https://defenceweb.co.za/industry/industry-industry/armscor-and-denel-commit-to-collaboration-and-support/
“An inaugural board meeting” saw two major components of the South African government’s defence industry architecture re-affirm a commitment to closer collaboration and mutual support.
An Armscor statement confirming stronger ties between it and Denel, both Tshwane headquartered SOEs (State-Owned Enterprises), had it the historic meeting, said to have been held “recently” – was the first of its kind since August 2024 when Cabinet responsibility for Denel was returned to the Ministry of Defence and Military Veterans where Angie Motshekga holds sway. Denel previously resided under the now defunct Ministry of Public Enterprises.
Armscor, the State-owned defence procurement and project management company, has Motshekga as its Cabinet representative with previous defence and military veterans ministers also assigned this responsibility. Armscor receives a substantial transfer payment, reportedly R1.4 billion plus a year from the defence budget.
Armscor, originally an arms production company set up in 1968, saw its manufacturing, production and research facilities moved into Denel in April 1992.
Armscor board chair Dr Lesiba Mahapa and his Denel equivalent Tshidi Mokgabudi – an interim posting – were on hand with Secretary for Defence Bereng Mthimkhulu at what the statement said was “an important juncture for South Africa’s defence and security sector”.
Mthimkhulu, as per the statement, emphasised Armscor and Denel are structurally interdependent and integral to South Africa’s sovereign defence capability. He reminded both they have a duty to protect the country’s defence technology from becoming dependent on other countries. Collaboration between the two is critical in rebuilding lost strategic capabilities. The joint board meeting is seen as a signal to building a relationship “characterised by open communication, mutual respect and a commitment to practical solutions for the challenges facing the defence sector”.
Both board representatives, according to the statement, outlined challenges facing their companies with the need for funding highlighted.
“The security of our country requires institutions to work together with a shared sense of purpose. Armscor remains committed to fulfilling its mandate as a strategic acquisition agency while working constructively with Denel and other stakeholders across the defence ecosystem. Our focus must remain firmly on ensuring the SANDF (SA National Defence Force) is equipped with the capabilities it requires to fulfil its constitutional responsibilities,” Mahapa is on record as saying.
In turn Mokgabudi pointed to the Denel responsibility to contribute “meaningfully” to South Africa’s defence capability. “Our engagement with Armscor is an opportunity to strengthen co-operation, leverage our respective capabilities and ensure our collective efforts contribute to a sustainable and capable defence industry. We are committed to working with Armscor in a manner that places the national interest and the requirements of the SANDF at the centre of our efforts,” as per the statement.
The joint board meeting at Armscor was on the receiving end of “updates on key projects” with only Project Hoefyster named. This has not yet seen the SA Army receive a single new infantry fighting vehicle to replace its ageing Ratels, 19 years after an official development contract was committed to.
The meeting wrapped up with a shared commitment to maintaining momentum established through the inaugural engagement and to exploring practical areas of co-operation to strengthen the defence ecosystem and contribute to “a more capable, sustainable and responsive South African defence industry”.
