South Africa's Cash Rebate Returns, African Verticals Grow and AI at a Crossroads: 10 Key Takeaways from Durban FilmMart

Durban FilmMart wrapped its 17th edition on October 12 with a rousing awards ceremony that provided a fitting exclamation point to a four-day event. Its buzzing presence, with more than 1,100 industry delegates from 56 countries, cemented its position as Africa's most forward-looking film industry gathering. The mood […]

The 17th edition of the influential market showcased the spirit, energy and optimism of Africa's display industries.

Durban Filmmart concluded its 17th edition on 12 October with a high-profile awards ceremony that provided a fitting exclamation point to a four-day event whose rousing attendance – attended by over 1,100 industry representatives from 56 countries – cemented its position as Africa's leading film industry.

The mood throughout the week was upbeat, hopeful and determined – perhaps the biggest takeaway was that despite all the disruptions plaguing the global film and television business, African creatives see this as an opportunity to unlock the continent's largely untapped potential. RELATED STORIES 'Sin Filtro' Producer JK Media Produces First Original Micro-Dramas in the US for TelevisaUnivision's ViXMicrO (exclusive) WWE enters the micro-drama space with 'Shadow Agent,' starring Drew McIntyre.

What to do about artificial intelligence, how to raise the voice of women and when the African market will find a way to monetize the current content boom were among the hot topics on the agenda. New financing models were proposed. The victories of the festival were celebrated. And the influential co-production forum DFM showed what happens when a continent of 1.2 billion people listens. The range of stories and voices was staggering – and an encouraging sign for anyone who believes the future of African cinema is now. Popular in Variety

Of course, challenges abound – even for DFM itself, whose shift from the traditional July dates reflects a funding crunch for cultural events in South Africa and across the continent. Durban Filmmart director Magdalene Reddy's sigh of relief could be heard almost at the start of Monday night's session, when she told the assembled guests: "We've made it. We're here."

This year's event was as much about celebration and collaboration, defined by a spirit of togetherness for an industry preparing for the uncertain road ahead. "Filmmart Durban ... is committed to building the industry," insisted Reddy. Even when it gets challenging, we strive to create an environment that celebrates what you do.

As for its next release, Reddy teased, "We look forward to seeing you at the 18th Durban FilmMart. July, October, July, October. We'll let you know."

Here are 10 takeaways from this year's DFM:

South Africa "Back to Work" Cashback

After more than two years of almost complete paralysis of the film incentive scheme, South Africa's 25 per cent cash rebate is back on track, with Nellie Molokwane of the Department of Trade, Industry and Competition - the government body tasked with administering the cash rebate program - telling industry representatives in Durban: "The department is back in Durban." Under political pressure from industry bodies that have rallied under the Save SA film and television business coalition, the DTIC has paid most of the roughly 2 billion rand ($121 million) in unpaid claims for 2024 and secured almost 1.5 billion rand ($91 million) by 2029.

"The worst is over," said producer Delon Baker, who serves as president of the Independent Producers Organization. But questions remain about what the incentive program will look like moving forward. After months of often contentious debate, industry and government appear to be having a productive conversation — for now. However, much needs to be done to boost confidence and reassure foreign producers that the discount is back in place. "It's going to take some time to get that confidence back ... and build that trust internationally," said Steven Markowitz, a producer at Big World Cinema.

A year after Canal+ Group completed its acquisition of South African pay-TV giant MultiChoice, African producers remain in a holding pattern over what the acquisition means for the continent's display industries. One veteran South African producer noted: “Everyone is waiting for the Canal+ reorganization to go away. As part of the takeover bid, the French company agreed to a three-year moratorium on adjustments, meaning it could take some time for the picture to become clearer. But anxiety has been high across the continent since Canal+ dumped MultiChoice, loss-making streaming platform Showmax earlier this year.

MultiChoice executives tried to offer reassurance to local industry professionals in Durban, with head of content strategy Renee Jacobs insisting that "we are very committed to local" and director of scripted content Tebogo Matlawa adding that "in terms of local spending, we are exactly where we were before the takeover". "We are open for business," Matlava said. But what that means for production costs and startup budgets across the continent moving forward remains to be seen.

Ahead of its influential co-production forum, this year's DFM opens with Ben Imana, a moving, post-genocide drama from Cannes-winning Rwandan filmmaker Marie-Clementine Dozabzhambo. A graduate of the 2024 Financial Forum, with more than 100 films — many of which screened at top festivals including Cannes, Venice, Sundance and Berlin — it highlighted the event's continued reach and impact.

This year's edition delivered again, with a diverse portfolio of projects representing 14 African countries - almost 80% of which featured women in key creative roles. Although the projects spanned a bewildering range of styles and genres, the Hall's big winners—including a Tanzanian documentary about how patriarchy constrains African women and a Sudanese road film about displaced Django—show how African filmmakers are still thriving in telling impactful stories.

Artificial intelligence has been touted as a potential game-changer for Africa's screen industries, leveling the playing field by providing local filmmakers with transformative cost-cutting technologies. But a series of obstacles stand in the way of widespread adoption. "AI is not necessarily a magic pill," said Zukisani Karabo Mabece, of Johannesburg-based media technology and production company Digicine Motion Picture, which is heavily into the use of generative AI. Even widely available technology to reach African consumers faces unique challenges, from high data costs and slow bandwidth speeds to payment processing headaches.

There are also ethical considerations. "AI is a mirror of society. Society has many systemic inequalities within it, and these inequalities are reflected [in AI models]," said Tamara Dawit, of Ethiopian-Canadian production company Gobez Media. Samantha Kane, of the Independent Media Producers Assn, added: "The people who build AI are not like us. Creative Talents (I.M.P.A.C.T.). Biases are already built into AI systems. As global technology, business and political leaders prepare for a summit in Cape Town next month to shape the future of artificial intelligence across Africa, and global creatives from the South, Africa and the diaspora are asking, as Kane puts it, “What does it take to use these tools without bringing anyone in. Aesthetics of others or erasing us – erasing our own identity?

Brazil and Canada's industry delegations were in full attendance at this year's DFM, representing two of the 10 countries with which South Africa has signed co-production agreements. But the mood in Durban during the week reflected a shared desire among African filmmakers for cross-border collaboration - with or without a formal attached framework. “The future is informal co-production,” said Joel Chikapa Phiri, chief executive of South Africa's renowned Associates Group. Others echoed the call, citing the growing number of domestic film funds and private investors seeking to strengthen Africa's cultural sector.

"We always look to the rest of the world when there's money on the continent," said Steven Markowitz, CEO of Big World Cinema, who along with the HEVA fund recently chaired the inaugural African Film Investors Roundtable. "The work is much harder, it takes more time, but we have to spend more energy on it." More energy as well as a greater willingness to think outside the box. "We need to be creative entrepreneurs," said Yanis Gaye, co-founder of pan-African studio Yetu (Un)Limited. Therefore, the space we create must be based on different rules."

Animators are looking for funding to help boost production

If you want proof that Africa's animation industry is on the upswing, look no further than the cult success of Angel David Studios, which sold last year's Avatar: Fire and Ashes at the box office and showcased the talents of South African animation house Sunrise Productions. It is the latest example of African studios gaining a foothold on the world stage, with groups such as the pan-African company Kugali Media partnering with Walt Disney Animation Studios to produce the groundbreaking sci-fi series "Iwajú". "We've grown tremendously. The whole industry has gotten better in the last 10 years," said Anthony Silverstone, partner and creative director at award-winning South African studio Triggerfish. "But the future is still very uncertain."

For the continent's animators to really spread their wings, they need a stable infrastructure that allows them to produce at scale. "We don't have a shortage of talent," said Kelly Walker, academic director of the animation school. We don't have opportunities to turn that talent into experience. African animation is stuck in a financial crisis. Although local talent abounds, there are few resources for domestic IP development. "Can an African IP compete with the likes of Pokemon?" Hamid Ibrahim asked Kogali. "This industry thrives when there's something so profitable that allows creators to create other things on their own terms." On the plus side, the continent's cartoonists have certainly proven that they can think outside the box. Could this translate into finding innovative ways to boost your prosperity in Africa? "I don't know about alternative models because we're still inventing them," Silverstone admitted.

Nearly a decade after the #MeToo movement sparked a global audit of the entertainment business, South African women say their film and television industry is pushing back against gender equality. "It's all going back to where it started," said Marion Seymour, a sister industry member who works in film and television. [Sexual harassment] is not only not stopping, it is increasing. This year's DFM comes just weeks after the discovery of the bodies of 11 women in a Johannesburg suburb shocked the nation and sparked an outcry over gender-based violence, with Seymour noting that "women are more vulnerable now than ever because times are tougher."

If there's good news for the industry, it's that South Africa is used to women in leadership roles—it has one of the highest proportions of women in senior government positions—and, as Durban-based filmmaker Kaona Letlap emphasized, “culture is not static. It is always evolving. It depends on us." As Swift prepares to celebrate its 10th anniversary next year, Seymour insisted now is the time for both men and women to roll up their sleeves and find a solution. "I think in the context of today's industry and the challenges we face, it's important not to leave women behind."

Against that backdrop, this year's DFM saw the launch of a new initiative to push for gender equality in African film festivals. Led by DFM and the Ladima Foundation, a pan-African body supporting women in the continent's screen industries, Reel Balance is billed as a "participatory intervention" that commits signatory festivals to have 50/50 representation both on-screen and behind-the-scenes. Currently, 19 African festivals have signed up, including the prestigious FESPACO Burkina Faso - the oldest film festival in sub-Saharan Africa - Durban International. Film Festival, Joburg Film Festival, International Encounter South Africa. Documentary Film Festival and Luxor African Film Festival.

These events pledge to push for gender equality for films directed or produced by women, as well as in management and juries and participants in panels and workshops. "The fact that so many festivals have already signed this pledge is inspiring," said Lara Otian, executive director of the Ladima Foundation. "In partnering with these signature festivals, we believe change can and will happen and we will see more African women both on and off the screen in the years to come."

It's been a flop for small dramas, with a recent study predicting that the format will generate $150 billion in global markets outside of China by 2026. If there's any doubt that Africa is ready to cash in, just look at Nigeria, where Billion Naira Bride - a 60-episode romantic comedy from producer Ifeoma - has been viewed more than 4 million times in its first four days. Within two months after that, it crossed the threshold of 80 million views. The continent's potential is great - but still largely untapped. "In Africa, we have the youngest average age on the planet. We have almost 1.1 billion smartphones," said Hlomla Dandala, co-founder of Hektik, billed as Africa's first home microdrama streaming platform. "It's a new frontier," said Pepsi Pocan of Stained Glass TV's production team. What we need to do as a sector is to work together to build a runway to build an audience, develop an audience as we learn.

To do this, African producers need to work at scale – Flavia Motsisi of Both Worlds Pictures noted: "The only way to create a vertical industry is volume." "We haven't realized monetization. That's the truth," Mtsisi said. "We need to think about how we engage brands," said Minnie Harris, head of digital and market verticals at telecoms giant MTN. But for now, African microdrama makers are excited to get in on the ground floor. "We are creating African vertical dramas," Mtsisi said. We don't have to imitate what the East or the West create."

About $3 billion has been committed to Africa's screen industries in recent years, from the growth of private equity players—especially in Nigeria—to the growing number of public funds and investment vehicles backed by institutional giants. Creatively, the continent is booming as African filmmakers gain worldwide recognition and awards at more A-list festivals. Yet many feel the pressure. "We're really at a very strange point in the film industry where, while African film is becoming more prestigious, it's also harder to monetize it," said Marie Laura-Mongai, founder of consultancy Restless Global and a leading expert on Africa's creative industries.

Canal+ Group's closure of its streaming service Showmax earlier this year was just the latest example of how Africa's creative boom is stifling the distribution point. But Africans are not sitting idle and waiting for a solution. This year's DFM saw an increase in interest in vertical content that can be delivered via mobile phones on more than one billion continents. The launch of a new VOD service from African telecom giant MTN. and the launch of a new data-driven initiative, Watch in the Community, which uses cutting-edge technology to "create a space where our local storytellers are promoted and have an opportunity to connect with local audiences," according to Tony Monti, one of the product's sponsors. Africa has never been so content domestically. The industry seems more determined than ever to create a market to support it.