With €1.712 billion to invest in the Spanish audiovisual industry by the end of August, Spain’s SETT has been approving numerous investment deals in recent months. Its latest sees a South African production company setting up two new operations in the European country.
The Woman King is among Moonlighting Studios’ international production services credits
Spain’s audiovisual investment drive has recently expanded its horizons, marking a significant collaboration between the Spanish Society for Technological Transformation (SETT) and South Africa’s Known Associates Group (KAG). This partnership aims to establish two new production and post-production businesses in Spain, backed by a €25 million (approximately US$28.5 million) public-private investment.
This landmark deal was announced in Madrid by Óscar López, the Minister for Digital Transformation and Public Service, alongside KAG’s Chief Executive, Tshepiso Chikapa-Phiri. Notably, this investment represents South Africa’s largest commitment to Spain’s creative industries to date, highlighting the growing international interest in Spain as a hub for audiovisual production.
The new ventures include Moonlighting Studios Spain, a production company based in Madrid, and The Refinery, which will establish post-production facilities in the Canary Islands and the Basque Country. SETT is contributing €12.7 million to these initiatives as part of the Spain Audiovisual Hub Plan, a government scheme supported by the European Union’s Next Generation recovery funds.
Moonlighting Studios Spain is set to receive a total capital injection of €18 million, with SETT providing €8.8 million. The studio will focus on project development and intellectual property creation, planning to produce a slate of ten feature films and documentaries. Meanwhile, The Refinery will benefit from an €8 million investment, with SETT acquiring a 49% stake worth €3.9 million to fund its two post-production facilities.
The private investment in these ventures comes from Sinobukhosi, a South African company led by entrepreneur Luleka Masinda, which has diverse holdings across technology, resources, and commercial intellectual property.
Moonlighting Studios Spain is the Spanish arm of South Africa’s Moonlighting Studios, which is part of KAG. The studio boasts an impressive portfolio, having worked on high-profile projects such as *Mufasa*, *Mad Max: Fury Road*, *The Woman King*, and the *Resident Evil* series. Additionally, the company is committed to socially driven projects that reflect African realities, diversity, and multiculturalism.
The Refinery will operate as an integrated post-production platform with facilities in both the Canary Islands and the Basque Country. This strategic setup aims to retain post-production activities within Spain, minimizing the need for outsourcing and providing producers with enhanced creative and financial control over their projects.
Both Moonlighting Studios and The Refinery fall under the umbrella of KAG, which was founded by Tshepiso Chikapa-Phiri and is led by producer Joel Chikapa-Phiri, who brings over 30 years of industry experience. KAG’s operations encompass the entire audiovisual value chain, from pre-production to exhibition, including marketing, distribution, financing, and infrastructure. Their notable credits include *uBettina Wethu*, the South African adaptation of *Ugly Betty*, and the upcoming Afro-futuristic sci-fi drama *Ambre*.
“This agreement marks a turning point for our company and for South Africa,” Tshepiso Chikapa-Phiri stated. “We are convinced that this investment in Spain will provide a strategic platform for developing Spanish content with international reach while strengthening ties between Spain and South Africa.” She emphasized that the support from the Spanish government was pivotal in their decision to invest, describing the opportunity as “extremely attractive.”
Minister Óscar López views this agreement as a testament to the success of the broader Hub strategy. “The Spain Audiovisual Hub Plan was a great idea and it is proving to be a success. It is more than fulfilling one of its main objectives: attracting investment to Spain,” he remarked. He pointed to other recent government-backed arrivals, including Mexico’s Ítaca Films and the UK’s Good Films, as evidence of the plan’s effectiveness.
In the same vein, the KAG deal comes shortly after SETT approved €39.8 million (US$46.1 million) in combined investment for these two international producers as part of the second phase of the Hub plan. Ítaca Films received €20 million to establish Ítaca Films Madrid, an internationally focused content studio with a 10-year, €419 million production plan covering 26 titles. This expansion is expected to create between 20 and 40 permanent direct jobs.
Good Films, on the other hand, secured €19.8 million to open Good Films Studios Spain at Ciudad de la Luz Studios in Alicante. This UK company, backed by Canadian and American investment vehicle Orogen, anticipates €215 million of direct investment in Spain over its first five years, focusing on mid- to high-budget independent films in the €17 million to €25 million range.
KAG subsidiary Known Associates Entertainment produced uBettina Wethu
Other projects already backed under the Hub plan include the Culture CAP7 fund (€44 million), Moby Dick Film Capital (€4.9 million), Lazona Hub Audiovisual (€1.1 million), Aurora Media Inversiones (€98 million), and animation studio Ánima Kitchent (€24.9 million). Aurora, launched by Secuoya Content Group with Société Générale and up to a 49% SETT stake, targets production companies with international reach, particularly those generating Spain-based shoots from France, the UK, Germany, and the Netherlands.
Secuoya’s executive chairman, Raúl Berdonés, described the fund’s launch as “a strategic milestone” that reinforces Spain’s position as a driver of initiatives capable of transforming key sectors for economic growth and international profile.
Launched in 2021, the Hub plan is now worth €1.712 billion and must be fully deployed by SETT before August 31, 2026. This deadline has accelerated the pace of recent approvals. López noted that the program has already mobilized over €1.6 billion in Spain, with the European Audiovisual Observatory reporting that Spain recorded 423 productions in 2025—a 31% increase from the previous year. This surge has positioned Spain as the EU’s leading audiovisual market and the world’s sixth-largest producer, trailing only India, Japan, South Korea, China, and the US.
Box office revenues have skyrocketed by more than 93% since 2021, and employment in the sector has doubled to over 64,000 professionals. Notably, female employment has surged by 81.7%, with one in three feature films now directed by women. “None of this has happened by chance,” López emphasized. “Public support for the sector, streamlined visa procedures, and tax incentives generate a return of €9 for every euro invested.”
