The announcement, at the SABC's headquarters in Johannesburg – which confirms the organisation as the tournament's host broadcaster – was concluded after months of negotiations.
LOC chief executive Mvuso Mbebe said the R65-million fee was fair and reasonable under the circumstances and satisfied all parties concerned.
"This is a Caf [Confederation of African Football] tournament, it must be remembered," said Mbebe.
"All agreements were made in conjunction with Africa's controlling [soccer] body and this was the reason there were delays at times, as all the parties involved had to be consulted."
Mbebe said the quality of the service provided by the SABC for the Africa Cup of Nations (Afcon) would be "world class".
Most of the facilities and equipment built for the 2010 World Cup would be used. "We have proven ourselves time and again as capable to provide a top-class service for an international event of this stature," SABC acting chief operations officer Hlaudi Motsoeneng said.
The SABC would provide live coverage of all the games during the 23-day event.
It starts on Saturday January 19, with a game between Bafana Bafana and Cape Verde at the 90 000-seater National Stadium in Johannesburg.
The final will be played at the same venue on February 10. – Sapa