Stronger Rand shaves R1.5 billion off SDP

2007

A stronger Rand over the current financial year has shaved R1.5 billion off the cost of the R47.401 billion Strategic Defence Package, Minister of Finance Pravin Gordhan said yesterday.

“A saving of R1.5 billion has been declared on the defence vote, associated with delays and foreign exchange cost adjustments in defence procurement programmes,” he said yesterday in his Medium Term Budget Policy Statement

budget address to Parliament.

Bloomberg reports that the Rand has strengthened 24% against the US dollar this year and was this morning trading at about R7.62 to the American currency.

According to the SA Treasury, South Africa’s 1999 Strategic Defence Package cost as R47 401 billion in 2008:

 

Item

Units

Cost

Frigates (Meko A200SAN)

4

R9.690bn

Submarines (Type209 MOD1400)

3

R8.152bn

Light utility helicopters (A109LUH)

30

R2.451bn

 

Advanced Lightweight Fighter Aircraft (Saab JAS39C & D Gripen) 

26

R19.908bn

Lead-in fighter trainers (BAE Systems Mk120 Hawk)

24

R7.200bn

 

Total

R47 401bn

 



Pic: MEKO A200SAN Valour-class frigate SAS Mendi (F148) alongside in Cape Town in September 2008.