This study was commissioned to map the impact of the CCI&S industries for the years 2021 to 2023. Periodic assessment of the industries is necessary for responsive interventions that unlock the ever-expanding trade and employment potential of the sector.
The cultural, creative, and sports industries are vibrant and dynamic phenomena in a nation's economy. They include an extensive array of goods and activities in traditions, literature, music, visual arts, knowledge-based activities, film, and sports. The activities are a product of human intellect and artistic capabilities. They often experiment and problem-solve, which can result in innovative ways of doing things. The industries positively shape the country’s economic outlook by contributing nation’s identity, meaningful entertainment, and leisure. Their importance has emerged as champions in innovation, employment, and economic development. The global share of the creative economy is estimated to be around $2.3 trillion in 2024, contributing 3.1% to GDP and employing 6.2% individuals. The creative industries are known to create more employment for women and youths than any other sector, which is a great potential for Africa given that the continent has over 60% of its population under 25 years old. The CCI&S industries are well-known for generating multiplier effects on other related industries, hence governments around the world have identified the industries as one of the new drivers of local and economic growth. Against this background, this study was commissioned to map the impact of the CCI&S industries for the years 2021 to 2023. Periodic assessment of the industries is necessary for responsive interventions that unlock the ever-expanding trade and employment potential of the sector. Moreover, we assess the digitization landscape affecting the industries, which is important for the industries long-term survival and competitiveness. We also analyse environmental sustainability with the aim of positioning the industries as champions of the change.
We used a Macroeconomic Impact Assessment Model based on a Social Accounting Matrix. A Satellite Account for the Cultural, Creative, and Sports Industries was embedded into the Social Accounting Matrix. The results show that the CCI&S industries have a sizeable impact on the economy. The industries contributed about 3.9% of the national GDP during the years 2021 to 2023; and about 7% of employment in the same years. In 2021 the CCI&S industries contributed R250 billion to GDP, and 1 053 547 in employment contribution. The industries GDP contribution moderately increased in 2022, owing to the improvement in the macroeconomic conditions after the COVID19 pandemic, with the GDP amounting to R258 billion. However, the industries employment contracted to 1 039 414 in 2022 because of structural changes from digitization, bouncing back in 2023 with an employment contribution of 1 165 709 and the GDP of R271 billion.
Capital use was estimated to be R36 billion over the years 2021 to 2023. The total impact on household income amounted to R230 billion on average over the same years, of which about 12% was allocated to lower-income households in South Africa. This shows that the industries play an important role in poverty alleviation. The annual fiscal impact of the CCI&S sector amounted to approximately R109 billion over the 3 years through direct and indirect taxes. This income can finance different types of socioeconomic services like paying for teachers, hospitals, and low-cost housing.
The Design and Creative Services, followed by Sports and Recreation, and the Audio-Visual and Interactive Media were the main contributors to the overall GDP of the CCI&S industries over the years. On the contrary, Performance and Celebration, and Cultural and Natural Heritage had the least contribution to total GDP contribution respectively. This can be explained by the negative impact the lockdown and various COVID-19 regulations had on those specific sectors. The results also revealed that the industries mostly generated skilled jobs in 2021 and 2022, with semi-skilled jobs leading in 2023.
In conclusion, there are endless opportunities for the CCI&S industries in South Africa for the future. With the digital transformation that is unfolding, South Africa must position itself to compete on the global stage. Policies are required to ensure that relevant technology is available for the creatives. Support must be provided for a seamless transition and continuity. The government needs to position education institutions to train students for future occupations so that the required skills for the creative economy are available in-house, and the creatives can be globally competitive. Moreover, the industries need to take part in saving the planet from human activities that degrade the environment resulting to climate change.
