The Minister of Trade and Industry, Dr Rob Davies has approved amendments to the Foreign Film and Television incentive aimed at extending its support to include the growing post-production industry. These new amendments will help to sustain the film industry thereby enabling post production companies to attract work that is not necessarily being filmed in South Africa (SA). The revised incentive is effective from last month and will be administered for a period of three years up to 2014.
The objective of the incentive is to create an environment that takes advantage of the country’s diverse and unique locations, as well as low production costs and favourable exchange rates, which makes it significantly more cost efficient to produce a movie in South Africa than in Europe, the United States, or Australia.
“The South African government takes cognisance of the contribution the film industry potentially has in stimulating the country’s economic growth, strengthening the country’s profile in the global creative environment and in the facilitation of employment creation. The sector has enormous potential in bringing the necessary currency into the economy and can act as an important vehicle through which technology is transferred and South Africa’s skill base is upgraded. This is one of the best platforms a country can promote and showcase the country’s creative skills,” said Minister Davies.
The revised guidelines will also go a long way in expanding the development of the film industry further. The aim being to shoot in South Africa and also to conduct post-production activities as well as post production work for productions not necessarily filmed in the country.
The package of incentives offered by the department of Trade and Industry (the dti) to foreign-owned qualifying productions and need to conduct post-production in South Africa is as follows:
- Shooting on location in SA, the Qualifying South African Production Expenditure (QSAPE) should be R12 million and above with an increase incentive percentage of 15% to 20%; No cap will apply for production incentive.
- Post production expenditure of R1,5 to R3 million will receive 2,5% (cumulative 22.5%) ofQualifying South African Post Productions Expenditure (QSAPPE)
- Post production expenditure of above R3 million will receive up to 5% (cumulative 25%) of Qualifying South African Post Productions Expenditure (QSAPPE)
- Reducing the total running time of the feature films from minimum of 90 minutes to minimum of 80 minutes.
“Through promoting South Africa as an international destination to attract further international productions and in encouraging the generation of local content production, the country continues to enjoy the benefits of the vibrant and growing film industry, attested in the past by productions such as Invictus which was nominated for three Golden Globe awards and District 9 which was nominated in the 2010 Saturn awards for the Best International Film,” Minister Davies concluded.
Enquiries:
Sidwell Medupe
Departmental spokesperson
Cell: 079 492 1774
Tel: 012 394 1650
E-mail: MSMedupe@thedti.gov.za
