Minister of Communications Solly Malatsi has announced financial cash injects for the two entities
Image: Facebook/Department of Communications & Digital Technologies.
Minister of Communications and Digital Technologies Solly Malatsi has allocated R234 million to the South African Broadcasting Corporation (SABC in the 2026/2027 budget
The announcement was made on Tuesday in Parliament while the Minister presented his department’s expenditure plans for the financial year.
"The department’s expenditure allocation for the 2026/2027 financial year is R2.5 billion. Of that, R1.7 billion is transferred for portfolio entities," the Minister said.
The Minister also said other state-owned entities will receive funding, with ICASA allocated R505 million, the South African Post Office R595 million, and the Film and Publications Board R112 million.
The R234 million allocation comes as a boost to the SABC, which has faced financial challenges in recent years. In its 2025 annual report, the broadcaster reported a net loss of R253.3 million and a decline in cash reserves from R401 million to R59 million.
SABC CEO Nomsa Chabeli told the committee last year that the cost of delivering the public broadcasting mandate remains significantly underfunded, forcing the organisation to rely heavily on commercial revenue.
"It's important to note that when we have discussions about the SABC's financial sustainability, we remember the cost of the public mandate that is currently unfunded. The SABC, from a commercial perspective, takes commercial revenue to fund the public mandate that's our current model." Chabeli said.
She pointed out that less than 20% of households in South Africa are paying for TV licenses, a situation that has led to a steady decline in funding for the public broadcaster.
"55 % of our mandate costs are funded, and they are funded by declining license fees, so in South Africa, less than 20% of households that should be paying for a TV license actually pay for a TV license.
"Unlike globally, in the BBC, for example, where you have more than 80% compliance, at the SABC, in terms of our commercial structure, 83% of our revenue comes from commercial activities and 13% of our revenue comes from TV Licenses, and that money keeps on declining year on year," she said.
During his speech on Tuesday, the Minister also praised the public broadcaster for achieving an unqualified audit opinion for the second consecutive year.
"The SABC has for the second consecutive year achieved an unqualified audit opinion, a remarkable improvement after years of governance instability," he said.
"The funding model study has been completed, and we are currently consulting with the National Treasury on the most suitable model to ensure that the SABC is empowered to balance its commercial operations and public broadcasting mandate"
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