Executive Summary . 5
SWOT Analysis . 6
South Africa Security SWOT .. 6
South Africa Defence Industry SWOT 7
South Africa Political SWOT . 8
South Africa Economic SWOT ... 8
South Africa Business Environment SWOT 9
Global Political Outlook . 10
Major Risks Looming In 2012-2013. 10
Global Flashpoints: Eurozone, Iran, Syria, Afghanistan, Korean Peninsula ... 10
Table: Election Timetable, Q212-Q113 ... 15
Wild Cards To Watch ... 19
Security Risk Ratings 22
Table: Middle East And Africa Defence And Security Ratings 22
Table: Middle East And North Africa State Vulnerability To Terrorism Index 23
Political Overview ... 24
Domestic Politics .. 24
Zuma In Pole Position Despite Mounting Criticism . 24
Long-Term Political Outlook 26
Political Trials And Tribulations Over The Coming Decade ... 26
Security Overview .. 30
Organised Crime . 35
Armed Forces And Government Spending . 36
Armed Forces .. 36
Weapons Of Mass Destruction . 38
Market Overview . 39
Arms Trade Overview .. 39
Procurement Trends And Developments .. 39
Latest Developments 41
Industry Forecast Scenario ... 45
Armed Forces .. 45
Table: South Africa’s Armed Forces, 2000-2008 (’000 personnel, unless otherwise stated) ... 45
Table: South Africa’s Available Manpower For Military Services, 2009-2016 (aged 16-49, unless otherwise stated) 45
Defence Expenditure 46
Table: South Africa’s Government Defence Expenditure, 2009-2016 .. 46
Table: South Africa’s Defence Expenditure Scenario – Changing % Of GDP, 2009-2016 (US$mn) .. 47
Defence Trade .. 47
Key Risks To BMI’s Forecast Scenario 47
Macroeconomic Outlook ... 48
On The Ground: Slow But Steady Growth, Political Risk Running High . 48
Table: South Africa – Economic Activity, 2011-2016 .. 51
Company Profiles ... 53
Aerosud 53
Land Systems South Africa – BAE Systems .. 54
Denel ... 55
Grintek Defence & Technologies . 57
Reutech 58
Thales South Africa (Pty) Ltd ... 59
Country Snapshot: South Africa Demographic Data . 61
Section 1: Population ... 61
Table: Demographic Indicators, 2005-2030 61
Table: Rural/Urban Breakdown, 2005-2030 ... 62
Section 2: Education And Healthcare .. 62
Table: Education, 2002-2005 .. 62
Table: Vital Statistics, 2005-2030 62
Section 3: Labour Market And Spending Power .. 63
Table: Employment Indicators, 2001-2006 .. 63
Table: Consumer Expenditure, 2000-2012 (US$) 63
Table: Average Annual Wages, 2000-2012 .. 64
Methodology ... 65
How We Generate Our Industry Forecasts .. 65
Defence Industry .. 65
Sources 66Table: Election Timetable, Q212-Q113 . 15
Table: Middle East And Africa Defence And Security Ratings . 22
Table: Middle East And North Africa State Vulnerability To Terrorism Index . 23
Table: South Africa's Armed Forces, 2000-2008 ('000 personnel, unless otherwise stated) . 45
Table: South Africa's Available Manpower For Military Services, 2009-2016 (aged 16-49, unless otherwise stated) . 45
Table: South Africa's Government Defence Expenditure, 2009-2016 . 46
Table: South Africa's Defence Expenditure Scenario – Changing % Of GDP, 2009-2016 (US$mn) . 47
Table: South Africa – Economic Activity, 2011-2016 . 51
Table: Demographic Indicators, 2005-2030 . 61
Table: Rural/Urban Breakdown, 2005-2030 . 62
Table: Education, 2002-2005 . 62
Table: Vital Statistics, 2005-2030 . 62
Table: Employment Indicators, 2001-2006 . 63
Table: Consumer Expenditure, 2000-2012 (US$) . 63
Table: Average Annual Wages, 2000-2012 . 64