Strengthening the Creative Industries in Zambia - Unctad

22 PART 3. CREATIVE INDUSTRIES POLICY REVIEW
3.1.2 Financing
As in the great majority of countries, the cultural and creative industries are heavily dependent on
public funds and incentives, mainly because traditionally they have been seen predominantly from a
cultural rather than a commercial point of view. The time has come to change this misperception. The
creative industry is a multi-billion-dollar business, and it should be seen not only from a cultural
perspective but also as a profitable economic activity responsible for creating jobs and generating
revenue and export earnings. The creative economy fulfils a dual role – as a tool for socio-economic
growth on the one hand, and for cultural and human well-being on the other.
Many small and micro creative enterprises do not have access to credit facilities or to loans and
investment which would make their business viable, and from which artists and creators would be able
to make a living exclusively from their creative or artistic works, like any other professional. A major
obstacle for local medium-sized businesses – particularly in non-traditional sectors such as the creative
industries – has been the high real cost of domestic borrowing from local financial institutions, both
for investments and working capital. Although this situation has improved recently, it still affects the
creation of linkages between foreign and local firms, particularly in audiovisual-related areas, which
require greater investment in equipment and technology. High inflation also makes business planning
difficult.
Action: Financing should come from various sources: public funding, private investments,
commercial loans, public–private partnerships, joint ventures, and international cooperation projects.
There is very little public funding available for the creative industries in Zambia. The primary source
of funding is the National Arts Council, which allocates funds to its affiliated associations, which in
turn disburse funds to their members. 45 All arts associations must have an audit made of their accounts
before they receive any financing from the NAC. 46
The NAC has set up an Arts Development Fund which benefits individual artists and arts associations
with small projects, new associations, and other specific arts projects e.g. the recording and production
of music. In the future, scholarship requests from individual artists will also be handled from this
fund. 47
Action: To consider expanding the funds and the scope of the National Arts Fund. It could incorporate
sector-specific funds, i.e. a film and audiovisual fund, a fine arts fund, a design and innovation fund
etc. The fund could be financed by a combination of public and private funding sources, including
monies from industry transfers such as small taxes on DVD sales and/or tickets sold, or a percentage
of broadcasters’ receipts etc. Agreements could also be made with the private sector in terms of
sponsorship, publicity as well as social and environmental responsibility, as a way of matching funds.
The NAC also organizes the annual Ngoma Awards, which are held to honour artists in the different
creative sectors. Each winner receives 1,500,000 kwacha (approximately: $320). In 2007, there were
eight categories of awards: visual arts, drama, children’s theatre, popular theatre, media arts, creative
writing, contemporary and gospel music, and traditional music and dance.
Action: Additional or alternative categories, which take into account artistic and entrepreneurial work
in the creative sectors, could be considered in this award process. For example, one could consider
design awards (e.g. for jewellery, fashion, furniture, graphic design), as well as creative services
awards (e.g. for architecture, advertising, web services). Alternatively, the current media award could
45 Discussion with Chair of the NAC. Lusaka. 28 July 2008.
46 http://www.nationalartscouncil.org.zm
47 http://www.nationalartscouncil.org.zm