Government weighs end of R265 SABC TV licence as new funding options considered

South Africa Government ministers are considering new funding options for the South African Broadcasting Corporation (SABC) that could alter the current R265-a-year television licence model, after persistent non-payment and falling revenue put strain on the public broadcaster.

Licence compliance and financial pressure

The R265-a-year TV licence has become increasingly difficult to collect. Declining payments have reduced the SABC’s revenue and challenged its ability to fulfil its public mandate. SABC CEO Nomsa Chabeli told Parliament that just 20% of households required to pay the licence fee were complying.

Despite widespread non-payment, the licence remains a legal requirement for most television owners, and the SABC has stepped up efforts to recover outstanding fees.

Consultant’s report now under review

Minister of Communications and Digital Technologies Solly Malatsi confirmed the government is considering several options for a new funding model for the SABC. The department appointed Johannesburg-based research firm BMIT Knowledge Group in September 2025 to develop funding model options. The firm has submitted its final report, and its recommendations are now being considered by the SABC and the National Treasury.

The department will consult the Minister of Finance before selecting a preferred option.

Government process and safeguards

Malatsi said the department is engaging relevant stakeholders as part of the selection process. He also confirmed the service provider will remain available to offer technical support during consultations.

“The appointed service provider met the extended deadline to submit its final report and recommended funding model options. The Department is now engaging the SABC and National Treasury on the recommendations, followed by consultation with the Minister of Finance to enable government to consider and select the most appropriate option”.

On the legislative side, the funding model options will be included in proposed amendments to the Broadcasting Act, the minister said.

“To ensure the sustainable, long-term recapitalisation of the SABC, the selection of the funding model from the service provider’s recommendations will be made in consultation with the National Treasury and the Minister of Finance, as they are responsible for the national fiscus”.

Editorial independence and corporate responsibility

Malatsi emphasised that the SABC board remains responsible for developing and implementing the corporation’s strategy to secure long-term sustainability. He also said there are no intentions to interfere with editorial independence when any new funding model is introduced and that the SABC will continue to maintain its editorial independence.

Recent fiscal support

Separate departmental announcements referenced in related reporting note a R234 million allocation to the SABC in the 2026/2027 budget as part of broader funding relief measures.

The departmental review represents a possible turning point for how the public broadcaster is funded, but a preferred model has not yet been selected and further consultations with the National Treasury and the Minister of Finance are under way.