The South African TV licence system is effectively obsolete! This isn’t merely the perspective of countless South Africans who primarily enjoy streaming content. This proclamation comes straight from the Minister of Communication and Digital Technologies, Solly Malatsi.
In the past year, the minister acknowledged that the funding structure for the SA TV licence has crumbled. Consequently, an independent research and advisory organization, BMIT, was commissioned to explore alternative financial models to sustain the SABC. Yet, the firm’s report has not yet reached the government …
SA TV LICENCE FUNDING MODEL
Last year, The South African reported that the public broadcaster has an outstanding debt of approximately R1.2 billion owed to Sentech for unresolved signal distribution fees. The underpinning issue is the insufficient revenue stemming from the SA TV licence.
As per Broadcast Media, the rate of licence fee evasion has jumped from 69% in 2019 to 85% in 2025. Consequently, SABC claims it is unable to meet payment obligations to suppliers or produce significant television content. Nevertheless, civil rights groups express outrage at how top executives at SABC continue to receive substantial salaries annually.
INDEPENDENT RESEARCHERS DRAG THEIR HEELS
In remarks made to the SABC, Minister Malatsi indicated that his department is still waiting for a report on various funding alternatives. This overdue report was expected to be submitted by the end of December 2025. However, BMIT failed to deliver on time and has now received an extension until Friday 6 February 2026.
According to BMIT, the postponement was due to extensive discussions with stakeholders and interruptions caused by the end-of-year holidays. However, the situation remains dire, as without necessary changes, the SABC faces total collapse, which would deprive millions of disadvantaged South Africans of public broadcasting access.
WHAT ARE ALTERNATIVES TO SA TV LICENCE?
Various alternatives to conventional TV licences are currently under consideration:
1. Broadcasting Tax
- A primary alternative is a universal public Broadcasting Tax collected by the South African Revenue Service (SARS). This contentious proposal acknowledges that South Africans predominantly consume media through smartphones, laptops, and streaming platforms, mirroring Germany’s ‘solidarity’ model.
2. Direct Treasury Funding
- Funding provided directly by the National Treasury could offer the financial stability required by the SABC. However, this raises issues regarding editorial independence and the potential for fraud, corruption, and state capture.
3. Levy on Streaming Services
- Implementing a levy on both international and local streaming services could generate necessary revenue for the public broadcaster.
4. Hybrid Model
- A hybrid model proposed by independent researchers includes a mix of commercial strategies, endowment funding, and public-private partnerships (PPPs) to establish diverse revenue streams.
BROADCASTING TAX VS SA TV LICENCE
Nevertheless, despite its seeming simplicity, Minister Malatsi highlighted that the Broadcasting Tax is still a mere proposal that hasn’t been formally adopted yet. Consultations are ongoing with the Minister of Finance Enoch Godongwana regarding possibilities to replace the SA TV licence. He emphasizes that any new measure must be equitable and practical, particularly for low-income households.
The 2026 Budget Speech is scheduled for Wednesday 18 February, a fitting time to unveil the government’s fresh plans. Nonetheless, considering the overall economic situation and the disposable income of poorer families, “the introduction of another tax is bound to incite discussions,” Minister Malatsi concluded.
What are your thoughts? Will a Broadcasting Tax ignite debates or provoke backlash? Can the traditional SA TV licence be replaced? Or should the SABC simply be allowed to collapse? Share your opinions in the comments section below …
