In 2004, South Africa introduced a rebate program that provides a 25% rebate on qualifying local production expenses. This amount was later increased from 25% up to 35% for local productions. This incentive has been instrumental in drawing a host of international productions to the country, contributing an estimated $1.5 billion in foreign direct investment to the South African economy in 2018 alone. It was also instrumental in the bulk share of Netflix’s investment in Africa. Morocco and Mauritius are the other two African nations with similar incentives, offering tax credits of 20% and 40%, respectively, on eligible production costs. Recently, Ghana announced a new initiative offering a 20% tax rebate for strategic film productions. Local companies that may choose to financially back the sector will also benefit from these incentives. Notably, Nigeria, home to the largest film industry in Africa by volume, often referred to as “Nollywood,” does not currently offer film tax incentives. This presents a significant challenge for Nigerian filmmakers, who often struggle to secure funding for their projects.
Africa Needs to Seize the Opportunities of Film Tax Incentives
