Film industry, DTIC reach agreement on incentives

The embattled film and television industry has secured a three-month action plan with the department of trade, industry and competition (DTIC) aimed at clearing a backlog of stalled incentive claims, restarting adjudication and overhauling the guidelines governing the programme.

The agreement, which includes about R2bn worth of incentive allocations this year and the next two financial years, is a significant shift after months of confrontation between the department and the Save SA Film and TV Jobs Coalition, which had previously escalated its concerns to parliament over the failure to approve new productions and growing uncertainty around the incentive.

Delon Bakker, chairperson of the Independent Producers Organisation of South Africa and one of the representatives of the coalition, told MPs on Tuesday the two sides had agreed on a programme of work to be implemented over the next three months.

The process will begin this month with administrative working groups and a workshop to streamline the implementation of the guidelines, followed by work on revised guidelines and transitional arrangements. By mid-September, the parties aim to finalise interim administrative processes and protocols, while the adjudication committee is expected to reconvene before the end of the month to process productions already in the pipeline.

New applications under the existing guidelines will be paused from October while the revised framework is finalised, with completion targeted by the end of that month. The department and industry are expected to report back to parliament on progress in November.

Under the agreed timetable, short-term administrative working groups will begin work by August 20, with a workshop aimed at streamlining the administration of the existing guidelines. Work on revised guidelines and transitional arrangements is due to start by August 25.

“R476m of completed South African production is waiting, not for money to be found but for an adjudication committee to convene to spend the money they have,” he said.—  Delon Bakker, Independent Producers Organisation of SA chair

The development comes against the backdrop of a crisis that prompted the industry to seek parliamentary intervention. The coalition had argued that the incentive had effectively stalled, with no new approvals since March 2024, threatening jobs, investment and the country’s ability to attract international productions.

Bakker told parliament that productions already under way represented about R703m in potential incentive commitments. Of this, about R476m was at the claims stage, meaning productions had been completed, audited and were awaiting adjudication.

“R476m of completed South African production is waiting, not for money to be found but for an adjudication committee to convene to spend the money they have,” he said.

DTIC acting deputy director-general Justice Ngwenya said the department had been forced to balance the industry’s demand for certainty with its obligations under the Public Finance Management Act.

Ngwenya said the programme’s success had created its own funding challenge, with demand for the incentive far exceeding available resources.

“Here we would need the assistance of the committee to help us engage the government in terms of raising further resources to support the industry,” he said.

The department has also agreed to appoint an independent strategic facilitator to help develop the revised guidelines and resolve disagreements between industry and officials. Workstreams will include the DTIC, the department of communications and digital technologies, the National Film and Video Foundation, Industrial Development Corporation, National Empowerment Fund and industry associations. The parties will return to parliament in November to report on progress.

The industry’s frustration stems partly from the programme’s long track record of success.

Introduced around 2004 and modelled on Australia’s film rebate system, the incentive became one of South Africa’s most effective industrial policy tools by encouraging international productions to spend substantial amounts locally before qualifying for government support.

Industry stakeholders argue that unlike conventional subsidies, the programme generates significant economic activity because productions must first spend money on local crews, accommodation, transport, construction, equipment, catering and other services before claiming rebates.

They warned that South Africa’s competitive advantage is rapidly eroding as countries such as Australia, Hungary, Morocco and several Eastern European markets modernise their incentive regimes and approve projects quickly.