Chapter closes for SA magazines
South Africa’s Media24 had increased its presence in Kenya with the takeover of East Africa Magazines, the publisher of True Love, Drum and Move! magazines.
The Kenya market has once again proved a hard nut to crack for South African businesses as another company closed shop on Monday.
East Africa Magazines (EAM), owned by South Africa’s Media 24 and publisher of True Love, Drum and Move, closed operations citing low revenues and high costs.
Naspers Group, the owners of Media 24, is reported to have pulled out funding for EAM.
The magazines business has become competitive, and the closure of EAM joins an increasing list of magazines that have succumbed, among them the Economic Review, Eve, Adam and Cosmopolitan.
The firm’s general manager, Mr Kobus Louwrens, was quoted as saying the firm was in the process of closing down.
The move will leave 45 workers jobless, including 10 journalists.
A few months ago, the South African firm had taken full control after Nation Media Group pulled out.
Media24 previously held a 49 per cent stake in EAM, leaving NMG with a controlling 51 per cent, in a partnership founded in Nairobi in 2005 to publish the East African editions of True Love and Drum magazines.
High costs
EAM had earlier terminated the publication of Adam, a men’s magazine and the travel and tour magazine, Twende, citing high cost of production and sluggish revenues.
South African firms are accused of bringing in expatriates to Kenya, a move that analysts say adds to the weight of their cost of operation.
Metcash, the wholesale group operating under the Metro Cash & Carry and Lucky 7 supermarket franchise banner, was forced to make an exit in 2005.
Others are Supreme Furniture and beverage giant SAB Miller.
