Rugby World Cup fever -startling similarities between sporting and economic success

It is hard to avoid rugby analogies in this time of Rugby World Cup fever, particularly given the startling similarities between sporting and economic success.

A winning side, just like a winning economy, seldom fails to cross the try-line when they get close. Rugby is a game of creating scoring opportunities and then taking them.

So it goes with the economy, too.

The local film industry is a case in point. Pre-Covid the sector was flying: an economic impact of around R8-billion per annum with over R3,4-billion in foreign direct investment, according to industry data. It was growing at 5.2% year-on-year, employing 60 000 full time people, the large majority young and previously disadvantaged. The sector’s direct tax contribution was more than R90-million.

Covid up-ended the industry’s stellar trajectory, but the tragedy lies in what has happened since Covid. With the sector poised to grow from strength to strength, it has instead shrunk, inhibited by a range of factors including red tape. Dissatisfaction over a rebate scheme offered by the Department of Trade, Industry and Competition has chased off billions-worth of foreign productions, as much as R2,4-billion according to a 2021 industry survey. The rebate was intended to attract foreign productions but appears to have created confusion instead of bankable incentives. The Department is at least attempting to reassure the sector by issuing amended rebate guidelines.

In similar vein cumbersome local government regulations are inhibiting film productions when a more streamlined process would provide a much-needed tonic for business growth. 

In our view supporting the Film Industry aligns with government’s broader economic development goals at a time when we urgently need innovation and growth.

For all of the reasons stated above we believe Government risks dropping the ball over the try line at a crucial juncture in our quest to play on the global economic stage. Our film industry is world class and has the potential to create exponential growth on multiple fronts.

We just need that final pass to make it happen. 

John Lawson
CEO of the Cape Chamber of Commerce & Industry