Film production costs in South Africa are up to 40% lower than the United States and 20% lower than in Australia, the minister said.
Major films produced in South Africa include The Gods Must be Crazy, Cry the Beloved Country, The Piano Player and Sarafina.
Salma Hayek and Colin Farrell are currently in the country filming Ask the Dust.
"The film industry is one of the most powerful vehicles we have to bridge the gap, to build stronger ties," said Jeannette Ndhlovu, South Africa's newly appointed consul-general to Los Angeles.
The worldwide entertainment and media industry is expected to grow from $1,1-trillion to $1,4-trillion in 2006, said Mxolisi Matshamba, the acting chief executive of Trade and Investment South Africa.