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National Defence Industry Council
(NDIC)
Status Report
19 May 2017
Mr M.C. Zondi
Chief Defence Materiel
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CONTENT

Aim

Background

Progress

Summary of Project Activities

Conclusion
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AIM
To present a summary overview of
the activities undertaken by the
NDIC work streams in line with
milestones and deliverables of
NDIC.
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BACKGROUND

In 2014 cabinet approved South African Defence Review (DR),
which was tabled in Parliament. The DR2015 takes a critical look at
South Africa’s defence policy, a diagnostic of the current defence
function and an analysis of the strategic role that the Defence Force
plays.

The Defence Review provides a long-term Defence Policy and
Defence Strategic Trajectory to be pursued by the country over the
next four Medium-Term Strategic Framework periods.

When the Defence Review was approved by Parliament, the
Minister of Defence and Military Veterans (DMV), Hon MapisaNqakula established the NDIC and delegated the responsibility for
chairing the Secretary for Defence (SecDef), Dr S. Gulube.
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BACKGROUND
….cont/d

The NDIC has since adopted its constitution and decided to set in
motion the process of drafting the national defence industry strategy
and masterplan.

For purposes of strategy development, an inclusive process was
designed which sought to solicit inputs from various government
departments and defence industry experts.

Inputs were channelled through various work streams and
consolidated for approval by the steering committee chaired by Dr
Moses Khanyile.
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PROGRESS
• STRATEGY &
MASTERPLAN
WORK
STREAM
• SUPPORT TO
INDUSTRY
WORK
STREAM
• DEFENCE
REVIEW
ALIGNMENT
• OPERATIONALISATION
OF NDIC &
INTERGOVERNMENTAL
FORUM
WORK
STREAM
• TECHNOLOGY
WORK
STREAM
WORK
STREAM
• ACQUISITION
POLICY
WORK
STREAM
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• INDUSTRY
TRANSFORM
ATION
WORK
STREAM
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Work Stream 1: Strategy and Masterplan
Chair: Dr Moses Khanyile
Mandate
The mandate of work stream one is to gather all the inputs relating to the
NDIC Strategy and Masterplan from the other work streams and interface
them to the Steering Committee. The successful delivery of the
aforementioned deliverables relies on inputs from the various work streams.
Achievements
The SADI strategy document has been delivered and socialised with the
various work streams. The document was socialised at the NDIC Executive
Committee meeting on the 11th of April 2017.
Next Steps


Managing and integrating inputs to the strategy throughout the process
of public participation
Drafting the Masterplan to implement the strategy
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Work Stream 2: Defence Review Alignment
Chair: Rear Admiral Hanno Teuteberg
Mandate
To act as interface between Defence Review Implementation planning and
the development of the Defence Industry Strategy in order to promote
synergy and alignment of objectives as far as possible.
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Work Stream 3: Operationalisation Of NDIC
& Intergovernmental Forum
Chair: Mr Kgathatso Tlhakudi
Mandate

The development of an operational plan and structure for the NDIC

Provide a framework for the government interdepartmental forum
o Propose a forum for the private entities
o Provide guidance on the envisioned composition of NDIC i.e. fully
governmental e.g. NCACC, quasi-governmental e.g. NEDLAC, or
private, and the funding thereof.
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Work Stream 4: Support To Industry
Chair: Mrs Nokwanda Fipaza
Mandate

Scope, Review and Develop the Industry support mechanisms
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Work Stream 5: Technology
Chair: Mr Beeuwen Gerryts
Mandate
• To ensure close alignment with envisaged Defence Research and
technology Development Strategy.
• Focus on technology as a key enabler for sustained competitiveness of
the DOD and Defence Industry
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Work Stream 6: Acquisition Policy
Chair: Mr Peter Lebelo
Mandate
• To review current acquisition policy and propose amendments
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Work Stream 7: Industry Transformation
Chair: Advocate Vuyisa Ramphele
Mandate
To contribute on sustainable achievement of BBBEE transformation of the
industry, propose a framework for partnership relations amongst all players
and application of good business principles
Achievements

Adoption of the Defence Sector Charter by the steering committee on 31
January 2017

Approval of the Defence Sector Charter by the Minister of Defence and
Military Veterans on the 31st of March 2017

Submission of the Defence Sector Charter to the Minister of Trade and
Industry on the 31st of March 2017
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Summary of Project Activities
• NDIC launched by the Minister of Defence and Military
Veterans
• Workstreams announced
03/2016
07/2016
• Defence strategy, SME participation and Interim
Secretariat
• Commencement of research and analysis on the NDIC
strategy.
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Summary of Project Activities ….cont/d
• Analysis of the white paper on defence related industries of
1999 and comparison to the defence review 2015 to indicate
the possible impact on the project.
• Research on other countries’ industry councils and related
topics within Chile, Germany, South Korea, Spain and the
UK.
11/2016
• Alignment of the NDIC strategy framework to the other
countries as per the outcomes of the benchmarking exercise
performed.
• Sourcing of GRCA documentation to develop a GRCA model
for the NDIC.
• Presentation of the operating model options to the NDIC
Steering Committee for consideration.
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Summary of Project Activities ….cont/d
• Researching on the other Defence Industry strategies to use
for benchmarking the NDIC strategy.
• Completion of the NDIC processes, procedures and definitions
in a single document as a baseline for the drafting of the
strategy.
12/2016
• Review of the NDIC BBBEE charter of 31 October 2016 to
indicate its influence on the NDIC strategy.
• Completion of the Defence Industry Strategy outline.
• Delivery of the first draft of the operating model and functional
structure of NDIC.
Summary of Project Activities ….cont/d
01/2017
• Collation of work stream inputs into the strategy
• The NDIC Strategy Articulation workshop on the 14th of February
2017
02/2017
• Completion of the final draft of the NDIC strategy document.
03/2017
• Completion of the final drafts of the NDIC strategy annexures i.e.
case for local manufacture, strategic context and target markets
annexures.
• Planning the approach for the creation of the masterplan.
04/2017 • Completion of the final drafts of the NDIC strategy annexures i.e.
industry background, graphics, target markets annexures and
revision to the national context section.
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Thank You
Questions?