Budget 2025: The Department of Communications and Digital Technologies (DCDT) will, over the medium-term expenditure framework (MTEF), zero-in on broadband rollout to underserviced areas.
This is based on National Treasury’s Estimates of National Expenditure (ENE) document that coincides with the 2025 budget speech, which notes the DCDT will achieve this goal through the SA Connect project.
Finance minister Enoch Godongwana today presented the 2025 Budget at Cape Town City Hall.
In the ENE, National Treasury reveals the total allocation over the MTEF period amounts to R7.8 billion, of which an estimated 69.1% (R5.4 billion) is for transfers to entities for their operations and project-specific funding.
Of this, R1.8 billion is allocated to the South African Post Office for its universal service obligations to provide postal services in underserviced areas, R1.6 billion is allocated to the Independent Communications Authority of South Africa (ICASA) for regulating the ICT and postal sectors, and R707.4 million is allocated to the SABC for various activities.
“In line with the department’s plan to revise its organisational structure and fill critical posts, expenditure on compensation of employees comprises an estimated 11.5% (R1 billion) of total expenditure, increasing at an average annual rate of 5.1%, from R312.5 million in 2024/25 to R362.8 million in 2027/28. Spending on goods and services accounts for 17.2% (R1.3 billion) of total projected spending over the MTEF period.
“This is mostly for computer services for the implementation of the SA Connect project (R709.8 million), as well as travel and subsistence, consultants and operating leases for office accommodation. An amount of R8.4 million in 2025/26 is reprioritised towards hosting the G20 digital economy ministerial meetings and any technical preparatory meetings required.”
In the making since 2013, SA Connect is the national broadband project identified by government to ensure universal access to broadband services for all South Africans, prioritising rural and underserviced areas.
Due to the magnitude of the project, the state determined that the project should be implemented in two stages.
In phase one, it aimed to connect schools, health facilities, government offices, Thusong Service Centres and post offices, in eight rural district municipalities, to broadband services. During this phase, about 970 government facilities have been connected to broadband.
The ENE document states: “The department will continue to roll out the South Africa Connect project in underserviced areas, supported by relevant state-owned entities such as Broadband Infraco, Sentech and the State Information Technology Agency.
“As a result, 970 government facilities will continue to be provided with connectivity over the MTEF period as part of phase one. To this end, a projected R709.8 million over the medium-term is allocated to the broadband sub-programme in the ICT infrastructure development and support programme.”
After completing the first phase of the allocation of spectrum by issuing radio frequency spectrum licences in 2022, ICASA will receive an additional R102 million in 2025/26 for the second phase.
“This is expected to increase investment in networks, improve network quality, contribute to economic growth and lower data costs,” according to data in the ENE document.
Digital migration trek
The Universal Service and Access Fund will focus on concluding the broadcasting digital migration project over the MTEF period after analogue broadcasting is switched off in the remaining districts.
“This will lead to the release of the high-demand spectrum that will mostly be used by mobile network operators to provide high-speed broadband services to their customers. The fund will provide aftermarket support to all qualifying beneficiaries of the project, such as those who encounter problems with their installed set-top boxes.
“To improve the governance of the fund’s subsidies and funding, it will monitor compliance with the broadcasting digital migration funding model, the funding policy and procedures manual, and track set-top box installations. The fund will also focus on increasing the deployment of sustainable and reliable digital communication, infrastructure and broadband services to underserviced areas throughout the country.
“As a result, expenditure is set to decrease at an average annual rate of 62.7%, from R1.2 billion in 2024/25, to R60.1 million in 2027/28, as the broadcasting digital migration project concludes. The projected deficit of R1.8 billion in 2025/26 is due to the spending of funds retained from previous financial years with the approval of National Treasury. These funds are expected to be used mostly for activities related to broadcasting digital migration.
“The fund is set to derive all its revenue, amounting to an estimated R172.6 million over the medium-term, through transfers from the department.”
Share