Filmmakers in South Africa are facing a crisis due to the stalled 25% cash rebate system, which has left them waiting for unpaid claims for up to three years. Protests led by industry organizations call for immediate government action and transparency from the DTIC. While financial pressures increase, efforts are being made to reopen communication channels and address the rebate issues as the industry aims for recovery.
South African filmmakers are urgently raising alarms regarding the troubled cash rebate system. Major industry organizations are demanding clarity on unpaid claims and increased transparency from the Department of Trade, Industry and Competition (DTIC), which oversees the scheme. The 25% cash rebate is reportedly stalled due to unexplained delays, leaving numerous filmmakers waiting for millions of dollars in payments. The CEO of Known Associates Group, Tshepiso Chikapa Phiri, criticized the situation, stating, “We should never have gotten here.”
Recently, local film and television professionals demonstrated outside the DTIC in Pretoria, pressing for expedited approvals for rebates and payment of longstanding debts dating back three years. The protest, organized by key industry groups, emphasized the urgent need for the government to act. Known Associates Group chairman Joel Chikapa Phiri rallied the crowd, demanding immediate resolution of unpaid claims, as protesters chanted for action.
A memorandum was submitted to the DTIC representative, outlining grievances and specific requests for a streamlined rebate process that ensures timely approvals and minimizes bureaucratic hurdles. The memorandum also highlighted the film and TV sector’s significant contribution to the South African economy, employing around 60,000 workers and generating substantial annual revenues before COVID-19. The film industry has been recovering from pandemic-related setbacks, but ongoing rebate issues have stifled progress.
The memorandum criticized the lack of communication and a clear growth strategy from the DTIC, warning that inaction jeopardizes livelihoods and economic contributions from the film sector. With limited financial resources available from institutions like the National Film and Video Foundation, producers find it increasingly difficult to maintain operations when rebate systems fail.
Industry leader Nomsa Philiso acknowledged the hardships faced by producers due to delays at the DTIC, stating, “Everybody is struggling because of the economy… It puts a lot of pressure on a company like MultiChoice to keep the wheels turning.” While MultiChoice feels the responsibility to the industry, they acknowledge the financial constraints impacting production budgets.
The Cape Town production services sector also feels the impact, experiencing slower recovery from previous peaks. Productions anticipated post-strikes have not materialized as expected, leaving companies like Moonlighting Films and Film Afrika navigating tighter commissioning budgets. Nevertheless, cooperation with major platforms like Netflix is helping sustain some aspects of the sector amidst the instability.
Concerns about stalled projects due to the rebate’s unpredictability are forcing production companies to pivot strategies, focusing less on rebates and more on delivering competitive value and favorable production costs. Communication gaps between government and industry leaders exacerbate existing issues, as emphasized by Vosloo’s frustrations on the lack of updates from the DTIC.
In response to the protests, DTIC deputy minister Zuko Godlimpi suggested forming a working committee to enable consistent dialogue, stating the importance of addressing unpaid claims. While uncertainty remains, some industry members retain hope for a breakthrough, indicating resilience amidst challenges.
The Joburg Film Festival is scheduled for March 11 – 16, showcasing the industry’s ongoing efforts amidst adversity.
The South African film industry is grappling with severe delays and uncertainties surrounding the cash rebate system, prompting widespread protests from filmmakers. Unpaid claims and inadequate communication from the DTIC have resulted in a stunted recovery post-pandemic. Although challenges persist, recent initiatives to establish dialogue may offer a path forward as the industry seeks to regain stability and support economic contributions critical to its success.
Original Source: variety.com
