Spain and South Africa Join Forces in Multi-Million Dollar Audiovisual Investment
This groundbreaking collaboration between Spain and South Africa marks a pivotal moment for the global audiovisual industry. With a substantial investment of $28.5 million, the initiative aims to create a robust production ecosystem in Spain, fostering local talent and enhancing the country's position as a major player in international content creation. The venture's strategic locations and focus on both production and post-production are poised to attract diverse projects and cultivate a thriving creative economy.
Spain and South Africa Forge Audiovisual Powerhouse with $28.5 Million Joint Venture
On July 3, 2026, a landmark public-private partnership was officially unveiled, bringing together Spain's state investment vehicle, SETT, and South Africa's Known Associates Group (KAG). This formidable alliance is set to inject a staggering $28.5 million into Spain's audiovisual sector, promising a new era of growth and innovation. The initiative encompasses two key components: the establishment of a dynamic production company in Madrid and the development of advanced post-production studios across the picturesque Canary Islands and the culturally rich Basque Country.
SETT, operating under the purview of Spain's Ministry for Digital Transformation, has pledged €12.7 million ($14.5 million) towards these two strategic ventures. The first, a $20.5 million capital injection, will empower Moonlighting Studios Spain, the local branch of South African production giant Moonlighting Films. This funding will facilitate the creation of a Madrid-based production hub dedicated to developing original projects and cultivating intellectual property. Moonlighting Films, renowned for its contributions to international blockbusters such as “Mufasa: The Lion King” and “Mad Max: Fury Road,” is anticipated to produce an impressive slate of ten feature films and documentaries through this new Spanish entity.
The second facet of this ambitious project involves SETT's $4.4 million investment, securing a 49% stake in the Spanish division of South African post-production leader, The Refinery. This investment will contribute to a total capital injection of $9.1 million, enabling The Refinery to establish state-of-the-art facilities in the Canary Islands and the Basque Country. These regions were strategically chosen for their highly attractive tax incentives for audiovisual production. The integrated post-production platform formed by these studios is designed to keep more audiovisual work, spending, and creative control within Spain, thereby reducing reliance on outsourcing and boosting the national industry.
Óscar López, Spain's Digital Transformation Minister, emphasized the profound benefits of this investment, stating, “We will continue this investment effort because it is very profitable for the country. The audiovisual industry is cultural; it is not only about the economic value and employment it generates.” Tshepiso Chikapa-Phiri, founder and CEO of Known Associates Group, highlighted the transformative nature of the agreement for both her company and South Africa, envisioning Spain as a crucial platform for developing Spanish content with international appeal and strengthening bilateral ties. The Canary Islands, as an outlying part of the European Union, offers a Special Zone (ZEC) corporate income tax of a mere 4% and 7% VAT, a significant advantage over mainland Spain's 25% and 21% respectively. KAG is actively pursuing the necessary procedures to establish itself within the Canary Islands’ ZEC Zone, with support from ZEC executive president Pablo Hernández to navigate the local ecosystem.
This initiative forms a critical part of the second phase of the EU-backed Spain Audiovisual Hub Plan, an overarching strategy to bolster Spain's position in the global audiovisual market. Prior efforts under this plan have already seen the successful establishment of Mexico’s Ítaca Films in Madrid, the UK’s Good Films in Alicante’s Ciudad de la Luz, and a significant equity acquisition by VFX giant DNEG in the Canary Island’s Anima Kitchent, showcasing Spain's ongoing commitment to fostering a dynamic and internationally competitive audiovisual landscape.
This collaboration represents more than just a financial investment; it's a strategic fusion of creative talent, technological expertise, and government support that promises to elevate Spain's standing in the global entertainment industry. The establishment of dedicated production and post-production facilities, coupled with the attractive incentives offered by regions like the Canary Islands, will undoubtedly draw a wealth of international projects and cultivate a new generation of Spanish storytellers. This venture not only signifies economic growth but also a cultural exchange, demonstrating the power of international partnerships to transcend borders and create compelling content for a worldwide audience. It serves as a powerful testament to the belief that investment in the arts and creative industries can yield both significant economic returns and invaluable cultural enrichment.
