https://newsletter.en.creamermedia.com
Africa|Defence|Denel|Export|Financial|Equipment
Africa|Defence|Denel|Export|Financial|Equipment
africa|defence|denel|export|financial|equipment

Denel warns of big funding gap for key capabilities

21st October 2020

By: Reuters

  

Font size: - +

South African state arms firm Denel said on Wednesday it faced a funding gap of around R2.75-billion over the next five years for key capabilities.

Denel, which makes military equipment for South Africa's armed forces and export, is in the grips of a liquidity crisis aggravated by the coronavirus crisis.

It is one of a handful of struggling state firms the government has been keeping afloat with bailouts.

Interim Chief Executive Talib Sadik told a parliamentary committee that Denel had asked the defence ministry to provide R683-million in the current 2020/21 financial year to cover the funding gap for "sovereign and strategic capabilities".

Those capabilities are ones that if lost could threaten South Africa's ability to defend itself.

A presentation to the committee showed funding gaps of R635-million, R600-million, R431-million and R400-million in the subsequent four years for sovereign and strategic capabilities.

Sadik added Denel was taking steps to cut costs, reduce debts and dispose of non-core assets.

But he said difficulties paying full salaries this year had led some important technical staff to leave.

Denel board chairperson Monhla Hlahla said: "I believe that Denel can be saved if we just do it fast."

Edited by Reuters

Comments

Showroom

Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 
Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 14 March 2025
Magazine round up | 14 March 2025
14th March 2025

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.115 0.205s - 150pq - 2rq
Subscribe Now