Tau Vows Probe Into Film Incentive Governance Amid R2bn Liability

Trade, Industry and Competition Minister Parks Tau has reaffirmed his commitment to investigating governance and possible malfeasance linked to the Film and Television Production Incentive, as government moves to stabilise the sector following industry protests.

The Minister, accompanied by Deputy Ministers Alexandra Abrahams and Zuko Godlimpi, as well as Director General Simphiwe Hamilton, briefed the Portfolio Committee on Trade, Industry and Competition in Parliament on steps being taken to address the industry's concerns.

Urgent Funding and Structural Reforms

Deputy Minister Godlimpi outlined a multi-pronged intervention plan to resolve funding bottlenecks and administrative challenges.

Key measures include:

• Securing urgent interim funding to address outstanding claims and applications

• Reprioritising budget allocations and engaging National Treasury to increase funding

• Establishing a national industry working group with public and private stakeholders

• Exploring alternative incentive models, including tax incentives for foreign productions

• Partnering with the Industrial Development Corporation (IDC) and National Empowerment Fund (NEF) for blended financing solutions

• Introducing an automated online portal to reduce processing delays

• Strengthening human resource capacity to manage increased application volumes

• Encouraging provinces, including the Western Cape, to offer complementary incentives

The department said these interventions aim to improve sustainability, efficiency and long-term sector growth.

Contingent Liability Declining

Director General Simphiwe Hamilton disclosed that the programme's contingent liability stood at approximately R2 billion in the Annual Financial Statements for the year ended March 2021.

Following the suspension of adjudication meetings, the department continued processing valid claims to reduce the financial exposure.

Hamilton reported that since September 2025, contingent liability has decreased steadily from R679 million to R473 million, reflecting payments made to approved projects.

"This amount will be further reduced by the end of the current financial year, leading to further strengthening of the financial position of the incentive scheme," Hamilton told the Committee.

Focus on Growth and Job Creation

Minister Tau emphasised that the department is actively co-creating solutions with industry stakeholders to restore confidence and ensure the film sector contributes meaningfully to economic growth and job creation.

He reiterated his commitment to investigating governance concerns while working toward a more transparent, efficient and sustainable incentive framework.

The briefing comes amid heightened scrutiny of the Film and Television Production Incentive, which plays a crucial role in attracting both domestic and international productions to South Africa.