However, the broadcaster currently does not have access to this funding.

Appearing before Parliament’s Standing Committee on Public Accounts, SABC Chief Executive Officer Nomsa Chabeli said the public broadcaster has been forced to divert funds generated from its commercial operations to cover the costs of its public mandate.

“The R7.3 billion required over the medium-term period for public mandate costs remains unfunded. This means we’ve had to rely on revenue from our commercial activities, which makes operations very difficult,” Chabeli said during the briefing on the corporation’s 2023/24 audit outcomes and financial performance.

Chabeli warned that this cross-subsidisation has severely limited the SABC’s capacity to reinvest in its own growth and infrastructure.

“We are self-funding at the moment, and that has impacted our ability to reinvest in ourselves. Private sector companies have investors who put money into their growth, enabling them to invest ahead of time. That is not the case with the SABC,” she said.

She explained that, as a result, operational expenditure is being redirected to cover capital expenditure needs, a situation that is unsustainable in the long term.

The SABC has long struggled with funding constraints tied to its dual mandate to operate commercially while fulfilling public service broadcasting obligations.

--SABC/ChannelAfrica--