Decades-Old Legislation Puts SABC, South African Post Office, and Online Gambling in Crisis

South Africa’s public entities, including the South African Broadcasting Corporation (SABC) and South African Post Office (SAPO), are struggling with a legacy issue that can be traced back to outdated legislation. Decades-old laws that have failed to account for the rapid evolution of technology are largely to blame for their current financial crises.

SABC: A Broken Funding Model

The SABC’s financial troubles are well-documented, with industry experts like William Bird, Director of Media Monitoring Africa, citing a failure to update its funding model 15 to 20 years ago. The Broadcasting Act of 1999 introduced the TV licence as a primary source of revenue for the SABC to fund its social mandate, which includes providing content in all 11 official languages. However, as technology has evolved, so too has the way South Africans access media. The widespread use of smartphones, laptops, and streaming services has rendered the TV licence model obsolete.

Bird noted that public dissatisfaction with the TV licence has led to an alarming delinquency rate of 87%, adding to the financial strain on the broadcaster. To address this, the SABC has proposed replacing the TV licence with a household levy, arguing that its content is now available on multiple devices beyond the television set.

Parliament’s recent attempts to amend this system through the SABC Bill in 2023 have encountered challenges. Minister of Communications and Digital Technologies, Solly Malatsi, withdrew the bill in 2024, deeming it ineffective. Khusela Diko, Chairperson of the Portfolio Committee, disagreed, asserting that any shortcomings could be addressed in further discussions before the bill is presented to the National Assembly for a second reading.

South African Post Office: Struggling to Adapt

The South African Post Office has also found itself at a crossroads due to outdated service mandates and legislation. Independent analyst Kayha Sithole highlighted that the Post Office’s original mandate was to connect as many people as possible—a task that was relevant in an era before telephones became widespread. However, as communication methods rapidly evolved, the Post Office struggled to keep pace, ultimately affecting its financial health.

To address these challenges, the South African Post Office Amendment Bill was introduced to update the Post Office’s mandate. The bill aims to diversify its services, including logistics and e-commerce, positioning SAPO as a digital hub for communities and businesses. Yet, these updates come too late, following years of financial mismanagement, which led to the Post Office entering business rescue in July 2023. The Post Office currently requires a further R3.8 billion to exit business rescue or face potential closure by the end of February 2025.

Online Gambling: A Legal Gray Area

Outdated legislation has also hindered the regulation of online gambling in South Africa. The National Gambling Act, first enacted in 2004, has yet to be amended to address the growing popularity of online casinos. Despite the rapid expansion of online gambling since 2008, previous amendments to the Act, which would have legalized and regulated online gambling, were never put into operation by former Presidents Zuma or Ramaphosa.

In response, the Democratic Alliance (DA) proposed the Remote Gambling Bill in 2024 to regulate online gambling advertising, protect vulnerable individuals, and ensure gambling licences are issued by provincial authorities. Despite the DA’s efforts, legalizing online gambling remains stalled, leaving the public vulnerable to unregulated online casinos. Minister of Trade, Industry, and Competition, Parks Tau, has recently signalled plans to crackdown on illegal online gambling, but concerns about the erosion of the rule of law and increased criminal activity remain.

The Need for Timely Legislative Reform

Across all three sectors, the failure to modernize legislation has put public entities like the SABC and South African Post Office in a perilous financial position. As South Africa continues to embrace technological advancements, lawmakers must act swiftly to ensure that legislative frameworks evolve in line with these changes. The consequences of inaction could be devastating, leaving the public unprotected and putting essential services at risk.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com