The excise tax imposed on digital products, including video cameras, is fully exempted, creaking hope for the crumbling players in the film industry.

The tax proclamation imposed on the industry required adjustments, according to Wasihun Abate, a tax policy advisor of the Ministry of Finance, who disclosed that the film industry has suffered an economic blow and needed a relief period to recover.

The high excise tax levied on cameras has been cited as one of the factors for filmmakers producing under-quality and substandard videos. Ephrem Moges, president of the Ethiopian Filmmakers Association, observes that although the relief period could be seen as a step forward to revive the industry, there were prerequisites that should have come forth.

For Ephrem, the prospective investment opportunities have been bottlenecked by a lack of recognition as a business sector which has prompted most producers to turn to commercials and documentaries with hopes of avoiding losses.

“It's the cart before the horse,” he said.

The Association was established in 1993 to lobby on behalf of filmmakers and has 96 active members under its fleet. Ephrem states that low social protection, rare public funding, and the fragmented policy structure have hindered filmmakers from flourishing as an industry.

"It's one of the most discouraged business sectors," he told Fortune.

As a producer for over a decade, Ephrem observes the challenges in financing that have resulted in low-quality sub-standard films and a reduction in the number of audiences.

UNESCO reports indicate that the country lacks a clear pathway for equity investment through which prospective investors can engage with producers. This has led most filmmakers to tap into their own resources or settle for low-budget films. The average annual production of local films reaches up to 140, where most are produced below standard and tethered by low-budget productions. The challenge has been conspicuous for the industry as empty cinema chairs have become prevalent.

Urban Film Production Plc. Incorporated five years ago, with a 200,000 Br capital. The company has mainly focused on commercials and documentaries to garner profit.

Daniel Damtew, the general manager, concurs that the excise tax breeds little fruit unless the industry is recognized and categorized as a legitimate business. He has been importing video cameras for the last two years and has had to pay a series of taxes amounting to 133pc.

Throughout his 11 years in the profession, he noticed that technical abilities have improved, but knowledge and discipline have remained stagnant. He also observed that peripheral courses primarily focus on the theoretical aspects and lack the practical approach necessary for mastering the craft.