South African defence companies need partnerships with overseas OEMs to survive

The low level of the South African defence budget means that local defence companies cannot survive on domestic orders alone. Not only that, but local defence research and development (R&D) spending has also gone down over the years.  “The decline in local defence spending in difficult defence budget conditions does not allow for sustainment or growth locally,” pointed out Saab Grintek Defence VP: Business Development and Strategy Dr Nivan Moodley. “This is evident in the low number of surviving defence companies compared to two decades ago.”

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