THE DEFENCE SECTOR AND THE DEFENCE BUDGET: MINIMISING COSTS AND MAXIMISING BENEFITS

This report by the Institute for Security Studies examines the challenges of defence economics in Africa, focusing on the need for transparency, accountability, and efficiency in military budgeting. It contrasts widespread opaque practices across the continent with the structured, transparent fiscal management system used in South Africa.

• Defence planning and budgeting in Africa are generally characterized by a lack of transparency and poor development, with off-budget spending being common. Governments often conceal military expenditures to hide corruption, avoid donor country demands for reduced spending, or protect the interests of privileged elites.
• African governments use several methods to disguise military spending or generate extra-budgetary revenue. These include misusing contingency funds, budgeting military costs under other departments (such as Public Works or Social Welfare), and direct military involvement in illegal activities like smuggling and trafficking.
• The report argues that while social and developmental needs are a priority, completely eliminating defence spending is unrealistic. A 'needs-driven but cost-constrained' approach is recommended to balance security requirements with available resources, acknowledging that security is a prerequisite for investor confidence and economic prosperity.
• To improve efficiency in African defence sectors, the author suggests several structural reforms: optimizing 'tooth-to-tail' ratios to prevent bloated support structures, utilizing reserve or part-time forces to reduce the cost of large regular armies, and implementing better information technology for management information.
• South Africa is presented as a model of transparent defence budgeting. Its process is governed by the constitution and national legislation, utilizing a three-year medium-term expenditure framework (MTEF) and involving multiple levels of oversight, including the National Treasury, the Auditor-General, and the Portfolio Committee of Parliament on Defence.
• In South Africa, the Special Defence Account (SDA) is used for sensitive activities and equipment procurement. While less detailed information about the SDA is made public than other programmes, it is still scrutinized by the ministers of Defence and Finance and the Portfolio Committee of Parliament on Defence in closed sessions.

APA

Le Roux, L. (n.d.). THE DEFENCE SECTOR AND THE DEFENCE BUDGET: MINIMISING COSTS AND MAXIMISING BENEFITS. Institute for Security Studies. https://issafrica.s3.amazonaws.com/site/uploads/CIVILLEROUX.PDF

Chicago

Le Roux, Len. THE DEFENCE SECTOR AND THE DEFENCE BUDGET: MINIMISING COSTS AND MAXIMISING BENEFITS. Institute for Security Studies, n.d. https://issafrica.s3.amazonaws.com/site/uploads/CIVILLEROUX.PDF.

Wikipedia

{{cite report |last1=Le Roux |first1=Len |title=THE DEFENCE SECTOR AND THE DEFENCE BUDGET: MINIMISING COSTS AND MAXIMISING BENEFITS |publisher=Institute for Security Studies |url=https://issafrica.s3.amazonaws.com/site/uploads/CIVILLEROUX.PDF |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{lerouxnddefence, author = {Le Roux, Len}, title = {{THE DEFENCE SECTOR AND THE DEFENCE BUDGET: MINIMISING COSTS AND MAXIMISING BENEFITS}}, institution = {Institute for Security Studies}, url = {https://issafrica.s3.amazonaws.com/site/uploads/CIVILLEROUX.PDF}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }