WAN, the global association of the world’s press, and MDLF, a non-profit organization providing low cost financing to news businesses in developing countries, are creating a partnership to provide low-interest loans to help carefully selected independent media companies in developing democracies to become financially viable businesses.
"This is a unique initiative which could in time transform media assistance," said Timothy Balding, Director General of the Paris-based WAN. "We will create no-risk opportunities for donors of all kinds -- development aid agencies, corporations, foundations, vendors and even newspapers -- to make a significant contribution to independent press development, with the promise that they’ll get their money back!"
Sasa Vucinic, MDLF Managing Director, said: "This partnership will help match the aims of donors with the real needs of the press. It will help secure the long-term future of independent newspapers, enabling them to continue playing a vital role in leading countries through the transition to democracy."
MDLF already has a track record in loan assistance, having raised and loaned more than 40 million US dollars over the past decade to 45 media companies in 17 countries.
Mr Balding said that the joint WAN/MDLF Independent Newspaper Development Initiative would reinforce the two major pillars of WAN’s work: developing newspaper publishing worldwide and promoting a free press. "It will address, on a sustainable basis, an increasingly important but sometimes overlooked priority: the absolute necessity for newspapers in emerging democracies to achieve commercial viability."
The new fund will provide:
 Capital, through repayable loans, to carefully identified press businesses;
Tools to help implement business plans and ensure repayment of loans through provision of expert advice;
Knowledge on how to leverage technologies to accelerate self-sustainability;
Lobbying and campaigning support to help client newspapers resist threats to their press freedom.
The partnership will allow MDLF to significantly increase the number of projects to which it loans funds. WAN will help find potential new funders and will identify, through its global network of newspapers, credible and worthy recipients. It will also bring its expertise and network of professionals to the project to work with recipient newspapers to ensure the success of their projects.
WAN and MDLF will ask funders to lend, not give, money. MDLF’s revolving pool model calls for funders to lend money at a low rate (optimally zero percent). This is a novel approach to media assistance which ties in well with the desire of many funding sources to support projects that carry a long-term, self-sustainability goal. Funders will also be able to add grants to their loans, if they wish, to give an additional boost to worthy press projects.
WAN, the global organisation for the newspaper industry, defends and promotes press freedom world-wide. It represents 18,000 newspapers; its membership includes 72 national newspaper associations, individual newspaper executives in 102 countries, 11 news agencies and nine regional and world-wide press groups.
MDLF, founded in 1995, pioneered a new model of media support, focused on developing self-sustainable independent media outlets. Acting as a mission-driven venture fund, MDLF enters into a close, involved and long-term relationship with each client. It supports each loan and investment with intensive financial monitoring, on-going advice, specialised consulting, management training and technology assistance.
Inquiries to: Larry Kilman, Director of Communications, WAN, 7 rue Geoffroy St Hilaire, 75005 Paris France. Tel: +33 1 47 42 85 00. Fax: +33 1 47 42 49 48. Mobile: +33 6 10 28 97 36. E-mail: lkilman@wan.asso.fr |
