The Department of Trade and Industry (dti) will continue to improve its incentive scheme for the country's film industry, which contributes R3.5-billion to the gross domestic product (GDP).
The department's film and TV incentive scheme came into being in 2004 to stimulate economic growth and participation in the industry.
Speaking at an engagement session with the film and television industry on Thursday, dti Minister Dr Rob Davies said the scheme has shown much progress since its inception.
Between 2004 and 2008, the scheme supported 49 productions.
In 2008, there was a beefing up of the incentive programme. It was an up-scaling and I think the figures tell us a significant story. Between 2008 and last year, the film incentive supported 398 projects, Minister Davies said, describing it as a significant expansion.
Of the 398 projects supported, 256 were South African productions, 77 were co-productions and 65 were foreign productions.
Weve seen a steady increase in the activity of the film sector in SA supported by the incentive programme, the minister said.
While this was good news, today's engagement was not just an opportunity for the department to pat itself on the back, but it was rather a time for the dti to continue its dialogue with stakeholders, so that improvements to the scheme can be made.
There are a few features of the current rebate we need to [look at]. We have to have an incentive that is competitive with what exists around the world. We need to be frank about the fact that we are a small, developing economy, Minister Davies said.
Being competitive was not only important in monetary terms but in terms of the certainty and reliability of the scheme, so that when filmmakers come, they know that it's not just a vague promise that is made to them but it is a certainty, Minister Davies said.
Changing with the times
The scheme also needed to be continuously improved in line with what is happening in the industry, both domestically and abroad.
Its about making adaptations when they are necessary, Minister Davies said, adding that flexibility was an important aspect.
He also spoke of the importance of progression in attitudes, where South Africa would be seen as more than a location for films.
We still have that [good location] but I think we need to make it clear to the world that we've moved on to things like the ability to provide a world class film studio in Cape Town.
Also, companies are moving into the production of animated films, which are particularly popular. [We] also have the ability to produce the industrial materials that go into the construction of sets, said the minister.
Numbers game
Minister Davies - who was this week sworn into office as the Minister of Trade and Industry for a second term - said the film industry had demonstrated that it had the capacity to contribute to GDP significantly.
Its for that reason that we have been working to continuously improve the film incentive. A baseline study by the National Film and Video Foundation said that the film sector contributed R3.5-billion to SA's GDP. It created more than 25 000 full time jobs. That is a significant number of jobs and a significant contribution to the GDP, he said.
In other countries like Nigeria - which has overtaken SA in terms of GDP - the film industry [Nollywood] and telecommunications has contributed to the rise of that country's GDP (which is US $490-billion).
It shows that we have real possibilities of expanding our film industry, Minister Davies said.
The department is currently digitising some of its incentive schemes to speed up application processes and reduce the red tape.
The session was attended by role players in the film industry, including filmmaker Eric Miyeni and Film Afrika representative Rudi van As, who described the dti rebate as a lifeblood for the South African film and television industry, which is regarded as being very efficient.
Unlike some incentive schemes out there, it is reliable. This allows filmmakers to predict accurately how much their rebate amount will be and that it will materialise, said Van As.
Without the film rebate, the Industrial Development Corporation would not have been able to fund local films, delegates at the session heard.
Minister Davies said the dti was also looking into the issue of supporting small, black business filmmakers. It's something under active consideration. We are looking at how we can address that concern.
http://business.iafrica.com
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The Department of Trade and Industry (dti) will continue to improve its incentive scheme for the country's film industry, which contributes R3.5-billion to the gross domestic product (GDP).
