South African Film and Television Production Incentive

South African Film and Television Production Incentive (SA Film)

Objectives:

The objectives of the South African Film and Television Production Incentive, are to support the local film and television industry to contribute towards employment creation, local procurement and enhance the international profile of the South African film and television industry while increasing the country’s creative and technical skills base.

The incentive is designed to address the historical imbalances in the sector and ensure diversity and inclusion at all levels of production including ownership and control. To support the local film industry and to contribute towards employment opportunities in South Africa.

Benefits:

  • Incentive is calculated at thirty-five percent (35%) of Qualifying South African Production Expenditure (QSAPE).
  • An additional five percent (5%) of QSAPE is provided for productions hiring at least thirty percent (30%) of Black South African citizens as head of departments (HODs) and
  • Procurement of at least thirty percent (30%) of the QSAPE from fifty-one percent (51%) South African black-owned entities which have been operating for at least a period of one (1) year.
  • The incentive programme offers a reimbursable grant to the maximum of R25 million per qualifying project.

PROJECT ELIGIBILITY REQUIREMENTS:

The South African Film and Television Production Incentive is available to qualifying South African productions as follows:

  • Productions must have a minimum QSAPE of R1.5 million for all qualifying production formats and a minimum of R500 000 for documentaries:
  • At least sixty percent (60%) of the principal photography must be filmed in South Africa;
  • At least fourteen (14) calendar days of the principal photography must be filmed in South Africa; and
  • For productions with a minimum QSAPE of R50 million, the sixty percent (60%) and fourteen (14) calendar days’ requirements may be waived and such discretion will take into account the budgetary implications of the decision made.
  • The Qualifying South African Production Expenditure (QSAPE) must account for at least seventy-five percent (75%) of the total production budget (TPE);
  • The majority of intellectual property must be owned by a South African citizen(s) and the copyright must be registered with the Companies and Intellectual Property Commission (CIPC).
  • The Director must be a South African citizen and be credited for this active role in the production;
  • The top writer and producer credits must include South African citizens either exclusive or shared collaboration credits;
  • The majority of the five (5) highest-paid performers must be South African citizens; and
  • The majority of heads of departments and key personnel must be South African citizens, with at least twenty percent (20%) of the Head of Departments (HODs) on core production functions being Black South African citizens.
  • The production company must achieve at least a level three (3) B-BBEE contributor status in terms of the B-BBEE Codes of Good Practice;
  • The SPCV must achieve at least a level four (4) B-BBEE contributor status in terms of the B-BBEE Codes of Good Practice.

Mandatory conditions 

  • The applicant must be a South African production company.
  • Use of multiple subsidiaries and connected companies to be regarded as production companies is not allowed.
  • The applicant must procure a minimum of 20% of qualifying goods and services from entities which are 51% black-owned by South African citizens and have been operating for at least one year.
  • The applicant must complete and submit an application prior to commencement of the project anywhere in the world. If a project commences prior to receiving an outcome from the dtic, the applicant would have done so at their own risk.
  • If the applicant chooses to commence with the project prior to receiving an outcome, the project must be fully funded. Should such projects receive an approval, the project will not be eligible for milestone payments;
  • The applicant must have secured at least twenty-five percent (25%) of the total production budget (TPE)

which should be fully committed at application stage;

  • Where the project is not fully funded, the applicant must have secured at least twenty five percent (25%) of the total production budget at application stage; supported by firm commitment such as concluded agreements and ring-fenced funds in the SPCV Bank Account. Such applications must receive an outcome before commencing with the principal photography.
  • Prior to commencing with principal photography the applicant must have secured 100% of the budget following the grant awarding decision by the dtic and such proof must be submitted.
  • The applicant must provide the dtic with a financial plan and signed contract from financier(s);
  • The applicant must register a SPCV incorporated in the Republic of South Africa solely dedicated to the production of the film or television project to participate in this incentive programme. The SPCV must be wholly owned by the applicant.
  • The qualifying expenditure and payments made to third party companies must be settled directly from the primary bank account of the established SPVC.

Programme Guidelines

Contacts:

Applications:

Eliya Ndou ENdou@thedtic.gov.za  +27 12 394 1748
Mr Khabo Mhlanga KMhlanga@thedtic.gov.za  +27 12 394 1349
Mpho Nkuna MNkuna@thedtic.gov.za  +27 12 394 1805

Claims:

Nesi Masuku NMasuku@thedtic.gov.za  +27 12 394 1065
Michelle Mochochoko  MMochochoko@thedtic.gov.za +27 12 394 3456
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