From OxfordBusinessGroup.

An increasing appetite for domestic content and a rising appreciation by foreign filmmakers of South Africa as a filming location should sustain growth in the country’s entertainment industry, with the sector’s expansion set to outpace that of the broader economy in the years ahead.

South Africa’s film entertainment market is projected to grow by 6.4 percent this year, and an average of 7.1  percent in the five years to 2018. It is expected to generate earnings of $221.1 million in 2015, according to a PwC study.

Incentives put in place by South Africa’s Department of Trade and Industry are helping support the South African film industry, providing assistance to both domestic and foreign productions.

The incentives offer rebates for post-production work, helping create employment for about 25,000 people and further developing local skills, according to government data.

Incentives include a 20 percent tax deduction for foreign movies filmed in South Africa with budgets of $950,000) or higher; a 2.5 -percent-to-5-percent deduction for post-production work on the ground; and a 35 percent rebate on the first $475,000 of qualified spending.

Lower production costs are another draw for overseas filmmakers. According to a recent study by the Gauteng Film Commission, it is 40 percent cheaper to shoot a movie in Gauteng province than in Europe or the U.S., and up to 20-percent cheaper than filming in Australia.

The weaker rand makes local film shoots cost effective for foreign productions budgeted in their own currencies. While the cost of travel remains a factor in budget considerations, especially for crews coming from the U.S. or Europe, added positives such as South Adrica’s broad skills base, established infrastructure and widespread use of English, weigh in South Africa’s favor.

South Africa’s incentives and other competitive advantages are expected to drive an increase in foreign productions filmed in the country, according to Charl van der Merwe, CEO of film and broadcast service provider Silverline360.

“It’s an exciting time to be in the film and TV industry, especially if you’re catering to the international production companies,” he told OBG. “Going forward, we’re going to need to grow our production capacity to keep pace with increasing demand, while also focusing on strengthening our offering across the entire value chain.”

Several high-profile movies have already taken advantage of the country’s offer. The “Mad Max: Fury Road” sequel was partly filmed in South Africa, with $25.8 million spent locally, according to PwC. Marvel’s high-grossing “Avengers: Age of Ultron” included scenes filmed in Johannesburg and other areas of Gauteng.

Growth in the local industry is also expected to boost domestic content generation.

However, to fully develop the South African creative industry, original content needs to be produced that can appeal to a larger market, according to Christine Service, country manager for the Walt Disney Company Africa. “The industry is recognising that to really be successful and to fund the development of content with high production values, the creative community needs to make content that has the potential to reach beyond one single country or market,” she told OBG.

Read more at OxfordBusinessGroup.