– Two new ventures backed by the Spanish government and South Africa’s Known Associates Group will establish a production company and post-production facilities
l-r: Joel Chikapa-Phiri, president of KAG; Sankie D Mthembi-Mahanyele, ambassador for South Africa in Spain; Óscar López, Minister for Digital Transformation and Public Administration, Spain; Tshepiso Chikapa-Phiri, CEO of KAG; María González Veracruz, Secretary of State for Digitalisation and Artificial Intelligence, Spain; and María Coronado, director of Audiovisual at SETT (© SETT)
Spain has announced a new €25 million public-private investment operation aimed at strengthening its audiovisual industry through a partnership with South Africa’s Known Associates Group (KAG). The initiative, supported by the Spanish Society for Technological Transformation (Sociedad Española para la Transformación Tecnológica, SETT), will establish a production company in Madrid and two post-production facilities on the Canary Islands and in the Basque Country.
The investment forms part of the second phase of the Spain Audiovisual Hub plan, which seeks to consolidate the country’s position as a leading destination for international audiovisual production and investment. SETT will contribute €12.7 million across the two projects, with the remaining funding provided by South African investors through KAG and Sinobukhosi. According to the government, the initiative represents the largest South African investment to date in Spain’s creative industries.
The first operation will see Moonlighting Studios Spain, the Spanish subsidiary of the South African production company, receive total capitalisation of €18 million, including €8.8 million from SETT. The company will establish a development and production hub in Madrid dedicated to creating original intellectual property, with plans to produce ten feature films and documentaries.
Moonlighting is known internationally for its production services on major titles including Mufasa, Mad Max: Fury Road, The Woman King, Mission: Impossible – The Final Reckoning and the series Resident Evil. Alongside servicing large-scale international productions, the company also develops socially engaged films focused on African stories, diversity and multiculturalism.
The second investment allocates €8 million to The Refinery Spain, with SETT contributing €3.9 million for a 49% stake. The company will establish two fully equipped post-production facilities, one on the Canary Islands and another in the Basque Country, creating an integrated platform designed to keep post-production work within Spain, rather than outsourcing it abroad. The government said the initiative will strengthen both the creative and economic control of projects produced in the country while reinforcing regional audiovisual ecosystems.
Both companies belong to Known Associates Group (KAG), one of Africa’s leading media groups, founded by entrepreneur Tshepiso Chikapa-Phiri and led by producer Joel Chikapa-Phiri. Active across the entire audiovisual value chain, KAG operates in development, production, financing, distribution, exhibition and infrastructure. The private investment is being provided in partnership with Sinobukhosi, a South African investment company headed by entrepreneur Luleka Masinda.
During the announcement, Spain’s Minister for Digital Transformation and Public Administration, Óscar López, highlighted the continuing success of the Spain Audiovisual Hub strategy, noting that recent investments have already mobilised more than €1.6 billion. He also pointed to the country’s growing international competitiveness, citing figures from the European Audiovisual Observatory showing that the country became the European Union’s largest audiovisual production market in 2025 with 423 productions, while employment in the sector has doubled since 2021 to reach more than 64,000 professionals.
Government representatives also underlined that Spain’s public support measures, streamlined visa procedures and competitive tax incentives continue to attract international investors. According to the ministry, every euro invested through these policies generates an estimated €9 in economic return.
The new operation follows two similar investment announcements approved in recent weeks, which supported the establishment of Good Films Studios Spain in Alicante and Ítaca Films Madrid through a combined public investment of €39.8 million (see the news). Together, the initiatives reflect Spain’s ongoing strategy of leveraging public-private partnerships to attract international production companies, expand domestic infrastructure and reinforce the country’s position as one of Europe’s leading audiovisual hubs.
