R10m agreement signed to set up film infrastructure in Nelson Mandela Bay

The Eastern Cape Development Corporation (ECDC) and the Mandela Bay Development Agency (MBDA) have signed a R10 million agreement to bolster film sector infrastructure in the Nelson Mandela Bay region.

Earmarked to run over a three-year period, from 1 October 2023 to 30 September 2026, the agreement is intended to attract and retain film productions in the region, increase the induced film tourism in the region, promote the region as a film destination of choice while reducing the cost of filming in the region.

In terms of the agreement, the ECDC will make available an initial budget of R5 million towards the realisation of these objectives. In turn, the MBDA will make available the property or land valued at R5 million to set up the desired film infrastructure. The MBDA has committed the Aberdeen building as part of the agreement as the first hub for film industry infrastructure support.

“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 socio-economic 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 myriad opportunities for the small business sector in the Eastern Cape.

“This is why this a R10 million memorandum of agreement between the ECDC and MBDA is critical in our film sector support packages. This strategic partnership is designed to lobby private and public partnership investments to establish a film studio and other related facilities in the Nelson Mandela Bay Metropolitan Municipality. Provincial government has availed financial support through ECDC to make sure film studios come into reality for the benefit of our local creatives,” says Mlungisi Mvoko, Eastern Cape MEC for Finance, Economic Development, Environmental Affairs and Tourism.

Mvoko says, 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 a several sector-specific development tools.

Through the Eastern Cape Development Corporation (ECDC) in particular, government has shone a spotlight on the sector by developing localisation support packages, which will galvanise the sector. These support instruments have yielded significant economic returns for the Eastern Cape.

ECDC chief executive officer Ayanda Wakaba says since 2018, the ECDC has invested R39 million into 25 film productions on behalf of government. In turn, this funding has attracted an investment revenue of R499 million into the Eastern Cape while creating short-term employment for 8 400 people, with the majority being young people. In addition, a total of 690 local small businesses have benefited from these productions being produced in the province.

“Developed infrastructure is critical for the growth of the industry. For the Eastern Cape film industry, infrastructure development encompasses a wide range of activities, which are aimed at the establishment of the necessary physical infrastructure for production film studios and equipment hire companies. High production costs are still the main stumbling block in increasing the output of the Eastern Cape film industry, as most filmmakers do not have the upfront production cost funding needed to begin filming,” explains Wakaba.

MBDA chief executive officer Anele Qaba says this strategic partnership is poised to lobby private and public partnership investments to establish a film studio and other related facilities in the Nelson Mandela Bay Metropolitan Municipality. Provincial government has availed financial support through ECDC to make sure film studios come into reality for the benefit of our local creatives.

“The most pressing challenge that the ECDC and the MBDA identified and now agree on are challenges faced by the industry in terms of film production infrastructure. For example, people would find it hard to come shoot here as they had to bring truckloads of production equipment, which is a costly exercise for national and international film makers. In addition, the value adds, the editing and final production would need to be sent out of town, creating value elsewhere, also 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.

The MBDA is committing the Aberdeen’s building into this agreement as the first hub for Film Industry Infrastructure support. Our teams have just returned from a fact-finding mission around the country and, in the coming days, we will unpack learnings from that trip and develop our own unique operating model with input from industry players,” says Qaba.

For enquiries

DEDEAT

Pumelele Godongwana

MEC Mvoko Media Liaison Officer/Spokesperson

Mobile: 060 573 4964

Email: Pumelele.godongwana@ectreasury.gov.za

MBDA & ECDC MoA

Luvuyo Bangazi

MBDA Spokesperson

Mobile: 083445 7776

Email: luvuyo.bangazi@mbda.co.za