The Joint Standing Committee on Defence has raised serious concerns regarding the effectiveness of the National Conventional Arms Control Committee (NCACC) and the functionality of the Directorate for Conventional Arms Control (DCAC) in facilitating a conducive regulatory environment for the armaments trade industry.
The committee met with the Aerospace, Maritime and Defence Industries Association of South Africa (AMD), which outlined the significant challenges currently facing the sector.
The Co-Chairperson of the committee, Mr Phiroane Phala, said: "It is unacceptable that the South African defence industry continues to suffer under the weight of irregular meetings by the NCACC, which make it difficult to approve applications, leading to loss of business. The fact that defence industry businesses are forced to shut down, resulting in job losses, is an indictment on the NCACC and must be resolved urgently."
The committee's concerns arise in the context of the call by the President of the Republic to intensify efforts to attract investment and remove barriers that impede economic growth.
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"The longstanding challenges at the NCACC and the DCAC directly undermine the industry's ability to compete in a highly competitive global environment. This not only leads to job losses, but also erodes intellectual capacity within the industry, as critical skills are lost to international competitors," Mr Phala emphasised.
The committee noted that inefficiencies within the NCACC and DCAC have had a direct and adverse impact on companies, including increased export and import losses, missed delivery deadlines resulting in revenue loss, reputational damage, job losses, and the relocation of companies offshore.
It is also of serious concern that no formal platform exists for structured engagement between the regulator and the defence industry to address operational challenges. "A formal platform to ventilate impediments is necessary to resolve challenges before they become barriers to effectiveness. The committee calls on the Chairperson of the NCACC to urgently revive and finalise a process initiated by the former Chairperson," said Dr Malusi Gigaba, Co-Chairperson of the committee.
Regarding capacity constraints within the DCAC, the committee expressed alarm that despite repeated assurances of improvements to Information Technology systems aimed at streamlining application processes, no tangible progress has been realised. Persistent staff shortages, incompatible IT infrastructure, and the loss of applications remain ongoing challenges. Furthermore, the committee also called for the completion of a process to fill the office of the Director of DCAC to ensure strategic drive of the secretariat.
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The committee has resolved to urgently invite the NCACC and DCAC to appear before it to account for the failure to implement the promised reforms. A physical meeting has been scheduled for 6 March 2026 to address the matter with the urgency it demands.
"We do not want to be complicit in these challenges. We cannot continue discussing the same issues without arriving at a cogent and implementable solution," Mr Phala concluded.
On the call to review the arms trade regulatory framework, the committee indicated that while such a review may be considered, it must remain aligned with international arms control standards, the spirit and provisions of the National Conventional Arms Control Act.
The committee has requested the industry to submit concrete proposals aimed at strengthening the regulatory framework and ensuring a more efficient and competitive arms trade environment.
