The SABC’s ticking time-bomb
The SABC Bill, drafted to address the national broadcaster’s structural and operational challenges, has been withdrawn, meaning its survival is increasingly uncertain as its financial predicament becomes a ticking time bomb.
The government recently withdrew the SABC Bill (B32-2023), originally designed to address the broadcaster’s structural and operational challenges.
However, critics argue that this decision only delays urgently needed reforms that could prevent the SABC from spiralling further into financial ruin.
On Monday, November 11, Minister of Communications and Digital Technologies Solly Malatsi officially noted that he had withdrawn the bill from Parliament, informing Speaker Thoko Didiza of his decision.
Malatsi explained that despite extensive consultations and public feedback, it had become clear that the SABC Bill, in its current form, failed to address the broadcaster’s fundamental need for a viable funding model.
Instead, the bill proposed a delayed funding framework, allowing three years to develop a more sustainable financial structure.
Given the SABC’s precarious financial position, Malatsi argued that this timeline was far too long to ensure stability and avoid further deterioration.
He expressed concerns that the bill’s approach risked perpetuating outdated funding mechanisms, particularly the much-criticised TV license model, which has long been an unreliable source of revenue.
According to Malatsi, leaving the SABC dependent on this funding model would exacerbate its problems as the broadcaster’s financial losses continue to mount.
For the 2024 financial year, the SABC reported a loss of roughly R200 million, following a staggering R1.13 billion loss the previous year.
A significant driver of this crisis is the steep decline in the SABC’s two primary revenue streams: advertising and TV licenses.
Advertising revenue, which was nearly R4.5 billion in 2019, dropped to R2.81 billion in 2024.
Similarly, TV license compliance has collapsed, with the rate of payment plummeting from 31% in 2019 to just 14% in 2024, resulting in a drop in license revenue from R968 million to R726 million.
Even government departments owe the SABC millions in unpaid TV licenses, leaving a R35 million bill unpaid by October 2024.
Despite withdrawing the bill, Malatsi emphasised his commitment to reforming the SABC’s financial model.
He argued that only a sustainable funding approach could provide the SABC with the independence it needs to continue its role as an essential public broadcaster.
Malatsi underlined that a more resilient SABC would enable the delivery of accurate, comprehensive news, support local culture, and ensure coverage across South Africa’s diverse regions without being hindered by political or financial instability.
His approach aims to create a framework that strengthens the broadcaster’s financial footing, ensuring its capacity to serve South Africans with unbiased, reliable information.
However, Malatsi’s decision has sparked criticism from various stakeholders.
Khusela Diko, Chairperson of Parliament’s Portfolio Committee on Communications and Digital Technologies, warned that withdrawing the bill was a grave misstep.
Diko argued that halting the legislative process not only undermines efforts to address the SABC’s immediate financial crisis but also delays the urgent reforms necessary to preserve its long-term viability.
Diko described the SABC’s condition as a “ticking time bomb” and emphasised that the broadcaster’s failure would have far-reaching consequences.
She cautioned that without the SABC, a ripple effect could impact Sentech, the national signal distributor, as well as over 130 community radio stations, private broadcasters, and ICT providers that depend on Sentech’s infrastructure.
Diko noted that the government initiated the SABC Bill in 2018, with the legislation introduced to Parliament in October 2023.
Its primary objectives included preserving the SABC’s role as a public broadcaster, restructuring governance to prevent political interference, and amending related legislation, including the Independent Communications Authority of South Africa (ICASA) Act and the Electronic Communications Act.
Diko expressed disappointment that, despite efforts to fast-track the bill, its withdrawal now creates a severe legislative gap with significant consequences.
She argued that public broadcasters play an irreplaceable role in providing essential information to underserved communities and cautioned that without the SABC, millions of South Africans could lose access to critical news and public service announcements.
While Malatsi insists that withdrawing the bill allows him to prioritise the SABC’s financial stability, critics fear it delays reforms that could prevent the broadcaster’s collapse.
As South Africa’s only broadcaster with a truly national reach, the SABC remains a crucial institution for the country.
Whether the government can craft a funding model that rescues it from financial peril remains to be seen, but the stakes are undoubtedly high.
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