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 provides the South African National Defence Force with unrivalled firepower, mobility and maximum armoured protection to 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 Dr Sam Gulube, the secretary for Defence.
In the future, the Badger 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 at least the last ten years, and demonstrates Government's and the SANDF's confidence in the ability of the local industry to provide frontline equipment," says Denel SOC group chief executive, Riaz Saloojee.
Job opportunities within South Africa's defence will either be created or retained primarily in the development and manufacturing phases. In addition, the contract will have positive spin-offs for small and medium enterprises acting as subcontractors and suppliers for the project and bring benefits to the entire local defence industry.
The acting CEO of Armscor, Sipho Mkwanazi, says the production of Badger 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."
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 be more than 70% local content, designed and customised to meet the unique requirements of operational deployment in an African environment.
In peace-enforcement operations it enables soldiers to dismount from the vehicle 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 will also generate considerable international interest in the vehicle and open a number of prospects for future exports that could result in the injection of foreign direct investment into South Africa.
