Minister of Communication and Digital Technologies, Solly Malatsi, has highlighted the near collapse of South Africa’s TV Licence system and indicated that new funding proposals for the SABC (South African Broadcasting Corporation) are on the horizon.
Earlier this week, Malatsi clarified that while discussions about a potential’ broadcasting tax’ have emerged, this idea remains only a proposal and has not yet been formally adopted as government policy.
To address the funding crisis, Malatsi noted that his department is working with BMIT, a technology research and advisory firm, to create a new financial model for the SABC. The government is awaiting a comprehensive report on various funding strategies, which will be evaluated in collaboration with the Minister of Finance to ensure they are fair, especially for low-income households.
Originally due in December, the report’s deadline has been extended to February 6 due to additional stakeholder consultations and holiday-season delays.
The SABC’s current financial troubles underscore the urgency of this matter; it risks collapse without a viable funding model. Malatsi pointed out that the broadcaster’s funding challenges have intensified, as it now finds itself in a vastly different environment than it was decades ago.
Presently, the SABC relies heavily on advertising revenue and TV licence fees, both of which are on the decline and have led to state bailouts. Malatsi noted a staggering reduction in TV licence compliance, with fewer than 20% of viewers paying their fees. This has resulted in a significant rise in TV licence avoidance, with rates increasing from 69% in 2019 to 85% by 2025. Both the SABC’s CEO and board chair have publicly recognised the failure of the licence scheme.
Looking ahead, Malatsi emphasised that any replacement for the TV licence must tackle key challenges, chiefly collection and enforcement. One alternative under consideration is a household levy administered by the South African Revenue Service. However, Malatsi reiterated that this is merely one of many ideas circulating in public discussions and does not represent an official government stance.
He also pointed out that introducing a new tax may not be well received by the public, given the economic climate and household disposable income, citing past backlash against potential VAT increases. The conversation will revolve around whether contributions from broadcasting consumers can be secured, how they will be structured, and the methods of collection.
Malatsi mentioned the public’s reluctance to comply with regulations, citing not only TV licence failures but also other sectors, such as electricity, where illegal connections are prevalent. He suggested that when enforcement is perceived as weak, compliance tends to diminish. In contrast, he noted that compliance with motor vehicle licences remains high due to the clear consequences of non-payment.
