Business

Digital News Transformation Fund: Is this a lifeline for independent journalism in SA

Vernon Pillay|Published

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Image: RON

In a move to preserve and propel independent journalism, the Digital News Transformation Fund (DNTF), a R114 million initiative backed by Google and the Association of Independent Publishers (AIP), and administered by Tshikululu Social Investments, will open for applications on 25 August 2025.

The fund targets small-to-mid-level publishers, aiming to build digital capacity, diversify revenue, and strengthen sustainability in an evolving media frontier.

“Our focus is on public interest news publishers,” Leanne Kunz, Head of Fund, said, pointing to the digital disparity across the sector: “broadcast shifted earlier, while many small and medium publishers are progressing from more constrained starting points. The Fund is designed to close that gap, giving local, community, and independent newsrooms the resources to invest in tools, skills, and business models that will help them compete and grow online.”

Why Now? A Regulatory Storm Brewing

The launch comes amid intensifying scrutiny of Big Tech's role in South Africa’s media landscape. In February 2025, the Competition Commission released a provisional Media and Digital Platforms Market Inquiry (MDPMI) report that sent shockwaves through the industry.

The Commission argued that Google’s dominance has contributed to the erosion of the local media, claiming an imbalance in value of between R300 million and R500 million annually, extracted from publishers through mechanisms like “zero-click” results and skewed algorithms.

It recommended that Google compensate South African media for three to five years and implement algorithmic changes to level the digital playing field.

Google pushed back, calling the claims inaccurate.

A spokesperson stated that Google generated an estimated R350 million in referral traffic value for South African publishers in 2023, while earning less than R19 million from ads against news queries.

The tech giant emphasised its investments in products, training, and partnerships to support the news ecosystem.

Regulators remain firm and noted that failure to comply may trigger a 5–10% digital advertising levy on tech platforms like Google, Meta, and X, escalating the stakes.

Against this backdrop, the DNTF emerges not just as a funding mechanism but as a strategic lifeline.

Early-stage publishers can apply for essentials like websites, content management systems, or multimedia gear.

Mid-stage outlets may receive support for audience growth, product innovation, or revenue diversification.

Established but small publishers (under 1 million monthly users) are encouraged to pilot replicable innovations or new business models.

The first application window runs from 25 August to 21 September 2025, with funding disbursements expected between November and December. Training will kick off in January 2026.

Echoing its democratic promise, the Fund has appointed a five-member independent adjudication panel.

Kunz said, “Committee members were selected for their professional expertise, sector knowledge, and independence. They bring a combined track record spanning journalism, digital innovation, media strategy, research, and public-interest communication.”

Meanwhile, Marianne Erasmus, Google’s News Partner Lead for Sub-Saharan Africa, frames the initiative as more than a grant: “This R114-million fund is dedicated to fostering a sustainable future for local, community, and independent news publishers. Our financial commitment is paired with ongoing support from the Google News Initiative, providing training in digital fundamentals.”

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