The department of trade, industry & competition has pledged to deal with the complaints from the film and television industry regarding the lack of money for the department’s film and television incentive, the failure to pay claims for the incentive, maladministration of the scheme and a lack of consultation.
No claims have been paid for two years, taking the value of outstanding applications to R1.2bn, which has seriously undermined the industry, discouraged foreign direct investment and led to job losses.
The department aims to redesign the incentive, including the possible introduction of different incentives for different sizes of production companies and an element of a tax incentive. The department is also considering alternative financing for the incentive and has appealed to Treasury for more funds.
The incentive has helped to promote the development of the industry since its introduction in 2004, but was set back during the Covid-19 pandemic when R1.2bn of its funding was reallocated to the Social Employment Fund that was set up to counteract the loss of jobs after the pandemic.
The adjudication committee for incentive claims has not met for two years and no claims have been paid in the 2024/25 and 2025/26 financial years. Deputy minister Zuko Godlimpi told parliament’s trade, industry & competition committee on Tuesday that unprocessed incentive applications amounted to R1.2bn, which exceeds the annual allocation for the incentive.
He said the department has a contingent liability of R473m — down from R2bn in the 2020/21 financial year and R679m in September 2025 — due to claims having been approved without available funds. The department expects to pay R116m in incentives by the end of the current financial year.
Instead of paying new claims, the focus has been on reducing the contingent liability, creating a backlog of new claims. R23bn was allocated for the incentive between 2020/21 and 2025/26 and a further R522m has been earmarked for 2026/27.
Shattered confidence
Trade, industry & competition minister Parks Tau, Godlimpi and director-general Simphiwe Hamilton appeared before the committee to deal with complaints by the industry. It was represented by the Save SA Film Coalition, which stressed the industry’s role in economic growth and job creation.
Wandile Molabatsi, the deputy chair of the Independent Producers Organisation and a member of the coalition, said international and domestic confidence in the incentive has been shattered, and major studios have opted to film elsewhere. International banks have also refused to lend against incentive-based projects, he said, adding that the department has ignored all communications and is deliberately obstructing claims.
Now, the department is proposing the creation of a National Film Working Group, consisting of public and private stakeholders to tackle the industry’s challenges.
Hamilton said 80 applications for a projected incentive amount of R1bn were received between May 2024 and December 2025, but none were approved. He said claim adjudication meetings could only resume once an additional budget has been secured. National Treasury has been informed about the need for additional funds but has responded that the department has to review its incentives and reprioritise its present budget, he said.
Despite the fiscal constraints the department has decided against suspending the incentive.
“Given South Africa’s fiscal environment it cannot be business as usual for the incentive,” Hamilton said. “The support structure has to change to create sustainable productions/producers like other locations in Africa such as Nigeria and Kenya, which do not offer incentives but have a growing film and television sector.”
He added that the IDC is conducting a cost-benefit analysis of a blended finance facility and a tax incentive as possible ways to support the industry in a more fiscally sustainable manner.
Tau said the department accepts the significance of its incentive programmes and acknowledges the effect of the reduced budget allocations.
‘On the same side’
“In many ways we are on the same side [as the film industry],” he said, adding that the department is committed to work with the industry to find solutions. Tau accepted the committee’s rejection of the department’s proposal to transfer management of the incentive to the National Film and Video Foundation in the department of sports, arts & culture.
The film industry had shown substantial growth but has been disrupted and there is a need reinvigorate it, Tau said, adding that it is unacceptable that payments on valid incentive claims are delayed for several years.
The department has pleaded with the Treasury to make good the reallocation of funds to the Social Employment Fund to the incentive scheme, and allegations of maladministration in the department made by the coalition will be investigated, Tau said.
Godlimpi said capacity in the departmental unit handling the incentive has to be strengthened after being reduced due to budget cuts. There is no excuse for the lack of communication by the department with the industry, he said, committling to a structured engagement with it.
In November last year home affairs minister Leon Schreiber gazetted a new digital platform to process visa applications by international film and creative production companies in a bid to boost the local industry.
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