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South Africa Set to Replace SABC TV Licences with New Funding Model

South Africa’s outdated TV licence system may soon become a thing of the past. The Department of Communications and Digital Technologies (DCDT) has announced plans to replace the system with a new funding model designed to ensure the long-term sustainability of the South African Broadcasting Corporation (SABC).
Communications Minister Solly Malatsi explained that revising the SABC’s funding model is a top priority. “The SABC’s financial instability requires urgent action, and the withdrawn Bill didn’t adequately address this challenge,” he said.
Why the Change Is Necessary
The SABC has faced financial turmoil for years, with declining revenue, mounting losses, and a shrinking audience base. According to its latest financial report, the broadcaster is technically insolvent and struggling to meet its financial obligations.
Audience migration to global streaming platforms has significantly impacted the SABC’s relevance. As more South Africans switch to streaming services across various devices, the need for traditional TV licences is being questioned.
In 2024, the TV licence evasion rate hit an all-time high of 86%. SABC Chairman Khathutshelo Ramukumba admitted that the lack of consequences for non-payment has worsened the issue.
“If people don’t pay their TV licence, we have no way to enforce compliance. This leaves only the patriotic few who continue paying,” he said.
The Future of SABC Funding
To address its challenges, the SABC is exploring a more competitive and sustainable business model. Options include a public-commercial funding mix and potentially introducing a public interest content levy.
William Bird, director of Media Monitoring Africa, supports the need for sustainable funding. “Journalism serves the public good, just like healthcare or infrastructure. South Africa needs a public broadcaster,” Bird emphasized.
Bird suggested that a device levy or contributions from other entities could help fund the broadcaster. However, he acknowledged public resistance to such levies, given the SABC’s history of mismanagement.
“The money must come from somewhere. It’s crucial to fund credible and reliable information for the public good,” Bird added.
What’s Next for the SABC?
The DCDT and stakeholders are working on a new funding model that aligns with South Africa’s digital age. As discussions continue, the focus will remain on ensuring that the public broadcaster can fulfill its mandate while adapting to modern content consumption trends.
For South Africans, this change could mean saying goodbye to TV licences and welcoming a more equitable system that ensures the survival of public broadcasting in the country.
What are your thoughts on the proposed changes?
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