R8 billion in contracts awarded to local defence industry in 2017/18


The majority of contracts placed by Armscor from the 2017/18 Department of Defence (DoD) and South African National Defence Force (SANDF) budgets went to local industry, with orders of R8 billion going to local companies.

This is according to a reply from Minister of Defence and Military Veterans Nosiviwe Mapisa-Nqakula to a parliamentary question posed by the Economic Freedom Fighters’ (EFF’s) Shadrack Lapologang Tlhaole.

In her reply, the minister stated that Armscor placed R10 241 708 505 worth of contracts in 2017/18 for the DoD and SANDF, of which R8 488 376 899 went to local Industry.

Of the local spend, this includes an amount of R27 563 605 for the Simon’s Town Dockyard and an amount of R4 707 818 586 that is contracted to Denel, the minister stated on 30 November.

It is believed that a large portion of this spend went to the Badger infantry combat vehicle, currently being produced by Denel Land Systems, on upgrades to the Ground Based Air Defence System (GBADS), refit work on the frigates, Seeker 400 unmanned aerial vehicles, artillery and small arms upgrades and other SANDF projects like Radiate (new radios for the SANDF), Pirate (mine detection systems), Teamster (field kitchens), Blesbok (water purification systems), Assegaai (A-Darter air-to-air missiles), and Carol (small boats for the SA Navy and Special Forces, including tugs and workboats).

Local recipients of Armscor contracts include Denel, Saab, Nautic Africa, Desert Wolf and Reutech, amongst others.

Much of the foreign contracts are likely related to Badger programme, which is acquiring some vehicles and components, such as thermal sights, from overseas countries like Finland and France.