Communications Minister Solly Malatsi has announced that his department has received three proposals for a tender to create a funding model for the South African Broadcasting Corporation (SABC). The evaluation committee is expected to decide this week, and the selected provider is anticipated to take around three months to finalise the funding model.
The SABC has been struggling financially, in part due to the failure of the TV license scheme, which has led many South Africans to avoid paying renewal fees. The SABC Bill, introduced to Parliament in October 2023, aimed to introduce a new funding model in place of TV licenses; however, it established a three-year deadline for the finance and communications ministers to develop a solution.
In November 2024, Malatsi informed Parliament that he was withdrawing the “flawed” bill. This move drew criticism from Khusela Diko, chair of the Portfolio Committee on Communications and Digital Technologies, who warned that it could lead to the SABC’s demise.
This situation has led to tensions within South Africa’s government of national unity (GNU), prompting President Cyril Ramaphosa to temporarily suspend ministers’ powers to withdraw bills in December 2024. Members of the African National Congress (ANC) and the Democratic Alliance (DA) have debated whether this suspension is retroactive.
The status of the SABC Bill remains unclear; while Diko claimed it was not withdrawn, she wrote to Malatsi on August 26, 2025, asking for an update due to the prolonged delay. “The Bill has now been delayed for more than six months, with no clear urgency from the department to resolve the matter,” she stated, emphasising the growing financial and operational crisis facing the SABC.
The Portfolio Committee tasked Malatsi with providing feedback by Friday, August 29, 2025. If the Bill hasn’t been withdrawn, the Portfolio Committee must continue working to refine it based on public input before presenting it to the National Assembly.
According to a letter from Malatsi to Diko, three bids for the SABC funding model contract were received since the tender announcement in July 2025. Although he did not disclose specifics about the bids, he assured that both the SABC and Treasury would be part of the evaluation committee and that a decision would be reached soon.
Malatsi stressed the urgency of finalising the funding model, stating, “I wish to reaffirm that the process for the finalisation of the funding model is being prioritised.” Meanwhile, the SABC has been exploring various interim strategies to bolster its financial health as the government works on a new funding structure.
Among the proposals is an annual increase in the TV license fee to generate more revenue, as current paying holders are mostly “legacy” users. The SABC argues that the burden would unfairly fall on these individuals, as new license holders are scarce.
However, any increase in fees is not imminent due to the extensive legislative process required to approve such a change. The SABC has also suggested exempting TV license fees from VAT, which it estimates could significantly increase additional revenue.
Before these proposals, alternatives, including a household tax and a levy on local and international streaming services, have been put forward. The household tax would resemble Germany’s Rundfunkbeitrag, ensuring payment regardless of content consumption from the public broadcaster.
Philly Moilwa, the SABC’s head of policy and regulatory affairs, reiterated the household tax proposal in September 2024, suggesting collaboration with the South African Revenue Service for fee collection. However, MultiChoice, the leading pay-TV provider, has publicly opposed any arrangement that would involve it collecting fees on behalf of the SABC.
