VFX IN EMERGING MARKETS AROUND THE WORLD: RISING TO MEET DEMAND

By OLIVER WEBB

Visual effects are in high demand in several industries worldwide and are now present in developing regions that are continuously expanding and evolving. Regions, including Eastern Europe, South Africa and the Middle East, have seen major shifts in demand in recent years. As these businesses grow, they have the potential to become significant players in the global VFX community.

Eastern Europe has become a key player in the industry over the last 10 years. Formed in 2019 by Lukas Remis, Imaginary Pixels is a boutique VFX studio in Poland. Remis formed the company while still actively working abroad as a freelance compositor. “By the end of 2021, running the studio became my main occupation,” he states. “We are located in Gliwice, Poland, far from Warsaw, the main film production center. We mainly work on film and episodic productions; only around 30% are Polish productions. Between 2023 and 2024, we worked on a large Polish war movie, Red Poppies, for which we created more than 120 VFX shots of various types. Some of our most interesting international projects include the 60th Anniversary Doctor Who episode ‘Wild Blue Yonder,’ and we just finished working on [the film] Return to Silent Hill. We also had a small gig on the Paris Olympics closing ceremony clip with Tom Cruise. Our main areas of work are compositing and CG environments, but we’re able to cover every aspect of VFX production. So far, our teams have been up to 15 artists, depending on the project.”

Remis’ main roles within the company include VFX producer and supervisor. He believes the growth opportunities involve larger participation in the Polish film market. “There are around 100 movies being produced in Poland each year, and some streaming platforms are very active in producing local content here,” he says. “Especially Netflix, which opened its central and eastern European office in Poland. However, there’s quite a bit of competition here, with around 10 major local VFX studios. As most of our projects come from abroad, we’re still affected by the slowdown n U.S. production caused by the strikes and COVID. Hopefully, we’ll finally see a rise in 2025.”

“There is an immense interest/passion for film, VFX, animation and interactive technologies [in Africa], meaning that Africa – with a 1.5 billion population – is poised not only to be a major creative hub producing content and consuming its own content. We already see this trend in relation to music.”

—Nosipho Maketo-van den Bragt, Owner and CEO, Chocolate Tribe

Another Eastern European VFX studio that has emerged in the last few years is StaticVFX Studio. Founded in 2014, StaticVFX is a Bucharest-based VFX studio whose portfolio includes projects for Netflix, HBO and ZDF, as well as animation projects like short films, proof-of-concept pieces and promotional storytelling for immersive installations and tourism activations. Co-Founder and VFX Supervisor Alexandru-Alin Dumitru is in charge of business development, and Liviu Dinu serves as Co-Founder and VFX Supervisor is charge of CG and the pipeline. “At our size, one of our strengths is that everyone still has a hand in the day-to-day creation of the work, so we’re not disconnected from the process,” Dumitru notes. “None of us are very far from the clients, the tools or the technology we use to push our work forward. It also creates a very team-oriented atmosphere where we are all in constant dialogue, which leads to strong bonds and long-term relationships. These responsibilities change depending on the project, experience and how the team size develops, but our values remain the same.”

Dinu and Dumitru wanted to create an environment where artists could feel like part of a team that grows from project to project and can deal with challenging, creative and technical ways of expressing themselves. “It’s always been our dream to have all the tools at our hands for testing and developing interesting visuals to support stories. So, in 2014, we thought we should give it a go and see where this path would take us. This vision of a world-class VFX and animation environment in Romania relies heavily on the wonderfully hard-working and creative artists from here, creating an opportunity to work on amazing projects in Romania,” Dumitru says.

VFX has matured into a global market where companies collaborate to tell stories worldwide. “When I think about the region, I first think of the European scale,” Dumitru explains. “Each culture has a unique identity and stories that are just now starting to find their way to audiences around the world. Soon, small and large media companies will have the opportunity to tap into these stories and tell them authentically. On the service side of the business, one advantage that Europe provides is varied rebates and tax incentive structures, so most projects can put together packages that are competitive in value and price. We are fortunate that the Romanian government is committed to the industry and has established a strong 30% rebate program because they see the value it can bring to the economy. We often partner with other European studios to create combined solutions for our clients. There are numerous examples where companies across Europe and Eastern Europe have risen to the occasion when given the opportunity, delivering outstanding results and setting a positive precedent for future collaborations.”

VFX activity has been relatively slow globally, and the Romanian VFX industry has not been immune to that. “On the positive side, we have been able to capitalize on some of the slower periods to invest in our pipeline, tooling, experiment with Unreal or USD workflows and how we can integrate AI efficiencies,” Dumitru adds. “Bearing in mind that Romania is slowly starting to emerge as a player in the VFX and animation industry, there is a lot of potential to explore, which has been untapped so far. In talking to my peers in Romania and Europe more broadly, many share this outlook; pent-up excitement is waiting to be released. Another important aspect of any industry is the surrounding community, which often acts as a catalyst and fosters a symbiotic relationship with the companies and players in that sector. This idea has inspired us to take an active role in building and supporting a VFX community in Romania.”

The African VFX industry has proven that it has the potential to emerge as a leading region in the visual effects industry. Countries including South Africa, Nigeria, Kenya and Egypt lead the way. While the visual effects industry on the continent is still developing, the animation industry is booming.

For Nosipho Maketo-van den Bragt, Owner and CEO of Johannesburg-based Chocolate Tribe VFX & Animation, the future for VFX and animation in South Africa looks bright despite the challenges. “There is a narrative shift emerging from South Africa with creators aiming for world-class, high-production value content. This mindset reflects a growing confidence in local talent and the desire to compete on a global stage, showcasing Africa’s capacity for excellence in VFX, animation and storytelling. There is an immense interest/passion for film, VFX, animation and interactive technologies, meaning that Africa – with a 1.5 billion population – is poised to become a major creative hub producing content and consuming it own content. We already see this trend in relation to music.”

Explains Maketo-van den Bragt, “South Africa started as a live-action film service destination for major blockbusters due to its diverse landscapes, favorable exchange rates, highly skilled on-set crews and strong infrastructure. However, of late, the creative industry has expanded into post-production and original content development, which signals its broader capacity in relation to VFX, animation and creative storytelling. According to the National Film and Video Foundation Movies and Entertainment Market Report, there has been growth in animation studios in 2023 [499.36 million USD].”

Maketo-van den Bragt notes that South Africa’s appeal as an active partner has increased with direct flights from film hubs in North America, Europe and Asia. From a VFX perspective, South Africa is a tried and tested film destination. Some of the most successful global blockbusters, such as The Kissing Booth, Black Panther, The Woman King and upcoming Mission: Impossible – The Final Reckoning, have been partly or wholly filmed in South Africa. Since English is one of the primary languages, there are no language barriers, “meaning there exists vast opportunities for collaboration and co-productions.”

“The global appetite for high-quality African content is a major driver of growth in South Africa’s VFX and animation industry,” Maketo-van den Bragt states. “International audiences are increasingly interested in stories that reflect the African continent’s diversity, culture and unique perspectives. According to the market projections for South Africa’s animation industry, the animation industry is projected to grow at a robust rate of 7.5%-7.78% – the market reflects steady growth in Africa as a whole. This has created opportunities for South African VFX and animation studios to position themselves as key players in producing and delivering compelling content that resonates on a global scale.”

Film and creative festivals like AVIJOZI, Comic Con Africa and other local festivals have become vital for showcasing thought leadership and African talent, allowing collaboration and driving industry growth, according to Maketo-van den Bragt. AVIJOZI, a Chocolate Tribe and Netflix collaboration, focuses on animation, VFX and interactive technology and has seen exponential growth since its inception in 2022, doubling attendance each year and drawing a combined audience of 4,200 over two days in 2024. Held in Johannesburg, a hub of 15 million people, the festival connects creatives, tech innovators and industry leaders while highlighting cutting-edge fields like AR, VR and gaming.

Sunrise Animation Studios, a leading South African studio, has historically been a small company that has done primarily episodic and feature work for streaming platforms as well as some sports promotionals. Phil Cunningham and his wife Jacqui started Sunrise in 2001 in Harare, Zimbabwe, where they lived at the time. “Apart from the fact that Zimbabwe’s film industry and content market is relatively tiny, we were also completely unqualified at the time to try to set up a film business,” Cunningham admits. “We had built an agricultural trading business that was doing well, but for as long as I can remember I’ve loved story and specifically film and had this crazy dream of becoming a filmmaker. I also have an incredibly brave wife who encouraged me not to play it safe and to chase that dream. She read a saying that said that if an eagle chases two rabbits, both will get away, so we closed down our agricultural business and focused on starting an animation business.”

Their first project was a stop-motion animated feature film called The Legend of the Sky Kingdom, which was shot from a first-draft script without any storyboards. “Mainly because we didn’t know any better,” Cunningham admits. “Unsurprisingly, it wasn’t a huge commercial success, but I will say that it was visually quite unique and got a lot of attention, having worked with amazing Zimbabwean street artists to create models and our set from all kinds of recycled objects and materials. By the time we finished Legend, I knew that CG animation would be a far more versatile and powerful medium for us to focus on. So we built a tiny CG department and made a five-minute animation test that initially wasn’t intended for anything more than trying our hand at CG animation. That short became the first episode of the Jungle Beat series, now into its eighth season, and we’ve also recently completed our second Jungle Beat feature film.”

Sunrise decided to move the studio to Cape Town mainly to position itself strategically in terms of access to talented local animation professionals and being more closely connected to the global industry. “We’ve been based in Cape Town for 20 years now and have had the privilege of working with world-class professionals locally and from all over the world who have all played a vital role in our growth as a studio,” Cunningham says. “Initially, we took on a lot of service work, mainly working with New York and London-based agencies, which helped us grow our capabilities while keeping the business afloat. Still, we always tried to be very intentional about developing IP and trying to move increasingly towards film and series projects. Our studio motto is ‘Inspire Through Story,’ which is the best way to describe the kind of projects we gravitate towards.”

Cunningham observes, “The industry, in general, has been disrupted quite significantly over the last decade or so, with the rise of the major streaming platforms and the shift of audience towards short-form content – especially in younger audiences, which has a bearing on animation. The commercial model for various levels of film and TV production is less clearly defined, and especially with relatively long production timeframes in CG animation. There’s always the possibility of quite significant shifts in the market even while a film is in production. It’s quite a balancing act to build permanent capacity for ambitious productions without having overheads become too bloated or losing agility to adapt to dynamic market conditions. In 2025, the rise of AI will create challenges and opportunities, and we are trying to set ourselves up to be agile and able to adapt.”

Driven by its diverse locations, skilled workforce, competitive production costs and strong government support, Cape Town offers vibrant opportunities for visual effects and animation. “The city attracts international productions and serves as a growing hub for animation,” says Tim Keller, Producer at Sunrise. “Cost-effective yet high-quality production capabilities supported by a skilled talent pool trained in CG, VR and motion capture further enhance Cape Town’s appeal. Institutions like The Animation School and SAE Institute offer specialized programs in animation and VFX. Facilities such as Cape Town Film Studios provide world-class infrastructure, while government incentives, including production rebates and co-production treaties with major countries, encourage local and international projects. Institutions like the Cape Town Film Commission and National Film and Video Foundation assist with funding, training and logistics, while festivals like the Cape Town International Animation Festival (CTIAF) showcase local talent. Despite challenges in financing for smaller studios, Cape Town’s potential to expand into global markets and integrate advanced technologies position it as a competitive player in the global entertainment industry.”

Keller continues, “South Africa is an emerging hub for animation talent, and while the local pool isn’t yet large enough to fully support premium feature animation, we are proud to contribute to its growth. With the global animation and visual effects industry evolving rapidly, we are keeping a close eye on the international labor market. In all of these areas, the challenges we face are accompanied by tremendous opportunities for growth, innovation and impact.”

The Middle East is another region gaining global recognition accelerated by government and media support and high ceiling for future growth over the next decade. Founded in 2016, JJ Agency is a Dubai-based visual effects and content production studio with 80 employees specializing in animation, commercials, TV series and feature films. “The United Arab Emirates is a major center for film and television production, thanks in part to the generous film tax breaks that have made it attractive,” states Gary Fedorenko, Co-Founder, CEO and VFX Supervisor of JJ Agency. “Dubai and the UAE are rapidly becoming major players in the global media landscape. This region is characterized by its forward-thinking approach and strategic investments in infrastructure and technology, making it a hotbed for innovation and creativity. The UAE’s commitment to economic diversification has led to significant support for the media and entertainment sector, attracting international studios, talent and productions.”

Fedorenko continues, “Dubai’s strategic location as a global hub offers numerous advantages, including its accessibility to diverse markets, world-class infrastructure and business-friendly environment. The UAE’s tax incentives, such as the low VAT and corporate tax rates, further enhance its attractiveness for businesses and investors in the creative industries. This combination of factors creates a fertile ground for the continued growth of video production, VFX and animation in the region.”

With growth comes growing pains. Fedorenko comments, “While the UAE has made significant strides, the availability of a skilled local workforce remains a key challenge. To further solidify its position in the global market, the UAE needs to invest in nurturing local talent and attracting experienced professionals from around the world.” He says education and training programs in VFX, animation and video production are needed. “By fostering a robust talent pool, the UAE can reduce its reliance on outsourcing projects to other countries and establish itself as a self-sufficient hub for creative excellence. Despite the talent gap, working in the UAE’s VFX and video production industry offers unique opportunities. While the UAE is still in the process of building a robust local talent pool, the opportunities for knowledge transfer and skill development are immense, paving the way for a bright future in the industry.”

When Samer Asfour, Chief Executive Officer of Nested VFX in Dubai, first arrived in the UAE 12 years ago, finding talented professionals in the region. “Whenever we needed to hire new talent, we often had to source them from overseas. Reliable freelancers were equally scarce,” he says. “However, the landscape has transformed significantly. The UAE’s introduction of initiatives for freelancers, such as flexible residency visas and the absence of individual income tax, has positioned the country as a thriving hub for creative and production teams.”

Asfour notes, “On another level, the advertising industry has witnessed significant growth over the past decade. Dubai, long recognized as a hub for pan-Arab and international commercials due to its diverse pool of multi-ethnic talent, unique desert landscapes and the presence of regional headquarters, has further solidified this reputation. This dynamic is more pronounced than ever, as the city continues to attract global campaigns and productions, making it a focal point for the advertising world.”

Local governments in Abu Dhabi and Dubai offer incentives to attract international films and series to be shot locally. Asfour says. “These initiatives take full advantage of the region’s year-round sunny weather and distinctive landscapes, further enhancing the UAE’s appeal as a premier filming destination.”

Asfour is candid about the challenges. “The VFX and animation industries still have significant ground to cover, as many producers continue to outsource their post-production work abroad. However, the few locally-based studios are making notable efforts to build trust in the local VFX market. These studios are striving to attract a growing share of local projects that are currently being lost to international post-production houses.

“One of the biggest challenges we face is competing with international VFX studios that have greater access to local talent, benefit from a lower cost of living and operate with reduced overall expenses.”

A youth movement is energizing growth. “Universities have played a pivotal role in this evolution,” Asfour remarks. “Many students born in the early 2000s to expatriate families in the UAE have pursued studies in media and production at local institutions. Today, these graduates are becoming vital contributors to the region’s production market. The practice of mentoring interns and training them on the job has further enriched the industry, fostering a new generation of skilled professionals and strengthening the local talent pool.”

Based in Giza, Egypt, Trend VFX, with 50-200 employees, offers high-end VFX services for feature films, TV, animation, commercials and post-production. Mohamed Tantawy, CEO and VFX Supervisor, also sees the Middle East as a region on the rise. “I see significant positive indicators for the growth of visual effects production in Egypt in particular, as well as across the Middle East. Focusing on Egypt specifically, it’s worth noting that the country is one of the earliest film producers worldwide, with a cinematic history that exceeds 100 years. Over the decades, Egypt has developed a wealth of talented professionals and high-quality skills in various fields of filmmaking.

Tantawy believes Egypt has caught up with the best production facilities in the world. “In the past 10 years, VFX in Egypt has advanced notably and now rivals global standards. There have already been numerous international projects from Canada, the U.S., several East Asian countries and Europe that have relied on Egyptian teams to handle their VFX work. We at Trend have been fortunate to collaborate on projects from these regions. Additionally, in the last decade, you can observe the presence of many Egyptian and Arab VFX artists in some of the world’s largest studios, and local productions have also shown remarkable improvements in the quality of their visual effects.”

Egypt’s emergence in the global production and VFX marketplace has been a personal dream of Tantawy for years. He believes Egypt can become a key player because of its highly competitive pricing, large talent pool, government support and technological shift. Tantawy explains, “Due to the exchange rate between the Egyptian pound and the U.S. dollar, production costs – such as rent, overhead and salaries – are often significantly lower in Egypt. Taxes can also be lower than in other markets, which provides further financial incentives.”

Tantawy continues, “In recent years, there has been a major expansion in film and VFX education in Egypt, driven by both government and private initiatives. The rise of the internet and digital resources has made high-level knowledge and tools more accessible. Younger generations are especially enthusiastic about learning these skills as they see VFX and related fields as a promising creative industry with strong earning potential. Egypt, like many Arab countries, has a young population eager to pursue opportunities in film and television – industries in which Egypt has deep historical roots and cultural significance. Language barriers are not a significant obstacle since a large segment of the population speaks English [taught from early school years]. Additionally, hiring employees in Egypt is relatively streamlined, and there’s a healthy pool of well-trained candidates available to join VFX and production teams.”

Through various initiatives and educational programs, the government has been actively encouraging young people to begin careers in technology-driven fields, including VFX. Tantawy adds, “There is also growing recognition of the value VFX and film production bring to the economy, prompting efforts to facilitate and streamline company operations in these domains. Over the last decade, we have seen a surge in graphics-centric projects requiring globally competitive quality. With continued support, training and investment, I believe Egypt is positioned to play a substantial role in the global VFX and production marketplace.”