During the recent Africa Aerospace and Defence (AAD) 2026 exhibition and conference, South Africa’s Trade, Industry and Competition Minister Parks Tau relayed that the country’s aerospace and defence industrial capability needs to be scaled up.
- South Africa's Trade, Industry and Competition Minister emphasized the need to scale up the country's aerospace and defence industrial capabilities amid rising defence exports and global demand.
- He highlighted South Africa's R10.1 billion defence exports last year and noted increased international interest and investment in local equipment.
- Companies like Rheinmetall Denel Munitions (RDM) are key examples, with RDM planning to double production capacity and investing heavily in plant upgrades.
- The government remains committed to supporting entities like Denel and encourages local procurement to bolster the national industrial base.
His assertion is against the backdrop of South Africa’s defence exports, which reached R10.1 billion ($610 million) in the previous fiscal year.
He also made mention of the growing international demand and investment in locally produced equipment, which serves as rationale for the country to scale up its defence industry.
“Countries around the world recognise the role played by aerospace and defence industries and the impact they have on their economic development.
This is especially true when it comes to strategic minerals and strategic technologies that have the potential to disrupt other industries and shape future innovation,” the minister stated.
“The rapid pace of change brought about by artificial intelligence, cyber security and re-shaping global supply chains means that countries around the world are looking to protect their sovereignty by protecting their strategic minerals and industrial capabilities. South Africa cannot afford to fall behind.
This is the moment to scale, not slow down. The ability to design, build, maintain, and export our own platforms is a matter of national sovereignty,” he added.
The South African minister recalled Rheinmetall Denel Munitions (RDM), an example of how South Africa can turn its industrial strength and access to international markets into commercial success.
According to DefenseWeb, the company accounted for a significant share of South Africa’s R4.8 billion ($290 million) in munitions exports in 2025 and plans to invest billions of rand to expand its production capacity over the next three years.
RDM currently spends nearly R1 billion annually upgrading its four production plants in South Africa. It plans to double its production capacity within the next three years.
What the South African minister said
“That is what happens when local capability meets global market access,” Tau stated.
Tau also mentioned that RDM’s growth highlights Denel’s continued role in supporting South Africa’s aerospace and defence industry. The joint venture was built on the state-owned defence company’s technical expertise.
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“Denel continues to be a strong platform for exactly this kind of partnership, and government is committed to stabilising Denel to continue to play this role.”
Furthermore, the South African minister noted that purchasing defence equipment locally and developing domestic production capabilities are key to strengthening South Africa’s industrial base.
Tau’s speech marked 20 years of the Aerospace Industry Support Initiative (AISI), a government programme established to strengthen South Africa’s aerospace and defence industries in partnership with the Council for Scientific and Industrial Research (CSIR).
The initiative’s annual budget has grown from about R300,000 ($18,000) to nearly R50 million ($3 million), attracting additional investment from supported companies.
Over the past decade, AISI has supported 142 small and medium-sized businesses, helping create and retain more than 1,236 jobs and develop 148 technologies and products, according to Tau.
The programme also helped companies obtain 49 international certifications and contributed to R381 million ($23 million) in local industrial output and more than R332 million ($20 million) in direct exports.