Media and Audio Visuals

HOWWE FUND BUSINESSES IN
MEDIA AND AUDIO VISUALS

 

Our Goal

 

To be a driving force in the development of a sustainable media and audio-visual value chain in South Africa. Our strategic business unit’s focus is on funding:

  • The production of locally relevant and internationally palatable content, with an emphasis on feature films, animation and TV series (our structure in this case includes filling the financing gap, as well as cash-flowing projects and offering a film rebate incentive)
  • Digital cinemas, particularly in townships and rural areas, as part of our audience development mandate
  • Infrastructure such as production, post-production and broadcast studios
  • The creation and acquisition of platforms across TV, radio and digital media
  • The development of new or alternative distribution systems for content
  • Projects or initiatives that support the greater media industry along the value chain, such as equipment rental

OUTCOMES

  • Promoting sustainable production of audio-visual content
  • Developing audience, encouraging the local consumption of local films and building township cinemas
  • Developing a competitive animation sector
  • Developing the media industry
  • Developing black industrialists within the broadcasting sector

DOING BUSINESS WITH THE UNIT

The Media and Audio-Visual Strategic Business Unit (SBU) strives to accelerate investments in projects that promote economic development and have an impact in the media sector, and we believe that partnerships with like-minded industry role players are critical to our quest to achieve this. We are geared to facilitate complex financing for lm, television and other media content platforms through a variety of funding structures, ranging from single-project financing and slate financing to joint ventures between South African producers and their international counterparts.

 

We also seek to support projects that are geared towards bringing about greater transformation in the media and audio-visual value chain.

 

The SBU prides itself on having an in-depth understanding of the intricate financing needs of the media world. Its personnel have acquired hands-on expertise serving the media, creative and entertainment sectors and working with independent and owner-managed businesses, with clients ranging from small and medium-sized operations to substantially larger businesses.

FUNDING CRITERIA

Any application must meet the IDC’s minimum requirements. These include:

  • Security: the form and nature of which will relate to your specific circumstances
  • Compliance with the international environmental standards
  • Shareholders/owners are expected to make some financial contribution
    • The contribution for 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 exhibit economic merit in terms of profitability and sustainability
  • The IDC does not refinance fixed assets, since our aim is to expand the industrial base

FUNDING PRIORITIES

We exist to understand and serve the media industry and have, to date, provided funding to support working capital for numerous high-profile projects – including film and television productions – and have assisted many businesses in their corporate aspirations and acquisition strategies.

 

The SBU continues to play a crucial role in encouraging the entrance of new players, particularly black industrialists, in the sector by working with many clients from start-up through to the completion of specific projects. We acknowledge and believe that there is scope to do more.

 

Some of the SBU’s priorities include:

  • Diversifying investments into non-traditional areas of the media value chain
  • Building partnerships with platform owners to drive the industry’s growth and economic viability
  • Facilitating greater access to diverse platforms and markets for the benefit of the South African media and audio-visual industry
  • Enhancing the exposure of South African filmmakers while increasing the likelihood of recouping investment funds

APPLYING FOR FUNDING

Application for funding should be in writing, including an executive summary and a comprehensive business plan. In addition, applicants for Media and Audio-Visual should submit the following:

  • 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. IDC funds up to a maximum of 49% of the production budget and these IDC funds 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 lm, 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 or agreements
    • Comparatives used to determine the sales estimates (audience, box office numbers in terms of similar genre films)
  • Collective agent and terms of agreement (if available)
  • Project information (location of principal photography, equipment to be used, number of cast and crew and how many days’ involvement, 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
    • How much will be spent at pre-production, production and post-production
  • Production company – experience and previous production
  • Chain of title documentation including script, music and so on
  • Identity of the completion guarantor and terms and conditions of 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

HOW TO

APPLY FOR FUNDING

Application for funding should be in writing and should include an executive summary and a business plan.

STEP 1

BUSINESS PLAN

Draw up a well-researched business plan, stating a compelling case for funding

STEP 2

REGISTER ONLINE

*Applications can also be submitted at the IDC office

STEP 3

UPLOAD APPLICATION

Upload your application with the relevant documents, certificates and business plan

STEP 4

PROCESS APPLICATION

IDC will confirm that it has received your application. While processing we may ask you to supply extra information or documentation

STEP 5

APPROVAL STATUS

IDC will give you feedback on the outcome of your application, in writing. If your application is successful, due diligence will be conducted on your business.

STEP 6

LOAN CONTRACT

Once the IDC has satisfied itself of your bona fides, you will be asked to sign a loan contract

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