A matter of survival? An exploratory study of cooperation and benefits for the South African maritime defence industry within the BRICS context
Date
2021-12
Authors
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Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: The South African defence industry (SADI) was built up and became a strong industry during
the 1970s and 1980s, supplying the South African Defence Force with equipment, weapons and
logistic support. Between 1989 and 1994 the defence budget shrank by approximately 50%.
Acquisition and procurement from the defence force was reduced by roughly 80% and the
research and development (R&D) budget was reduced by 70%. As the defence force and the
defence industry are closely linked, the budget cuts had a direct impact on the SADI. Many
defence companies restructured, diversified into other industrial endeavours or closed down.
Manpower also shrank from approximately 131 000 in the 1980s to 15 000 today. Currently the
SADI is in dire straits to survive. A dying defence industry is counter-productive to the South
African economy, its industries and the country as a whole. It also has a detrimental effect on
the defence force’s capabilities.
South Africa is a maritime nation with an island economy and is dependent on trade via maritime
transport, with 95% of South Africa’s trade being by sea transport. Maritime security is important
for South Africa to keep sea lanes safe for merchant travel; and maritime resources
underdeveloped. The navy and certain air force elements as part of the broader South African
National Defence Force (SANDF) are critical to ensure maritime security. The navy was always
treated as the “step-child” of the SANDF purely because threats were always perceived as being
landward and not from the sea. As such, the SADI was always more landward focused than
maritime.
Development and human security are priorities for South Africa. Being the most important
priorities, it is unlikely that the defence budget will increase to levels needed to remedy the
precarious situation of the defence force and the defence industry. The defence budget cannot
ensure the survival and growth of the SADI but it provides seeding funding for R&D and much
needed capabilities for the SANDF. Currently, the survival of the SADI is dependent on exports.
It is also advantageous to the SADI to market and promote products that are in use in the
SANDF, as it gives the products credibility on the international market.
The defence review, approved by Parliament in 2015, is a good document which lays out the
roles and functions of the SANDF, its needed force structure and force design; and the
importance of a vibrant and strong defence industry. Without the budget to implement this, it will
however remain a paper exercise. It is also clear that it is unlikely that defence will move up on
the government’s list of priorities, which means no increase in funding, which leaves the
question, what must the defence force be ready for? That determines what the design and
structure must look like. One of the possibilities for survival of the SADI is cooperation with other countries. As part of
the BRICS forum, this research explored the possibilities of cooperation with BRICS partners
as an option. The research showed that cooperation is only one aspect. The survival of the
SADI requires policy changes and implementation, diplomatic efforts, strategic decisions
regarding the “ready for what?” of the defence force, focus on R&D funding, and embracing the
underdeveloped blue economy for the betterment of South Africa and the regional/international
village South Africa finds itself in.
AFRIKAANSE OPSOMMING: Geen Afrikaanse opsomming beskikbaar nie.
AFRIKAANSE OPSOMMING: Geen Afrikaanse opsomming beskikbaar nie.
Description
Thesis (MMil)--Stellenbosch University, 2021.
Keywords
Armaments Corporation of South Africa Ltd., ARMSCOR, Defense industries -- South Africa -- Foreign relations, Weapons industry -- South Africa, BRIC countries, UCTD