SouthAfrica is in talks about a co-production treaty with the UK, according to theorganisation spearheading the development of South Africanfilm.

NationalFilm and Video Foundation (NFVF) chief executive Eddie Mbalo told a Cannespress conference that the UK would be added to similar agreements already beensigned with Italy, Germany and Canada.

"People have long been calling for a UKtreaty and today was can confidently say that the process is underway," hesaid.

The NFVFbelieves co-production deals and financial incentives will help make SouthAfrica a serious consideration as an international location for shoots.

But Mbalosaid it was important that investment helped further support a rising localindustry.

"We are telling the world that SouthAfrica is now a film-making country with 26 films made in the last two years,"said Mbalo. "That's a revolution."

A SouthAfrican delegation of government agencies and talent was in Cannes for thesecond year and believes it is on the verge of breakthrough success ininternational cinema.

Supporting the film-makers is national financedevelopment institution, the IDC, which confirmed its continuing investment infilm.