The Ministry for Digital Transformation and Public Administration has announced a €25 million investment , through the Spanish Society for Technological Transformation (SETT) , to create two audiovisual companies in a public-private partnership with South African investors. This is the largest investment from South Africa in Spanish creative industries and will result in the establishment of an audiovisual production platform in the Community of Madrid and two post-production studios in the Canary Islands and the Basque Country.
The announcement was made by the Minister for Digital Transformation and Public Administration, Óscar López, at an event at the department's headquarters alongside Tshepiso Chikapa-Phiri, CEO of Known Associates Group (KAG) , which owns the branches of the South African companies that will establish themselves in Spain. The SETT (State Secretariat for Land Transport) will invest €12.7 million in these two projects, which are part of the Spain Audiovisual Hub Plan.
“The Spain Audiovisual Hub Plan was a great idea and is proving to be a success. It is more than fulfilling one of its main objectives: attracting investment to Spain, ” the minister emphasized, recalling two other recent deals approved by the Council of Ministers thanks to a €40 million government investment: the establishment in Madrid of the Mexican studio Ítaca Films , and the British studio Good Films at Ciudad de la Luz in Alicante.
López announced that this investment effort by the Hub, which has mobilized more than 1.6 billion euros, will continue "because it is a very profitable investment for the country . The audiovisual industry is cultural; it's not just about the economic value and employment it generates. We are undertaking a national project that is proving worthwhile," he asserted.
Spain, sixth largest audiovisual producer in the world
According to recent data from the European Audiovisual Observatory, Spain has become the leading audiovisual market in the European Union. With 423 productions projected for 2025, it has grown by 31% compared to last year , surpassing Italy, the United Kingdom, and France. It is also the sixth largest audiovisual producer in the world, behind only India, Japan, South Korea, China, and the United States.
Since 2021, box office revenue in Spain has grown by more than 93%; audiovisual employment has doubled, reaching more than 64,000 professionals in 2025, and female employment in the sector has increased by 81.7%, with one in three feature films directed by women.
“All of this is not by chance. Public support for the sector , simplified visas, and tax incentives generate a return of 9 euros for every euro invested,” the minister emphasized.
In this vein, Tshepiso Chikapa-Phiri, CEO of Known Associates Group , explained that the support from the Spanish government was one of the reasons for investing in Spain. “The opportunity was very attractive. It made us feel secure ,” she affirmed. The company head also highlighted the strength of the audiovisual industry as another reason and emphasized the opportunity this alliance will represent for young people in both Spain and South Africa.
“This agreement with SETT marks a turning point for our company and for South Africa ,” said Tshepiso Chikapa-Phiri. “We are convinced that this investment in Spain will constitute a strategic platform for developing Spanish content with international reach and strengthening ties between Spain and South Africa,” he added.
Two projects with "capillarity" in Spain
The first of these two companies, Moonlighting Studios Spain , the Spanish branch of its parent company in South Africa, will receive a total capital injection of 18 million euros, in which SETT participates with 8.8 million, to locate in Madrid an audiovisual production company for the development of projects and creation of intellectual property, resulting from the execution of ten feature films and documentaries.
Moonlighting, through its various production services, has participated in well-known titles such as “Mufasa,” “Mad Max: Fury Road,” “The Queen,” “Mission: Impossible – The Final Reckoning,” and the “Resident Evil” series . In addition to its capacity to service major blockbuster productions, Moonlighting also produces films with social content focused on the realities of the African continent, as well as themes such as diversity and multiculturalism.
The second transaction is a capital injection of €8 million into The Refinery , also of South African origin, in which SETT holds a 49% stake of €3.9 million. The Refinery's Spanish division will establish a presence in Spain through two studios, one in the Canary Islands and the other in the Basque Country. This expansion across the country has been welcomed by Minister López.
This investment will allow the establishment of two fully equipped facilities that will operate as an integrated post-production platform, keeping this activity in Spain and avoiding outsourcing to other countries. Through both initiatives, greater creative and economic control will be fostered for projects produced in Spain.
These companies belong to Known Associates Group (KAG), an African media company founded by businesswoman Tshepiso Chikapa-Phiri and led by Joel Chikapa-Phiri , a producer with over 30 years of experience . KAG is a leader in the African audiovisual sector and works across the entire film value chain: from pre-production to exhibition, including marketing, distribution, financing, and infrastructure.
In both cases, the private investment comes from Sinobukhosi, a company led by entrepreneur Luleka Masinda , which has significant capitalizations in technology, resources, and commercial industrial property.
Second phase of the Audiovisual Hub
This operation is part of the second phase of the Spain Audiovisual Hub Plan , an initiative that is part of the Recovery, Transformation and Resilience Plan, and financed by the European Union – Next Generation funds – and is led by the Ministry for Digital Transformation and Public Function, through the State Secretariat for Digitalization and Artificial Intelligence (SEDIA).
Alongside the Spain Audiovisual Hub , SETT manages two more financial instruments to boost the technological business ecosystem: PERTE Chip , dedicated to microelectronics and semiconductors, and Next Tech , which encourages private investment and improves access to financing in strategic Spanish sectors linked to digital transformation.
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