BDF eyes Gripen jet fighter
Lawrence Seretse | Friday April 4, 2014 14:54
It is supplied by the Swedish military defence and civil security firm, Saab Grintek Defence. The company has reportedly been lured to Botswana by the country’s robust military spending. The BDF’s annual purchasing budget has inched towards the P700 million-mark in the last four years.
This week, Saab group’s head of communications, Anne Lewis-Olsson told Mmegi that they set up an office in Gaborone in January as part of an expansion process. She said the company had seen opportunities in both Botswana and the wider Sub-Sahara Africa. “Botswana has been selected as the third country in Sub-Saharan Africa for Saab AB to open an office due to its transparent business environment and solid business opportunities for various products in the Saab portfolio,” she said.
“Apart from being a highly capable aircraft, the Gripen’s chief selling point is its affordability, in terms of development, acquisition, operation, and through-life sustainment, which makes it ideal for countries like Botswana and South Africa.”
The Gripen fighter jet, one of Saab’s most successful products, is being offered in the most recent Gripen E version.
Lewis-Olsson’s could not confirm whether Botswana has ordered the jet or is planning to.
“We are just starting to establish our presence in Botswana and we see many opportunities for our Saab products and systems in the country and also future opportunities to offer long term co-operation and partnerships between Botswana and Sweden,” she said in reply to a question whether Botswana is buying from them.
However, others say it is well known that Botswana’s military air wing has challenges in fighter capability, which is a key motivating factor to rope manufacturers like Saab. This week, military sources said BDF was expected to replenish the ageing and high-maintenance F-5 fighter jets quickly. Mmegi is informed that the BDF is now at an advanced stage of acquiring the South Korean T-50 fighter jet.
Last November, a Korean delegation that met with Defence Minister, Ramadeluka Seretse and other BDF commanders gave a presentation on the T-50 supersonic trainer, built jointly with Korea Aerospace Industries (KIA) and US aerospace giant Lockheed Martin. A presentation was also made on the FA-50, a light attack variant of the T-50. Last week, Seretse acknowledged the challenge of ageing military equipment during his Committee of Supply presentation in Parliament. He said there was need to upgrade and refurbish existing equipment to maintain the required defence capabilities.
“The majority of the equipment has since become obsolete and beyond economic repair,” he said. Sources say Saab is already exporting its products in small numbers to Botswana and other countries with ageing military vehicles and fighter jets.
Although Seretse refutes this, international media has quoted the head of the aeronautics at Saab, Lennart Sindahl, as saying the company has received queries for the Gripen from Botswana.
Speaking to Mmegi, Seretse said he was not aware of plans by the BDF to purchase the Gripen fighter jets from Saab. He said he does not know the type of business Saab is going to be involved in and distanced his ministry from the Swedish company’s move to Botswana.
“I do not know of such an acquisition and I do not know what they are bringing here. I know they are a manufacturer of a wide range of products from military to civil machinery but I also believe they would be aware of issues of compliance and the laws governing the setting up of businesses in Botswana if they make that move,” Seretse said.
Although it is no secret that Botswana is procuring T-50 jets to replenish the rickety F-5s, Saab is said to be pushing hard to score big with its latest Gripen E aircraft. Reports say that the company recently revealed its Gripen E detailed design for the future variant, which it says will beat the development and operational cost performance of other models.
Military sources said the Swedish company’s establishment in Botswana is informed by a positive feasibility study the country and the region, in terms of demand and ability to afford its various products. Botswana is among the top five biggest defence spenders in Africa, according to the Stockholm International Peace Research Institute (SIPRI). SIPRI ranked Botswana at number 86 out of the 154 countries in a recent study on the value of military equipment purchases. “The BDF’s purchasing budget rose from P574 million in 2010-2011 to a proposed P627 million in the current one, with most of this directed at aircraft, vehicles and other equipment, as compared to maintenance,” said one insider.
“Saab would have looked at this and realised that there is both the financial and the market viability for its products. The fact that the BDF’s budget has remained strong over the years, would also give the Swedish the confidence required to establish in Botswana on a full-time basis.”
Saab is one of the largest manufacturers of military and civil aerospace equipment in the world and is no stranger to doing business with Botswana. It has been manufacturing parts for Airbus and Boeing commercial products and doing design and production of drones.
It is understood that Saab’s foray into Botswana could be motivated by the fact that the Southern African Standby Force (SSF) Logistics Depot will be established in Gaborone. The depot will provide all supplies to the seven-year-old SSF whose role ranges from humanitarian, peacekeeping to defence. “Strategically speaking, you follow the Dollar,” said another insider. “Saab will be strategically closer to the logistics depot which holds the promise of consistent US Dollar procurement, while the BDF and its deep pockets will also be a neighbour.”
Lewis-Olsson said the office in Botswana has primarily been established to provide a hub for Saab and to avoid some of the barriers in a market like South Africa, which include company ownership criteria and Black Economic Empowerment (BEE). She said the Swedish company is also planning to set up base in Namibia, Kenya, Ghana and Angola.