Local film grow benefits SA economy

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Local film growth benefits SA economy --

Wed, 23 Oct 2013 09:49

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According to a recent study conducted by Deloitte for the National Film and Video Foundation (NFVF), South Africas film industry has grown significantly since 2005, contributing R3.5bn to the national economy in 2012 with further growth expected over the next five years.

This is according to Clive Shelver, MD at Film & Entertainment Underwriters, a specialist insurance underwriter underwritten by Compass Insurance Company Ltd ( Compass Insurance), who says this growth also benefits the local niche insurance industry. South Africa is and continues to be a prime film location, offering a combination of solid film infrastructure, attractive financial incentives with a favourable exchange rate, a sunny climate and a wide diversity of spectacular locations.

Due to these factors, we have seen a significant rise in the number of films being made in the country. In fact, the NFVF study revealed that more than 60 films were made in South Africa last year, substantially up on the five that were produced in 2005, when the internationally acclaimed movie, Tsotsi was released. Tsotsi won the 2006 Oscar for Best Foreign Language Film.

Shelver explains how financial incentives introduced by the government have made South Africa even more appealing to foreign filmmakers. The Department of Trade and Industry (DTI) encourages filmmakers by paying back a portion of what is called QSAPE qualifying South African production expenditure. In terms of this deal, foreign movie-makers who shoot at least half their footage in the country and use local post-production facilities can get up to 25% of their South African costs back, whereas local filmmakers can get up to 35% back. This has certainly contributed to the rapid rise in movie making in South Africa.

He adds, The thriving local film industry has also had a positive impact on job growth, with the study indicating that an additional 2 175 full-time equivalent (FTE) jobs have been created and that there are 2 500 direct service providers in the industry. There is also an abundant skills base in the country with a healthy number of advertising and television professionals. In addition, more and more South African filmmakers are learning to produce animated movies, some of which have had success elsewhere, for example Adventures in Zambezia by Cape Town-based animation studio Triggerfish.

Shelver believes that the local niche insurance industry will also benefit. He says, It makes sense for foreign production crews to use local insurers as they are far more familiar with the specific risks including location and seasonal changes facing filmmakers and post- production companies. Each region has its own range of specific issues. For example, Cape Town is prone to extreme winds while Gauteng can be subject to electrical storms, so it is always best to source a local insurance company that understands the risks facing the local market.

By using companies that provide specifically tailored solutions, filmmakers will better ensure that if anything does go wrong, they will be comprehensively covered. Specialised insurers are also able to write tailored policies that will better protect the film producers and further encourage filming in an unfamiliar location, as the risk is covered financially.

Dealing with specialists when it comes to cover for public liability damage during the shooting process is also essential as filmmakers cannot shoot without this type of cover. Shelver says it is far easier to deal with insurers who are aware of local rules and regulations, as they deal with this on a regular basis. Specialist insurers can also offer options to assist foreign filmmakers when it comes to equipment and vehicle rental insurance.

With the South African commercial season having just begun, and running until about April next year, foreigners looking to film in the country should consider using the services of local insurance companies to make sure they are properly covered before production begins, concludes Shelver.

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LINK:	http://www.screenafrica.com/page/news/film/1635910-Local-film-growth-b...
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