Industrial Development Corporation (IDC) - Media and Audio Visual

This fund is designed to grow the motion picture sector in South Africa by providing funding for the production of feature films, television shows, animation and documentaries.  

The fund also aims to promote:

• Broadcasting and the development of digital cinemas in townships and rural areas.
  
• The development of new or alternative distribution systems for motion pictures.
  
• The utilisation of new technology.
  

Loans of up to R1 billion (however the loan cannot exceed 49% of the total budget) are available in the form of equity or bridging finance. This finance can be applied for, together with the Department of Trade and Industry's tax rebate facility for film production. 

Eligibility criteria

• The business owner is expected to provide security, and the type of security will be dependent upon individual circumstances.
  
• The business must be in compliance with the international environmental standards.
  
• Shareholders/owners are expected to make some financial contribution.  However, the contribution of historically disadvantaged people under special circumstances may be lowered, in which case the IDC will be prepared to extend finance in excess of the owner’s contribution.
  
• The project/business must show that it is profitable and sustainable.

Preparation for the loan

The following documents are required to be submitted when applying for this loan:

• Script coverage from an independent reputable source (include credentials of the source).
  
• Details of the film director, producers, scriptwriters/screenwriters, DOP and principal cast. Please include for all of the above:
  
• Previous projects.
• CVs.
• Filmography.
• Please indicate the success/performance of the films they were involved in and the genre of films.
• Detailed production budget and top sheet.
  
• Specify the Qualifying South African Production Expenditure (QSAPE) amount.
  
• Finance structure including details of other co-financiers (at least 51% of the total production budget, as the IDC funds up to a maximum of 49% of the production budget that must be spent in South Africa) and written confirmation of proposed terms and conditions.
  
• Proposed recoupment schedule.
  
• Sales agent (terms and conditions of distribution and marketing strategy for the film, track record of the sales agent, a list of films that were distributed and the success/performance of these films).
  
• Detailed sales estimates per territory including:
• The associated territorial rights.
• Pre-sale letters and agreements.
• Comparatives used to determine the sales estimates (audience, box office numbers in terms of similar genre films).
• Collective agent and terms of the agreement (if available).
• Project information (location of principal photography, equipment to be used, number of cast and crew including how many days' involvement and post-production facilities).

Include the following information:

• Jobs created – in the same format/details provided for the Department of Trade and Industry application.
  
• Skills development and skills transfer plan.
  
• The amount that will be spent on pre-production, production and post-production.
  
• Production company – experience and previous production.
  
• Chain of title documentation including script, music and so on.
  
• The identity of the completion guarantor and terms and conditions of the guarantee.
  
• Co-production agreements (where applicable).
  
• Provisional letter from the Department of Trade and Industry in terms of the amount of the rebate.
  
• Disclosure of related party transactions involved in the production process – the value and details.

Application process

• Draw up a well-researched business plan, stating a compelling case for funding. To assist you with your application please read IDC's minimum requirements and their business plan guidelines.
• Register online.
• Upload your application.

Should you be unable to submit your application electronically, applications can also be submitted at your nearest IDC office.