SABC’s new plan to raise funds – with TV Licence changes coming

 ·10 Oct 2024

The South African Broadcasting Corporation is set to auction off three pieces of land in Durban Central to raise funds.

Broll Auctions and Sales will auction the three vacant portions of its high-value vacant land in Durban Central, adjacent to Kingsmead Cricket Stadium, on October 16.

The three portions of the single erf have a combined 8,944 sqm of space, and the area is surrounded by hospitals, shops, hotels and businesses, such as the SABC, UNISA and the Durban ICC.

There are also a wide variety of residential properties.

“The zoning of General Business 3 offers an exceptional opportunity for investors to start with a blank canvas and bring their development ideas to life,” said Broll Auctions and Sales broker Jaclyn Nair.

Any development has a maximum height of seven storeys and 80% coverage.

Broll Auctions and Sales said that several developers have already expressed interest in the sites, which are located near the Kingsmead Cricket Stadium.

Possible uses could include a sports club with facilities that could include a retail component and highly popular padel courts, a residential development, and, of course, mixed-use facilities to cater to the live-work-play sector.

The land forms part of a multi-property auction at the Wanderers Club in Johannesburg. 

Stanlib Asset Management said the auction will attract significant buyer interest.

The SABC must raise cash despite receiving its first unqualified audit in 14 years.

The SABC’s latest annual report revealed that the state-owned enterprise is technically insolvent.

The state broadcaster tabled its 2023/24 annual report in parliament, which revealed a loss before interest and tax of R192 million.

In addition, the SABC reported negative equity in its Statement of Financial Position as of 31 March 2024.

This means the company is technically insolvent and cannot settle all its liabilities if all its assets are liquidated.

Other plans to raise funds

To raise funds, the SABC also plans to abolish the TV licences and introduce a host of new levies as per new legislation.

It was estimated that over 9 million South Africans owe the SABC R44 billion in unpaid TV licence fees.

The South African Broadcasting Corporation Bill was introduced to Parliament in October 2023 and revived in July of this year, following the seventh administration’s swearing-in and the Government of National Unity (GNU).

Notably, there are no funding models in the Bill, which states that the minister of communications and digital technologies will have to develop a model for funding the SABC in three years.

During oral hearings on the Bill before the Portfolio Committee on Digital Technologies and Communications, the SABC suggested introducing a device-independent levy, essentially a household levy based on the ability to access the SABC’s services without having a TV.

The SABC also suggested being the dominant subscription broadcaster levy, where a dominant subscription broadcaster, such as MultiChoice, can assist the SABC.

In this levy, the dominant subscription broadcaster can deny customers a service unless they pay their licences.

The SABC also suggested that it access the Universal Service Fund (USAF), which is run by the Independent Communications Authority of South Africa.

The USAF received funds from broadcasters and telcos who pay a fee based on their annual turnover for universal services of electronic communications network services.

The SABC noted that Section 88(1) of the Electronic Communications Act allows broadcasters access to a USAF subsidy for constructing or extending electronic communications network services in under-serviced areas.

The SABC said it could thus use the USAF to finance its underfinanced public service mandate.


Read: What you need to earn to be considered middle class in South Africa

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