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South Africa Defence and Security Report 2017

South Africa Defence and Security Report 2017

BMI View: South Africa's defence budget will remain limited over the next few years, given adverseeconomic conditions and a continued government focus on spending on much-needed service deliveryimprovements rather than military development. Over the longer term, as the economy improves, defencespending will register gradual growth amid rising regional terrorist threats and domestic risks linked tocrime and social unrest, necessitating investment into maintaining and improving the SANDF's capabilities.We expect exports from the well-developed South African defence industry to grow steadily over the nextdecade, as foreign engagement with local companies strengthens.

Defence Industry Risk Reward Index

South Africa possesses the largest defence sector in Africa, and domestic companies export a range ofmilitary products to countries across the world. Relatively high levels of economic and investment opennessfacilitate market entry for foreign firms, and Pretoria's wide variety of defence collaboration agreements andstrategic international alliances offer substantial trade opportunities. That said, while elevated risks of crimeand social instability - in addition to participation in regional missions - continue to drive domestic demandfor military equipment, the country's overall defence expenditure remains limited. As a result, South Africaperforms slightly better for Risks than for Rewards in our Index. South Africa's aggregate score in the Risk/Reward Index stands at 58 out of 100, ranking it eighth in the Middle East and Africa region.


BMI Industry View
Table: Headline Defence Expenditure Forecasts (South Africa 2016-2020)
SWOT
Defence Industry SWOT
Industry Forecast
Defence Expenditure
Table: Defence Expenditure (South Africa 2014-2019)
Table: Defence Expenditure (South Africa 2020-2025)
Defence Trade
Table: South Africa - Key Defence Agreements
Industry Risk Reward Index
Defence Industry Risk Reward Index
Table: Middle East And Africa - Defence Industry Risk Reward Index
Rewards
Risks
Market Overview
Defence Market Overview
Domestic Defence Sector
Domestic Defence Market
Armed Forces Overview
Armed Forces
Table: Armed Forces Personnel (South Africa 2008-2013)
Table: SANDF - International Deployments
Security Overview
Domestic Threats
Regional Threats
International Threats
Company Profile
Aerosud
BAE Systems Land Systems South Africa
Denel
Reutech
Saab Grintek Defence
Thales South Africa
Methodology
Industry Forecast Methodology
Risk/Reward Index Methodology
Sector-Specific Methodology
Table: Defence Risk/Reward Index Indicators
Weighting
Table: Weighting of Defence Risk Reward Index

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