‘SA is less protected’
SA’s defence budget has, over the past two decades, drastically declined yearon-year by about 5% per annum. It now stands at 1% of the country’s gross national product (GDP), well below the international norm of 2%, the Aerospace, Maritime and Defence Conference heard yesterday.
Despite recording successes in certain areas, outgoing defence and military veterans’ secretary Dr Sam Gulube told delegates the shrinking budget continued to cast “a pall over both the department of defence and the industry as a whole”.
He warned: “The declining defence budget increases the persistent disconnect between government’s defence expectations and the resources allocated to defence, placing the department in an unenviable position where the loss of essential defence capabilities has become a reality. We are seeing this in the reduction of the flying hours for the air force and sea hours for the navy.
“The budget reduction has made it impossible to fund the full implementation of the Defence Review as initially envisaged. Strategically, this negates the approved level of defence ambition that can be pursued.”
The defence industry found itself dependent on exports to survive, which generated 65% of its turnover.
“... we have made efforts to proceed with the recommendations of the 2015 Defence Review, focusing on non-cost-driven aspects...”
However, he said, not all was “doom and gloom”.
“I am heartened by the fact that for the 2019-20 financial year, an amount of nearly R0.5 billion has been allocated by the department of defence to technology development” to establish and sustain selected science and technology capabilities in the defence industry.
“In the 2018-19 financial year, [arms manufacturer] Armscor awarded R11.7 billion worth of contracts, with more than R7 billion of the total acquisition and procurement portfolio related to technology and capital acquisition projects.
“The remainder of R4.3 billion went towards procurement, maintenance and support contracts.
“We have been able to grow defence industry material exports from R5 billion to R11 billion per annum over the last five years – establishing a 45% global market penetration.”