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SABC TV licence days could be numbered in South Africa

Mthobisi Nozulela|Published

Minister of Communications and Digital Technologies Solly Malatsi says the government is developing a new funding model for the SABC

Image: Karen Sandison/Independent Newspapers

Minister of Communications and Digital Technologies Solly Malatsi says the government is developing a new funding model for the SABC through tech advisory firm BMIT.

This comes as the public broadcaster continues to grapple with declining advertising revenue and a decline in TV licence compliance. IOL previously reported that less than 20% of South African households are paying their TV licence fees.

Briefing parliament last year, SABC CEO Nomsa Chabeli also told the committee that the cost of delivering the public broadcasting mandate remains significant and the public entity is currently underfunded, forcing the organisation to rely heavily on commercial revenue.

"It's important to note that when we have discussions about the SABC's financial sustainability, we remember the cost of the public mandate that is currently unfunded. The SABC, from a commercial perspective, takes commercial revenue to fund the public mandate that's our current model," Chabeli said.

The government has now embarked on a process to explore sustainable funding options for the SABC. In an interview with the public broadcaster, Malatsi said that BMIT was tasked with developing a funding model for the broadcaster, and the report will outline various options.

He emphasised that the idea of a broadcasting levy or tax is not government policy and remains only one of several proposals.

"I wouldn't say it's the government's position. It's people with views about several ideas on what the future of funding should be. I think our approach is that, let's wait for the final report that is being presented by BMIT in terms of the options that are on the table. And even when that is presented, that has to still be assessed and interrogated together with the Minister of Finance and Treasury in terms of, one, the fiscal realities that the government faces, and then we take it from there," Malatsi said.

"I think there's always going to be different ideas that are being ventilated in the space about what the best model of funding would be, and those represent individuals' views. I think our responsibility is to make sure that we are mindful of several things."

He added that any future funding model would need to take into account the country’s economic realities and the impact on households.

“If you generally look at our economy and the disposable income within households, the idea of any additional tax on households is something that would not gain favour with a lot of residents. We need to consider fairness and practicality,” he said.

mthobisi.nozulela@iol.co.za

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