“The gazetting of the revised SABC Bill, incorporating the funding model for public comments, represents a critical policy reform intervention,” it said.<\/p>\n\n\n\n
“This output contributes to the sustainability and financial viability of the public broadcaster, enabling it to fulfil its public mandate.”<\/p>\n\n\n\n
The department added that the gazetting of the revised SABC Bill is a critical legislative milestone and essential for establishing a sustainable funding framework for the public broadcaster.<\/p>\n\n\n\n
Its target for the 2027\/28 financial year was to conclude the draft Bill for processing in Parliament. Therefore, it could still be some time before the SABC’s new funding model is implemented.<\/p>\n\n\n\n
The Department of Communications and Digital Technologies selected BMI TechKnowledge (BMIT) as the preferred bidder to develop a sustainable funding model for the SABC in September 2025.<\/p>\n\n\n\n
While it was initially tasked with finalising its report by mid-December 2025, it requested an extension to Friday, 6 February 2026, due to stakeholders’ unavailability over the festive season.<\/p>\n\n\n\n
Following its submission, Communications Minister Solly Malatsi requested a special meeting with the Portfolio Committee on Communications and Digital Technologies to discuss the issue.<\/p>\n\n\n\n
While most of the meeting was held in a closed questions-and-answers session, BMIT managing director Chris Geerdts presented an overview of the process and their proposals.<\/p>\n\n\n\n
He explained that a holistic approach, based on revenue, costs, and funding elements that require legislative and regulatory updates, was the only way to solve the SABC’s funding woes.<\/p>\n\n\n\n
Mix of commercial revenue and public funding required<\/h2>\n\n\n\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2026\/04\/BMIT-prelimary-SABC-funding-model-proposalV-1200x740.jpg\")
Slide illustrating BMIT’s holistic approach to the SABC’s funding model, presented to the Parliamentary Portfolio Committee on Communications and Digital Technologies<\/figcaption><\/figure>\n\n\n\nRegarding the funding model, Geerdts said the SABC would require a mix of commercial revenue sources and public funding to fulfil its mandate.<\/p>\n\n\n\n
For public funding options, he said BMIT considered various household fees, an individual levy, government grants, “innovative options”, and a null category where the SABC gets no taxpayer funding.<\/p>\n\n\n\n
BMIT also considered various collection agency options to address the SABC’s high delinquency rate, or “pirate viewer” problem.<\/p>\n\n\n\n
These included making municipalities and utilities, the South African Revenue Service, the ICT and media industry, financial institutions, other third parties, and the SABC responsible for collecting fees.<\/p>\n\n\n\n
While no findings or proposals were announced in the session, Geerdts said BMIT was recommending loosening regulations on certain content quotas to help manage costs.<\/p>\n\n\n\n
Removing the red tape would allow the SABC to commission content more easily to remain competitive, gain access to grant funding to produce local content, and license its content more easily.<\/p>\n\n\n\n
Crucially, whatever public funding option is selected, it must ensure neutrality toward competitors. The funding must be adequate for the SABC’s mandate without giving it an unfair commercial advantage.<\/p>\n\n\n\n
Under its current funding model, the public broadcaster is meant to generate much of its revenue from TV licence fee collections.<\/p>\n\n\n\n
Under the Broadcasting Act 4 of 1999, households and businesses in South Africa must have a valid TV licence to legally use a TV.<\/p>\n\n\n\n
However, TV licence holders have increasingly avoided paying the annual TV licence fee of R265, with avoidance rates reaching 86% in the 2023\/24 financial year.<\/p>\n\n\n\n
This meant just 14% of existing TV licence holders paid their annual fees in 2023\/24. This rate increased slightly to 15% in 2024\/25. This excludes people who have never held a TV licence.<\/p>\n\n\n\n
“TV Licences amounting to R4.936 billion (2024: R4.841 billion) were billed, of which only R758.0 million (31 March 2024: R686.5 million) met the probability recognition criteria and was recognised,” the SABC said.<\/p>\n\n\n\n
This isn’t a new problem. Avoidance rates grew to 69% in 2019 and continued to escalate, with the increased non-payment of TV licence fees landing the SABC in a dire financial situation.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Department of Communications and Digital Technologies will only present the new SABC’s new funding model in Parliament in 2027\/28.<\/p>\n","protected":false},"author":341076,"featured_media":643020,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[101775,47062,76860,52623,76862,19949,34465,53649],"class_list":["post-642985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadcasting","tag-bmi-techknowledge-2","tag-bmit","tag-department-of-communications-and-digital-technologies","tag-sabc-tv-licence","tag-solly-malatsi","tag-south-african-broadcasting-corporation-sabc","tag-tv-licence","tag-tv-licence-fees"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/642985"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341076"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=642985"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/642985\/revisions"}],"predecessor-version":[{"id":643021,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/642985\/revisions\/643021"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/643020"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=642985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=642985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=642985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Regarding the funding model, Geerdts said the SABC would require a mix of commercial revenue sources and public funding to fulfil its mandate.<\/p>\n\n\n\n
For public funding options, he said BMIT considered various household fees, an individual levy, government grants, “innovative options”, and a null category where the SABC gets no taxpayer funding.<\/p>\n\n\n\n
BMIT also considered various collection agency options to address the SABC’s high delinquency rate, or “pirate viewer” problem.<\/p>\n\n\n\n
These included making municipalities and utilities, the South African Revenue Service, the ICT and media industry, financial institutions, other third parties, and the SABC responsible for collecting fees.<\/p>\n\n\n\n
While no findings or proposals were announced in the session, Geerdts said BMIT was recommending loosening regulations on certain content quotas to help manage costs.<\/p>\n\n\n\n
Removing the red tape would allow the SABC to commission content more easily to remain competitive, gain access to grant funding to produce local content, and license its content more easily.<\/p>\n\n\n\n
Crucially, whatever public funding option is selected, it must ensure neutrality toward competitors. The funding must be adequate for the SABC’s mandate without giving it an unfair commercial advantage.<\/p>\n\n\n\n
Under its current funding model, the public broadcaster is meant to generate much of its revenue from TV licence fee collections.<\/p>\n\n\n\n
Under the Broadcasting Act 4 of 1999, households and businesses in South Africa must have a valid TV licence to legally use a TV.<\/p>\n\n\n\n
However, TV licence holders have increasingly avoided paying the annual TV licence fee of R265, with avoidance rates reaching 86% in the 2023\/24 financial year.<\/p>\n\n\n\n
This meant just 14% of existing TV licence holders paid their annual fees in 2023\/24. This rate increased slightly to 15% in 2024\/25. This excludes people who have never held a TV licence.<\/p>\n\n\n\n
“TV Licences amounting to R4.936 billion (2024: R4.841 billion) were billed, of which only R758.0 million (31 March 2024: R686.5 million) met the probability recognition criteria and was recognised,” the SABC said.<\/p>\n\n\n\n
This isn’t a new problem. Avoidance rates grew to 69% in 2019 and continued to escalate, with the increased non-payment of TV licence fees landing the SABC in a dire financial situation.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Department of Communications and Digital Technologies will only present the new SABC’s new funding model in Parliament in 2027\/28.<\/p>\n","protected":false},"author":341076,"featured_media":643020,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[101775,47062,76860,52623,76862,19949,34465,53649],"class_list":["post-642985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadcasting","tag-bmi-techknowledge-2","tag-bmit","tag-department-of-communications-and-digital-technologies","tag-sabc-tv-licence","tag-solly-malatsi","tag-south-african-broadcasting-corporation-sabc","tag-tv-licence","tag-tv-licence-fees"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/642985"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341076"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=642985"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/642985\/revisions"}],"predecessor-version":[{"id":643021,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/642985\/revisions\/643021"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/643020"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=642985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=642985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=642985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}