This is the view of defence secretary, Dr Sam Gulube,
He says both government and the defence industry have welcomed the direct and indirect jobs as well as the enterprise opportunities that will be created as a result of the production contract for the manufacturing of the Badger new generation infantry combat system.
In addition to job and enterprise creation, the contract will also lead to an increase in skills development and retention in the industry.
The new Badger infantry combat vehicle, displayed on Monday (30 September) at the Department of Defence and Military Veterans' Industry Day event at the CSIR in Pretoria provides the SANDF with unrivalled firepower, mobility and maximum armoured protection for the soldiers it transports.
"The production order for the Badger vehicle represents a significant chapter in the history of the SANDF in that it provides a much needed capability for troops involved in critical peace keeping operations in other African countries," says Gulube.
The 8 x 8 Badger is a best-of-breed vehicle and will contribute to the modernisation of the SANDF. In the future, it will eventually replace the SANDF's existing fleet of armour protected combat vehicles like the Ratel.
The recent involvement of South African troops in the Democratic Republic of the Congo has again emphasised the need for protective mobility on the battlefield, which the Badger now provides.
"This is the most significant defence contract signed with a South African company in the last 10 years, and demonstrates government's and the SANDF's confidence in the ability of the local industry to provide frontline equipment," says Denel's chief executive, Riaz Saloojee.
"The Badger project provides Denel with an opportunity to address most of government's industrial objectives with regard to high-end manufacturing, skills development, job creation and foreign-currency earnings," Saloojee said.
He said that job opportunities within South Africa's defence sector will either be created or retained primarily in the development and manufacturing phases, covering the spectrum from graduate engineers, system designers and technical staff to skilled and semi-skilled workers.
"In addition, the contract will have positive spin-offs for small- and medium enterprises acting as sub-contractors and suppliers for the project and bring benefits to the entire local defence industry," he added.
The acting chief executive of Armscor, Sipho Mkwanazi, says the the production of the Badger vehicles will have significant benefits for the SANDF and for the local defence industry including the further development of the advanced manufacturing sector.
"We have set stringent conditions for ensuring local content and supplier development. The production of the Badger is expected to create about 2 000 jobs during its production period," he said.
Armscor concluded a contract with Denel in 2007 for the development of a new generation infantry combat vehicle. The initial development of the vehicle platform was done by the Finnish contractor, Patria, but the manufacturing of the production units will be migrated to South Africa.
"This will enhance South Africa's vehicle design, manufacture and support capability. The final product will, however, be more than 70% local content, designed and customised to meet the requirements of operational deployment in an African environment," said Saloojee.
In peace-enforcement operations the vehicle enables soldiers to dismount from it and interact freely with the civilian population. But the same vehicle also provides troops with effective protection and offensive firepower in high-intensity warfare.
"This project is expected to generate considerable international interest in the vehicle and open a number of avenue for future exports that could result in the injection of foreign direct investment into South Africa," said Saloojee.
"As State-owned companies, both Armscor's and Denel's primary objectives are to support the strategic and operational needs of the SANDF and this it has done with a commercially viable development that advances the strategic initiatives of the state as defined in the National Development Plan (NDP) and the Industrial Policy Action Plan (IPAP)," Saloojee added.
