By Rorisang Modiba
- The South African Broadcasting Corporation’s cash reserves dropped from R401 million to R59 million in one year, while it posted a net loss of R253.3 million.
- The Auditor General warned there is serious doubt that the broadcaster can continue operating, as it has no loans or credit facilities to fall back on.
The South African Broadcasting Corporation is running out of cash.
Its latest annual report for 2025 shows a shocking drop in its cash reserves. The broadcaster’s balance fell from R401 million to just R59 million in one year. That is an 85 percent decline.
The public broadcaster also recorded a net loss of R253.3 million for the 2025 financial year. This is 28 percent worse than the previous year. It had hoped to improve its performance, but instead its finances got worse.
The report paints a grim picture of an organisation under severe pressure.
The SABC is struggling to collect television licence fees. Many viewers are not paying. At the same time, sponsorship and advertising revenue has dropped sharply.
While income falls, costs keep rising. Cash used in operations jumped from R166 million to R426 million in a single year. The increase is mainly due to higher signal and distribution costs.
The SABC relies only on the cash it generates from its daily operations. It does not have access to loans or credit facilities. This means if the money runs out, it has no backup plan.
The Auditor General raised serious concerns. The watchdog said there is significant doubt about the SABC’s ability to continue operating as a going concern. The report also found cases of irregular spending. Most of these involved payments made without proper contracts.
The broadcaster is also facing legal claims worth R702.4 million. These include cases linked to unfair dismissals and breach of contract.
SABC chief executive Nomsa Chabeli admitted the broadcaster’s business model is outdated. She said it no longer fits today’s digital world. Advertising money has shifted from traditional television and radio to digital and social media platforms, cutting deeply into the SABC’s income.
Despite years of promises to fix mismanagement and corruption, the SABC remains in financial trouble. It has survived on government bailouts before, and now its future once again hangs in the balance.
Pictured above: SABC.
Image source: @SABC
