Introduction

This profile has been prepared to assist companies both inside and outside South Africa to conduct business efficiently in and with South Africa. While every endeavour has been made to ensure to ensure that the information contained in this profile is current and correct, we recommend that companies making decisions based on this information contact the appropriate government department or organisation to verify the current situation. You can click on the name of the relevant government department or organisation in the text below to find appropriate contact details and we ask your assistance in advising us where the information is incorrect or out of date.

Where PDF versions of legislation or government policy are available on government websites or where interactive facilities exist to submit information online, then you can download / access these directly by clicking on the document in the Reference Information and Interactive Facilities section.

Overview

South Africa’s defence sector is currently experiencing growth as the government launched an arms procurement package for all arms of the South African National Defence Force (SANDF). A number of South African companies have benefited from the packages and are becoming internationally recognised as producers of top quality equipment for the global defence industry with several deals having been concluded in 2002.

Arms Deal

The Strategic Defence Procurement Packages were decided upon in 1999 after a defence force review was conducted and it was determined that the military was in need of new equipment. It was estimated that the deal would cost the country R43 billion.

The items to be purchased included

• Nine dual-seater Gripen and twelve Hawk Aircraft from British Aerospace/SAAB
• Four Patrol Corvettes from the German Frigate Consortium
• Thirty light utility helicopters from the Italian helicopter manufacturer, Augusta
• Three submarines from the German Submarine Consortium

Controversy surrounded the deal as a result of an increase in cost from R29 to R43 billion which the government explained as being an error on the part of those responsible for the cost projections. There have also been allegations of bribery and corruption associated with the deal and some officials were arrested in this regard.

Despite the controversy, the deal has continued and there are many positive spin-offs for local companies that will be involved with the outfitting of the equipment. This includes the interiors of the corvettes and the submarines as well as some of the apparatus used aboard these and other equipment.

South African National Defence Force

The SANDF has approximately 75 000 members and is divided into four branches – the Air Force, Army, Medical Health Services and the Navy.

The Air Force is responsible for the aerial defence of the country and also assists with land and sea rescue operations. A maritime patrol aircraft has the role of maritime border patrol.

The army’s most important peacetime function is border control involving countermeasures against drug smuggling and illegal immigrants and the provision of assistance to the police for internal stability. The army is also engaged in peacekeeping operations in Rwanda and Burundi.

The Navy conducts fishery patrols as far as Marion and Prince Edward Islands and also patrols the seas off the South African coast. The Navy plays a key role in seas rescues and assists with aid relief missions and international border patrol.

The Medical Health Services provide all other arms of the military with comprehensive medical assistance.

Legislation

Maritime Zones Act [No. 15 of 1994]

Arms, Ammunition and Armament Laws Transitional Regulation Act [No. 8 of 1995]

Defence Special Account Amendment Act [No. 71 of 1995]

Defence Amendment Act [No. 72 of 1995]

Defence Amendment Act [No. 4 of 1997]

Regulation of Foreign Military Assistance Act [No. 15 of 1998]

Defence Special Tribunal Act [No. 81 of 1998]

Demobilisation Amendment Act [No. 128 of 1998]

Military Discipline Supplementary Measures Act [No. 16 of 1999]

Military Veteran's Affairs Act [No. 17 of 1999]

Preferential Procurement Policy Framework Act [No. 5 of 2000]

Demobilisation Amendment Act [No. 43 of 2001]

Burundi Protection Support Appropriation Act [No. 3 of 2002]

Organisations, Events and Facilities

The Department of Defence is responsible for government legislation, policy and administration of this area The main trade union in this sector is the South African State and Allied Workers Union. The company and organisation search facilities can be used to find details of companies and organisations active in this area, while the event search and the facilities search will enable you to find relevant information on both these topics.

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Resources

Department of Defence