Television and Film Fund

Television and Film Fund

The NEF Film & TV Fund

The NEF funds across all key sectors of South Africa’s economy, inclusive of film and television production.

For this reason, the NEF Film & TV Fund was established to support black owned South African film production firms to promote the growth of the local film sector by providing affordable loans to producers determined to emblazon their work across the small and silver screens.. The NEF Film & TV Fund seeks to redress past imbalances by addressing the lack of financing instruments for the creative industries, contributing to inclusive economic growth and job creation.

Key Market Failures

Among the challenges and market failures the NEF Film & TV Fund seeks to alleviate are the following:

  • Limited access to finance for producers. There are not enough institutions willing to provide funding to the industry. Often, the lack of collateral and “inadequate” history of financial performance are impediments that limit access to funding from commercial lenders.
  • Businesses relying on government for grant funding, however grant funding must be blended.
  • Business revenue is based on once-off or infrequent projects.

Funding Terms

Funding is in the form of a cashflow facility and starts from R250 000 to R50 million.
A. Cash flow funding (bridging finance)- this is when a funder cash flows incentives and other milestones payments that are offered by certain institutions such as the DTI and Netflix.

  • The NEF takes the risk upfront, however the risk that is taken by the NEF is limited in this instance as the funds will be repaid as soon as milestone payments have been received.
  • Funding is considered short term and is priced at 2.5% over 12 months.
  • NEF funding to be limited to the milestones to be bridge financed.

Qualifying Criteria

Applications for funding are assessed in accordance with the following criteria:

  • Minimum 51% black ownership;
  • Must be registered for tax, be in good standing with SARS and have a valid tax clearance certificate;
  • the dtic grant must be secured;
  • to spread the risk, the NEF typically co-funds with other financiers, including DFIs and commercial lenders;
  • A letter of intent from a completion guarantor must be supplied;
  • Revenue projections must be supported by independent sales estimates, and
  • The applicant will be required to contribute towards the production costs and this can be through the deferral of his/her producer/director fees.

Documents Required at Screening

  1. All funding agreements;
  2. Company documents including tax and shareholding details;
  3. Synopsis of the film;
  4. Collection agent agreements or letter of intent;
  5. Detailed financial projections-based sales estimates;
  6. Market analysis;
  7. Details of the distribution agent;
  8. Any agreements with the distributors;
  9. Break-down of the use of funds for the entire film production;
  10. Accredited script writer’s report;
  11. Recoupment schedules;
  12. Timelines for the production and the point at which the NEF will be required to disburse;
  13.  Completed bonder agreement or signed letter, and
  14. the dtic documents or letter of intent;

For enquiries and to apply please send an email to: film@nefcorp.co.za

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