Global tensions are good news for arms makers

The geopolitical rumblings and migration tensions raging around the world are likely to benefit the defence industry and South Africa could see its arms exports grow sevenfold to about R70bn over the next decade, says Daniel du Plessis, a vice-president at local aerospace and defence company Milkor.

He told Business Times that South Africa had adequate skills and engineering expertise to grow the sector to become a meaningful contributor to economic growth.

“We exported, as the South African defence industry, a total of more than R10bn worth of defence solutions and equipment. Some of that was ammunition, some of that was prime systems and complete solutions, but R10bn in total, we contributed in terms of the economy and economic growth in export revenue generated.

“We have a prediction that within the next three years, we actually [triple] that amount to R30bn and within the next five-10 years actually get closer to R70bn worth of export revenue generated for the South African economy.”

We exported, as the South African defence industry, a total of more than R10bn worth of defence solutions and equipment

His company is looking to secure orders from the South African National Defence Force (SANDF) for the Milkor 380 drone, which can help with border surveillance and other tasks, and its personnel carriers.

Du Plessis said the Milkor 380 umanned aerial vehicle (UAV), which has a wingspan of 18.6m and weighs up to 1.4 tonnes, is the largest such drone to be developed and manufactured in Africa. It can remain in the air for more than 30 hours at a time. He said drones are here to stay and the use of AI will speed up development cycles and increase their potential.

“Because our company has inherently developed the internal capability and the right building blocks for future development, we are positioned to be agile enough, not only to build on the technologies for military operations in the future, but also on dual-purpose capabilities that any sector can benefit from.”

The SANDF has the primary mandate to protect South Africa’s borders, while the Border Management Authority (BMA) is in charge of border posts and helps to combat attempts to cross the borders illegally.

“We have more than 4,000km of land border, much of which is quite porous and requires routine patrol operations and inspections, as well as interception operations if there is smuggling,” Du Plessis said. “The SANDF is also then tasked to co-operate with the BMA in performing those operations as well.”

The minister of defence & military veterans, Angie Motshekga, said in Armscor’s 2024/25 annual report that the government was focused on developing a defence industry policy as part of the national industrial policy action plan.

“The defence sector strategy indicates how the department intends to maintain and develop industry capabilities that are essential to its strategic capital acquisition master plan,” she said. “Armscor has been instrumental in the development of the strategy.”

Motshekga acknowledged that global tensions meant a strong defence capability was required.