Cash in on the SANDF
BEFORE YOU ACCUSE ME of being a warmonger, hear me out.
There aren’t too many segments in the economy that have budgeted to increase their annual spend by 15% to 20% over the next few years, but the South African National Defence Force is one such institution.
As highlighted on finweek.com earlier this week, a quick look at the current annual report says that the Department of Defence (DOD) has applied to increase its annual spend from R34bn in the current year to R42bn by the end of 2015.
While South Africans may be credited with being “entrepreneurial” when it comes to the flow of guns and vehicles, we are not advocating an attempt to emulate Nicholas Cage when he played famed arms dealer Viktor Bout in the 2005 movie
Lord of War.
If you look at the areas where the SANDF and the DOD are planning to increase spend, you will notice that it involves investment in primarily Administration, Military Health, Employment and General Support Services. “Administration” is quite a broad segment but some ideas of where the biggest increases are likely to come from include: Human Resources – R454m to R666m Financial Services – R186m to R306m Office Accommodation – R1.2m to R2.2m
Legal Services – R110m to R186m On the Military Health Front you will find: Military Health Training Capability
increases from R152m to R380m Military Health Product Support Capa
bility increases from R13m to R285m For suppliers who specialise in logistics and specialist Information Technology offerings, you might want to look at what options are available for private contractors. Spend on joint logistics services is expected to grow from R1.6bn to R2.4bn while investment in a management information system (MIS) will increase from R960m to R1.1bn.
Probably one of the juiciest areas of spend according to the DOD report is around facility upgrades. While “maintenance and repairs” are budgeted to drop from R360m per annum to around R73m, the “Rehabilitation, Renovations and Refurbishments” segment will see a whopping increase with annual spend of R656m, R733m and R885m for the next three years respectively.
It might pay to start subtly plugging for business in and around local military installations and finding out exactly what you need to do business with the SANDF if you are planning to get on to its supplier database.