New SABC funding model to ditch TV licences?

South Africa’s Minister of Communications and Digital Technologies, Solly Malatsi, has confirmed that the revised South African Broadcasting Corporation (SABC) Bill is scheduled to be tabled before Parliament during the 2026/27 financial year. This timeline places the bill’s introduction between April 1, 2026, and March 31, 2027.

Read: The Switch overtakes the DS as Nintendo best-selling console

The cornerstone of this revised legislation is the formalization of a new funding model for the public broadcaster. This model aims to resolve the SABC’s perennial financial instability and finally address the collapse of the current TV licence scheme.

The task of designing this financial roadmap was assigned to BMI TechKnowledge (BMIT). While the firm originally aimed to finalize the model by mid-December 2025, an extension was granted until Friday, February 6, 2026, to allow for thorough stakeholder engagement.

Minister Malatsi emphasized that receiving the proposal is only the first step. Because any public sector funding shift impacts National Treasury allocations, the Department of Communications must conduct extensive consultations with the Minister of Finance before any implementation can occur.

The necessity for a new model is underscored by staggering non-compliance rates. In 2019, roughly 69% of TV licence holders avoided payment; by 2024, that figure had ballooned to 86%, leaving only 14% of the population funding the scheme. SABC leadership, including CEO Nomsa Chabeli, has admitted that the current system is no longer relevant in a digital age.

While some stakeholders have proposed a universal household levy, similar to Germany’s device-neutral “Rundfunkbeitrag”, Minister Malatsi has expressed strong reservations. He characterized a mandatory household tax as a “terrible idea,” citing the current high cost of living and the potential unfairness of taxing households regardless of their actual consumption of SABC services.

Instead of a new consumer tax, Malatsi is advocating for the government to “put its money where its mouth is.” He noted that the SABC is uniquely handicapped by its public mandate, which requires it to broadcast news in multiple languages across various channels—a requirement that limits its capacity for lucrative commercial advertising compared to private rivals.

The Minister highlighted two key areas for reform:

  • Advertising Spend: Malatsi argued that the government is the broadcaster’s largest advertiser but often skews its spending toward private media.
  • Direct Funding: He maintains that the public mandate cannot be sustained on “freebies” and requires a dedicated, sustainable funding stream that reflects its value to South African democracy.

The forthcoming Bill will be the definitive attempt to balance these public service obligations with a realistic, modern financial structure that moves beyond the failed licence model.