South African Broadcasting Corporation (SABC) CEO Nomsa Chabeli says failing to address the public broadcaster's funding model could lead to its end.
Chair of Parliament's Standing Committee on Appropriations, Khathutshelo Ramukumba, acknowledged the funding challenges, adding that non-payment of TV licences is a key challenge for the broadcaster.
"If you look at the legislative framework, the shareholder has accepted that the public service mandate, which costs the SABC about R2.1 billion a year, must be funded through this regime," he said.
"However, this regime has spectacularly failed, because only 14% of South Africans are compliant."
He added that the SABC is supposed to collect around R4.5 billion in TV licence revenue each year, but is only able to collect a fraction of that amount.
"A fundamental shortfall which leaves a huge hole in the funding of that public service mandate," said Ramukumba.
While he believes the long-term solution lies in the SABC Bill, he adds that a government contribution of R1.1 billion for two or three years would make a major difference for the broadcaster.
He added that the funding would allow the policy and legislation to be addressed so that a viable funding model can be implemented.
Speaking before the Committee, Chabeli said the SABC is falling behind other public broadcasters globally, adding that they are primarily funded by public money.
"The SABC is the most commercial public broadcaster in the world, and it's very unusual for a developing state, whereas the BBC is funded," she said.
"The BBC, 80% of their costs are funded by the state. The SABC is the inverse. It's something we need to look at."
Chabeli added that if things continue as they are currently, commercial projections and the SABC's reliance on existing models suggest that it could spell the end for the public broadcaster.
Chabeli recently stated that the TV licence scheme had failed and is no longer relevant in today's world, citing a historic culture of non-payment in South Africa as the reason.
"People generally don't believe they should have to pay for services. It's not unique to the SABC. We see it with electricity, with water, etc. So we need to understand that there is that culture," she said.
The public broadcaster's CEO described the TV licence scheme as being archaic and outdated. She added that finding new, sustainable funding sources is key to the SABC's survival.
"It's no longer relevant for the world that we live in today. The SABC did give submissions on the SABC Bill, and one of the key things we looked at was a household levy," said Chabeli.
"We've also looked at the possibility of SARS introducing a collection mechanism on their side."
She said another viable option was obtaining funding from the national fiscus, which would see National Treasury fund the SABC's public mandate with taxpayer funds.
A new funding model is in the works. The Department of Communications and Digital Technologies recently appointed BMI TechKnowledge to develop a sustainable funding model for the broadcaster.
"This is a major milestone in our efforts to secure the public broadcaster's future and mandate to serve millions of South Africans," said communications minister Solly Malatsi.
"BMI TechKnowledge is a long-standing South African ICT research and advisory firm with a proven track record of economic modelling, broadcasting market analysis, and regulatory policy support."
Before its publication in October 2023, the SABC Bill was expected to provide a new funding model for the SABC.
However, as tabled before Parliament, it merely tasked the ministers of communications and finance to develop one within three years -- a wait that could be disastrous for the public broadcaster.
Malatsi wrote to Parliament speaker Thoko Didiza in November 2024, informing the legislature that he was withdrawing the SABC Bill, describing it as being "fundamentally flawed".
The move sparked backlash from Khusela Diko, chair of the Portfolio Committee on Communications and Digital Technologies. She said it would sound the death knell for the SABC.
Initially, it was suspected that President Cyril Ramaphosa would help ANC MPs reverse the withdrawal of the SABC Bill.
However, Diko revealed that in September 2025, the committee had stood down on the issue to allow Malatsi to proceed with the plan. However, she also criticised the slow progress.
She said little, if any, progress had been made in developing a new funding model for the public broadcaster.
"It's been more than six months. We agreed to stand down as a committee to allow him to deal with it, and not much, if anything, has been done," she said.
"We are urging the minister to once again finalise this process and not hide behind bureaucratic red tape."
In the notice announcing BMIT's appointment, Malatsi said the achievement had fulfilled his commitment to prioritise developing a sustainable funding model for the SABC.
"Given the substantial public interest in the SABC's financial sustainability, I will provide key updates as and when the need arises," he added.