Since April 2003, Mmegi, Botswanas leading independent newspaper, has seen its share of government advertising drop from 35 per cent of its total advertising revenue to 10 per cent, as a result of the government owned daily The Daily News going commercial, and in doing so, undercutting the rates set by private newspapers in the countrys newspaper industry. RAP 21 spoke to Titus Mbuya, managing editor of Mmegi.

Seven months ago, Mmegi decided to increase its publication to four times per week, in a move to capture the market before anyone other private newspaper entered it.

We knew that in order to grow, we would have to come out more, says Mbuya.

For the last twenty years, Mmegi and our principal competitor, The Guardian dominated the weekly newspaper market. Friday newspapers have always been the most widely read in Botswana, however we assessed the market and felt there was a need for a daily, says Mbuya.

Mmegi, which translated into English means The Reporter is currently the countrys only private newspaper to print four times a week. All other private newspapers are weekly or bi-monthly.

The decision to appear more frequently was a move that, so far, has proved a resounding success. As a weekly newspaper, Mmegi had an average circulation of 26,000 per week, or 104,000 per month. Since the newspaper began appearing from Tuesday to Friday, it has more than doubled its monthly circulation to approximately 174,000.

The increase in its production required only a 15 per cent increase in overall staff in concrete numbers, this in an increase in editorial staff by only five.

We financed the expansion with our operating income, says Mbuya.

An increase in volume was easily accommodated by the company-owned printing press, run by the owners of the newspaper, Dikgang Publishing Company.

The newspapers decision to expand, however, was not purely motivated by a desire to capture an as-of-yet-untapped market. It was also a reaction to steadily declining advertising revenue, due in large part to the to lowered rates offered by the government-owned The Daily News.

About 80 to 85 per cent of Mmegis income is derived from advertising revenues, and conditions within the advertising market have steadily worsened, says Mbuya.

Although unwilling to divulge what this means in dollar figures to the newspapers revenue from advertising, Mbuya estimates that the countrys top five independent newspapers are losing around US$40,000 cumulatively per month in advertising revenue, as a result of the rates set by the government newspaper.

The newspaper has made some changes in its sales and advertising department to compensate for the low rates set by the government publication and have adopted a more targeted approach to selling ad-space.

We are doubling our efforts in terms of staff training and in our advertising strategy. We have started producing supplements in motoring, IT and education. We have also restructured our rate system, and provide large discounts to repeat advertisers to increase incentive among potential advertisers. Unfortunately this has not been particularly successful as the market is still depressed. Its a struggle but we keep on trying.

In another bid to generate revenue for the newspaper and cut down on costs, on 1 April, the publishing house launched their own distribution company, called Bonesa, which, loosely translated into English from the local language Setswana means to illuminate or shed light.

The logic behind this move is as simple as it is effective:

In the past, we would use the same amount of cash to transporting our one title to other regions, and we figured that if we could carry two or three titles, instead of just ours, we would save money as our unique costs would remain the same. We are currently distributing three titles, two weekly newspapers and a magazine in addition to our own, yet were using the same vehicles, expending the same amount of petrol, and employee the same number of drivers, say Mbuya.

It has been a bit difficult to sell the concept to other newspapers, as they see us as competitors, however, I think they are starting to see the benefit of joint distribution, as overall it is cheaper for everyone. We are currently looking a ways to make this system even more efficient, he adds.

The managing editor of Mmegi does not see the introduction of a new Sunday newspaper in Botswana as a threat, despite what he sees as an already saturated market: The reading habits of the people in Botswana are rather unique. Since for so long there were only weekly newspapers, which appeared on Fridays, people tend to consider newspapers that appear on this day as a weekend paper. This new publication will be in direct competition with not only two other Sunday papers, but also our Friday edition, as well as the weekly edition of The Guardian.

Despite this, Mbuya welcomes the competition: We welcome the launch of any publication in Botswana. If the owners feel there is a gap in the market, they should act on it. For us, it is business as usual.

Plans for an increase in circulation to six days a week are on the drawing board, however Mmegi is adopting a cautious approach further expansion. We are going to observe what happens in the industry over the next few months. There is no rush for Mmegi, we are already dominant in the market, says Mbuya.