South Africa's scrapped the R20m cap on its film and TV incentive

Regulation & Policy

South Africa's scrapped the R20m cap on its incentive, which means that the country is much more competitive on bigger budget films ($50-100m). The department of Trade and Industry (dti) of the republic of South Africa issued the following act:

With effect from 4 October 2011 the Film and Television Incentive cap will no longer apply to the Incentive programme.

This ruling will apply to South African, Official Co-productions and Foreign productions. The South African government offers a package of incentives to promote its film production industry. The incentives consist of the Foreign Film and Television Production Incentive to attract foreign-based film productions to shoot on location in South Africa and the South African Film and Television Production Incentive, which aims to assist local film producers in the production of local content.

Programme guidelines’ overview on the Foreign Film and Television Production Incentive:

1.1    The South African government recognises the potential of the film industry and has prioritised it as one of the sectors under its Accelerated and Shared Growth Initiative (ASGI-SA). The growth of the film industry could have a tremendous impact on economic development in terms of employment and exports, while stimulating a host of supplier industries.

1.2    South Africa has a growing and vibrant film sector, attested in the recent past by productions such as the award-winning Tsotsi and the internationally acclaimed Blood Diamond. Opportunities abound and producers continue to benefit from the cost competitiveness of the country’s beautiful locations.

1.3    To support the growth of the sector, the Department of Trade and Industry (the dti) is offering incentives in order to increase local content generation and improve location competitiveness for foreign film productions. In addition to incentives, the dti is working with other role players on raising the profile of the sector in general and a number of strategic co-production treaties are set to improve distribution locally and internationally.

Dti extends an invitation to industry players to make use of this facility and to support the South African Government in realising its goals of growth, employment and equity.

More info on the dti website.