CAPE TOWN- In his State of the Nation Address, SONA, on Thursday, President Cyril Ramaphosa outlined the government’s priorities for 2025, focusing on economic growth, job creation, and poverty reduction. However, conspicuously absent was any mention of defence spending or the strengthening of South Africa’s military capabilities.
The South African Aerospace, Maritime and Defence Industries Association (AMD) argues that revitalising the South African National Defence Force (SANDF) could significantly contribute to the country’s economic goals. The defence industry alone has the potential to add 3.5% to the country’s GDP, which could help address socio-economic challenges.
South Africa’s defence industry is known for producing world-class products and solutions, with 95% of local armaments being exported globally. These products are essential for safeguarding nations against internal and external threats. Despite this, South Africa’s own military remains underfunded and vulnerable, as highlighted by the recent situation in the Democratic Republic of Congo (DRC).
In mid-2024, there were signs of optimism when the Portfolio Committee on Defence and Military Veterans called for greater funding for the SANDF. They expressed concern that critical operations, such as the Southern African Development Community (SADC) Mission in the DRC, remained unfunded. Minister of Defence Angie Motshekga also highlighted the need for capital funding to repair equipment and invest in new technologies, but little progress has followed.
Ramaphosa’s SONA address highlighted the need for transformation and youth employment. A strong local defence manufacturing sector could contribute to these priorities by creating job opportunities, fostering skills development, and advancing technology. Increased defence spending would also lead to better equipment, training, and the recruitment of new talent, particularly among young South Africans.
The defence sector could provide employment for a wide range of professionals, including doctors, engineers, and lawyers, helping to address the high unemployment rate among these groups.
Despite small increases in the defence budget—R51.8 billion for 2024/25, rising to R56.2 billion by 2026/27—the SANDF remains severely underfunded. Defence spending currently sits at just 0.7% of GDP, well below the international norm of 2%. Analysts have warned that the military is increasingly unable to fulfil its mandates.
Given the strain on public finances, South Africa could explore alternative funding models, such as public-private partnerships (PPPs). This approach would allow private companies to finance and develop military systems, while the government repays over time. Such a model could drive innovation, efficiency, and sustainability.
It remains to be seen whether Finance Minister Enoch Godongwana will address defence spending in his upcoming Budget Speech. As Africa’s most industrialised nation and current President of the G20, South Africa’s role on the global stage is under scrutiny. The potential for growth in the defence sector could raise the profile of military spending in fiscal discussions in the months ahead.
