Defence 2015: A review of South Africa's defence sector
In early June 2015, South Africa’s National Assembly passed the Defence Review, which outlines the country’s long-term defence policy and strategic trajectory. The review indicates that current levels of local defence spending have contributed to the defence force being in a “critical state of decline”. With the local market being an important source of demand for the defence industry, this inadequate spending has impacted on local defence companies. The review proposes modest increases in defence spending, which, if implemented, will halt the current decline in the capabilities of the South African National Defence Force and, subsequently, allow for the rebuilding of the defence force. Such spending will provide support for the local defence industry and contribute to its continued viability. However, as yet, there is no indication that there will be a meaningful increase in defence expenditure.
Creamer Media’s Defence 2015 report examines key developments in South Africa’s defence industry, with particular focus on key participants, innovations and diversification in the sector, local and export demand, and the outlook for South Africa’s defence industry in light of current levels of local defence spending.
This report is a summary of information published in Engineering News and Mining Weekly over the past 12 months, as well as of information available in the public domain.
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