GDR 99 - European Issues

Europe Gets Arms Backing
from South Africa


Section Articles
• Slogan or Solution? • AFV Firms in Troubled Times • High Technology: Marconi • The UK's Role on the Ocean • All Systems Go in South Africa • South Africa Backs Europe
Top: The Swedish JAS-39 Gripen is the centrepiece of the South African / European programme

GDR publisher Geoff Farmer reports from South Africa on the announcement of the country's new defence procurement programme.

South Africa and European defence companies are to join forces to modernise the country's armed forces under a $5.29 billion procurement programme. New fighter aircraft, jet trainers, helicopters, corvettes and submarines are to be included in the package that was announced at the DEXSA '98 show last November. Industrial participation and offset deals worth $16bn are a key component and approximately 65,000 jobs will be created in South Africa, giving the country's depressed economy a major boost.

The announcement followed a major defence report by the cabinet subcommittee on the procurement programme for the South African National Defence Force. It proposed a core of six programmes go forward, but a seventh programme for main battle tanks is not to be considered at this time.

The subcommittee came up with a total package of preferred suppliers, drawn from all the major European countries. The subcommittee and South African finance ministry are now conducting detailed negotiations with the preferred suppliers in order to achieve an affordable final package. The aircraft elements of the package are expected to begin delivery in 2002. American countries were excluded after a number of high-profile policy disputes between Pretoria and the Clinton administration.

New wings


BAe has secured an order for 24 lead-in fighter trainer versions of the Hawk

The centrepiece of the package must be the purchase of 28 British Aerospace/Saab JAS-39 Gripen multi-role fighter aircraft to replace the South African Air Force's (SAAF) ageing Cheetah C fighters. The contract, worth more than $1.6bn, will be backed up by an industrial participation package worth around five times the purchase price and will generate 23,000 jobs in South Africa. Local companies are expected to be involved in modifying the Gripen to carry South African weapons such as the U-Darter air-to-air missile.

This is the first export success for the Swedish Gripen and is likely to generate further interest in South American and Asian markets. BAe also scored an export first by securing an order for 24 lead-in fighter trainer (LIFT) versions of its successful Hawk trainer. This features a new glass cockpit, head-up display and hands-on-throttle and stick. The aircraft will be powered by Rolls Royce/Turbomeca Adour 871 turbofans. The SAAF also will benefit from the purchase of 40 A109 light utility helicopters from the Italian company Agusta.

Maritime power
The South African Navy (SAN) is a major beneficiary of the procurement programme because of its need to patrol the country's huge coastline and to respond to requests for assistance from neighbouring states. Two German consortium have won orders for corvettes and submarines under contracts that could be worth more than $1 billion (see page 19). The German corvette consortium is to supply four MEKO A-200-class corvettes and the submarine consortium three U209-class vessels. Britain's GKN Westland was selected to provide four unweaponised Super Lynx Series 300 maritime helicopters to operate from the corvettes.

Political support


The Lynx is in service with 11 countries, including seven NATO navies

The announcement of the procurement package is seen as a major act of political support for the country's armed forces and defence industry from South Africa's post-apartheid government. The country's armed forces have suffered in recent years from major cuts in defence spending, and the equipment of the air force and navy in particular were on the verge of obsolescence. Recent crises in central Africa have convinced the South Africa government that a power-projection capability was essential if the country were to be a force for good in the region.

The economic implications of the decline of the South African defence industry due to a lack of domestic orders also was a major factor in swinging the government behind the new package. European defence companies such as BAe are expected to take major stakes in South African companies such as Denel, and a large part of the work on the programmes will be carried out by local companies. This will provide a major inflow of foreign capital and hopefully will boost employment.

South African defence minister Joe Modise gave strong backing to the country's defence industry at DEXSA. "As South Africans we can be proud that we are transforming defence from formerly antagonistic forces into a single legitimate and credible institution of the state, representative of all our citizens and a potent symbol of reconciliation and unity," he said. "Furthermore, our democracy has resolved that defence shall be a truly national effort for the protection of sovereignty, territory and people. We are committed to defending our hard-won freedom in an unpredictable world and, particularly, in a region in the throes of conflict. We see our arms industry as integral to our right of self defence.

"The expertise that has been built up and the products that have been developed and produced have enabled South Africa to become a global player in the field of defence. Our expertise, research and development, state-of-the-art technology and skills are acknowledged by international defence companies. Through this recognition opportunities exist for us to develop partnerships with world-class manufacturers and suppliers."