A movie incentive programme is expected to bring around R1.2bn in foreign currency into South Africa, the Department of Trade and Industry said last week.
The department said to assist local producers in improving their cash flow, it was proposing an option of an incentive being paid according to the production milestones achieved.
The option of milestone payments is restricted to South African film and television productions and co-productions and applicants wishing to make use of this payment method must acquire a completion bond.
Some 70% of the cost of the completion bond will be subsidised for productions between R2.5m and R6m, while 50% of the cost of the completion bond will be subsidised for productions between R6m and R10m
According to a news report issued by Sapa, the department said that to date the film and television production incentive programme had approved 81 productions for a total rebate of R387.5m.
Some 44 of the productions were South African made, 12 were co-productions and 25 were foreign productions.
The projected expenditure for the projects, upon their successful completion, is likely to fetch R2.3bn of which R1.2bn would result in direct foreign expenditure, the department said.
The DTI has supported a number of Hollywood box-office successes since the inception of the local and foreign incentive programmes, including Tsotsi, Blood Diamond, Mr Bones, White Wedding and District 9.
