Parliament will on Thursday hold public hearings on the SABC Bill, which seeks to address the funding crisis there by proposing, among other things, that the public broadcaster replace the TV licence with a household levy.
This bill has had a bit of a journey, having lapsed initially in May as the portfolio committee of communications put its processing on hold on the eve of the elections.
The bill requires the communications and digital technologies minister to create a funding model framework within three years. This framework aims to ensure that most of the SABC’s funding comes from state-based funding mechanisms. However, critics argue this provision sets the SABC up for failure, as the broadcaster needs a new funding model that guarantees the government's contribution to its sustainability.
The current funding model, established in 1999, is outdated and relies heavily on advertising and sponsorship. The SABC subscribes to a mixed funding model, which includes public funding, advertising and sponsorship. Despite this, the government has gradually reduced direct state support, leading to greater reliance on programme funding through advertising.
In a presentation to the portfolio committee in August, SABC CEO Nomsa Chabeli noted concerns about the financial sustainability of the public broadcaster considering that the SABC’s public mandate was funded partly up to 56% through government grants, which accounted for 45% of this, with TV licences at 11%.
In 2022/23 the SABC had a net loss of R1bn and projected net losses of R590m in 2023/24, R242m in 2024/25 and R27m in 2025/26, before generating a profit of R907m in 2026/27, provided the corporate plan succeeds.
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