Govt. Under Pressure to Pay Up: R35 Million in Unpaid TV Licence Fees to SABC

Why the SABC Needs the Government to Pay Its Debt

President Cyril Ramaphosa has called on all government departments to settle nearly R35 million in unpaid TV licence fees. These debts, from national and provincial governments and municipalities, are hurting the SABC (South African Broadcasting Corporation). According to Vincent Magwenya, spokesperson for The Presidency, the broadcaster needs these payments to stay financially strong.

The SABC depends on TV licence fees to run its operations. Without enough funding, the SABC can’t perform its duties to the public. Ramaphosa is urging the government to pay up so the SABC can keep working properly.

The Urgency of the Payments

Minister of Communications and Digital Technologies, Solly Malatsi, has also spoken out about the unpaid TV licence fees. He said that government departments must lead by example when it comes to paying their bills.

Malatsi added that clearing these debts would ease the financial burden on the SABC, helping it stay afloat. The SABC’s financial struggles have grown over the years, and these overdue payments make things worse.

Rising TV Licence Avoidance

TV licence avoidance across South Africa has been increasing. Between 2019 and 2024, the SABC’s TV licence collection rates have been dropping. By 2024, 86% of people were avoiding paying. This means that in 2023/24, the SABC only collected R726 million of the R5 billion in TV licence fees it billed.

This growing non-payment is a huge challenge for the SABC. Without reliable funds, it’s tough for the broadcaster to keep its operations going. A new funding model is needed to secure its future.

Financial Struggles: Time for Change

While the SABC’s financial situation has improved, it’s still losing money. In 2023/24, the SABC reduced its losses to R192 million, down from R827 million the year before. But it still expects a loss of R590 million for the year.

The SABC can’t keep relying on TV licence fees alone. The broadcaster needs a new, more stable way to fund itself. Changes to the funding model are in progress, but it could take up to three years to fully implement the new plan.

Moving Forward: What Needs to Happen

The government must pay its outstanding TV licence fees to help ease the SABC’s financial strain. But for long-term success, the SABC needs a better funding model. If the SABC is to continue providing essential services, everyone, including the government, must do their part.