NFVF Study: Economic Contribution of the SA Film Industry (2017)

The National Film and Video Foundation (NFVF) commissioned an economic impact assessment study to determine the economic contribution of the South African film industry. The purpose of the study was to identify and quantify the economic impact that arises in South Africa from activities of companies and/ or individuals in the film and television industry between January 2013 and March 2017. The results of this research will better enable the NFVF to provide both public and private stakeholders with valuable insights into the South African film industry.

The secondary objective of this research was also to provide a business case for more government support and private investment into the industry. The overall outcome of this study aimed to demonstrate the capacity of the creatives industries to stimulate economic growth and contribute to the national development agenda, as government looks towards new avenues to spur economic growth gearing up to 2030.


Key Trends
Based on the engagement with the companies and/or individuals as well as industry stakeholders, the following key trends were identified regarding the South African film sector for the period 2013 to 2017:
• Film productions were seen to be based in Gauteng, Western Cape and KwaZulu-Natal.
• Little to no income-generating activity was seen in the Northern Cape, Free State, North West and Mpumalanga.
• There was a visible correlation between film business location and film operation location.
• Funding was mainly equity financing (32.4%), as well as commissioning and pre-sales; while gap funding (8.5%) was the lowest form of funding offered, due to the high risk involved in issuing loans.
• Common funders were public institutions such as the dti, NFVF, and Industrial Development Corporation (IDC).
• Feature films and documentaries were the largest segments of the industry (27.3%); as feature films are more attractive to consumers.
• Animation was the smallest segment of the industry (3%), due to a lack of technology and skills.
• Donor funding and NGOs supported the production of documentaries.
• Roughly 45% of services were exported to major regions, including the USA, Europe, Africa and North America.

The report by the NFVF can be downloaded here