The long nightmare may be over for South African manufacturers, whose industry has been crippled for more than two years by a rebate program that has, to all intents and purposes, stopped working.
Speaking at Durban FilmMart this week, Nelly Molokoane, director of film and television production at the Department of Trade, Industry and Competition (DTIC), insisted the government body tasked with administering the country’s 25% cash rebate had finally turned the corner. “The department is back in operation,” Molokoane said.
After months of political pressure from industry bodies rallying under the banner of the Save SA Film and TV Jobs Coalition, DTIC is now working through a backlog of applications and requests for rebates stretching back to 2024, with Molokoane advising patiently as the embattled department tries to right the ship.
“We know the industry is bleeding right now, but we are doing the best we can,” he said.
The news prompted a collective sigh of relief from filmmakers and industry groups gathered in Durban who have been locked in a fight with South African officials over delays in processing rebate requests, bureaucratic bottlenecks, a lack of transparency from their government counterparts and general questions about the future of the once-successful incentive program.
“The worst is over,” said producer Delon Bakker, who heads the Organization of Independent Producers. “We’re pretty confident now that we’re moving in the right direction. We don’t know at what pace we’re going, but we’re definitely making progress.”
The crisis has dealt a devastating blow to South Africa’s industry, which was already feeling the pinch as the exhibition sector faltered, global broadcast networks reduced investment in local production and domestic broadcasters, including the struggling public broadcaster SABC, were unable to keep the industry afloat.
“We’re talking about thousands of jobs. We’re talking about hundreds of companies that are losing money because of this. We’re talking about projects that are making demands that aren’t paid after two, three, four years,” said producer Paul Buys of Rose and Oaks Media. “He really pushed everyone to their limits.”
DTIC has made significant progress in paying out most of the nearly 2 billion rand ($121 million) backlog in outstanding rebate claims, supporting nearly 1.5 billion rand ($91 million) to fund rebate through 2029.
Speaking of producers Diversity While we remain cautiously optimistic that the industry has finally turned the page, there is still more work to be done. Chief among his concerns is what shape the incentive program will take moving forward, whether it’s a modified version of the current cash rebate program, a tax credit plan or an alternative proposal.
Still, after months of contentious dialogues with government officials, local producers are grateful that both sides found a way to break the impasse. “Ultimately, everyone wants this to work, and ultimately, we want to work with the department,” Bakker said. “We want peace. We want a period of prosperity.”
Polarizing Molokoane, who has faced calls from the industry to resign, struck a conciliatory tone in Durban.
“We’ve been working with the industry since last year to ask, ‘How can we best support this industry?’ We are talking. “And I know that perhaps the industry has been informed that DTIC is not on board,” he said. “We agree… We want to work with you to make sure we have a sustainable industry.”
For now, domestic producers remain cautiously optimistic that this political goodwill will continue, while foreign producers will seek assurance that the discount is back on solid foundations. “It will take some time to regain that certainty and build trust internationally,” said Great World Cinema producer Steven Markovitz.
Despite the challenges, South African filmmakers say the rebate crisis has been a wake-up call that has not only galvanized the industry but also strengthened its resolve to build a sustainable film and TV business, with or without a working incentive programme.
“There is a willingness to try and do something in this crisis,” Markovitz said. “I think we will come out of this situation by looking for other ways to break the dependence on DTI subsidies for every film we make.”
“These obstacles and challenges constantly force us to rethink different ways of doing things and different ways of getting our movies made and telling our stories,” added Layla Swart of Yellowbone Entertainment. “And I think, despite everything, that’s what we always do. We’re warriors, and we’re constantly defending what works for us.”
Durban FilmMart will be held in Durban, South Africa from 9-12 October.