The continuous acceleration in the cost of production is now threatening the continuity and existence of the Sudanese newspapers industry and many newspapers with closures. The National Press Council (NPC) organized a Forum on 20th January 2013 and the theme was, “Problems facing Newspapers Production”. Many newspapers publishers, major printing houses, chief-editors and journalists participated in this important Forum. Also, the Minister of Information Dr. Ahmed Balal participated in the Forum from the beginning to the end as  a demonstration of support to addressing the problems that are facing the newspapers . In addition to the NPC Chairman Prof. Ali Shumo who presided the Forum and NPC Secretary General Al-Ebeid Al Morawah.

 

One paper was presented for discussion by the participants and was prepared by the printing expert Eng. Mohd Wadatalla Mohd. It was the result of several meetings convened in execution of the directives o the NPC Chairman and Secretary General.

The newspaper industry is facing at present very serious challenges which can be summarized in the inadequate investment, lack of government support, production costs exceed selling price. But the major challenge is the cost of printing paper and materials which in Sudan is higher than in neighboring countries.

Production Inputs

The financial crises in the Euro Zone had its impacts in many commodities including printing paper. Many small and medium size paper factories have closed doors or absorbed by bigger ones which led to reduction in supply and increase in prices. In addition to that environmental factors had their impacts in producing countries specially Russia and Scandinavian countries, hence have led also to reduction in supply.  So, it is estimated that there will another 20 percent increase in paper prices by August, 2013. But we have to take into consideration that there was an increase of 30 percent in prices last year due to decrease in supply, increase in shipping and insurance costs in addition to rising rate of the exchange of US dollar and Euro and which have reached by the end of 2012 the range of SDG: 8-9. This increase has also effected other production inputs like printing inks and plates, chemicals, etc. In addition to customs and other dues imposed by the government and which the paper have listed 26 types of them. 

The paper gave a price model. It stated that if a news paper sells all printed issues (10,000) at the price of SDG: 10,000.-, it will receive after the deduction of the distribution costs only SDG: 8,000.-, and will have to pay another SDG: 3,000 been the administrative cost (salaries, wages, electricity, rent, transport cost, government fees and dues). When the cost of production (paper and printing) is added which range between SDG: 7,000 to 8,000; then the paper will lose daily between SDG: 2,000 TO 3,000. If the distribution is less than 100 percent which is the case for most newspaper, then the loss will be more. In short, all the newspapers cannot cover more than 40 percent of their production cost and even if the proposed ministerial recommendations are implemented, the cost will be reduced by only 30 percent and newspapers will still be a loser.

Most newspapers in Sudan and elsewhere in the world, depend on advertisement revenues to cover 50 or 60 percent of their cost and make a profit. But the problem in Sudan that advertisement rates are very low, for example is less 10 times compared with Egypt.

Addressing this issue needs a discussion with advertisers to reach an understanding on a reasonable price that will enable the newspapers to cover cost and make a reasonable profit that is essential for its development. In addition to that government and public cooperation advertisement should be distributed fairly and in a transparent manner between all newspapers.

The paper listed several recommendations to address the challenges facing the Sudanese printed Media. It included a call on the Government to cancel or reduce newspapers production inputs from custom duties and the many imports fees. It also recommended the reduction of business profit tax from 10 and that to 5 percent and   which should be based on the papers audited accounts and not the Taxation Dept. estimates. Also, an important recommendation was the call for the removal of the use of two standards in imposing taxes, the US Dollar and the Euro. The Bank o Sudan was requested to allocate foreign currency for the import of newspaper inputs specially paper which needs about Euro $20 million per year.

The paper also pointed to the need or a long-term strategy or the sustainability and development of the newspaper industry in Sudan which included the establishment o paper production factories in the country and that the Government should consider the newspaper industry as a strategic industry. But at the same time also pointed to the need that the existing newspaper printing companies should develop their technical potentialities to reduce costs vide training and regular modernization of their printing machinery and equipments and also emphasized the need for the establishment o a technical printing college.

The paper was the subject of a large number of comments and remarks from the participants. One important point was raised by the manger of Gamary Distribution Company Yahia Hamid who pointed that there is a very large number of newspapers (40) and only six printing houses and if there is any technical problem in one of them , it lead to a confusion  and disorder in the distribution plans. The ruling National Congress Party spokesperson Badr El Din Ibrahim commented that the Government will accept almost most of the paper recommendation but the question will it solve completely the newspaper challenges. He added that this recommendation should be included in the new press laws and the new constitution. While the Almeghar Alsyasy Newspaper   Board of Director Chairman AlHindi Izeldin  attributed the problem basically to the deterioration in the vale of the local currency. 

The last speaker in the Forum was the Minister of Information who affirmed the importance of the press for the country and promised that the recommendation will be implemented, some of them within two weeks. But pointed that it is both un-effective and un-practical for the government to support about 40 newspapers, so there is a strong need to merge these newspapers in few strong newspapers. The minister also pointed to the importance of addressing the issue of distribution to grantee the smooth flow of the newspapers to the readers.

In the Forum closing remarks the NPC Chairman Prof. Shama said that the NPC have prepared a complete file on all the challenges facing the printed media and will meet with the Minister of Finance to find ways to address them.

It must be noted that some speakers have pointed that challenges can be only summed up in the cost of production, which the NPC have promised to address vide consultation with all stakeholders.

By Alula Berhe Kidani