2022 has been a productive year for the South African film industry. Following two years of restrictions due to Covid-19, productions were back in full swing. Awards ceremonies, recognising the dedicated work of industry participants across the film value chain also resumed, and the accolades for South Africa have poured in.
In October, Caleb Payne, at just 11 years old, made history as the first South African to win the best actor award at the Youth Oscars in the awards’ 43-year history for his role in Good Life. Feature film Surviving Gaza received an astounding 14 nominations at the African Movie Academy Awards, winning three, including Best Director.
At the International Emmy’s held on 21 November in New York, South Africa was the only African country represented, receiving nominations in three categories. My Better World, a 55-part series by Fundi Films that follows six African teens as they navigate school, family and friendship, won the Emmy in the Best Kids Factual and Entertainment category. Television drama Reyka was nominated for Best Drama and Best Performance by an Actress for Kim Engelbrecht (who also won Best Actress in a television drama at the South African Film and Television Awards).
The nominations and wins for South African productions are evidence of the long-term investment in talent both behind and in front of the camera, which has attracted international attention and recognition and allowed South Africa to cement its place in the global film industry. As one of the world’s oldest filmmaking industries, South Africa is well-regarded internationally for producing successful features. Due to its abundance of locations and highly-skilled technical professionals across the production cycle, it is also a popular destination for international productions.
However, despite the international recognition South Africa receives for its creative talent and technical excellence, South Africa’s share of worldwide production spend has declined even before the onset of the Covid-19 pandemic. The total operational expenditure in the film industry fell from R2.54 billion in 2019/20 (a decline of 17% from the previous year) to R1.03 billion in 2020/21 according to the National Film and Video Foundation (NFVF). As competition grows between streaming platforms and studios resume traditional theatrical releases, global players are ramping up their involvement in local productions.
Netflix alone has committed $63 million for one international production and three local productions, while Disney Plus has earmarked 150 local language productions in Europe, West Asia and Africa as part of its global expansion plans. The availability of film production infrastructure, from world-class studio facilities to widely available post-production skills, should place South Africa on the map to benefit from production investment.
Foreign direct investment through film is recognised
In addition to South Africa’s appeal as a film production hub, government incentives for international filmmakers also set the South African film industry apart. Co-production treaties give partner countries access to tax rebates of between 20% and 25%. In addition, the foreign film incentive for shooting on location in South Africa is set at 25% of South African production expenditure, with a further five per cent if black-owned service companies are employed.
This incentive stems from the recognition that for every original production, nearly 70 per cent of the budget goes to other sectors. The multiplying effect of film spend cannot be ignored. Foreign investment, therefore, remains an important part of keeping film firms in business.
International partnerships are critical for local industry growth
While talent has traversed borders and oceans, back home, South Africa remains uncompetitive in the domestic market. In 2021, the market share of South African-produced films dropped to one per cent (down from 3%in 2018) according to the NFVF. On its own, the South African market cannot generate enough scale and volume.
To be commercially viable, the films produced must therefore attract audiences – and subsequently revenue – overseas. With audiences having found alternative platforms to view South African content at more affordable rates, the time is right for international investment in market access and distribution.
Greater collaboration and partnerships between international and local film firms, including studios, producers and distributors and exhibitors, must extend to marketing film content and investing in audiences to ensure products reach a broader consumer base.
The business of film must be elevated
Investing in commercial quality films makes sense not only for revenue and profit but, it contributes to building up the viability of the film sector. However, beyond talent and creative excellence, to capitalise on international investment, the film industry in South Africa must orient itself towards the business of film.
This change in strategy requires the creation of collaborative business models that drive transformation and inclusivity but also capitalise on international partnerships and widen market access. Additionally, emerging filmmakers must develop their business skills – a requirement for successfully marketing their projects locally and globally.
The priority given to talent development must be matched with investment in audience development and market access, ensuring that local and global audiences can enjoy the world-class films that South Africa produces. International investment in commercially successful films will guarantee a thriving film sector that lives up to its potential as a driver of economic development and social transformation.
Zama Mkosi is a qualified media and entertainment lawyer, with over two decades of experience in the creative industries and the CEO/Founder of multiple businesses including MyWord Group – a specialist provider of Film, Television and Entertainment insurance solutions.
