Spain’s Sociedad Española para la Transformación Tecnológica (SETT) and South Africa’s Known Associates Group (KAG) have teamed up to launch a new audiovisual venture. This partnership aims to boost film and documentary production in Spain while expanding South African investments across Europe. SETT is applying its digital innovation mandate, while KAG brings industry expertise and resources. Their deal stands as one of South Africa’s biggest investments in Spain’s audiovisual market, highlighting a growing trend toward international cooperation in content creation and funding
SETT plans to invest €12.7 million through the Plan España Hub Audiovisual framework, allocating funds to launch two new companies. Moonlighting Studios Spain will receive €8.8 million to support its growth. At the same time, SETT takes a 49% stake in KAG’s Spanish post-production company, The Refinery, with a €3.9 million investment, as reported by Screendaily’s report. These details underline Spain’s drive to become an audiovisual innovation hub.
The government is eager to attract both technology and foreign investment. Spain’s robust production infrastructure and attractive tax advantages play a vital role in this strategy. The Canary Islands, for example, offer significantly reduced corporate tax rates alongside a low VAT rate, making them an appealing location for audiovisual investment.
Alongside this, KAG targets equity stakes of up to €2 million per film. It supports all stages from preproduction through distribution and marketing, noted Audiovisual451. Founded in 2014 by CEO Tshepiso Chikapa-Phiri, KAG is already recognized as a significant player in South Africa’s audiovisual scene.
Government Endorsement and Economic Impact
The pact was officially announced in Madrid by Spain’s Minister for Digital Transformation and Public Service, Óscar López. He emphasized that Spain has become the EU’s leading audiovisual market and largest producer, hosting 423 productions in 2025, according to the recent report from Audiovisual451’s coverage. Globally, Spain ranks sixth in production volume—only behind India, Japan, China, South Korea, and the United States.
The government views this alliance as a strategic move to further boost audiovisual industries. Foreign capital supports local talent and fosters infrastructure growth, such as when Netflix established its production hub in Madrid, creating thousands of jobs and investing heavily in local content. KAG-owned firms are receiving €12.7 million in public funding to expand, while SETT separately provides €8.8 million for Moonlighting Studios.
KAG’s Expansion into Europe
KAG’s investment of about €2 million in supported films shows strong confidence in Spain’s market.
Production Plans and Content Focus
With €8.8 million from SETT, Moonlighting Studios Spain is set to produce about ten films.
Meanwhile, The Refinery’s Spanish branch will benefit from SETT’s €3.9 million stake, strengthening post-production support for these projects.
Implications for Spain’s Audiovisual Sector
Spain’s rich culture and increasingly generous fiscal incentives continue to draw investors. The Canary Islands, for example, offer significantly reduced corporate tax rates at just 4%, alongside a low VAT rate of 7%.
Comparison with Previous Investment Initiatives
The SETT-KAG deal follows earlier investments under the Plan España Hub Audiovisual. In a previous phase, SETT approved a combined investment of €39.8 million (about $46.1 million) for two other international producers.
Unlike previous deals that focused mainly on Spanish companies, this collaboration adds a cross-continental edge with KAG from South Africa.
The SETT-KAG venture blends Spain’s ambitions with South Africa’s audiovisual growth story, forming a bridge across continents to spur production and innovation. The plan includes ten films and documentaries, alongside enhanced post-production support. According to Variety’s coverage, Screendaily’s report, C21Media’s coverage, and Audiovisual451, Spain’s role as a European audiovisual center is set to strengthen materially.
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