South Africa - Defense and Security: Security threats to drive modernization efforts (Strategy, Performance and Risk Analysis)
South Africa ranked seventh globally with the lowest level of conflict in the entire Middle East and Africa region and fares better in terms of societal safety and security than most countries in Middle East and Africa. The South African rank (in level of conflict) can be attributed to the involvement of troops in global peacekeeping operations and the global war against terror. Some of the key factors that have contributed towards the increase in terrorism threat in the country are its strong economy and collaborations with the west.Key Highlights
South Africa’s defense industry revenue and capital expenditure to grow:
South Africa’s defense expenditure declined at CAGR of -2.5%, from US$4.6 billion in 2012 to US$4.1 billion in 2016. It will post a forecast-period CAGR of 1.8% to reach US$4.6 billion in 2021. The country is an active participant peacekeeping operations governed by the United Nations, African Union, and the Southern African Development Community.
Homeland security to drive capital expenditure:
South Africa’s capital expenditure on homeland security increased at a rate of 6.3%, from US$9.6 billion in 2015 to US$10.2 billion in 2016 and will post a forecast-period CAGR of 5.1% to reach US$13.3 billion in 2021. This increase in expenditure will be directed towards combating terrorism, border protection, cybersecurity, and maritime protection. The country will procure CCTV and biometric identification systems.
Strong ties driving procurements:
South Africa’s strong relations with Sweden, Russia, and the US helps to it procure advanced technology. Sweden is the main supplier of arms to South Africa with a share of 77.6%, while Russia and the US were the second- and third-largest suppliers with respective shares of 8.7% and 6.6%. Some of the country’s major imports include aircraft, engines, satellites, missiles, and sensors.