Trailblazers is an MBW interview series that turns the spotlight on music entrepreneurs with the potential to become the global business’s power players of tomorrow. This time, we speak to Tshiamo Letshwene and Nhlanhla ‘Nivo’ Ndimande, co-founders of independent South African music company The T Effect. Trailblazers is supported by Believe.
Sub-Saharan Africa’s music industry is booming.
The SSA region was officially the world’s fastest-growing recorded music region in 2022, seeing 34.7% YoY growth, according to South Africa, the SSA region’s largest market, and the home of genres like Kwaito, and house-derived rising global sensation Amapiano, was the key driver behind the region’s growth last year, growing 31.4% YoY itself in 2022.
Like most markets where major music streaming platforms are available, South Africa’s hopes for future recorded music growth lie in the conversion of free music streaming users to paid subscription account holders.
The free-to-paid-user conversion conundrum was highlighted in IFPI’s Global Music Report 2023.
since 2018, and while we don’t have figures on the number of users on the platform there, SPOT did recently reveal that South Africans have streamed over 1.2 billion hours of music since it launched in SA.
Commenting on other obstacles in the way of growth for the music business in South Africa and wider Sub-Saharan Africa, Tshiamo Letshwene, founder of independent South African music company The T Effect, points to what he says is a “lack of affordable data infrastructure across the continent, particularly in the context of the streaming economy”.
“I am now talking across the board across the continent,” he says. “[Not all] Africans have bank accounts or access to credit cards, which can make it difficult for them to subscribe to streaming services or purchase music online”.
The T Effect co-founder ‘Nivo’, adds: “We face a lot of challenges in the marketing. Another major barrier for growth is audiences’ hesitancy to adopt new technology/ways of doing things.
“The narrative is, ‘why should I subscribe to a paid-for service when I can download, keep and share music on apps such as Whasapp, which I can get quickly and easily from a piracy site?”
Tshiamo Letshwene and Nhlanhla ‘Nivo’ Ndimande tell us over email that the company is working on addressing these challenges and “engaging different entities to see what resources can be made available”.
“Ultimately the growth of streaming services will create a wider audience for our artists,” they say.
The T Effect was launched in 2018 and operates across recorded music, artist management, distribution, publishing and live.
The company has had success with artists like Ampiano star Musa Keys, hip-hop star AKA, Gospel artist HLE and late South African rap star Costa Titch (who sadly passed away last month).
“Our hard-working team has helped to grow the profiles of emerging South African acts,” the company’s founders tell us.
Big Flexa, the viral Amapiano hit by Costa Titch,has seen significant success with over 51 million views on YouTube and over 11 million streams on Spotify, while the remix version features superstar Akon.
Meanwhile, Musa Keys’ hit single Selema (Popo) has amassed over 9 million streams on Spotify and almost 9 million views on YouTube.
“Musa Keys has also emerged as one of the most sought-after dance producers and artists from South Africa,” notes Letshwene, adding that another artist the company has worked with, Kiddominant, has relocated to Los Angeles and worked with Chris Brown on his hit single Under The Influence.
“We take great pride in the fact that we’ve been able to help our artists make the transition from emerging markets to the global stage, and we’re committed to continuing to do so for the many talented artists that South Africa and the rest of Africa,” says ‘Nivo’.
Here, The T Effect’s co-founders Tshiamo Letshwene and Nhlanhla ‘Nivo’ Ndimande tell us about the company’s global ambitions, growth in the South African recorded music market, and the challenges around breaking sub-Saharan Africa-based artists abroad…
Your business operates across various areas including management and label services, creative production for live and digital marketing. Was the plan always for The T Effect to be so multi-faceted or has it evolved since you started the company?
The vision has always been to create a company that offers a comprehensive range of services to support and promote emerging talent from Africa. From the outset, we recognized that to succeed in the competitive music industry, we needed to provide our artists with the full range of resources and expertise they need to succeed.
As a result, our goal has always been to create a one-stop-shop where artists can access all the resources they need to develop their careers, and we’re proud of the diverse range of services we’re able to offer.
Our approach has definitely evolved over time, and the pandemic played a significant role in shaping our strategy over the past three years. With live shows on hold due to lockdowns and restrictions, we had to re-evaluate our priorities and put more effort into music distribution and digital marketing.
However, even as live shows have resumed, we’ve continued to prioritize distribution and digital marketing. We’re always looking for new ways to improve and expand our offerings, and we’re excited to continue growing and evolving in the years to come.
In which area of your business are you seeing the fastest growth?
Without hesitation and with complete confidence, we can proudly declare that our distribution services experienced the fastest growth.
Unlike other independent distribution companies that sign every act they come across, we have deliberately kept our roster small and focused on creating impact and generating the most buzz with the acts we represent.
“Unlike other independent distribution companies that sign every act they come across, we have deliberately kept our roster small and focused.”
This is accomplished through meticulous planning and strategic marketing of the music, utilizing our in-house digital team to develop robust campaigns. We are particularly excited about this division of our company, which was established during the pandemic to help sustain our artists’ presence in the absence of live events and gatherings.