South Africa will offer about $40-million (R246-million) in tax incentives to local and foreign film companies over the next three years to promote the country as a prime filming location, the trade and industry minister said on Wednesday.
”This will secure South Africa’s place as a major place of investment, like Spain, New Zealand, Canada, the UK and India,” trade and industry minister Mandisi Mpahlwa told a news conference.
Film production costs in South Africa are up to 40% lower than in the United States and 20% lower than in Australia, the minister said.
Major films produced in South Africa include The Gods Must be Crazy, Cry, the Beloved Country, The Piano Player and Sarafina.
Salma Hayek and Colin Farrell are currently in the country filming Ask the Dust.
”The film industry is one of the most powerful vehicles we have to bridge the gap, to build stronger ties,” said Jeannette Ndhlovu, the new consul-general to Los Angeles.
According to Mxolisi Matshamba, the acting CEO of the trade and investment South Africa compnay, the coutry’s entertainment industry is valued at $1,2-billion.
Productions with budgets exceeding R25-million ($4-million) will qualify for tax rebates under the incentive programme.
Feature films, documentaries, television movies and drama series will be eligible for tax rebates — but reality shows and pornography will not, Matshamba said.
A panel, comprising officials from the finance ministry and the government’s National Film and Video Foundation, will decide who receives the tax breaks.
”We have talent and opportunities waiting to be tapped,” Mpahlwa said. ”And we are blessed with breathtaking landscapes and a myriad of talent.”
The minister said South Africa had many unique stories to tell.
”They may arise from an unfortunate history, but there are interesting stories found in the most remote corners of the country.” – Sapa-AP