The Government announces 25 million euros for the creation of two audiovisual companies with South African investors

The Ministry for Digital Transformation and Public Service announced this Thursday an investment of 25 million euros, through the Spanish Society for Technological Transformation (SETT), to create two audiovisual companies in public-private collaboration with South African investors.

This was announced by the Minister for Digital Transformation and the Public Service, Óscar López, in an event at the department’s headquarters together with Tshepiso Chikapa-Phiri, CEO of Known Associates Group (KAG), to which the branches of the South African companies that will be established in Spain belong. The SETT will invest 12.7 million euros in these two projects that are part of the Spain Audiovisual Hub Plan.

The department headed by López has highlighted that this is South Africa’s largest investment in Spanish creative industries and has detailed that it will result in the establishment of an audiovisual production platform in the Community of Madrid and two post-production studios in the Canary Islands and the Basque Country.

The Ministry has indicated that the first of these two companies, Moonlighting Studios Spain, the Spanish branch of its parent company in South Africa, will receive a total of 18 million euros, 8.8 million from the SETT, to locate in Madrid an audiovisual production company for project development and creation of intellectual property, the result of the execution of ten feature films and documentaries.

Through its production services, Moonlighting has participated in titles such as ‘Mufasa’, ‘Mad Max: Fury Road’, ‘The Woman King’, ‘Mission Impossible: The Final Reckoning’ or the ‘Resident Evil’ series. Moonlighting also produces films with social content focused on the reality of the African continent, as well as topics such as diversity and multiculturalism.

The second operation is a capital contribution in The Refinery, also of South African origin, for a total value of 8 million euros and in which SETT participates 49% with 3.9 million euros. The Spanish division of The Refinery will have two studios, one in the Canary Islands and another in the Basque Country.

“This investment will allow the establishment of two fully equipped facilities that operate as an integrated post-production platform in order to maintain this activity in Spain and not outsource to other countries. Through both initiatives, greater creative and economic control of the projects carried out in Spain will be promoted,” explained the Ministry.

These companies belong to Known Associates Group (KAG), an African media company founded by businesswoman Tshepiso Chikapa-Phiri and directed by Joel Chikapa-Phiri, a producer with a career spanning more than 30 years. KAG works across the entire cinema value chain: from pre-production to exhibition, including marketing, distribution, financing and infrastructure.

In both cases, private investment comes from Sinobukhosi, a company led by entrepreneur Luleka Masinda, which has capitalizations in technology, resources and commercial industrial property.

ATTRACT INVESTMENT TO SPAIN

“The Spain Audiovisual Hub Plan was a great idea and is being a success. It is more than fulfilling one of its main objectives, attracting investment to Spain,” highlighted the minister, who gave as examples the establishment in Madrid of the Ítaca Films studio, of Mexican origin, and the British Good Films in the City of Light of Alicante.

López has assured that it is “a very profitable investment in terms of the country” so he will continue with it. “The audiovisual industry is cultural, it is not only the economic and employment value it has. We are doing a country project that is worthwhile,” he declared.

For her part, the CEO of Known Associates Group, Tshepiso Chikapa-Phiri, explained that this support from the Executive was one of the reasons for investing in Spain. “The opportunity was very attractive. It made us feel safe,” he said.

The head of the company has also highlighted that another reason was the strength of the audiovisual industry and has focused on “the opportunity” that this alliance will mean for young people in both Spain and South Africa.

“This agreement marks a before and after for our company and for South Africa,” said Tshepiso Chikapa-Phiri, who added: “We are convinced that this investment in Spain will constitute a strategic platform to develop Spanish content with international reach and strengthen ties between Spain and South Africa.”