Deputy Minister Andries Nel: Presentation of 2025 first and second quarter reports of NCACC

Opening statement by Hon AC Nel, MP, Deputy Minister of Justice and Constitutional Development and Deputy Chairperson of the National Conventional Arms Control Committee to the Joint Standing Committee on Defence on the presentation of the 2025 first and second quarter reports of the NCACC on Friday, 25 July 2025

Chairperson,
Honourable members

The National Conventional Arms Control Committee (NCACC) welcomes the opportunity to present its reports for the first and second quarters of 2025 to the Joint Standing Committee on Defence (JSCD).

We convey the greetings of the Chairperson and members of the Committee. The Chairperson, Min Khumbudzo Ntshavheni, is abroad on official business and conveys her apologies.

She has requested me, as Deputy Chairperson, to present the Committee’s reports. We welcome this opportunity to report to, and be held accountable by, the Joint Standing Committee on Defence.

This is, in a sense, double oversight at work. For we ourselves are both a regulatory and an oversight body charged by the Conventional Arms Control Act with the following six responsibilities:

• First, implementation of a legitimate, effective and transparent control process

• Second, to foster national and international confidence in the control procedures

• Third, to provide for an Inspectorate to ensure compliance with the provisions of this Act

• Fourth, to provide for guidelines and criteria to be used when assessing applications for permits made in terms of the Act

• Fifth, to ensure adherence to international treaties and agreements

• Sixth, to ensure proper accountability in the trade in conventional arms

You are, therefore, answering - not only in theory, but in practice, the question: "Quis custodiet ipsos custodes?" or "Who will guard the guards themselves?"

Chairperson, on this philosophical note, it might also be an opportune time to congratulate you on the high honour of being conferred with the degree of Doctor of Philosophy in Public Management and Governance for a thesis dealing with the role of state-owned enterprises in achieving the commercial and developmental objectives of our country.

These matters are not unrelated to the subject matter of the reports we present to you today.

During the eight months since its appointment by President Cyril Ramaphosa on 28 October 2024, the National Conventional Arms Control Committee has held nine meetings.

The Committee has tried as far as possible to keep to its schedule of fortnightly meetings. During these meetings it has dealt with:

• 129 registrations

• 9 marketing permits

• 138 contracting permits, valued at R33 billion

• 461 permits for the export of munitions, valued at R5.8 billion

• 149 permits for the export of dual-use items, valued at R466 million

We therefore give the Joint Standing Committee the assurance that the Committee is fully functional and seized with discharging its duties in terms of the Conventional Arms Control Act that we outlined above.

However, this does not mean that there are no challenges.

The Committee is attempting to address these challenges through, amongst others, developing standard operating procedures to guide its work and that of its Secretariat as well as modernising and digitising the processing of applications.

We will elaborate on these matters in the Annual Report that the Committee is obliged to table in Parliament.

We turn now to a high-level overview of our reports for the first and second quarters 2025, covering the period 1 January to 30 June 2025.

Chairperson, we will request, with your permission, that Mr Sipho Mashaba, a member of the Committee’s Secretariat, do the detailed presentation to the Committee.

During the period under review, the Committee approved the registration of 90 registration certificates and 1 marketing certificate.

The Act defines "marketing", as: “… the promotion of conventional arms, and any negotiations, offer, tender, advertising, shows, exhibitions or giving of information relating to conventional arms.”

Furthermore, the Committee approved 85 contracting permits. The total value involved in these permits is a very substantial R17.2 billion.

The Committee also approved 283 export permits for munitions. The total value involved in these permits is just under R5 billion, another substantial amount.

The Act defines "export", as: “… the transfer of conventional arms from the Republic to any place outside the Republic.”

A total of 165 import permits were approved. These involved R156 million.
The Act defines "import", as: “… to bring conventional arms into any part of the Republic, irrespective of whether it is done in exchange for currency or any other commodity.”

Lastly, 79 permits for the export of dual-use items were approved. These involved R287 million.

The Act defines "dual-use goods" as: “products, technologies, services or other goods which, besides their normal use and application for civilian purposes, can also be used for the furtherance of general military capability, and which are contained in a list published by the Minister by notice in the Gazette.”

Significantly, members will see that pace of the Committee’s work is accelerating. During the second quarter 56 companies were registered, compared to 34 during the first quarter. This represents a 60 percent increase.

The value of contracting permits approved was R9.3 billion during the second quarter. R1.4 billion more than the R7.9 billion approved during the first quarter.

However, the most dramatic increase was in the export of munitions. During the second quarter this stood at R4.9 billion, up from R907 million during the first quarter. The appendices to the reports outline the range of conventional arms and dual-use items that South Africa is manufacturing and exporting.

These range from ammunition to light weapons, to high-end technology such as fire control and related alerting and warning equipment, imaging or counter-measure equipment and as well as software.

We suggest that members must consider the above developments, facts and figures in the context of our three priorities outlined in government’s medium term development plan namely:

• Inclusive growth and job creation

• Poverty reduction and tackling the high cost of living

• Building a capable, ethical, and developmental state

Clearly the industries that we are responsible for regulating make a considerable contribution to both economic growth, development and retention of skills, and innovation.

Furthermore, we have made the point previously that whilst it does not fall within the remit of the National Conventional Arms Control Committee, we cannot ignore the imperative of transforming the conventional arms industry in line with the need for inclusive growth and job creation.

Humbly, we suggest that the Joint Standing Committee might want to consider engaging these important matters together with other committees such as the Portfolio Committee on Trade, Industry and Competition, and Science, Technology and Innovation.

Before handing over to Mr Mashaba to present the detailed reports, it would be appropriate to stress that we do so in terms of section 23 of the Conventional Arms Control Act (of 2022).

Section 23(2)(b) of the Act provides that: “The reports will only reflect the country, type and description of controlled items involved, the total value per type exported to the country for the year and reflect the quantity of controlled items involved, except if the disclosure is prohibited in terms of a confidentiality clause in the contract of sale.”

The Act goes on to provide, in section 23(2)(c), that: “Information concerning the technical specifications of controlled items may be omitted from a report contemplated in this section in order to protect military and commercial secrets.”

Whilst section 23(3) of the Act provides that: “No person may disclose any classified document or the content thereof concerning the business of the Committee except with the permission of a competent authority or as required in terms of the Promotion of Access to Information Act, 2000”

We raise these matters because, on previous occasions, members have raised concern that the Committee’s reports are not detailed enough. The National Conventional Arms Control Committee is a creature of statute.

We are bound by the provisions of the Conventional Arms Control Act, which was passed by Parliament after careful consideration of the imperatives dictated by our national interest and security in the context of a constitutional democracy that envisages an open and democratic society.

In this regard, we recall the words of the preamble to the Conventional Arms Control Act,

• “Since the adequate protection of rights to life and security of the person against repression and acts of aggression is fundamental to the well-being and to the social and economic development of every country

• And since it is the duty of every government to protect and safeguard the rights of its people

• And since every responsible country has the right to acquire arms to equip itself against acts of aggression

• And since the Republic is a responsible member of the international community and will not trade in conventional arms with states engaged in repression, aggression or terrorism

• And since the Republic is engaged in the manufacturing and export of conventional arms

• And since it is vitally important to ensure accountability in all matters concerning conventional arms

• Be it therefore enacted by the Parliament of the Republic of South Africa”

We wish to assure members that we strive to maintain strict compliance with the provisions of the Act.

In this regard, we wish to address the assertion made by some members of the Joint Standing Committee that South Africa is party to selling arms to Israel. We do not agree with this assertion.

South Africa’s position in this regard is well known and has been articulated clearly both in words, and actions such as bringing a case of genocide against Israel in the International Court of Justice.

The preamble to the Constitution enjoins us to: “Build a united and democratic South Africa able to take its rightful place as a sovereign state in the family of nations.”

This echoes the words of the Freedom Charter that:

• “There shall be peace and friendship!”

• “That South Africa shall be a fully independent state which respects the rights and sovereignty of all nations”

• “South Africa shall strive to maintain world peace and the settlement of all international disputes by negotiation – not war”

Accordingly, we appeal to any members of this Joint Standing Committee to assist the National Conventional Arms Control Committee to discharge its duties in terms of the Conventional Arms Control Act by providing whatever evidence they have, to enable the Committee to investigate.

We look forward to engaging with the Joint Standing Committee on our reports for the first and second quarters of 2025.

We thank you.