South Africa is losing its film industry – one delay at a time

Just a few years ago, the local film industry was booming. South African production was at record levels and getting global recognition. We were one of the world’s darling destinations for shooting foreign productions. Billions of rand came into the country and the Avengers landed in Joburg.

Local work also thrived: Inxeba made the Oscar long list, and Thuso Mbedu won best actress at the International Emmys.

But that era has vanished. Now jobs are evaporating, talent is emigrating, suppliers are struggling to keep afloat, and our sound stages stand empty as productions choose other countries or just never get out of the starting blocks.

In desperation, hundreds of film industry people protested last week outside parliament in Cape Town and the department of trade, industry & competition (DTIC) in Pretoria.

What changed? To answer that question, we need to rewind to February 2024 at the DTIC’s ochre brick offices where a tense meeting took place between representatives of the film sector and the minister. The industry was up in arms following lengthy delays in film incentive scheme payments to productions, totalling R663-million, some dating back four years.

The ministry committed to clearing the backlog — and doing it quickly. But to find enough funds to pay what was already owed, the department decided to save money by not approving any new projects. The effect was to freeze the incentive scheme.

Backlog

At the time, the department said it remained fully committed to film as an industry and undertook to clear the backlog in about 18 months. Two years later, the backlog has still not been cleared and there is no indication of the incentive returning.

Treasury might frown on incentives, regarding them as subsidies. But almost every successful film industry has them. Even California, home to Hollywood, has set one up. Yes, we have great crews, diverse locations, golden light and outstanding facilities, but so do our global competitors. We cannot hope to compete without economic incentives.

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Just last week, a R160-million TV production I have been working on for over seven years was officially declared dead. The producers had managed to raise the bulk of the budget from foreign investors, like the BBC. This world-class production would have told an important chapter in our history, never before seen on our screens. Yet with the incentive frozen, it died. It is just one of many productions lost.

Much else is lost with them. According to a report commissioned by the industry and still to be released, every rand spent on the incentive generated over R5 in added value to the economy. The incentive also drove transformation in the industry, now threatened with reversal.

Film is a labour-intensive industry that creates lots of well-paid jobs. And the sector’s employment multiplier outstrips most others: 5.6x versus the 3.1x average, meaning for every job created within the film sector, it supports another five beyond it.

That is because about 67% of film spend goes to support restaurants, hotels, retailers and other businesses. World experience shows film boosts tourism, too. It creates economic opportunities for the youth, including those without higher education, in a country where youth unemployment is among the highest in the world.

And lest we forget, it allows South Africans to share our stories with each other and the world.

We know this is a tough time for the South African economy and the fiscus. But cutting the incentive is penny wise and pound foolish.

Much of the money flows straight back, via, for example, payroll taxes and a 15% withholding tax on all foreign stars’ pay. According to the respected EU Audio-Visual Observatory, almost all European film incentives brought in more cash to government than they cost.

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In the next few days, funding allocation plans will be locked in, ahead of the budget speech. We’re also running out of time because the DTIC’s credibility in the ruthless global investment environment has been damaged. Unless the rebate is reinstated, and fast, we stand to be discredited as a film industry. And unlike in all those Marvel films (supported by film incentives, naturally) there will be no superhero to swoop in and save the day.

• Nimrod Geva is a film and TV producer with nearly 20 years’ experience in the industry and a former Commissioning Editor at the SABC. He writes in his personal capacity and the views expressed are not necessarily those of GroundUp or TechCentral
• This article was originally published by GroundUp. It is republished by TechCentral under a Creative Commons Attribution-NoDerivatives 4.0 International Licence. Read the original article

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