South Africa is considering delaying a pending order for either Saab/British Aerospace Gripen fighters or BAe Hawk lead-in fighter trainers, as it struggles to fund a planned R30 billion ($4.9 billion) defence modernisation programme.
The proposed R10.9 billion order for 28 Gripen fighters is the most expensive procurement contained in the 15-year defence package and is the most likely item to be deferred, say observers. The alternative is to postpone or reschedule a R4.7 billion order for 24 tandem-seat Hawk 100s.
BAe says it is negotiating to sell both jet types to South Africa, but delivery schedules have to be finalised. A major sticking point has been South Africa's push for more offset concessions to make deals appear politically more attractive.
"They have strengthened their requirements and we're all having a varying degree of difficulty responding," says a source. "Unless a cast-iron industrial case can be made to the government, they might reconsider."
This is understood to be causing particular problems for the submarine and corvette deal being negotiated by Germany.
Other major items included in the arms package are 40 Agusta A109 light helicopters and four LHTEC T800-powered GKN Westland Super Lynx naval machines.
The UK helicopter company says it is negotiating terms and conditions and "these are progressing satisfactorily".
In a further twist, South Africa is understood to have requested an exemption from Washington to enable US manufacturers to supply more detailed information and briefings on competing weapons.
The US Department of Defense denies receiving any specific request for price and availability data for the Lockheed Martin F-16 or Boeing F/A-18. Approval of the exemption request would initiate a formal release process.
Source: Flight International
