Business
SABC’s Financial Freefall: A State-Owned Giant on the Brink of Collapse

The South African Broadcasting Corporation (SABC), once a cornerstone of the country’s media landscape, is now teetering on the edge of financial collapse. Mounting losses, crumbling infrastructure, and dwindling revenue have left the state broadcaster in a dire position, prompting urgent calls for reform.
Declining Revenue and TV Licence Evasion
The SABC’s 2024 annual report paints a grim picture: a R200 million loss for the financial year, following an even more significant R800 million loss the year prior. While the slight improvement offers a glimmer of hope, the broadcaster’s financial troubles run deep.
Revenue has plummeted from R6.5 billion in 2019 to R5.1 billion in 2024, largely due to declining advertising income and widespread TV licence evasion. The evasion rate has skyrocketed to an unprecedented 86%, as South Africans opt for streaming services over traditional television.
“Many South Africans refuse to fund a mismanaged state enterprise,” said an anonymous viewer. “Why pay for services we don’t use?”
Even government departments have joined the public in avoiding TV licence fees, compounding the financial strain on the SABC.
Infrastructure in Disrepair
The SABC’s financial woes extend to its physical infrastructure. The Auckland Park campus, once a symbol of innovation, is now a shadow of its former self. Reports reveal dilapidated buildings, broken elevators, and outdated facilities.
“Radio Park’s service lifts haven’t worked since 2018, and escalators remain broken and cordoned off,” workers reported. Complaints about dimly lit staircases and unhygienic restroom facilities highlight the extent of neglect.
In addition to these issues, the campus has faced severe incidents, including a 2023 fire and a 2019 diesel leak that required building evacuations.
Technological Stagnation
The SABC’s inability to invest in technology has left it trailing behind competitors in a rapidly evolving digital landscape. Over 80% of its long-term capital plans have been suspended, crippling innovation and infrastructure upgrades.
“It must be noted that virtually no funding is currently available for any capital investment,” the SABC stated in its report.
The Search for Solutions
To address its financial crisis, Communications Minister Solly Malatsi has proposed a new funding model. Stakeholders are exploring a public interest content levy that would apply to devices such as smartphones.
The SABC has also suggested outsourcing the collection of these fees, a strategy that has sparked significant debate.
A National Crisis
As the SABC faces insolvency—with liabilities exceeding assets by R37 million—the broadcaster’s future hangs in the balance. Without intervention, its ability to meet obligations and provide essential services is uncertain.
Mangena said, “The SABC’s collapse is more than a business failure—it’s a cultural loss for South Africa. Urgent action is needed to prevent a national crisis.”
The SABC’s challenges reflect broader issues within South Africa’s state-owned enterprises. Addressing these systemic problems will require bold leadership, innovative solutions, and public cooperation.
As South Africa watches the SABC’s struggle, the question remains: can the state broadcaster reinvent itself and reclaim its place in the nation’s media landscape?
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