By Michael Hamlyn

Cape Town city council is making 30 million rand available to restart the development of the Dreamworld film city project, which is still expecting to turn the eastern suburbs of Cape Town into a southern hemisphere Hollywood.

The mayoral committee member for economic development and tourism Simon Grindrod of the Independent Democrats said on Wednesday, after the spending was approved by council:

"My department has spearheaded efforts to make available the City's 30 million rand contribution – in terms of the provision of bulk infrastructure for the Dreamworld film studio – because this project represents the single biggest opportunity to secure billions of rands more income for the city in terms of film production and associated industries. The Cape Town film industry is estimated to be worth 20 billion rand."

South African film producer Anant Singh was chosen to build the country's first major Hollywood-style film studio in Cape Town, four years ago. It was to be built on the Vergenoegd Farm in Faure off the N2 just outside Somerset West, Cape Town.

That decision came four years after the construction of a mega film studio in the city was first proposed by the Western Cape provincial government.

Grindrod said: "The Film City project can now move forward and I am happy that all outstanding issues have been clarified. My department's R30 million contribution will finally be spent on creating the jobs and investment linked to this venture."