AMD
The South African Aerospace, Maritime and Defence Industries Association (AMD) welcomes the Government of National Unity’s recent commitment to revitalising the South African National Defence Force (SANDF).
Earlier this month the Portfolio Committee on Defence and Military Veterans released a statement saying it will prioritise funding of the SANDF. The committee said it believes securing proper financing of the SANDF is of utmost urgency and expressed concern that its deployment, specifically as part of the Southern African Development Community Mission in the Democratic Republic of the Congo remains unfunded.
Responding to the portfolio committee announcement, AMD CEO Sandile Ndlovu said: “As the defence and security industry body we are pleased that our calls to prioritise the SANDF have been heard. The Portfolio committee’s announcement is a step in the right direction. The defence industry represents an increased opportunity for our economy and has the potential to contribute approximately 3.5% to our GDP, which would make a meaningful contribution toward addressing the country’s socio-economic challenges.”
In her budget speech on July 15th Defence and Military Veterans Minister Angie Motshekga said the department was “robustly engaging with the National Treasury on a common way to meet the Defence Force’s medium-term capital budget, including the vital repair and maintenance of critical Prime Mission Equipment and the exploitation of evolving technologies.”
“It is an encouraging and a welcome shift to see the department highlighting increased spending on equipment and new technology,” said Ndlovu. “South Africa’s defence industry produces world-class defence and security products and solutions for governments around the world and it is only fitting that those products and solutions benefit our soldiers back here at home and those working to maintain peace on the rest of the continent.”
Approximately 95% of the armaments and equipment produced locally are shipped to global markets, contributing significantly to their ability to protect and defend their countries against internal and external threats.
Ndlovu added that AMD was encouraged by news from the minister’s office that the department had met with President Cyril Ramaphosa already to look specifically into the SANDF’S funding, resulting in the national treasury allocating R2 billion in funding from the National Revenue Fund to defray the costs of the SANDF peace mission in the Democratic Republic of Congo.
“This is a significant posture shift where the department, the President and national treasury are aligned on the need to strategically prioritise defence funding. This level of engagement, along with the commitment to finalise and implement the 2019 South African Defence Review, should be commended by all. It also highlights the need for a national dialogue on defence and security similar to the Inaugural Safety and Security Townhall which we hosted in May. We hope that this renewed recognition and Medium-Term Budget Speech in October and the Budget Speech in February next year.”
The industry is pleased to see a renewed and continuous focus on the defence forces that necessarily results in building defence capabilities of the future Ndlovu said, adding that AMD and its members were available and ready to partner with the government to ensure its ability to protect the Republic, its territorial integrity, and its people by the Constitution and the principles of international law.
“A robust local manufacturing capability will bolster our overall defence capabilities. In addition, increased spending will mean new equipment, better training for our soldiers and the attraction of new talent, especially our youth. The commitments coming out of the government are positive and bode well for the future of the defence industry and our national safety,” Ndlovu concludes.