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Top companies: banks dominate in company coverage

Company news fell by 22% from 2006 to 2007, as media refocused on the political and economic ramifications of the ANC National Executive Committee vote in December. In the same period, political coverage swelled by 27%.

This means that competition for coverage of individual companies most likely increased dramatically, which created a tougher environment for companies to be heard. Within this climate, ABSA retained its top spot from 2006, while Standard Bank’s move from 4th to 2nd position was assured with the announcement of The Industrial and Commercial Bank of China’s purchase of a 20% stake in the bank. The deal was widely hailed in financial media as a landmark deal which epitomized the attractiveness of successful South African businesses to foreign investors.

ABSA maintained its top position as most covered company due to continuous coverage, but also due to two important negative issues: in March ABSA fired Danisa Baloyi as non-executive director for her involvement with shamed financial services firm Fidentia, and in October, the bank’s corporate governance credentials were again in the spotlight amidst allegations that it had ‘bribed’ soccer administrators to secure the PSL sponsorship. Yet, despite these negative incidents, the company emerged relatively unscathed with an overall positive rating of (+6%) on the back of strong financial results.

Harmony did not have a good year. Its rating dropped 8% from (+3%) in 2006 to (-5%) in 2007 when reports emerged in August that it had lost a large share in market capitalisation – negative news which was quickly followed by the October mining accident at Elandsrand, trapping 3,200 miners underground and raising serious safety and security concerns amongst a variety of stakeholders.

Strong criticism of various reputation indicators weighed heavily on the approval of state-owned enterprises in 2007. Speculation regarding large executive bonuses in the face of weaker profit margins, and talks of job losses due to the possibility of privatisation, drove SAA’s negative ratings in April 2007, while the company’s media profile took a further knock in June, when it was forced to pay a R55-million rand fine to the Competition Commission for anti-competitive practices. With its reputation thus eroded, a snowballing effect appeared to take over as ratings declined over the rest of the year.

Though Eskom’s ratings grew less negative from (-14%) in 2006 to (-10%) in 2007 this had little to do with improved opinion; instead, the absence of large scale black-outs as witnessed during the Koeberg outages of 2006 is the most likely reason for less negative coverage: there was no focal point for non-financial media to grab hold of. Instead, the company’s woes in 2007 continued on a wide range of issues, including its cash flow, investor-discouraging debt, and inability to quickly implement desperately needed power projects. The economic crunch in 2008 caused by rolling power outages is likely to see the company’s ratings plummet to new lows.

It is, however, not all doom and gloom for state-owned enterprises. Transnet was the only company that managed to improve its rating from 2006 to 2007 with a strong increase of 24%. This improvement had much to do with its commitment to upgrading railway networks, clear communication on business strategy implementation, and the financial media (especially the Financial Mail) lauding the company’s turn-around strategy under the guidance of well respected CEO Maria Ramos.

Top political newsmakers: Mbeki the focal point of 2007

After receiving marginally less coverage than Jacob Zuma in 2006, President Thabo Mbeki reclaimed the top position with a decisive lead in 2007.

Mbeki started off the year with a generally balanced media rating, as he uncharacteristically tackled the issue of crime in his State of the Nation Address in February and thereby attracted approval.

However, his ratings soon dropped to an all time low in March, primarily due to strong criticism of his “quiet diplomacy” policy towards Zimbabwe when Movement for Democratic Change leader Morgan Tsvangirai was assaulted. His ratings again improved somewhat when he more openly talked about his role as African Union and South African Development Community mediator between Zanu-PF and the MDC.

The strongest blow to his reputation in South African media occurred when he dismissed Deputy Health Minister Nozizwe Mdlala-Routledge in August. Although negative coverage around this dismissal was relatively short lived, Mbeki’s continuing support for the highly criticised Minister of Health Manto Tshabalala-Msimang has most likely stained his media profile for a long time to come.

President Mbeki’s media profile was further battered by the battle for the ANC leadership, especially when reports emerged that he might run for the ANC presidency a third term and he was repeatedly condemned for what was perceived as his increasingly authoritarian leadership style. His suspension of NPA head Vusi Pikoli and his continuing support for Police Commissioner Jackie Selebi, despite the charges of corruption against him, have further aggravated media’s opinion of him.

Comparing the very negative media profile that President Thabo Mbeki built up over the course of the year to the overwhelming loss he suffered in the ANC NEC elections, one might surmise that South African media accurately reflected widespread discontent with President Thabo Mbeki. While it could be true that media fanned the flames of dissatisfaction, the December ANC NEC vote showed that South African media reports are not necessarily contrary to community (or political party) perceptions, and that they do serve as a good indicator of public sentiment.

Top business people featured in SA media

Maria Ramos slid from 4th in 2006 to 7th position in 2007, despite being named one of the world's fifty most powerful women in business by Fortune magazine. The list of top black business people in 2007 remained much unchanged from 2006; however, reporting on black business persons increased during 2007 with a greater focus on political leadership rather than business leadership.

Schabir Shaik was replaced by Tokyo Sexwale as the black business person most reported on. Sexwale yielded substantial media attention when he was approached by various cabinet ministers to run for the ANC presidency during 2007. Zuma’s bid for ANC presidency increased media focus on Schabir Shaik, as the controversial arms deal (and Shaik’s involvement in the arms deal) resurfaced while Zuma was lobbying for president. Further coverage of Shaik was marked by his return to prison after spending more than sixty days in a private hospital.

Thulani Gcabashe’s successor Jacob Maroga made it into the category of top ten black business persons due to intensifying media focus on the prevailing energy crisis.

Top women in South African media

Minister of Health Manto Tshabalala-Msimang and Deputy Minister of Health Nozisiwe Mdlala-Routledge were especially prominent in 2007 after the latter’s dismissal from her post. The Sunday Times showed an especially strong interest in driving its lead stories which challenged the Health Minister, both on the dismissal of her deputy and allegations that she was drunk during a stay in hospital. Helen Zille’s appointment as leader of the Democratic Alliance ensured that she received more media attention than the Deputy President Phumzile Mlambo-Ngcuka, who held the top spot for the last two years.

Naledi Pandor, the Minister of Education, has consistently featured in the top 10 over the last few years, since she receives elevated media coverage every year at the start and end of school terms, as well as during the release of matric results. Geraldine Fraser-Moleketi, the Minister of Public Service & Administration, maintained a strong profile in 2007 as the state’s top negotiator during the country’s most widespread public services strike. The exceptional focus on domestic politics in South African media this 2007 resulted in the disappearance of many international women who featured prominently on the list in 2006.

Most cited media: A loss of confidence in Carte Blanche?

Annually, Media Tenor ranks those media which were most quoted by other media to establish the leaders in breaking or investigative news. Since this study began in 2000, Carte Blanche has set the benchmark in terms of breaking news and influential investigative journalism that was picked up by other media. However, in recent years there has been a downward trend in Carte Blanche’s influence. Between 2006 and 2007, the programme lost its largest share of recognition from other media yet, culminating in a drop from 3rd most cited media to 30th.

The Sunday Times and Mail & Guardian maintained their strengths as the newspapers most likely to have their stories taken up by other South African media. They were also the media to gain the most citations from last year (the Sunday Times’ citations increased by 23% from last year, while the M&G secured a 15% increase). This standing as important agenda setters amongst peers can have important ramifications for media: they attract young talent, advertising, as well as news sources who want the most influential media to carry their potentially ground-breaking stories.

The Beeld is one media making considerable inroads gaining the confidence of other media. It has moved up the rankings from 12th position in 2005 to 7th position in 2006 and now stands in 4th position. Does this simply mean it is the preferred medium for Afrikaans-speaking news sources with fresh stories? Not necessarily. Management changes, strategic decisions in the newsroom, or the improvement of journalism could all be factors influencing this steady climb.

Top figures caricatured in the media: The same faces continue to be lampooned

It comes as no surprise that Thabo Mbeki replaced Jacob Zuma as the top person featured in cartoons, since this correlates with the raised overall coverage he has received this year. Despite a big shuffle of positions in the top ten, there was only one new entrant. Former ANC chief whip Tony Yengeni, who ended his controversial jail sentence at the start of 2007, was replaced by Deputy Health Minister Nozizwe Madlala-Routledge in the top 10 persons featured in cartoons for 2007. Health Minister Manto Tshabalala-Msimang retained her third position on the list, a position she only lost to Robert Mugabe in 2005.