South African defence acquisition and disposal and research and development (R&D) agency Armscor chairperson retired vice-admiral Refiloe Mudimu has pledged the organisation’s support for local small, medium-sized and microenterprises (SMMEs), especially black-owned ones, seeking to enter the defence sector. “Armscor . . . stands ready to assist in any way.” He was addressing the recent Armscor Supplier Open Day, in Centurion, south of Pretoria. “We have called this meeting to know what we can do to help you,” he said.
He highlighted that Armscor had harnessed the capabilities of South African companies, including SMMEs, to meet the requirements of the the South African National Defence Force and in support of United Nations peacekeeping missions. The agency was aware that SMMEs often had great difficulty in obtaining the financing they needed to enable them to enter the defence sector. “Armscor is exploring the modalities of a defence industry fund.”
To further support local SMMEs, Armscor requires its major suppliers to report every year on how much subcontract work they give SMMEs. However, the agency faces a regulatory minefield in its efforts to support SMMEs. Well-meaning regulation is actually hampering transformation in the defence industry. One of the objectives, with the Defence Industry Charter now being developed, is to solve this problem, as well as to promote black empowerment in the sector.
The organisation is also responsible for the administration of defence offsets from overseas major equipment suppliers. “Armscor ensures that black companies benefit,” affirmed Mudimu. The agency is also seeking to widen the supplier base in geographical terms, beyond Gauteng.
However, SMMEs must meet Armscor requirements. Too many do not. While many often respond to requests for proposals, few actually respond to the actual tender and even fewer qualify for consideration by the agency. Mudimu cited the example of a current Armscor tender, for which 32 local companies tendered but only one of them met all Armscor’s requirements. “This has to change!”
“[SMMEs] and [Armscor] must be a team that writes a new chapter for our company, country, Africa and the world,” urged Mudimu. “As an entity, we can only do so much . . . We cannot fail ourselves. We cannot fail our people, our country.”
Armscor’s missions are to fulfil the Depart-ment of Defence’s defence matériel needs and also meet the Department’s defence R&D, technology, test and evolution and analysis requirements. With regard to acquisition, the agency’s expertise encompasses procurement; the development of technology and new products and systems; the support of existing equipment and systems; the upgrading of such equipment and systems; and the disposal of equipment and systems.
Concerning R&D, Armscor focuses on four major areas – test and evaluation, operational and scientific research, technology management and analysis, and innovation. Test and evaluation encompasses the Gerotek vehicle test centre and the Alkantpan medium and heavy weapons and munitions test range. Operational and scientific research includes seven divisions or units – Armour Development, the Defence Decision Support Institute, Ergonomics Technologies (better known as Ergotech), the Fluid & Mechanical Engineering Group (usually referred to as Flamengro), Hazmat Protective Systems, the Institute for Maritime Technology and Protechnik.
For completeness, it should be pointed out that Armscor is also responsible for the management and operation of the Simon’s Town dockyard. This should not be confused with the co-located but entirely separate Simon’s Town naval base, which is the South African Navy’s main facility. Apart from the maintenance and repair of vessels, the dockyard can also service weapons and electronic systems, among other important functions.