South Africa: Government Paralysis Costs Film Industry Thousands of Jobs and Millions in Revenue

The South African film and television industry is facing a severe crisis due to the government's paralysis of the Film and Television Production Incentive. In an effort to address the issue, the Save SA Film and TV Jobs Coalition has reached an agreement with the Department of Trade, Industry and Competition (DTIC) to clear a backlog of about R700-million in film production applications.

This coalition, representing various film and TV organizations, claims that the industry's collapse has cost 1,850 jobs and an estimated production spend of R822-million in the current financial year alone.

The DTIC Minister, Parks Tau, attributed the delay in the film incentive's resumption to fiscal pressures, while the contingent liability associated with the program stood at approximately R2-billion as of June 2026. The DTIC acting deputy director-general for incentives, Justice Ngwenya, confirmed that this liability has shown a consistent downward trend since September 2025, reducing to R255-million.

However, the coalition argues that the government has forfeited between R100-million and R125-million in tax revenues due to the incentive's collapse.

Unathi Malunga, a coalition representative and entertainment lawyer, emphasized the severe consequences of the industry's paralysis, stating that more than R800-million in production spend has been lost, and the government has forfeited significant tax revenues. The coalition is also calling for the removal of DTIC director of film and television production, Nelly Molokoane, citing alleged lack of oversight over the incentive programme.

The DTIC has acknowledged the industry's concerns and expressed commitment to finding sustainable solutions. The department plans to establish short-term working groups and jointly develop revised incentive guidelines, with the adjudication cycle for applications starting at the end of September. The portfolio committee chairperson, Mzwandile Masina, urged the department to resolve capacity constraints to adequately support the industry.