The Department of Communications and Digital Technologies has appointed BMI TechKnowledge to create a new funding model for the South African Broadcasting Corporation (SABC). The current funding structure, reliant on advertising and TV licence revenue, has proven unsustainable, placing the broadcaster at risk of collapse.
Communications Minister Solly Malatsi announced on X that BMI TechKnowledge was selected as the preferred bidder for this important contract. He described the move as a significant milestone in securing the future of the public broadcaster, which serves millions of South Africans. BMI TechKnowledge, a well-established South African ICT research and advisory firm, has a strong history in economic modelling and broadcasting market analysis.
Malatsi emphasised his commitment to developing a sustainable funding model for the SABC, acknowledging the public’s interest in the broadcaster’s financial stability. The SABC currently relies on TV licence fees, but compliance with these payments has dropped sharply in recent years. As of 2024, fewer than one in five TV licence holders were paying their fees, further exacerbating the broadcaster’s financial woes.
In October 2023, a draft bill was introduced to modernise the SABC’s funding, proposing a three-year timeline for the finance and communications ministers to establish a new model. Critics argued that this timeframe was too lengthy to address the broadcaster’s urgent financial needs. In November 2024, Malatsi informed Parliament that he was withdrawing the bill, labelling it “fundamentally flawed.” This decision drew criticism from Khusela Diko, chair of the Portfolio Committee on Communications and Digital Technologies, who warned it could spell disaster for the public broadcaster.
The disagreements between Diko and Malatsi became a contentious issue within the Government of National Unity (GNU), leading to President Cyril Ramaphosa suspending ministers’ powers to withdraw bills in December 2024. This suspension sparked debate among members of the African National Congress and the Democratic Alliance regarding its retroactive application.
For a time, uncertainty surrounded the status of the SABC Bill, but Diko confirmed in a recent media briefing that it remains stalled in Parliament. She urged Malatsi to prioritise the development of a sustainable funding model for the SABC.
Various alternatives to the TV licence have been proposed by industry stakeholders and organisations in recent years. Suggestions include a household tax, a levy on international streaming services, and a smart device tax. The household tax would function similarly to Germany’s Rundfunkbeitrag, requiring households to pay regardless of whether they consume public broadcasting content.
Philly Moilwa, the SABC’s head of policy and regulatory affairs, recently revived the household tax proposal, suggesting that the South African Revenue Service could assist in collecting these fees. Additionally, “pro-competitive” licence conditions might require South Africa’s leading pay-TV provider to collect fees on behalf of the SABC.
However, MultiChoice, the owner of DStv, has opposed the idea, stating it would resist any obligation to collect fees for the SABC. In early 2025, Malatsi proposed another possible replacement for TV licences: a levy on local and international streaming services to help fund the SABC. His spokesperson clarified that this streaming levy is just one of several options under consideration and not yet a formal proposal.