Spanish state investment vehicle SETT and South Africa’s Known Associates Group are collaborating on a significant audiovisual project in Spain, establishing a production company and post-production studios.
New Delhi, India Jul 3, 2026 ALN: Spanish state investment vehicle SETT and South Africa’s Known Associates Group are embarking on a major audiovisual venture in Spain. This partnership aims to establish a production company based in Madrid and post-production studios located in the Canary Islands and Basque Country.
SETT, which operates as the investment arm of Spain’s Ministry for Digital Transformation, will contribute €12.7 million (approximately $14.5 million) to two public-private ventures, which together are valued at a total of €25 million (around $28.5 million). This investment is indicative of Spain's increasing focus on bolstering its audiovisual sector, which has seen significant growth in recent years, particularly with the rise of streaming platforms and an increasing demand for diverse content.
The first initiative involves SETT investing $10 million into Moonlighting Studios Spain, the local branch of the renowned South African production-services company Moonlighting Films. This investment is part of a larger capital injection totaling $20.5 million, aimed at establishing a production base in Madrid that focuses on developing new projects and creating intellectual property. The establishment of Moonlighting Studios is expected to create numerous job opportunities in the region, contributing to the local economy.
Through this Madrid venture, it is anticipated that approximately 10 feature films and documentaries will be produced. Moonlighting has previously provided production services for high-profile international titles, including Mufasa: The Lion King, Mad Max: Fury Road, and Netflix’s Resident Evil series. Their expertise in handling large-scale productions is expected to enhance the quality and competitiveness of Spanish audiovisual content on the global stage.
The second part of the investment will see SETT allocate $4.4 million to acquire a 49% stake in the Spanish division of South African post-production company The Refinery. This company will receive a total capital injection of $9.1 million to establish facilities in the Canary Islands and Basque Country, both regions known for their favorable tax incentives for production. The creation of these post-production facilities is a strategic move aimed at enhancing the local infrastructure necessary for high-quality audiovisual production.
These two sites will function as an integrated post-production platform, designed to retain more audiovisual work within Spain, thereby minimizing the need to outsource these services abroad. This retention of work is crucial for developing local talent and expertise in post-production, which is often a bottleneck in the production process, especially in regions with less established film industries.
Digital Transformation Minister Óscar López emphasized the importance 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." This statement underscores the Spanish government's commitment to fostering a robust audiovisual sector, recognizing its cultural significance and potential for economic growth.
Both Moonlighting and The Refinery are part of the Known Associates Group, founded by Tshepiso Chikapa-Phiri, who serves as the group CEO. The private capital for these ventures will be sourced from the South African investment holding company Sinobhukosi. Chikapa-Phiri remarked, "This agreement with SETT marks a turning point for our company and for South Africa," noting that Spain will serve as a strategic platform for developing Spanish content with international appeal and strengthening ties between the two nations. The collaboration is seen as a bridge between South Africa and Europe, potentially leading to more co-productions and cultural exchanges.
The Canary Islands, as an outer region of the European Union, offers a Special Zone (ZEC) corporate income tax rate of just 4% and a 7% VAT, significantly lower than the 25% and 21% rates applicable in mainland Spain. These tax incentives are designed to attract foreign investment and stimulate local production, making the region an attractive destination for filmmakers. KAG has initiated the process to establish operations within the Canary Islands’ ZEC Zone, with ZEC providing support to navigate the local ecosystem. This move is expected to enhance the competitive edge of Spanish audiovisual productions in the global market, allowing for more investment and growth in the sector.
This initiative is part of the second phase of the E.U.-backed Spain Audiovisual Hub Plan, which aims to position Spain as a leading hub for audiovisual production in Europe. SETT has also previously supported the establishment of Ítaca Films in Madrid and the U.K. company Good Films in Alicante, along with the VFX giant DNEG acquiring a significant equity position in the Canary Islands’ Anima Kitchent. These efforts reflect a broader strategy to enhance Spain's reputation as a center for creativity and innovation in the audiovisual field.
The partnership between SETT and Known Associates Group represents a significant step forward in the international collaboration within the audiovisual industry. By leveraging South Africa’s production expertise and Spain’s strategic location and favorable economic conditions, both parties aim to create a sustainable and thriving production ecosystem that can adapt to the changing demands of the global market. As the project unfolds, it will be closely watched by industry stakeholders and could serve as a model for future international collaborations in the creative sectors.
As the global demand for content continues to rise, initiatives like this one are crucial for countries looking to enhance their film and television industries. The success of this venture may pave the way for further investments and partnerships, not only between Spain and South Africa but also with other countries seeking to tap into the burgeoning audiovisual market.
John Hopewell contributed to this article.
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