South African Filmmakers Demand Urgent Action on Delayed Rebate Payments

The film industry in South Africa is raising an urgent call for action regarding the troubled money rebate system. Industry leaders are demanding immediate solutions to address the issue of unpaid claims and are insisting on greater transparency from the Department of Commerce, Business and Competitors (DTIC), the government body responsible for managing the rebate scheme. The current state of affairs is detrimental to local filmmakers, who are feeling the strain of financial uncertainty and bureaucratic inefficiencies.

Understanding the Impact of Delays in the 25% Money Rebate Program

The 25% cash rebate system in South Africa has been severely disrupted by what industry representatives describe as unexplained delays from the DTIC. This government department is reportedly responsible for overseeing the rebate, which currently owes millions of dollars in unpaid claims to local filmmakers. The ongoing delays have created a ripple effect, stalling projects and leaving many industry professionals in financial limbo as they await critical funding.

Filmmakers Express Frustrations Over Stalled Applications and Lack of Communication

Numerous applications remain in a state of uncertainty, pending approval from a department that has not convened in over a year. This unprecedented situation is particularly concerning for Tshepiso Chikapa Phiri, CEO of the renowned production company Recognized Associates Group, who characterized it as “surprising.” The lack of communication from the DTIC has compounded the frustration among filmmakers who depend on timely approvals to move their projects forward.

Protestors Rally for Immediate Payment of Outstanding Claims

Recently, hundreds of members from the South African film and television industry gathered in Pretoria to protest outside the DTIC offices. They demanded that the department expedite the approval of applications for rebates and settle outstanding debts owed to projects that have already received approval, with some claims dating back as far as three years. The passionate rallying cry of “Pay the claims! Pay them now!” echoed through the crowd, highlighting the urgency of the situation.

Industry Bodies Unite to Address Grievances and Propose Reforms

The protest was organized by various industry bodies, including the Independent Producers Organization (IPO), the Independent Black Filmmakers Collective, Animation SA, and the Documentary Filmmakers Association. These groups are voicing escalating frustrations, as filmmakers claim that their industry is effectively paralyzed due to the ongoing inaction from government officials. During the rally, Joel Phiri presented a memorandum outlining the industry’s grievances and a list of demands for an improved rebate system that is straightforward, reliable, and efficient.

Highlighting the Economic Contributions of the Film and TV Sector

The memorandum also emphasized the significant economic contributions made by the film and television sector in South Africa. Before the COVID-19 pandemic, this industry employed approximately 60,000 full- and part-time workers and generated between 8-10 billion rand (approximately $440 million to $550 million) annually. The pandemic severely impacted this sector, and the ongoing turmoil surrounding the rebate system has hampered recovery efforts, leaving numerous projects in limbo as they await necessary approvals.

Ongoing Challenges in Communication and Strategy from the DTIC

The memorandum pointed out that the situation has been exacerbated by a lack of communication from the DTIC and the absence of a clear strategy to promote growth and sustainability within the industry. This inaction not only jeopardizes the livelihoods of those directly involved but also threatens the substantial economic contributions that the film sector brings to South Africa through its multiplier effects. As of the publication date, the DTIC had not issued a comment to Variety.

Financial Struggles and Limited Funding for South African Filmmakers

The challenges surrounding the rebate system have compounded an already difficult financial landscape for the industry. “Our financial resources are quite limited,” remarked Marc Schwinges, producer and chairperson of the IPO, during a discussion at Johannesburg’s JBX market. He noted that the industry receives very little funding from the National Film and Video Foundation and limited resources from the DTIC, if the rebate system is even operational. The complexity of navigating the financial framework in South Africa makes producing films increasingly challenging, especially in the absence of a functioning rebate system.

Industry Leaders Discuss the Painful Impact of Delays on Production

Nomsa Philiso, CEO of MultiChoice’s general entertainment division, expressed that the delays from the DTIC have been particularly painful for many producers. “Everyone is struggling because of the economy, and free-to-air broadcasters are facing challenges as well,” Philiso shared with Variety. “It’s tough; there are not infinite funds available, which increases pressure on companies like MultiChoice to keep operations running smoothly.”

MultiChoice’s Commitment to Supporting the Film Industry

Philiso emphasized that MultiChoice feels a strong responsibility to the industry, asserting that the company is not planning to cut budgets anytime soon. “Not commissioning new projects is simply not an option, given the impact it has on the entire value chain,” she stated. This commitment demonstrates the company’s dedication to supporting the film industry, even amidst financial pressures and uncertainties.

The Film Industry Faces Continued Uncertainty Amid Broader Challenges

The once-thriving production services industry in Cape Town is also feeling the financial squeeze, with uncertainty surrounding the rebate further exacerbating the challenges posed by recent global events, including COVID-19 shutdowns and ongoing strikes in Hollywood. Lynne-Anne Vosloo, CEO of the production services giant Moonlighting Films, acknowledges that despite having one of their busiest years in 2023, the business has been slow to recover to pre-pandemic levels. “We all expected an influx of work once the strikes were resolved, but surprisingly, that hasn’t happened at all,” Vosloo remarked to Variety.

Industry Reactions to Mergers and Budget Cuts in Hollywood

Nicola Unsworth, head of production at competing company Film Afrika, noted that the South African film industry “definitely felt the impact” of corporate mergers and budget cuts that have tightened commissioning budgets in Hollywood. Many projects that were in development have fallen off the slate, reflecting the challenges that the industry faces in adapting to shifting market conditions.

Netflix’s Production in South Africa Provides Some Relief

Despite these challenges, the company has found a silver lining in Netflix’s live-action adaptation of “One Piece,” which recently wrapped up filming Season 2 in Cape Town. This production has been a significant boost for the industry, with Netflix’s presence helping to sustain many in the sector. Unsworth noted that sound stages at Cape Town Film Studios are fully booked by Netflix, providing much-needed work for local professionals and supporting the overall ecosystem.

Negotiating Beyond the Rebate: Adapting to the New Market Realities

However, Unsworth indicated that several projects that were in negotiations with Film Afrika opted out of shooting in South Africa due to the uncertainty surrounding the rebate system. The company’s COO, Marisa Sonemann-Turner, revealed that they have shifted their approach, moving away from reliance on the rebate in their negotiations and focusing more on the value for money they can provide. She highlighted South Africa’s relatively low production costs and favorable exchange rate as competitive advantages. “We truly go above and beyond to maximize your budget, ensuring that every cent is well spent on screen,” emphasized Unsworth.

Frustrations Over Lack of Communication with the Government

For Vosloo at Moonlighting Films, currently engaged in producing Gina Prince-Blythewood’s highly anticipated fantasy epic “Children of Blood and Bone,” the lack of communication between the South African government and the film industry has been particularly frustrating. “We are unable to provide our clients with any proper updates because there’s zero communication from the DTIC to the industry,” she stated. “We’re essentially left in the dark.” This lack of clarity creates significant challenges for production companies trying to plan their projects effectively.

Proposed Dialogue Between Industry and Government to Resolve Issues

Following the protests in Pretoria, Tshepiso Phiri from Recognized Associates reported that DTIC deputy minister Zuko Godlimpi proposed the establishment of a working committee to facilitate ongoing dialogue with the department. This initiative includes bi-weekly meetings between industry representatives and government officials, which Phiri described as a “significant step forward.”

Hope for Resolution Amidst Industry Optimism

“He was very clear that the department must devise a plan to address the outstanding claims,” Phiri stated. “While we don’t have definitive answers yet, at least they are beginning to communicate.” This renewed dialogue has sparked cautious optimism among industry professionals, who are hoping for a resolution to the ongoing challenges.

Resilience of the South African Film Industry: A Look Ahead

Despite the hurdles, others within the resilient film industry remain cautiously optimistic about finding a way to break the deadlock. “People are very hopeful. No one is throwing in the towel,” noted Philiso. “Historically, our industry has faced downturns, but we have always managed to bounce back,” added Vosloo, highlighting the enduring spirit of the South African film community.

Mark Your Calendars: The Joburg Film Festival Dates Announced

The Joburg Film Festival is scheduled to take place from March 11 to March 16. This event promises to be a significant occasion for the industry, providing a platform for filmmakers and industry professionals to showcase their work and engage in meaningful discussions about the future of film in South Africa.