The South African Defence Industry (SADI) has established a global reputation for its reliability, ingenuity, and advanced, indigenously developed weapon systems. While the SADI can trace its roots back to the first half of the 20th century, its current form is more closely linked to the latter half of the 20th century, when apartheid South Africa was under a UN arms embargo. During this time, the then South African Defence Force and the SADI were forced to maximise self-reliance in order to survive in a turbulent era. As a consequence, the SADI grew into, and still remains, one of the most advanced defence industries in the developing world.
Although the SADI’s capabilities were, and remain, impressive, the industry is widely regarded as a shadow of its former self. This is best illustrated by the fact that the SADI has gone from employing well over 100,000 people at its peak to approximately 10,000 to 20,000 individuals today. This decline is mainly the result of the drastic reduction in domestic defence spending since 1994, as the country’s focus shifted from military security to human security. Consequently, the industry has been forced to rely on the export market for its survival, with an estimated 90% of South African-produced munitions now destined for export.
There are two primary, but interlinked, factors limiting the SADI’s growth potential. The first is a lack of sufficient government support. While the South African government has, over the years, pledged support for the SADI, very little practical action has been taken. One key example is the failure to ensure an efficient arms export process. The National Conventional Arms Control Committee (NCACC), the entity responsible for regulating and approving arms exports, is notorious for its slow and unreliable process for approving or denying export licences.
Secondly, the SADI’s growth and success are hindered by the chronic underfunding of the SANDF. This not only limits the SANDF’s ability to procure new SADI products, but also undermines the SADI’s international marketability.
Nevertheless, the SADI has retained remarkable capabilities and remains a world leader in several areas. These include electronic warfare, mine-resistant and mine-clearance vehicles, 155mm howitzer systems, NATO-standard ammunition, and, more recently, advanced drone capabilities. As a result, the SADI has established a global customer base and has been well placed to capitalise on the growing demand for munitions since 2022, with exports more than doubling in value since 2020. Ammunition, electronic equipment, and vehicles now make up the bulk of the SADI’s growing exports.
Note on Data Below: All data was obtained from official NCACC reports for the years in Question.
