The South African Film and Television Production Incentive

The South African Film and Television Production Incentive (SAFTP) is an incentive offered by the Department of Trade and Industry (the DTI) to support the local film and television industry as well as to contribute towards employment opportunities in South Africa.

The SAFTP is available to qualifying South African productions as follows:

The Qualifying South African Production Expenditure (QSAPE) should be at least R 1,5 million;
For documentaries, the QSAPE should be at least R 500, 000.

The SAFTP provides an incentive of 35 % of QSAPE.

An additional 5 % of QSAPE is provided for productions hiring at least 30 % of black South African citizens as Heads of Department (HOD’s), and procuring at least 30 % of the QSAPE from 51 % of South African black-owned entities which have been operating for at least a period of 1 year.

The incentive offers a reimbursable grant to the maximum of R 50 million per qualifying project.

Mandatory Conditions:

The applicant must be a South African production company.
The holding company must have a majority of South African shareholders; of which at least 1 must play an active role in the production and be credited in that role.
The applicant must complete and submit an application not earlier than 45 calendar days prior to the commencement of principal photography.
The applicant must have secured at least 25 % of the total production budget which should be fully committed at application stage;
The applicant must provide the DTI with a financial plan and letter(s) of intent from financier(s).
The applicant must demonstrate in the financial plan how the full financial closure will be reached for the qualifying project within 3 months following the grant-awarding decision.

The applicant must register a Special Purpose Corporate Vehicle (SPCV) incorporated in South Africa solely dedicated for the production of the film or television project to participate in this programme.

The registered SPCV must be a legal entity in terms of the Companies Act, the Close Corporations Act, or the Co-operatives Act.

The SPCV must be responsible for all production activities in South Africa and must have full access to the financial information for the entire production.

The SPCV must be utilised for 1 production for either film, television drama, documentary series, digital content or animation.

The principal photography must not commence until an approval letter has been received from the DTI.

The applicant’s failure to adhere to timelines stipulated by the DTI will automatically terminate the approval.

The applicant must procure a minimum of 20 % of qualifying goods and services from entities which are 51 % black-owned by South African citizens and have been operating from at least 1 year.

The SPCV and holding company(ies) must be in compliance with the requirements for Broad-Based Black Economic Empowerment (level 3 and 4 contributor status, respectively).

The applicant must demonstrate that they adhere to an industry-specific Code of Professional Standards that includes sexual harassment and health and safety protocols.