Nomsa Chabeli, Group CEO of the South African Broadcasting Corporation (SABC), has warned that failure to reform the public broadcaster’s funding model could lead to its demise.
Khathutshelo Ramukumba, the Chair of Parliament’s Standing Committee on Appropriations, echoed these concerns, highlighting the challenges posed by the low compliance rate for TV licence payments. He explained that the SABC’s public service mandate costs approximately US$121 million annually, and that the current funding system should support it. “Unfortunately, this system has markedly failed, with only 14% of South Africans complying with licence payments,” he stated.
Currently, the SABC is expected to generate around US$259 million from TV licences each year, but it falls well short of that. “This creates a substantial funding gap impacting our ability to fulfil the public service mandate,” Ramukumba added.
He believes that while the SABC Bill may offer a long-term solution, immediate government support of US$63 million over the next couple of years could significantly enhance the broadcaster’s financial health. This funding would enable the necessary policy and legislative changes to support a more sustainable funding model.
During her presentation to the Committee, Chabeli noted that the SABC lags behind other global public broadcasters, which rely heavily on government funding. “The SABC is the most commercially oriented public broadcaster in the world, which is quite unusual for a developing nation. For instance, about 80% of the BBC’s costs are covered by the state, whereas the SABC’s model is quite the opposite. This is something we need to reassess,” she remarked. Chabeli warned that continued reliance on outdated commercial projections could jeopardise the SABC’s viability.
She noted a prevailing culture of non-payment in South Africa, which she believes significantly affects the SABC. “There is a widespread belief among people that they shouldn’t have to pay for services — this sentiment extends beyond the SABC to utilities like electricity and water. It’s a cultural issue we must address,” she said.
Chabeli referred to the TV licence scheme as outdated and emphasised the urgent need for sustainable funding sources. “Given the current landscape, the TV licence scheme no longer meets our needs. We’ve proposed a household levy in our submissions on the SABC Bill, and we’re also considering a collection mechanism through SARS,” she noted. Another alternative would be securing public funding from the national treasury to support the SABC’s mandate.
To further this cause, the Department of Communications and Digital Technologies has appointed BMI TechKnowledge to devise a sustainable funding model for the broadcaster. Communications Minister Solly Malatsi expressed optimism about this appointment, calling it a significant step toward securing the SABC’s future in serving millions of South Africans. BMI TechKnowledge is recognised for its expertise in economic modelling and broadcasting market analysis.
However, the SABC Bill, which was anticipated to provide a new funding structure, has faced setbacks. It has only mandated the ministers of Communications and Finance to devise a new model within three years — a delay that could spell trouble for the SABC. In a letter to Parliament’s Speaker, Thoko Didiza, Malatsi announced the withdrawal of the SABC Bill, deeming it “fundamentally flawed,” which drew criticism from Khusela Diko, chair of the Portfolio Committee on Communications and Digital Technologies, who warned this move could jeopardise the SABC’s existence.
Though there were initial hopes that President Cyril Ramaphosa would assist in reinstating the SABC Bill, Diko revealed that as of September 2025, the committee decided to allow Malatsi to take the lead. Still, she expressed frustration over the slow progress in establishing a new funding framework. “We gave him ample time, yet there has been minimal advancement,” she stated. “We urge the minister to expedite this process and avoid any bureaucratic delays.”
In announcing the appointment of BMI TechKnowledge, Malatsi reiterated his commitment to prioritising the development of a sustainable funding plan for the SABC.
