South African defence industry open for business

South Africa’s state-owned defence company, Denel, say it is open for business. The company used Africa Aerospace and Defence (AAD) 2024 to clearly demonstrate that it has stabilised, recovered some critical skills, brought operations back online and begun ramping up delivery on key programmes.

It was badly affected by state capture and has faced significant operational and financial headwinds in recent years.

Denel’s Group Chief Operating Officer, William Hlakoane, said they are rebuilding their order pipeline and were upgrading key products that had in the past attracted global interest such as the G5 and G6 artillery systems, the Umkhonto missile system, and that the A-Darter air-to-air missile system had been restarted.

He said Denel was on an upward trajectory and that they had shown the world that the company could produce products of quality. As an example, he cited the G6 self-propelled howitzer developed in the 1980s, saying “after 30 years we still have the gun”.   He added they are engaging with the outside world to improve their products and moving to new technology were looking to partner with other companies.

Denel has been restructured and rationalised into four distinct business units dealing with aerospace, guided weapons, landward defence and integrated systems solutions.

AAD 2024 is the first time that Denel is displaying its products in public since the announcement that it would fall under the Department of Defence instead of the now dissolved Department of Public Enterprises. On display are examples of the company’s artillery systems, armoured and protected vehicles, guided missiles, unmanned aerial vehicles and aircraft like the Rooivalk.

Speaking during a tour of the AAD exhibits after delivering the opening address, President Cyril Ramaphosa, gave a positive endorsement for the state-owned arms company, saying it was returning to its ‘glory days’.

The CEO of the Aerospace, Maritime and Defence Industries (AMD), Sandile Ndlovu, says the local defence industry can provide 70 % of the requirements to support the Special Operations Force contemplated in the Defence Review of 2015, but the balance of 30 % still needs to be sourced from foreign defence original equipment manufacturers. South Africa currently has more than 600 companies which employ around 20 000 people in the defence sector.

South Africa exports munitions, sensors, armoured personnel carriers, artillery systems, missiles, electronic warfare systems as well as provides maintenance, repair and overhaul services to more than 35 countries in the Middle East, European Union, North America, Latin America and Africa.

Ndlovu noted that local ingenuity in the defence sector had seen the creation of bullet-proof vehicles based on the ubiquitous Toyota Land Cruiser (Armormax TAC-6 vehicles). This was aimed at the African defence market as it was affordable and easy to maintain but also technologically advanced.

Other examples he cited in this regard were Paramount’s light reconnaissance aircraft, the Mwari, and the Rooivalk attack helicopter. But in the case of the Mwari, the SANDF had not followed international practise and become an ambassador for the locally produced aircraft. The Mwari has been sold to several African countries.

The bulk of what the SA defence industry designed and produced locally was dual use meaning it could be used on the battlefield as well as for disaster relief or humanitarian missions. However, Ndlovu said that with the exception of Denel, the industry was private so new ways would have to be found to encourage private-public partnerships and ensure that SANDF’s key equipment was maintained. One example was the South African Air Force’s Rooivalk currently flying in the Democratic Republic of Congo.

James Kerr of Orion Consulting pointed to South Africa’s potential in the defence sector for international investors, saying the country is 21st on the international list of exporters of defence equipment.  He further outlined the country had strong capabilities in the following areas: command, control, communications, computers and intelligence (C4I), a well-established space payload capability, weapons systems, ammunition supply, field support systems, ship-building and armoured vehicle production.