South Africa needs to develop a new funding model to pay for both the acquisition and maintenance of military equipment. So argued South African Aerospace, Maritime and Defence Industries Association (AMD) CE Sandile Ndlovu, in a statement issued on Thursday. This is because the South African National Defence Force (SANDF) is “severely underfunded”, which is preventing it from fulfilling its mandated commitments.

It was also beginning to damage the image of both South Africa and the country’s defence industry. “[E]pisodes like our soldiers pushing broken-down trucks while on peacekeeping missions have become more than just an operational hiccup – they are fast becoming a stain on our national image and the reliability of our military equipment,” he affirmed.

Some 95% of the output of AMD-member companies was exported, to 25 countries across Africa, as well as to countries in Europe, the Middle East and South East Asia. South African-designed military equipment has been used by US forces, as well. “Yet, our successes on the global stage are overshadowed when our military faces operational failures, questioning the reliability of our equipment,” he highlighted.

SANDF equipment was breaking down because the force was not being allocated a big enough budget to pay for maintenance and spare parts. Nor were there budgets to acquire much in the way of new equipment. The (adjusted) defence budget in the financial year 2023/24 was R52.4-billion, but for 2024/25 it would be R51.8-billion. Thereafter, on paper, it would increase to R53.7-billion in 2025/26 and to R56.2-billion in 2026/27. (The rate of these increases would be lower than the inflation rate, meaning that the defence budget was declining in real terms.)

“As an industry we believe that it’s time for government to explore a private-public funding model,” he stated. “This approach, successfully employed by leading global defence forces, offers a pragmatic and immediate solution to our fiscal constraints. By allowing private companies to assume financial responsibility for developing and delivering military systems, the government can commit to paying for these systems over an extended period. This model aligns with the global trend of engaging private sectors in defence funding, allowing for innovation, efficiency and sustainable military capabilities.”

The South African defence industry would be hosting dialogues with key stakeholders, including political parties, to explain the importance to the country, including its socioeconomic development, of national security. Ensuring national security was a precondition to the creation of a conducive environment for socioeconomic development.

“The recurring challenges faced by our soldiers, coupled with the negative impact on the reputation of our defence industry, demands a bold and innovative solution,” he argued. “Embracing a private-public funding model is not merely a financial necessity; it is a strategic imperative.”