Defence industry mainly comprises companies that assemble or manufacture products for military use. These include manufacturers of products such as military ships (submarines, destroyers, aircraft carriers and other range of military related products, which include missiles/ammunitions, defence-related technological devices such as radars and satellites.
It is common for developed countries to fill their demand for such products with domestic companies. For example, in the US local companies that are involved in the defence industry are major employers and tax generators.
A recent report by Deloitte shows that defence companies in the US provide a minimum of four million jobs, generate $300 billion in annual revenue and pay between $5-10 billion corporate income taxes. Most importantly, those communities where defence industry companies operate benefit from income sourced through various ways such as provision of housing, services and even operational support.
It is thus against this background that I feel there is a strong need for Botswana to be bold and establish a robust defence industry. A well-established defence industry will amongst other things increase Botswana’s self-sufficiency in military capabilities, reduce dependency on foreign defence hardware and software, cut on unnecessary costs incurred on middlemen and break away from some stiff bureaucratic channels that are associated with defence hardware and software procurement.
Furthermore, Botswana is one of the fastest growing and stable economies in Africa, geographically located in an economically and politically stable region in the continent. Botswana has always thought of many ways of diversifying the economy from exportation of raw materials/minerals.
In this case the establishment of a defence industry can provide a boost to industrialisation especially in the steel industry, thus creating some job opportunities for thousands of unemployed youths of this country. The industry can go a long way in broadening the tax base in both corporate and income taxes, which are a vital source of revenue.
Local companies can also benefit through the creation of export opportunities in services and defence products.
A defence industry may even promote the improvement of human capital thus preventing migration of skilled personnel such as aerospace engineers, architects, computer network programmers, Internet security specialists, laser technicians and a host of others.
In short, if Botswana can establish a domestic defence industry this can go a long way in jumpstarting industrialisation across a wide range of other sectors such as information technology, architecture, consultancies, etc.
Some pessimists may decry the fact that the establishment of a defence industry may bring with it some national security threats and that Botswana, is one of the African countries that have no technological and technical know-how on how to run a defence industry. While these might be, to some extent it is important for the government to have a visionary national security strategy and national security policy that can provide all the frameworks for the industry to blossom with minimum risks to national security.
In addition, Botswana can partner with international investors on the establishment of the industry. Other African countries have followed the same trend and have to some levels have a defence industry that has impacted positively on their economies.
Examples here include Egypt, which assemble armoured and other vehicles as well as knockdown kits. Nigeria, Namibia, Algeria manufacture and assemble naval vessels. Morocco manufactures aircraft components and does aircraft maintenance.
Other countries such as Zimbabwe, Ethiopia, Sudan, Tanzania and Kenya are involved in the transfer to manufacture of ammunitions and light weapons. South Africa is also well advanced in manufacturing and exporting capabilities. For example, a South African company, Paramount Group has signed agreements with several Middle East and Asian countries to partake in the development of their own industries.
This is an example Botswana, which is more economically and politically stable than some of these countries, can follow suit and develop its much needed defence industry especially the manufacturing of ammunition, light weapons, etc. When it comes to the technical and manufacturing know-how, there are plenty of potential partners in the global market who can provide such services.
These include third parties in different countries such as Nonticho (China), Fritz Warner (Germany), General Dynamics (USA), Renault (France) and Polish Armament Group (Poland). Botswana should come out of her cocoon and work very hard to diversify the economy and create jobs for her citizens especially the youth. On of the ways to achieve that is through the establishment of a robust defense industry.
