The Defence Minister says public-private partnerships could help address SANDF housing, infrastructure and capability needs as government seeks to rebuild defence capacity amid limited public resources.
Image: Armand Hough/African News Agency(ANA)
Defence Minister Bantu Holomisa says South Africa must explore innovative funding models and public-private partnerships to strengthen the country’s defence capability, warning that the SANDF cannot rely solely on additional allocations from National Treasury to address growing infrastructure, equipment and modernisation challenges.
Speaking at the Defence Industry Lekgotla on Tuesday, Holomisa said the Department of Defence faced significant pressures, including infrastructure backlogs, military housing shortages, equipment sustainability challenges and the need to modernise existing capabilities.
“The reality is that the Department has substantial responsibilities, but the resources available to meet all those responsibilities are limited,” Holomisa said.
His comments come amid growing concerns over the state of the SANDF, with defence officials and parliamentary representatives warning that funding constraints have placed pressure on the military’s ability to maintain operational readiness.
The department’s 2026/27 budget allocation stands at approximately R57.6 billion, with defence officials continuing to call for increased spending towards 1.5% of gross domestic product (GDP).
The debate around defence funding has intensified as questions continue over whether the SANDF has sufficient resources to meet its growing responsibilities, including border protection, peacekeeping missions and support to domestic security operations.
Holomisa said the challenges facing the defence force were not new, pointing to the 2015 Defence Review, which warned that inadequate defence spending had placed the SANDF and the local defence industry under severe pressure.
He said government could not assume that every infrastructure backlog, equipment requirement and modernisation project would be addressed through additional allocations from National Treasury.
“The question before us is therefore not whether the problems exist.
''The Department cannot simply assume that every infrastructure backlog, every equipment requirement and every modernisation project will be fully funded through additional allocations from the National Treasury. That is not a realistic assumption,” Holomisa said.
He said South Africa needed to consider “additional and innovative ways of mobilising capital and expertise” to support defence requirements.
The minister’s remarks come as the SANDF faces scrutiny over its operational capabilities, including concerns around ageing equipment, maintenance backlogs and the availability of military assets.
Concerns over the South African Air Force’s ability to sustain operations have previously emerged, with reports of aircraft availability being affected by fuel shortages, maintenance constraints and limited resources.
The Oryx helicopter fleet, which plays a critical role in troop transport, disaster relief, search-and-rescue missions and support operations, has been among the capabilities affected by these challenges.
The funding debate has also placed pressure on government to explain how the SANDF can maintain its constitutional mandate while operating within a constrained fiscal environment.
Holomisa said public-private partnerships could assist in addressing some of these challenges, but stressed that such arrangements would not involve selling defence assets or compromising national security.
“When I speak about Public-Private Partnerships, I am not speaking about selling off the assets of the Department of Defence.
''I am not speaking about selling military land to the highest bidder. I am not speaking about compromising national security,” he said.
He said PPPs should instead be used as a lawful and transparent mechanism to mobilise private sector capital, expertise, innovation and long-term operational capacity where appropriate.
Holomisa said South Africa could not allow the deterioration of strategic defence capabilities to continue.
“We cannot allow our military bases to deteriorate indefinitely. We cannot allow our personnel to live in conditions that undermine their dignity.
''We cannot allow critical infrastructure and equipment to reach a point where the cost of replacement becomes greater than the cost of timely intervention,” he said.
He said defence land should be viewed as a strategic national asset and could be used to support carefully structured partnerships while ensuring that the state retained ownership and control.
“The question is not whether we should commercialise the defence estate. The question is whether we can use our existing assets more intelligently to support the defence mission,” Holomisa said.
He said possible areas for partnerships included military housing, health and hospital infrastructure, logistics and maintenance facilities, training infrastructure and the modernisation of selected military bases.
Holomisa said the issue of military housing was directly linked to operational effectiveness and the wellbeing of soldiers.
“A soldier who serves the Republic should not be expected to live indefinitely in conditions that undermine his or her dignity,” he said.
The minister also raised the possibility of developing a modern military precinct in Pretoria, where defence institutions are currently spread across different locations and government incurs costs through rented accommodation.
He said South Africa should consider whether defence-owned land could be used more effectively to consolidate appropriate military, administrative, training, housing and support functions.
Holomisa said institutional investors, including the Public Investment Corporation (PIC), could also be engaged to explore long-term infrastructure investment opportunities.
However, he stressed that any partnership would need to be assessed against national security requirements, affordability, procurement legislation, ownership and long-term fiscal implications.
The minister also warned that the defence force’s equipment challenges required urgent attention, particularly as South Africa continues to participate in international deployments.
“One gets worried that should the SANDF get a deployment outside of our borders after our SAMIDRC withdrawal, would we have equipment that is in line with the mission requirements?” he said.
Holomisa said the defence industry needed to move beyond simply supplying equipment and focus on maintenance, repair and overhaul capabilities, technology transfer, local manufacturing and sustaining existing platforms.
“The role of the defence industry must therefore extend beyond simply supplying equipment,” he said.
He said emerging technologies, including artificial intelligence, cybersecurity, autonomous systems, advanced manufacturing and robotics, would increasingly shape future military capability.
“The future of defence is increasingly shaped by artificial intelligence, cybersecurity, autonomous systems, advanced manufacturing, robotics and other emerging technologies,” Holomisa said.
He said South Africa needed to create pathways for young people to enter the defence sector through research, innovation, skills development and industry opportunities.
Holomisa said international partnerships should also benefit South African companies, particularly emerging black-owned enterprises and young entrepreneurs, through access to technology, markets and skills.
He said the Department of Defence was working on identifying priority areas where partnership models could be implemented in line with National Treasury’s PPP framework.
“The objective is to move from broad discussions to specific, structured and implementable opportunities,” Holomisa said.
He said the Lekgotla should result in a practical roadmap identifying infrastructure backlogs, suitable partnership opportunities, funding models, responsibilities and timelines.
“The Department of Defence is not going anywhere. The SANDF is not going anywhere. As long as South Africa exists as a sovereign state, it will require a defence capability,” Holomisa said.
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