The first national study of South Africa’s film industry based on verifiable information
has shown that the industry contributed R3.5b to the national economy in 2012.
The research, commissioned by the NFVF (National Film and Video Foundation), and
conducted by Deloitte, found that the industry ‘more than pays for itself’ with
payments to SARS (South African Revenue Services) of more than R670m, a figure
R420m more than the estimated R250m Film and Television Incentive paid by the DTI
(Department of Trade and Industry) in 2012.
The industry created a total of 25,000 full-time equivalent jobs in 2012, and showed a
multiplier of 2.89. That means that for every R1 spent in the film industry, an
additional R1.89 is generated in the industries that service the industry and ancillary
industries.
“The multiplier of 2.89 places the local film industry at ‘mid-range’ when compared to
the economic contributions of 99 other industries within the country. The top five
industries (drawn from financial services, public administration, electricity distribution,
insurance and pension funds and coal and lignite mining) had GDP multipliers of
between 3.71 and 3.52, while the bottom five industries’ multiplier effect were
between a high of 1.42 and a low (engines and turbines) of 0.99,’ says Judy Prins,
leader of Deloitte Sport, Media and Entertainment.
“For the first time we are able to articulate what returns there are for government’s
investment in the film sector. The data collected will allow us to force our strategies
on the efforts most likely to bear fruit for the South African economy.
“Not only do we now have data to make informed investment decisions but we are
also encouraged that the efforts put into the sector are now paying off,’ comments
Zama Mkosi, NFVF CEO.
“Despite major challenges in the value chain, the industry has shown commitment
and ability to adapt, survive and grow. The industry has grown 84% in the past five
years and there is no doubt that it will continue to be an active industry in the
future,’ concludes Prins.
