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GT Shield

Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Sector Codes

Defence Sector Code

6. Challenges facing the SADI


6.1 Declining local spending;


6.2 A South African economy that is growing at a slow rate;


6.3 The rising threat of socio-political instability as a result of economic exclusion, and income inequality;


6.4 The exclusion of Black Military Veterans from the economy;


6.5 The inability of South African businesses in the SADI to meaningfully expand into the rest of the African continent’s defence industry;


6.6 Continued over-reliance of the SADI on monopolies, oligopolies and Foreign-Enterprises;


6.7 Lack of adequate protection and preferential access for local Defence manufacturers over international competition; and


6.8 Regulatory constraints.