The MAC Charter encompasses a wide range of sectors including marketing, advertising, and communications, each facing unique yet interconnected challenges that hinder their growth and transformation. Rapid technological advancements, regulatory changes, and market fragmentation demand a strategic response to foster innovation and competitiveness. Additionally, there’s an acute need for skills development, diversity, and inclusion, aligning with South Africa’s broader socio economic goals and B-BBEE objectives.
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The MACC Fund is positioned as a transformative instrument within South Africa’s creative and cultural industries, particularly the film and television sector. By leveraging a unique private-public partnership model, it aims to catalyse investment into areas critical for national development, including social cohesion, nation-building, and poverty alleviation. Hosted on the eQvest Limited funding platform, the fund represents a pioneering initiative to bridge the gap between promising private companies and potential investors, driving economic empowerment and fostering diversity within the media landscape.
Risk |
Medium/High |
Peer Group |
Private Equity |
Benchmark |
Consumer Price Index +500 bps |
Inception Date |
29 February 2024 |
Regulation 28 Compliant |
No |
Investment Manager |
Unum Capital | FSP: 564 |
Fund Administator |
Lifecycle Investment (Pty) Ltd |
Fees |
|
Currency |
ZAR |
Internal Rate Of Return (IRR) |
14% |
Time Horizon |
Minimum 3 years |
Minimum Investment Period |
Minimum 3 years |
We recognize the untapped potential within South Africa’s oldest, yet underperforming sectors compared to global counterparts. Our strategy embraces innovative financing models, such as Pre-Sale Licensing, Licensing Agreements, and Co-Productions, to encourage private-sector investment and leverage international partnerships. By fostering a more dynamic, inclusive, and economically vibrant media ecosystem, we aim to increase production volumes, enhance global competitiveness, and ensure the sector’s contribution to the national vision for 2030.
By investing in the MACC Fund, stakeholders are part of a transformative journey, enhancing the sector’s global competitiveness while upholding values of inclusivity and social impact. Together, we are setting new standards for innovation, investment, and partnership in the South African media landscape, ensuring a legacy of empowerment and growth for future generations.
The South African film and television industry, integral to the nation’s creative and cultural sectors, faces significant challenges despite its long-standing history.
Identified by the National Development Plan as key to social cohesion and nation-building, the industry lags behind global counterparts like Hollywood, Bollywood, and Nollywood in production volume and market share. This shortfall is attributed to inadequate private sector investment and the underutilization of available incentives, such as tax allowances for film investors.
Historically, content production has been dominated by broadcasters, limiting creators’ rights and profit-sharing opportunities.
However, the arrival of international channels and streaming platforms has begun to shift this paradigm, creating new possibilities for ownership and revenue models.
The MACC Fund was established as a pivotal response to these challenges, offering targeted investment and support to stimulate
equitable growth, enhance sectoral capacities, and ensure a cohesive approach to transforming the landscape of these industries. This fund serves not just as financial support but as a catalyst for comprehensive sectoral development, aiming to uplift and integrate the entire MAC ecosystem into the national development agenda.
Our mandate aligns with the objectives of the Media Development and Diversity Act and the national development plan, focusing on media transformation, diversity, and the empowerment of historically marginalized groups. The MACC Fund is dedicated to correcting disparities within the Marketing, Advertising, and Communications sector, supporting the B-BBEE strategy by offering investors B-BBEE points and ensuring annual contributions towards the sector’s transformation as outlined by the MAC Charter. This commitment underpins our strategic importance to national strategic objectives and the empowerment of women, youth, and people with disabilities, including SMMEs in the MAC sector
The strategy encompasses a multi-tiered investment approach, categorizing projects based on their risk profile and contractual commitment levels. By employing innovative funding models such as Pre-Sale Licensing, Licensing Agreements, and Co-Productions, the MACC Fund seeks to stimulate sectoral growth and ensure a diversified investment portfolio. This approach is designed to mitigate risks effectively, ensuring sustainable returns and social
impact.
The fund’s strategy also includes a significant focus on supporting community-based media initiatives, thereby enhancing the media sector’s capacity for inclusive growth and development.
This refined narrative encapsulates the essence of the MACC Fund’s role in transforming South Africa’s MAC sector, emphasizing its strategic commitment to fostering diversity, innovation, and economic empowerment through strategic investments.
The MACC Fund actively supports the empowerment of content creators through equitable intellectual property and profit-sharing models, challenging traditional broadcaster- dominated structures. Our focus extends beyond financial returns, aiming to secure long-term sustainability and social impact through community media support, adaptation rights, and infrastructural development.
In partnership with the MAC Charter Council, we are
dedicated to implementing the B-BBEE MAC Sector Code, emphasizing media development and diversity, and promoting the empowerment of historically disadvantaged South Africans. Our efforts contribute to a more equitable, dynamic, and sustainable media sector, in line with South Africa’s broader socio- economic goals.
The MACC Fund adopts a comprehensive revenue generation strategy, extending beyond the film and television sector to include pivotal areas like infrastructure financing for the outdoor media sector, media buying, and equipment rental. This approach is built on sustainable and ethical investment practices, diversifying into areas with high growth potential within the South African media landscape.
Through strategic investments across these varied sectors, the fund aims to secure robust financial returns, ensuring a sustainable flow of revenue that underpins both financial objectives and a commitment to societal upliftment. This diversified approach not only enhances revenue potential but also solidifies the fund’s role in supporting the broad spectrum of the MAC sector, contributing to its overall vibrancy and resilience.
The MACC Fund is deeply committed to societal enrichment and sustainable development. By directing 5% of investment returns towards supporting community media platforms, the fund plays a pivotal role in empowering local voices and fostering media diversity. An additional 2% of returns are allocated to bolstering the operations of the MAC Charter, reinforcing our dedication to driving meaningful change within the marketing, advertising, and communications sectors.
These contributions illustrate our holistic approach to empowerment, ensuring a lasting positive impact on the broader South African society.
The Social Impact commitment, the MACC Fund strategically allocates 5% of its investment returns to nurture community media platforms, thereby enhancing the diversity and reach of media voices across South Africa. Crucially, within this allocation, 1% is earmarked specifically for initiatives that support women, youth, and people with disabilities. This targeted support not only amplifies the voices of underrepresented groups but also fosters an inclusive media landscape that reflects the diverse fabric of South African
society. Through this focused investment, the MACC Fund aims to drive empowerment, equity, and accessibility, ensuring that these vital demographics receive the support and representation they deserve in the media sector.
With multiple distributors of the fund from tokenization platforms, Over-the- counter derivatives, and public company paper, the MACC Fund represents a pioneering effort in private equity investments within the media sector. Managed by Unum Capital and administered by Lifecycle Investments, we employ a risk- mitigated, tiered approach to project financing, emphasizing creativity, commitment, and potential for success.
Our engagement with the MAC Charter Council underscores a shared vision for an inclusive, diversified, and thriving media sector. Together, we journeyed to reshape South Africa’s media narrative, leveraging the MACC Fund as a key driver for growth, innovation, and empowerment. The fund’s strategy is underpinned by a commitment to foster a thriving media environment where innovation, cultural diversity, and economic growth are in harmony.
The MACC Fund is uniquely positioned to bridge the funding gap between government and private investment, ensuring the Marketing, Advertising, and Communications sectors meet and exceed their potential within the South African economy and beyond
The MACC Fund offers an attractive proposition to investors with a robust 14% per annum return, marking a significant opportunity in today’s investment landscape. Beyond financial gains, investors benefit from accruing valuable B-BBEE points for their annual scoring, enhancing their commitment to socio-economic development and aligning with national transformation objectives. This dual benefit underscores the fund’s unique position, offering both substantial financial returns and contributing to investors’ social responsibility profiles.
MACCF is dedicated to nurturing and strengthening the growing South African media and entertainment industry.
Investing in alternatives investments or private equity may involve a significant level of risk and is not suitable for all investors. Before undertaking any such investments, you should ensure that you fully understand the risks involved and seek independent advice if necessary.
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