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Public Enterprise Study In South Africa

1099 words - 5 pages

Founded and incorporated as a company in 1992, Denel (Pty) Ltd is South Africa’s largest producer of defence equipment and operates in the military aerospace and landward defence environment. Denel is the main supplier of equipment to the South African National Defence Force (SANDF) as well as being a major supplier to international clients. It operates as both an original equipment manufacturer and for the maintenance, repair and upgrade to the SANDF’s armoury. Denel’s company structure is divided into many different branches operating under the Denel name but involved in different sectors of the defence manufacturing market. Their core business entities include Denel ...view middle of the document...

This company is not managing its finances correctly at all, and after posting such severe constant losses over the past 5 years, it cannot be said that the company is operating effectively from a financial standpoint. Serious re-evaluation needs to be done in terms of this company’s financial dealings.
Technological Advances
As a state owned enterprise, Denel’s technological advances can be implemented in other fields of manufacture in order to benefit the economy as a whole. In the most recent Ministry of Public Enterprises report of the state owned enterprises that fall into the Ministry’s portfolio (Denel being of such company), future plans to enable Denel’s strategic economic role in promoting advanced manufacturing shows that in the next 3 years, Denel is to enter into much more design-to-build contracts, which involve the production of completely new products from designing to final manufacture. In doing this, Denel is being used as the proverbial guinea pig to develop new strategies in the designing and manufacturing of goods. The Ministry of Public Enterprises is using the companies under its portfolio to implement strategies to improve the economy as a whole, and the work done by Denel in the furthering of the manufacturing sector of the economy in terms of technological advances and new production techniques is invaluable to our economy.

Community Welfare
One of Denel’s other business entities is Mechem, a division of Denel which specialises in the removal of landmines and other related types of weapons. They are internationally renowned for their work in removing landmines in countries with a war history. With current projects in countries including Sudan and Afghanistan and the Democratic Republic of Congo, they are a world leader in demining and contraband detection. In terms of community welfare though, it is clear that the company does have the welfare of communities in mind. During their recent 50th year anniversary celebration, Mechem supported the SPCA substantially by donating a large amount of dog food and paying for staff of dog kennels around the country to be trained in proper cleaning and sterilisation of dog kennels as well as basic handling techniques for dogs. Because dogs play such an important role in...

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