According to projections released by the South African National Treasury in its recent Budget Review document, the South African public service broadcaster (SABC) anticipates a profit of nearly US$54 million in the financial year 2026/27.
Since the 2014/15 financial year, the public broadcaster has faced consistent financial losses. Its latest annual report reported a loss of US$10 million before interest and tax.
The Budget Review document outlines the projected financial performance, indicating that the SABC will incur a loss of US$1,5 million after interest and tax for the 2025/26 financial year. However, this is expected to turn around, with an anticipated profit of US$49 million in 2026/27, followed by US$43 million in 2027/28.
In terms of revenue, the SABC forecasts earnings of US$381 million in 2025/26, escalating to US$425 million for both 2026/27 and 2027/28. The Treasury highlights that the SABC will prioritise financial stability over the medium term, implementing a strategy focused on enhancing its commercial potential through digital transformation and new technologies.
One key initiative is the increased commercialisation of the revamped SABC+ streaming platform, with a target of reaching 1 million registered users by 2027/28. Currently, the platform has around 500,000 users, but the ambition is to grow the base to 750,000 by 2025/26 and one million by the following year.
Despite this growth potential, the SABC is grappling with increasing TV license fee avoidance, a trend that has increased since 2019. Former SABC CFO Yolanda van Biljon noted that while the broadcaster billed approximately US$274 million in license fees for 2023/24, it only managed to collect US$39 million.
In response to these challenges, the Department of Communications and Digital Technologies is looking to overhaul the SABC’s funding model to restore its financial health. The previously proposed SABC Bill aimed at establishing a sustainable funding framework but was criticised for lacking a viable model.
