# South Africa reassess Badger IFV acquisition project

- Link: https://www.military.africa/2022/02/south-africa-reassess-badger-ifv-acquisition-project/
- Published: 2022-02-21T08:29:00+01:00
- Author: Sarah Lesedi

South Africa’s plans to acquire 264 Badger armored vehicles in five main variants:
Command, Missile, Section, Fire Support, and Mortar to partially replace the Ratel
fleet is in limbo and danger of cancellation.

Defence company Denel Land Systems which is the prime contractor for the acquisition
of the Badger infantry fighting vehicles under Project Hoefyster for the South African
Army cannot fulfill the contract [due to increasing technical and financial challenges in Denel.](https://www.military.africa/2019/09/what-is-the-future-of-denel)

> [What is the Future of Denel?](https://www.military.africa/2019/09/what-is-the-future-of-denel/)

State-owned Armscor has subsequently recommended the contract be canceled and the
money be spent on Ratel upgrades. Details emerged regarding Project Hoefyster on
Wednesday, 16 February during a presentation to the Portfolio Committee on Defence
and Military Veterans by defense materiel agency Armscor.

Decades after Project Hoefyster was signed onto being, the South African Army is
yet to receive any Badger IFV, despite a total of R7.6 billion has been spent on
the project; R1.5 billion has been spent on the design and development phase, and
R5 billion on the industrialisation phase. The entire project was valued at R16.2
billion by Armscor.

Owing to Denel’s inability to complete the project, Denel and Armscor in 2018 recommended
that the project delivery date be extended to 2026, and an R500 million penalty 
be waived.

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Armscor however is recommending that the contract be cancelled since the development
phase was slated to be completed in May 2012. That has not yet happened and the 
expected new completion date is December 2023.

An R1.4 billion in guarantees is held by banks, including Absa, Nedbank, and FNB
as well as Guardrisk. Denel guarantees amount to another R550 million, but the amounts
covered by Denel guarantees are at risk.

In its 2020/21 annual report, Armscor noted that the Badger IFV development had 
not reached product baseline establishment by the end of the reporting period, failing
two rounds of performance tests.

“Turret, vehicle platform and level system development activities for the fire support,
command, mortar and missile variants are late due to Denel prioritising completion
of the section variant development. The industrialisation of vehicle assembly at
Denel Vehicle Systems (DVS) has not shown any significant progress since the previous
reporting period, due mainly to parts shortages as a result of non-payment of suppliers.

“Delivery of the first battalion of 88 vehicles was contractually scheduled to be
completed by May 2019. This date was not achieved due to delays in development and
the industrialisation process. The latest indicated delivery date for the first 
battalion is December 2024.”

If the contract is cancelled, funds from the Hoefyster contract could used to upgrade
the existing Ratel vehicles stock, and also there is the possibility of selling 
off Hoefyster items worth R1.2 billion, including 28 CamGuns, 15 Badger vehicles
delivered by Patria, 58 training simulators, and stocks of 30×173 mm CamGun ammunition.

The Mismanagement of the economy that plagued South Africa during the term of President
Jacob Zuma is still having a negative impact on the Economy.

The financial woes at Denel is threatening the combat readiness of South Africa’s
armed forces, as Denel is a key product supplier and service provider to the South
African National Defence Force (SANDF) and the South African Air Force (SAAF).

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South Africa which plays an important role in peace-keeping and rescue missions 
throughout the continent, its armed forces are being stymied by Denel’s precarious
state of affairs particularly given the current volatile situation in northern Mozambique,
and the dangers it poses.

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