South African Filmmakers Urgently Demand Reform of Money Rebate System

Filmmakers in South Africa are raising an urgent alarm regarding the country’s troubled money rebate system. Major industry organizations are calling for immediate action to address the numerous unpaid claims that continue to plague this system. These calls emphasize the need for enhanced transparency from the officials responsible for managing the cashback scheme, as the current state is causing significant distress within the film community.

The existing 25% money rebate system has been severely hindered by what industry representatives describe as unexplained delays from the Department of Commerce, Business and Competitors (DTIC). This governmental body is responsible for overseeing the rebate, yet it owes filmmakers millions of dollars in unpaid claims, leaving many projects in jeopardy.

Numerous applications remain in a state of limbo, awaiting approval from a department that hasn’t convened in over a year. Tshepiso Chikapa Phiri, CEO of the prominent production company Recognized Associates Group, expressed his astonishment at this situation, stating, “We should never have gotten here.” This sentiment reflects the growing frustration of filmmakers and producers alike.

Recently, hundreds of industry members gathered in Pretoria to protest outside the DTIC offices. They demanded that the department expedite the approval of rebate applications and settle outstanding debts owed to projects that have already received approval. Some claims date back as far as three years, exacerbating the financial strain on local filmmakers.

“Pay the claims! Pay them now!” exclaimed Joel Chikapa Phiri, chairman of Recognized Associates Group, rallying the crowd with fervent cheers from the protestors. The urgency of this demand underscores the financial difficulties faced by many in the industry, who rely on these funds to sustain their projects.

The protest was organized by several industry bodies, including the Independent Producers Organization (IPO), the Independent Black Filmmakers Collective, Animation SA, and the Documentary Filmmakers Association. This gathering highlighted the growing discontent among filmmakers who feel their industry is being paralyzed by governmental inaction.

During the demonstration, Joel Phiri submitted a memorandum to a DTIC representative outlining the industry’s grievances. The document included demands for a complete overhaul of the rebate system to ensure it is “simple, reliable, and certain,” with reasonable timelines for application approvals and payments, less bureaucratic red tape, and reduced compliance costs.

The memorandum also emphasized the significant contributions of the film and television sector to the South African economy. Before the COVID-19 pandemic, this industry employed approximately 60,000 full- and part-time workers while generating between 8-10 billion rand (about $440 million-$550 million) annually, showcasing its vital role in economic development.

The pandemic severely impacted the industry, and now recovery efforts are further complicated by the ongoing rebate issues. Numerous projects are effectively stalled as they await necessary approvals, creating a sense of urgency among filmmakers who fear long-term repercussions on their careers and livelihoods.

“This situation has been exacerbated by limited communication from the DTIC and the lack of a clear strategy to promote growth and sustainability,” the memorandum states. “This inaction jeopardizes not only the livelihoods of those directly involved in these industries but also the substantial economic contributions that the sector makes to South Africa.” As of the publication date, the DTIC had not provided a response to Variety.

The struggles surrounding the rebate system have compounded an already challenging economic landscape for the industry. “Our financing options are quite limited,” remarked Marc Schwinges, producer and chairperson of the IPO. He highlighted that funding from the National Film and Video Foundation and the DTIC is restricted, making it increasingly difficult to navigate the financial framework in South Africa.

Nomsa Philiso, CEO of MultiChoice, echoed the sentiment of frustration regarding DTIC delays, stating that many producers are feeling the strain. “Everyone is struggling due to the economy. The free-to-air broadcasters are also facing challenges,” she noted. This ongoing financial pressure makes it difficult for companies like MultiChoice to manage their operations effectively.

Despite the challenges, Philiso emphasized MultiChoice’s commitment to the industry, stating that they are “not slashing budgets anytime soon.” The company understands the importance of continuing to commission projects, as halting production could severely impact the entire value chain, stressing the interconnectedness of the industry.

The film production sector in Cape Town, which has traditionally thrived, is feeling the strain as well. The uncertainty surrounding the rebate system adds to the turbulence caused by the COVID-19 shutdowns and the dual Hollywood strikes, all contributing to a difficult recovery environment.

Lynne-Anne Vosloo, CEO of the production company Moonlighting Films, admitted that after a busy 2023, business has been slow to rebound to pre-pandemic levels. “We all thought that once the strikes were resolved, there would be a surge of work — which, surprisingly, didn’t happen at all,” Vosloo shared, reflecting the unpredictability of the current market.

Nicola Unsworth, head of production at the competing company Film Afrika, noted that the South African industry has “definitely felt the impact” of corporate mergers and budget cuts in Hollywood that have tightened commissioning budgets. Many projects that were once in development have now been shelved, illustrating the far-reaching effects of international market fluctuations.

On a positive note, Netflix’s live-action adaptation of “One Piece” recently wrapped filming in Cape Town, marking the streamer’s largest production in South Africa to date. Unsworth noted that this project has been crucial in supporting the industry during tough times, with sound stages at Cape Town Film Studios fully booked by Netflix, providing much-needed work for local crews.

However, Unsworth revealed that several projects that were in discussions with Film Afrika to shoot in South Africa ultimately backed out because of the uncertainty surrounding the rebate. The company’s COO, Marisa Sonemann-Turner, emphasized that they have shifted their negotiations away from a reliance on the rebate and are now focusing on the value for money they can provide. She highlighted South Africa’s relatively low production costs and favorable exchange rates, stating, “We truly bend over backwards to make your money work,” ensuring that clients receive the best value for their investment.

For Vosloo, currently engaged in servicing Gina Prince-Blythewood’s star-studded fantasy epic “Children of Blood and Bone,” the lack of communication from the South African government has been particularly frustrating. “We aren’t able to give our clients any proper updates because there’s no communication from the DTIC to the industry,” she lamented. “Absolutely nothing. We’re kind of in the dark,” which highlights the urgent need for improved dialogue and transparency between the government and the film sector.

Following the protests in Pretoria, Tshepiso Phiri from Recognized Associates mentioned that DTIC deputy minister Zuko Godlimpi proposed establishing a working committee to facilitate communication with the department. This would include bi-weekly meetings between industry representatives and government officials, a move she described as a “big step” towards resolving the ongoing issues.

“He was very clear that the department needs to devise a plan to pay the outstanding claims,” she remarked. “We don’t have any definite timelines yet, but at least there’s a commitment to communication,” which offers a glimmer of hope for industry stakeholders who have been struggling with uncertainty.

Meanwhile, others in the resilient film industry remain cautiously optimistic that a resolution to the deadlock can be achieved. “People are very hopeful. No one is throwing in the towel,” Philiso stated, emphasizing the spirit of resilience that characterizes the industry.

“When you consider the industry historically, we’ve experienced downturns before,” Vosloo added. “We’ve had periods where the industry has dipped, but we’ve always bounced back,” reflecting the determination and tenacity of South African filmmakers.

The Joburg Film Festival is scheduled to take place from March 11 to 16, providing a platform for industry professionals to engage and explore new opportunities despite the ongoing challenges.