The Eastern Cape Development Corporation (ECDC) and the Mandela Bay Development Agency (MBDA) have signed a R10-million agreement to support the local film industry and provide local infrastructure to promote the region as a film destination of choice.

The ECDC will make available an initial budget of R5-million for the establishment of a film studio in Gqeberha, while the MBDA will make available the property, valued at R5-million, to set up the film infrastructure.

The ECDC has already invested R39-million in 25 film productions on behalf of the provincial government since 2018, which attracted investment revenue of R499-million into the Eastern Cape and created short-term employment for 8 400 people.

A total of 690 local small businesses have benefitted from these productions produced in the Eastern Cape, the ECDC says.

These film support instruments have yielded significant economic returns for the Eastern Cape, states ECDC CEO Ayanda Wakaba.

The agreement between the ECDC and the MBDA will run over a three-year period, from October 1, 2023, to September 30, 2026, and is intended to attract and retain film productions in the region. Infrastructure is critical for the growth of the industry, he adds.

High production costs remain the main stumbling block in increasing the output of the Eastern Cape film industry. For the Eastern Cape film industry, infrastructure development is aimed at the establishment of the physical infrastructure for production film studios and equipment hire companies, he said.

“Film makers would find it difficult to shoot here and bring truckloads of production equipment, which is a costly exercise for national and international film makers. Further, editing and final production are sent out of town, creating value elsewhere and migrating all the skills to other centres.

“We want the full value chain to remain in our city to improve job creation, revenue generation and all related benefits such as tourism growth through extended stays and spend in the city,” says MBDA CEO Anele Qaba.

“The film industry is not just a source of entertainment; it is a platform for innovation, cultural expression and social transformation. It is also an invaluable instrument of socioeconomic transformation, with the potential to make an indelible mark on our unemployment challenges, skills development, revenue generation and contribution to provincial gross domestic product. It carries a myriad of opportunities for the small business sector in the Eastern Cape,” comments Eastern Cape Finance, Economic Development, Environmental Affairs and Tourism MEC Mlungisi Mvoko.

“Although in its infancy, the film sector holds exciting growth prospects. Through its agencies, government is strengthening the province’s value proposition as a compelling film investment destination with several sector-specific development tools,” he adds.