The South African Broadcasting Corporation (SABC) revealed in its annual report for the 2024/25 financial year that TV licence fee collection remains a major challenge, despite a slight improvement in compliance. Only 15% of licence holders paid their fees during the year, up from 14% in the previous financial year.
The public broadcaster billed a total of R4.936 billion in TV licences (2024: R4.841 billion), but it recognised only R758 million under probability recognition criteria. This means that roughly R4.2 billion in potential revenue slipped away as licence holders refused to pay.
TV Licence Fee Avoidance Remains High
TV licence fee avoidance has long plagued the SABC. Last year, about 86% of licence holders avoided payment, and many had not paid for several consecutive years. This high non-compliance rate seriously undermines the public broadcaster’s ability to operate sustainably.
Although TV licence revenue grew by 10% year-on-year due to intensified collection efforts, it did not cover rising expenses. The SABC recorded a net loss of R253.3 million, up from R197.8 million in 2023/24. Revenue growth of 1.3% lagged behind a 3% rise in expenditure, leading to a 4.9% decline in net margin.
Unfunded Public Interest Mandate
The SABC stated that its unfunded public interest mandate amounts to roughly R2.1 billion per year, supporting programming and services vital to South African audiences but not commercially viable. Securing consistent funding for this mandate remains a critical priority and drives the ongoing review of the SABC Bill.
Despite financial challenges, the Auditor-General of South Africa (AGSA) granted the SABC an unqualified audit opinion for 2024/25, the highest level of approval. The audit confirmed that the SABC’s financial statements are accurate and free from material misstatements, demonstrating improved governance and transparency.
SABC CEO Nomsa Chabeli welcomed the outcome, saying:
“Receiving an unqualified audit opinion for two consecutive years clearly shows that the SABC is restoring stability, embedding strong governance, and fulfilling its public mandate.”
Alternatives to Traditional TV Licences
With high licence fee avoidance continuing, the SABC and government officials have explored alternatives to the current funding model. One proposal is a household tax, similar to Germany’s Rundfunkbeitrag, requiring households to pay a mandatory fee even if they do not consume public broadcaster content.
Philly Moilwa, SABC’s head of policy and regulatory affairs, suggested that the South African Revenue Service (SARS) could assist in fee collection. Another idea would require DStv, South Africa’s dominant pay-TV provider, to collect licence fees on the SABC’s behalf. However, MultiChoice opposed this, saying it would not support revenue collection for the public broadcaster.
Communications Minister Solly Malatsi has also considered a levy on local and international streaming services to secure sustainable funding. His spokesperson, Kwena Moloto, clarified that the streaming levy is just one of several options under consideration and has not been formally proposed.
Also check: End of SABC TV Licences: What You Need to Know
Reworking the Funding Model
The Department of Communications and Digital Technologies recently appointed BMIT TechKnowledge to develop a new funding model for the SABC. This ICT research and advisory firm brings expertise in economic modelling, broadcasting market analysis, and regulatory policy support. Malatsi described the appointment as a “major milestone” in securing the public broadcaster’s long-term sustainability.
Impact on the SABC’s Financial Health
The SABC’s inability to collect TV licence fees continues to hit its financial health hard. Considering that only R758 million of the R4.936 billion billed was collected, the public broadcaster’s net loss could have turned into a substantial surplus if compliance rates improved.
While the SABC does not rely solely on licence fees, better collection would allow it to invest more in quality programming, improve infrastructure, and expand public service offerings to South Africans.
Read more: Netflix This Month: New & Trending in SA
Looking Ahead
The future of SABC funding stands at a crossroads. Whether through TV licence reforms, household taxes, or streaming levies, the goal remains clear: to ensure the SABC continues as a viable, trusted public broadcaster serving millions of South Africans.
South Africans are reminded that paying TV licences helps maintain a free, public broadcasting service that informs, educates, and entertains. Ongoing discussions about alternatives suggest that South Africa’s public broadcasting funding model could transform in the near future.
