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I know you didn't ask, but here's why cultural & creative Industries (CCIs) matter to our economic growth. When we hear the word "economy", it isn't unusual to think of sectors like finance, mining, agriculture or manufacturing. And this makes sense because these sectors are among the main contributors to our GDP. But what often gets left out of the chat are the creative industries, an economic goldmine powered by intellectual property.
Before we talk about why these industries matter, let's talk about what we mean exactly by CCIs. The United Nations Conference on Trade and Development (UNCTAD) describes the creative industries as businesses and activities that produce and distribute good and services using creativity and intellectual capital as their primary inputs. Examples of these include:
Media - film & television production, radio, podcasting music recording, video games;
Arts & crafts - painting, sculpture, textiles, fashion, furniture and interior design;
Heritage - museums, galleries, cultural heritage sites, traditional performing arts;
Creative services - architecture, urban design, advertising, software and app development.
These industries encompass a range of knowledge-based based activities producing both tangible and intangible creative products with economic value and market objectives. In simpler terms, CCIs transform ideas into revenue. They're not just a creative outlet, they are a powerful engine for cultural, social and economic development.
So why do these industries matter? According to the South African Cultural Observatory's (SACO's) Creative and Cultural Industries Mapping Study, CCIs contributed about R161 billion to South Africa's GDP in 2020 (that's around 3% of the national GDP, which is more than agriculture) and supported over 1 million jobs. These figures are particularly striking because the study maps the industries during the COVID-19 pandemic, one of the most disruptive economic periods in modern history. CCIs have historically proven to be among the most resilient industries because of their specialisation in innovation. They are useful for creating buffers against economic downturns and this is what makes them a viable option for stimulating our stagnant economy.
One of the most exciting aspects of the creative economy is its foundation in intellectual property (IP). Unlike physical resources, which are finite, creative ideas can be reproduced and scaled indefinitely. Let's use physical property, land, as an asset class to put this into perspective. In the property market, a landlord owns a building and earns rent from tenants. That building is a single asset, limited by land and construction costs. Now, imagine an artist that owns a piece of music. That music can be 'rented' an infinite number of times. For example: broadcast on radio & television; licensed for advertisements; featured in films; narrowcast in supermarkets; performed live; etc. Each use generates revenue, without depleting the original asset. So each time you walk into a supermarket, or sit down for a coffee and music is being played in the background, the owner of that IP asset is getting paid a royalty.
In other words, where the property market is bound by scarcity, the creative economy thrives on abundance. Artists have the power to create limitless 'property' from the raw material of their imagination.
So from this perspective, leveraging CCIs for economic growth is a no-brainer. We wouldn't be the first country to do it either. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), India's Media & Entertainment industry, which is best known for its Bollywood films, managed to generate over … in revenue in 20… (making up …% of their national GDP). It is worth noting that during the time of writing this article, India's economy is the fastest growing in the world. South Korea has achieved similar success by leveraging K-Pop.
With all this in consideration, one thing is clear: CCIs are not just about entertainment; they are about job creation, GDP contribution, trade potential and can be a powerful engine of inclusive economic growth, especially for countries that are rich in cultural heritage. With significant investment in infrastructure, regulatory policies and proper regulation, they can transform imagination into assets and more importantly, into sustainable livelihoods.
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