Communications and Digital Technologies Minister Solly Malatsi has announced that the South African Broadcasting Corporation (SABC) will receive R700 million, while the South African Post Office (SAPO) is set to get R1.8 billion over the Medium-Term Expenditure Framework (MTEF).
The funding, outlined during last week’s budget debate in the National Assembly, is part of the department’s broader spending plans. Minister Malatsi clarified that these allocations are not bailouts but rather standard budgetary provisions for state entities.
SABC Funding Breakdown
The SABC’s allocation includes:
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R43 million for content production
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R197 million for Channel Africa
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R464 million to support its public broadcasting mandate
Malatsi acknowledged that the SABC’s financial struggles stem from underfunding of its public mandate, particularly as the broadcaster faces increasing competition and rising operational costs. He emphasized the need for urgent intervention, including a joint task team between the department and the SABC to address immediate financial pressures.
Replacing the TV License System
The minister confirmed that the department is exploring alternative funding models, including a possible household levy, to replace the collapsing TV license system. A request for proposals has been issued to determine the most feasible solution.
Post Office Business Rescue Plan
Regarding SAPO, Malatsi expressed cautious optimism about its business rescue process, which aims to prevent liquidation. However, over 6,000 retrenchments and the closure of 300 branches are expected as part of cost-cutting measures. The minister assured that partnerships would be sought to mitigate service disruptions, particularly in rural areas where the Post Office remains a critical service provider.
Analogue Switch-Out-of-Court Settlement
Malatsi also revealed that his department is pursuing an out-of-court settlement in the ongoing legal battle over South Africa’s analogue TV switch-off, which the SABC and other stakeholders had challenged earlier this year.
Looking Ahead
With the SABC’s financial sustainability and SAPO’s restructuring at the forefront, Malatsi stressed the need for collaboration between government, Treasury, and stakeholders to secure long-term solutions.
“We have to safeguard the future of these entities—not just for operational continuity, but for the millions of South Africans who rely on them,” he said.
As the department finalizes its funding model proposals, further details on policy shifts—including potential streaming levies or digital taxes—are expected in the coming months.