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

Sector Codes

Defence Sector Code

6. Challenges facing the SADI
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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.