Spain’s audiovisual investment group SETT and South Africa’s KAG have announced a joint venture to expand audiovisual production and post-production capabilities in Spain. That $28.5 million investment aims to strengthen the film industry and create new opportunities across continents, according to Variety’s coverage. This backing comes as Spain pushes to elevate its global film status, which currently ranks sixth worldwide behind countries like India and the United States
SETT is investing 8.8 million euros into Moonlighting Studios Spain, a production company expected to generate ten feature films and documentaries. The company aims to boost local production and attract international projects, which fits Spain’s strategic vision to develop its audiovisual sector. The agreement was confirmed in Madrid at a ceremony attended by Spain’s Minister for Digital Transformation and Public Service, Óscar López, and KAG’s CEO Tshepiso Chikapa-Phiri.
At the event, KAG’s CEO emphasized integrating South African expertise with Spanish production to strengthen transcontinental ties — a move that’s expected to enhance cooperation across film culture. According to Screendaily’s report, this partnership forms a solid foundation for future creative and economic exchanges.
Industry impact and expert reaction
The alliance should raise Spain’s standing globally as an audiovisual hub. The Canary Islands offer Special Zone (ZEC) incentives that cut corporate tax to 4% and reduce VAT to 7%, lowering costs drastically compared to mainland Spain’s rates of 25% tax and 21% VAT.
KAG’s equity investment also signals a shared financial risk approach shaping the venture. According to Digital, the first Spanish production might be a Basque remake of Jonathan Parkinson’s 2024 film The Drop, a youth-oriented crime-comedy thriller.
Spain’s audiovisual exports are building fast, and The Refinery — South Africa’s post-production group expanding to the Canary Islands.
What it means
This partnership signals a strategic shift in audiovisual landscapes for both nations. Spain gains fresh investment and technological advancement, reinforcing its role as a top content producer within the EU. South Africa’s KAG secures access to European markets and film cultures, expanding far beyond Africa’s borders, according to Variety.
SETT’s involvement also reflects Spain’s goal to build a vigorous audiovisual cluster by attracting foreign producers and post-production firms. Moonlighting Studios Spain will both create local content and serve as a launchpad for international co-productions, raising the industry’s breadth and depth.
The Spain Audiovisual Hub Plan aligns public and private investment while research shows this venture is a prime example of how incentives and capital attract both regional and global investments. Capital Riesgo, according to Screendaily, says this effort could reshape cultural production economics and change the market for good.
