R2. 5 billion bailout bonanza: SABC and Post Office get a lifeline
Image: Solly Malatsi/X
Communications and Digital Technologies Minister Solly Malatsi has announced that the SABC will receive over R700 million and the South African Post Office (SAPO) R1.8 billion over the Medium-Term Expenditure Framework (MTEF).
Tabling the Department's 2025/26 Budget Vote in Parliament last week, Malatsi said the allocations were aimed at supporting the SABC's public broadcasting mandate and stabilising SAPO's declining services.
"The SABC will receive R704 million over the MTEF. This includes R43 million for programme production, R464 million to support the core public broadcasting, R197 million for Channel Africa, which amplifies South Africa's voice across the continent," Malatsi said.
Last month, IOL reported that SABC CEO Nomsa Chabeli raised concerns about the broadcaster's financial sustainability, highlighting that the cost of its public mandate remains unfunded and that the SABC depends heavily on commercial revenue to support these obligations.
"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 also 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.
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The funding announcements come amid growing concerns about the long-term sustainability of both the SABC and SAPO. Many South Africans have criticised repeated government bailouts, questioning whether money alone can fix deep-rooted issues such as outdated business models and competition from digital alternatives.
"The South African Post Office is allocated R8 billion over the MTEF to fulfil its universal service obligations, improve service delivery. This funding will support SAPO's efforts to diversify revenue, rebuild trust, and stabilise operations through strategic partnerships and good governance". Malatsi said.
Last month, SAPO also received a R381 million wage subsidy from the government, aimed at covering employee salaries for the next six months as part of the ongoing business rescue process.
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