Paramount plans to develop Africa’s defence industry


South African defence company Paramount Group expects to sign agreements with four African governments this year to set up production facilities in their countries, its chairman said.

Paramount, Africa’s largest privately owned defence firm, established manufacturing capabilities to meet demand from specific domestic markets before, including in India, Jordan and Kazakhstan.

It is in talks with four countries in west and east Africa over deals it expects to sign this year. A further three agreements could be signed in southern Africa in two years’ time.

“Africa really is innovative,” Ivor Ichikowitz told Reuters at the IDEX military exhibition in Abu Dhabi.

“There is a huge amount of skill. There is a huge amount of human capital on the African continent that makes what we are planning to do achievable.”

Paramount, which has maintenance and overhaul operations in Africa, has started to implement some agreements, he said, declining further details.

The company manufactures military vehicles, aircraft, ships and weapons systems. It is interested in working with governments on software, cyber security and artificial intelligence, Ichikowitz said.

Commenting on the potential shape of any deals, the company prefers to be a majority shareholder in a government joint venture with concessions to build domestic capabilities, he said.

“We would implement long-term training, long-term capacity creation programmes to put us in a position where we are building a domestic defence industry in that country.”

Paramount previously held talks with Saudi Arabia and the United Arab Emirates, two Middle East countries heavily investing in domestic defence industries.

Ichikowitz declined to comment specifically on those talks saying in the Middle East “there are substantial agreements close to finality”.

Paramount launched a 4×4 version of its Mbombe armoured personnel vehicle, which Ichikowitz said was designed for the operational requirements of Middle East countries.

He expected there would be regional demand for 4,000-5,000 of the vehicles over the next 10 years.