Wakeford wants Armscor to contribute nationally, regionally and continentally

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The man who has been in a driver’s seat at Armscor for six months has brought a phrase not much used in both the South African defence industry and the wider national economy back into use.
“Peace dividend” rolls easily off his tongue and when he starts elaborating it’s easy to understand why he is convinced this concept will be beneficial to his area of operations as well as the overall manufacturing sector of the economy. Wakeford is adamant that military spending can have a massive return on investment for the continent.
“Africa simply has to be our market, both for defence and allied equipment and we as South Africans must also not be blind to Africa as a market. It has already successfully been done by companies including Checkers and MTN.
“It will open up even more for South African companies when conflict is out of the equation,” he maintains.

He points to countries such as Cote d’Ivoire, Sierra Leone, Burundi and the Democratic Republic of Congo where the presence of peace missions and the resultant decrease in conflict has seen substantial increases in per capita Gross Domestic Product (GDP).

Elimination of conflict and post conflict reconstruction are areas South Africa has committed its SA National Defence Force to and Wakeford acknowledges the good work already done in this field.
“Our men and women in uniform are doing a fine job assisting their colleagues from both the African Union and the United Nations in peacekeeping and peace support missions,” he said. However, speaking at a conference last week, he noted that South Africa’s reimbursements from peace missions aren’t always what they should be as not all minimum provisions are met.

Wakeford told defenceWeb that when there was no longer a need for peacekeeping to be undertaken by military forces it would signify a start to better economic conditions.
“No matter where in Africa if there is peace, prosperity has to follow and South Africa must be part of it to grow its economy, the regional economy in southern African terms as well as the continental economy.
“I see Armscor being part and parcel of it all, from supplying the right equipment at the right time to our soldiers, supporting it through its entire life cycle and then standing ready to assist when normal market forces return.”

He is also confident Armscor can contribute when it comes to African products for Africa. Areas he has identified include possible centralised solutions for the AU, assisting regional standby forces and ensuring better integration with the private sector.

Turning to the SA National Defence Force and the ongoing, thorny question of funding Wakeford maintains the operational requirement is clear and “focussed on Africa”.
“The Defence Review indicates more funding is needed for defence but can the National Treasury provide given the priorities it has in other areas such as health, education and infrastructure provision?” he asks, answering in the negative.

He sees other potential sources of funds for the military as being a necessity and adds he has already formulated concepts – “some certain people are likely to think revolutionary”. He will not make public any specifics until such time as approval has been given for them.
“This income can be channelled into a specific account for defence and military use only,” he said adding this and other concepts still has to be firmed up, discussed and approved at Ministerial level before implementation.

He acknowledges the clock is ticking, especially when it comes to the milestones set out in the Defence Review.
“They are there and are constant remainders we have to get going to meet them or face even further erosion of our national defence force and its capabilities.
“What is sure is that going to Treasury with a begging bowl is not going to see more money coming defence’s way. Defence, in the public sector which includes the defence force and Armscor, has to become creative and remain honest in its quest for more money.”

Wakeford speaks broadly and does not go into details about specific projects, the utilisation of Armscor facilities and how the Armscor of the future will look.
“All I’m prepared to say is Armscor will remain a relevant entity in terms of acquisition, research and development. It can and will contribute not only to the defence sector but to the wider manufacturing sector of the economy and in turn to the regional and continental economies.”