ZIMURA cites supermarket closures amid corruption allegations and royalty concerns

The Zimbabwe Music Rights Association (ZIMURA) has blamed the closure of several major retail outlets and declining licensing fees for reduced royalty collections, as musicians continue to accuse the organisation of corruption, poor governance and failure to adequately pay artists.

ZIMURA made the disclosures in its financial report and a statement outlining challenges affecting its operations, amid growing calls from musicians for government intervention.

Its 2024 financial breakdown shows that the organisation collected US$1.64 million during the year.

Of this amount, US$1.05 million was classified under staff and administration, US$475,650 was marked for local artists, US$54,775 for foreign artists or rights holders and US$58,936 for a trust fund.

The figures mean that about 64 percent of the total amount collected was allocated to staff and administration, while about 29 percent was marked for local artists.

The organisation said major clients, including OK Zimbabwe, had negotiated licensing fees downwards by more than 50 percent, significantly affecting its revenue collections.

It also cited the closure of retail outlets and branches operated by Power Sales, Topics, Choppies, Truworth, Edgars, Food Lovers, N Richards, as well as some OK Zimbabwe and Pick n Pay outlets.

“Numerous small businesses have shut down, further reducing the overall income stream from licensing fees,” ZIMURA said.

The organisation added that some large shops, including Food World, had been converted into shopping malls where smaller establishments no longer played music.

The organisation further blamed multiple licensing requirements, load shedding and declining consumer purchasing power for reducing the ability of businesses to pay music licensing fees.

ZIMURA said bars, restaurants and shops were often required to obtain several licences, including those from the Zimbabwe Broadcasting Corporation, National Arts Council of Zimbabwe, Censorship Board and music copyright licensing authorities.

It said the multiplicity of licensing requirements had resulted in some businesses choosing not to play music, thereby reducing revenue available to rights holders.

The organisation also attributed revenue challenges to the emergence of another collective management organisation (CMO), alleging that some businesses had opted for cheaper licensing arrangements.

According to ZIMURA, businesses including Simbisa Brands, Choppies Supermarkets, Yellowcob Spar and Booties Pharmacy had opted to pay the rival organisation despite, it claimed, the rival CMO lacking a mandate from rights holders to collect and distribute royalties.

ZIMURA further accused the rival organisation of telling some clients that it had been closed by the government.

The revelations come as musicians have raised serious concerns over how ZIMURA collects and distributes royalties.

Appearing before the Parliamentary Portfolio Committee on Media, Information and Broadcasting Services this week, artists accused ZIMURA management of corruption, non-payment of royalties and unfair dismissal of board members.

Some beneficiaries told the committee they were receiving as little as US$10 to US$30 a year in royalties.

Eunice Dembo, widow of late sungura musician Leonard Dembo, broke down while appealing for government intervention.

“Have mercy on the widow and orphans. We are suffering. We are just people. We also want to live the way you live,” she said.

Mai Morgan said artists, as owners of the music, were not being adequately consulted on decisions affecting their work.

“Our music is taking care of management and not us producers. We are given silly excuses which do not make sense,” she said.

Gospel musician Tembalami called for an audit of ZIMURA and the Zimbabwe Council of Copyrights (ZICCO), saying the existence of two CMOs had created concerns over transparency.

Musician Felix Chitopo alleged that ZIMURA employees were earning more than US$4,000 per month while artists were receiving paltry royalty payments.

He also claimed that the organisation had operated without a board for more than a year, despite its constitution requiring seven members.

Former ZIMURA board member Derek Mpofu also accused the organisation of corruption and alleged that collections were not benefiting artists.

ZIMURA, however, maintained that its revenue challenges are largely driven by the difficult economic environment, declining collections and operational pressures.

The organisation said delayed payments from music users, currency fluctuations and inflation had further eroded the value of licensing fees.

It also said some debtors switched between collecting societies to evade outstanding obligations, leaving revenue due to rights holders tied up in receivables.

ZIMURA argued that having two CMOs operating in the same rights category could further increase administrative costs and reduce the amount ultimately available for distribution to artists.

It said internationally, CMOs generally operate with administrative cost caps of between 25 and 30 percent, with the remainder allocated to rights holders.

The organisation also blamed financial difficulties at broadcasting stations, saying declining advertising revenues and the growth of social media had affected broadcasters’ ability to meet their obligations.

“The rise of social media has also eroded revenue for most broadcasters, as advertisers now opt to use social media platforms, which are often cheaper and offer wider global coverage, reaching a vast potential client base,” ZIMURA stated.

ZIMURA further cited alleged disruption by representatives of the Zimbabwe Musicians Union and negative information allegedly circulated by disgruntled former members as factors affecting its operations.