JAs-39 Gripen
		Brave new world
				Erika Gibson analyses the South African defence industry The year 2000 will not deliver the same high-lights that marked out 1999 so far as South African defence procurement packages are concerned, but it does promise to be a year of growth for the local weapons industry. According to Mr. Jayendra Naidoo, the South African government’s chief negotiator, his job was completed once the supply contracts were signed by the end of December 1999. The financial contracts for the payments of the equipment were due to be signed some time thereafter. Mr. Naidoo looks forward to being deployed elsewhere by the government – he also played a major role in the peace negotiations prior to the 1994 elections. The signing of the contracts follows the South African cabinet’s approval early in 1999 when it approved the biggest combined acquisition programme of military equipment in the South African defence force’s history. The package deals consist of nine dual-seater Gripens and 12 Hawks from British Aerospace/SAAB to replace the current Cheetah and Impala aircraft in the South African Air Force. A further option has been taken on the balance of 12 Hawks and 19 single-seater Gripens. Four patrol corvettes from the German Frigate Consortium are to replace the present ageing strike crafts in the navy. The existing crafts are now more than 30 years old. Currently the navy does not have corvettes or frigates on its inventory, after the last frigates were put out to pasture in the late 1980s. Some 30 light utility helicopters from Agusta, the Italian helicopter manufacturer, will replace the Alouette helicopters that have been in service in the air force for over 40 years. Three submarines from the German Submarine Consortium will replace the ageing Daphne submarines that have been in service in the navy for more than 30 years. The cost of the equipment package is R21.3 billion over the next eight years. If the option to procure additional equipment is exercised, the total equipment cost will rise to R29.8 billion over 12 years. The options must be exercised by not later than the year 2004. The total cost of R21.3 billion includes all statutory costs such as custom duties, freight, export credit guarantees and programme management. According to Naidoo the negotiations for the four contracts had to start from scratch in the case of British Aerospace and SAAB because of the changes in the affordability study. The contracts are due to come into effect on 1 April 2000, when the defence force’s new financial year starts. According to Naidoo a mountain of work has been completed, but there is still as much to be done again because the package deals are very intricate so far as industrial participation, that also has to take place, is concerned. South African National Defence Force (SANDF) troops using the high-tech/low-tech multi-fire control system developed by Mechem Payments, that are layered, will be made on a six-monthly basis until the whole amount has been cleared. Naidoo means that the deals will have no immediate effect on the defence force, but the industry will start seeing some results immediately, with jobs being created and technology transfers being carried out. Special management duties The South African department of trade and industry will manage the industrial participation deals. There is also the possibility that a special team will be appointed to carry out management duties. The first equipment to be delivered will be the corvettes, the first one arriving towards the end of 2002 and the last in 2004. According to Naidoo the training syllabus for the personnel who will operate the new equipment is now the most important part of the packages because most of the feasibility studies and other technical details were completed by the end of 1999. The personnel will have to be trained at least two years ahead of delivery. This means the navy commanders will be trained first. The first submarines will be delivered by 2004, the Hawks by June 2005 and the Gripens by 2007. Should the option to buy additional single-seat Gripens and Hawks be taken, the last of these aircraft will be delivered by 2011. Pre-production Rooivalk (foreground) armed with Mokopa anti-tank missiles Weapons industry So far as the rest of the weapons industry in southern Africa is concerned, Mr. Fred Marais, Director of Arms Control in the Ministry of Defence, is of the opinion that the weapons industry has settled down and that it can expect some good sales during the year to come. ‘‘Although no orders have been placed for extensive military hardware, the South African industry has learned to survive. It has further learned not to rely on the defence force for its mainstream orders. Although there are no big orders, its traditional smaller clients will still place orders.’’ Marais, who also makes recommendations to the National Conventional Arms Control Committee (NCACC), says India remains one of the local industry’s biggest clients. Pakistan was also a big client but because of the political situation in that country all arms sales have been suspended indefinitely. The same is the case for the Democratic Republic of the Congo that bought weapons in large quantities in the past. No category A or B weapons are sold to these countries, that means no sharp point weapons that may contribute to conflict are sold to them. Strict political guidelines According to Marais the NCACC has very strict political guidelines in its approach to sales. If a country like Togo, that currently cannot boast a stable government, were to approach the NCACC for weapons, it would not be considered. The same applies to Ethiopia, Eritrea, Somalia, Sudan and Rwanda. Marais also thinks it will still take South Africa a while to make big sales such as the Rooivalk attack helicopter. ‘‘The world remains sceptical about the stability in South Africa, even though the government has gone through two democratic elections without any major upset. The world still does not trust the South African manufacturers’ ability to provide for logistical support for thirty years.’’ According to Marais, South Africa does have the ability to produce certain components and even to develop others. That is why international manufacturers such as British Aerospace and Ericsson are keen to obtain shares in local plants. ‘‘The South African industry needs the flow of currency from these foreign companies to stay alive and stay ahead, even though in the long run it could have a detrimental effect on what percentage the South Africans can keep of their initial assets. It could mean that South Africa is now selling shares and profit from its future, while in the long term it will mean that it cannot compete with certain similar products. ‘‘In the short term, South Africa will remain the market leader in certain fields that include ammunition and turrets. And so long as we can keep on receiving orders for these products, the South African weapons industry can keep on smiling.’’ ©
	Torgos long-range stand-off weapon system from Denel Kentron