Indeed. This is ill-conceived.
1 The amount in the USAF is about R1.5bn, but to subsidise the estimated 5m STBs at R700 each will cost R3.5bn
2 The funds in the USAF were almost entirely provided by telecommunications licensees, who will most likely object vociferously (read: go to court) if these funds are used to subsidise the customers of broadcasters
3 Let's not even open the discussing of the foolishness of subsidising a product at R700 that is currently available on the market at ~R200
4 Don't get me started on the concept of "local manufacture" (assembly, really) of 5,000,000 devices in what was going to be 18 months, and then ... nothing. Open factory, produce stuff, close factory. Complain.
It makes more sense to abolish the concept of a "TV Licence" - something that very few of the target population for subsidised STBs have anyway. Indeed, the proposed subsidy on the STB = two year's licence fees. The SABC is in any case a thinly disguised commercial broadcaster, despite their statutory mandate as a "public broadcaster".