better especially for those in production. We have an expanded factory, designed and suited for the printing environment. This achievement will boost efficiency and improve delivery times of our products onto the market. We have also created new job opportunities, for instance in television and radio.

 

What does this milestone mean for clients, advertisers and readers?
It will enable extension of deadlines to include breaking news and late advertisements. One of the major challenges we faced in the past was the complaints we were receiving about our print quality and our inability to take adverts after a certain time or deadline. Now we are able to wait for an advert up to a certain time and the quality of our print is first class.
Analysts think in the longrun Vision Group might dwarf other media organisations and could end up setting the media agenda in the country. That in the worst case scenario the industry could see a rapid buy off of small media players by Vision Group.

 

Is that good for the media industry?
Whatever we are doing is for the good of the company and its future. Setting the media agenda is okay. What is wrong with setting the media agenda in our own country? But the bottom line is that all the developments and expansion is to ensure the future of the company, its employees and Ugandans.

 

How would you describe the position of Vision Group on the market?
Our position is very strong. We are able to respond to business opportunities, to the market and our audience. We are able to serve them more efficiently and effectively. We have reached a level where we can guarantee the future of the company and employment for the workers. We build these strengths for a positive purpose. Our financial base is solid. We pay workers on time.

 

It is 24 years since The New Vision was established, what do you think has been its major role in the evolution of the media in Uganda?
Vision Group and The New Vision in particular has shaped the media industry in Uganda. Every one in the media industry has modelled themselves around The New Vision.
They never have anything until The New Vision has come up with something and they copy and make a few modifications to it. We have pioneered a lot in the media industry.

 

But we are also a business, so we ensure that we succeed in that aspect. As a business, The New Vision has succeeded in meeting its business objectives.Even the dignity and respectability of the media today, has been largely set by The New Vision. Journalism was not as respected as it is today, when people look at the size of The New Vision and the quality of its staff, they see the media as a one of the best industries we have in the country today.

 

Vision Group is listed on the Ugandan stock exchange with the public holding 47% of shares and the Government maintaining a 53% majority share. Many government owned papers the world over do not stand the test of time. How has Vision Group defied this?
We have not only managed to survive, but we have also maintained our position as a leading media house for the last 24 years.

 

We enjoy sufficient functional autonomy from the Government, the majority shareholder. While for some functional autonomy remains on paper, we have it in practice. We make our own editorial decisions, business decisions and have an independent board of directors. Government media houses in other countries are usually an extension of the state and poorly run on shoe string budgets. And in such organisations employees see themselves as workers and not innovators. We have managed to succeed because of the independence we have to make innovations and decisions.

 

What is your last word?
The New Vision has come a long way because of the strength of its team, organisation, focus and discipline. We have actually reached a position which is even more challenging, how do we register even more significant success in broad cast like we have done in print? If this was a game we have reached a critical stage, so we need to be even more innovative at this stage.