433369666-The-Case-for-Investing-in-South-Africa

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FILM AND TELEVISION
• South Africa has a proven track record in the film,
television and commercial service arenas.
• The direct contribution made by the film industry
to the economy was estimated at ZAR4.4-billion in
2016/17, according to Urban-Econ. The industry
has recorded rapid average growth, reflecting its
vibrancy and expanding investment opportunity set.
• South Africa’s film industry has made inroads
internationally, but development opportunities
exist in pre- and post-production facilities, as well
as in other support services (e.g. special effects,
design and making of costumes, décor or film sets,
animation).
• Private equity constitutes the industry’s main source
of funding, reflecting its attractive investment
credentials.
• The industry receives significant public sector
support, including government incentives (e.g.
Foreign Film and Television Production and Post-
Production Incentive, SA Film Production and Coproduction
Incentive), development and production
funding from the National Film and Video Foundation
and the Industrial Development Corporation
SELECT INVESTMENT OPPORTUNITIES IN THE FILM
INDUSTRY:
• Development of feature films and documentaries (largest segment of
local film industry, ca. 27%).
• Although animation is the smallest segment in the industry (ca. 3%),
the proliferation of new technology and skills can unlock significant
growth.
• Consultancy and training services provision for business and skills
development programmes to support emerging filmmakers and fasttrack
transformation in the industry.
• Opportunities across value chain, incl. film concept development, film
product packaging and distribution, private equity financing, pre- and
post-production management companies and marketing services.
• Post production and VFX studios to enable E2E production in South
Africa.
• Investing in new specialised studio space.
• Skills development and training across the industry.
TOURISM
• South Africa is one of the world’s fastest-growing
leisure and business travel destinations. Its scenic
beauty and diversity, sunny climate, wildlife and
cultural aspects constitute, among others, strong
investment propositions for the tourism sector.
• South Africa was ranked 38 th in the world in 2018
in terms of international tourist arrivals (10.3-million
in 2017, 10.5-million in 2018) and 37 th with regard
to international tourist receipts in 2018 (USD8.9-
billion, up from USD8.8-billion in 2017), according
to the United Nations World Tourism Organisation
(UNWTO). It is Africa’s third-largest international
tourist destination, after Morocco and Egypt.
• The tourism sector has developed into one of the
major contributors to the economy. It has extensive
linkages to several other sectors, benefiting from
the supply of goods and services by a multitude of
domestic producers and service providers.
• Due to its labour-intensity and sectoral linkages,
it is a priority sector for the government, with rural
tourism being a key area of focus for growth. The
sector’s growth and development are guided by the
National Tourism Sector Strategy.
SELECT INVESTMENT OPPORTUNITIES IN TOURISM:
• Business tourism: South Africa has over 1 000 high-quality conference
and exhibition venues, with a National Convention Bureau assisting in
revenue origination.
• Cultural tourism: Investment in existing and development of worldclass
tourism sites to commemorate South Africa’s historical legacy.
• Investment in World Heritage Sites: South Africa hosts 10 World
Heritage Sites.
• Eco-tourism: South Africa’s diverse climate, varied wildlife and
landscapes create a myriad of opportunities for eco-tourism
commercial ventures. The country is leading the way in the
development of trans-frontier parks.
• Adventure tourism: Marine tourism such as game fishing and shark
cage diving.
• Other high-growth opportunities: Sports tourism, palaeo-tourism
development, wine tourism, theme parks and medical tourism.