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Organisers happy with 2018 AAD, but defence analyst expresses concerns

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The organisers of the 10th edition of the continent’s premier defence exhibition held at Waterkloof Air Force Base from 19 – 23 September, have praised it as a success which attracted over 30-thousand visitors on the three trade days and over 55-thousand aviation enthusiasts to the two-day airshow .

In a media release this week, the organizing committee announced the Africa Aerospace and Defence (AAD) numbers.  The three trade days attracted 415 exhibitors from 40 countries as well 71 official delegations and 32 538 trade visitors.

The two-day air show thrilled more than 55 000 members of the public with spectacular displays in the skies above Tshwane that included a Zimbabwe Air force fighter, six Gripen fighters and the ever-popular Silver Falcons aerobatics team.

On the ground, the SANDF treated the crowds to a mini-war with breath-taking pyrotechnics.

The organisers said this attendance was an example of the growth of the exhibition despite the hard economic times being faced both in the country and globally. They noted it brought together African and global business leaders and high-ranking military delegation to meet and discuss a variety of topics such as cyber security and the global contribution to peacekeeping efforts.  The youth development programme also enabled thousands of learners to experience the aerospace and defence sector and see the technologies on display.

However, a defence analyst has cautioned that the numbers do not reflect the full picture.  The African Defence Review’s (ADR) Darren Olivier said the drop in exhibitors from 532 in 2016 to 415 this year, and the sold floor space from 52 000m2 to 30 000m2 is important to note given that many of the world’s major defence firms had opted to either not attend or to have substantially smaller stands with no products on display.  The number of visitors during the trade and public days was also slightly down on 2016 figures.  These were 33 863 and 57 000 respectively.

Olivier said this is an indication that many defence firms may not see AAD as a viable enough venue for marketing and sales into sub-Saharan Africa and not just South Africa, as the host.  He said there were elements to the show that should give the organisers serious cause for concern.

Among the highlights during the trade days, the Paramount Group announced the creation of Paramount South Africa to partner with local industry. The Black-owned enterprise is intended to support the growth of transformation in the South African defence industry.

The new company also signed its first Letter of Intent with the Council for Scientific and Industrial Research (CSIR). The Group and Singapore’s ST Kinetics also announced a strategic collaboration to market high mobility armoured wheeled vehicles.

One of the countries attending the expo for the first time was Saudi Arabia. During the show, the state-owned Saudi Arabian Military Industries (SAMI) announced it was hoping to secure joint ventures with South African companies before the end of the year.   They are also eager to fund local research and development.

SAMI’s CEO, Andreas Schwer, who was a former head of combat systems at Germany’s Rheinmetall AG, said while they were receptive to all defence projects, they were particularly interested in missiles, ammunition and opto-electronics.

The successful companies would have great incentives , as well as exclusive contracts in the kingdom which has one of the biggest defence budgets in the world.  The political framework for these offers was established during President Cyril Ramaphosa’s visit to the kingdom in July.

The Stockholm International Peace Research Institute (SIPRI) indicated that Saudi Arabia replaced Russia in third place globally, spending $69,4bn in 2017.

On Thursday, Foreign Minister Lindiwe Sisulu confirmed that Saudi Arabia had approached South Africa about taking a stake in struggling state-owned defence firm Denel. The arms manufacturer was unable to pay its senior staff members their full salary at the end of September.  This comes after financial mismanagement and corruption scandals that have engulfed the company in recent years.

Any potential deal would have to be approved by the National Co-ordinating Arms Control Committee (NCACC) which has a mandate to ensure that South Africa does not sell arms to countries that might use them to violate human rights.

South Africa is also reportedly trying to negotiate a peace deal between Saudi Arabia and Iran in Yemen which could create a moral as well as diplomatic problem for the country.

Britain and the US have been criticized for supplying weapons to Saudi Arabia that were said to have caused civilian deaths in Yemen.  Earlier this year, Germany said it would no longer export weapons to countries involved in the conflict.

Looking ahead to the next exhibition, the ADR’s Olivier had the following advice: “The organisers will have to go all out to restore confidence in the exhibition and to make it easier and cheaper for both exhibitors and trade visitors to attend.  More effort should be made to attract other African armed forces, airlines, and other systems buyers, both in terms of official delegations and demonstrations, along with well-planned opportunities for companies to be able to meet them.”

The  next AAD will be organized by the South African Aerospace, Maritime and Defence Association and will run from 16 to 20 September 2020.

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