The Aerospace Industry: Prospects for Strategic Co-operation among the IBSA Countries

The report assesses the potential for aerospace co-operation between India, Brazil, and South Africa (IBSA). It details South Africa's aerospace and defence capabilities, the government's Aerospace Industry Support Initiative (AISI), and the role of industrial participation policies in integrating firms like Aerosud and Denel into global supply chains. While identifying three key areas for IBSA collaboration—expanding supply chains, strategic defence systems, and small satellites—the report highlights significant barriers, most notably corruption allegations against Denel by the Indian government and the challenge of balancing South-South co-operation with existing partnerships with 'first-tier' global contractors.

• The global aerospace industry is dominated by a few economic powers, primarily the US, and is characterized by high barriers to entry for emerging economies due to restrictive legislation and stringent certification requirements.
• South Africa's aerospace strategy, the Aerospace Industry Support Initiative (AISI), aims to position the sector as a high-value global manufacturing industry and a regional African transport hub by 2014, mirroring the growth model of the automotive sector.
• South African firms have successfully integrated into global supply chains through industrial participation policies and strategic partnerships, such as Aerosud's contracts with Boeing and Airbus, and Denel's involvement in the A400M military transport aircraft programme.
• Three primary areas for IBSA aerospace co-operation have been identified: expanding supply chains (leveraging Brazil's Embraer for the African market), collaborating on strategic defence systems, and joint development of small and micro satellites.
• A major threat to IBSA co-operation is the diplomatic and commercial fallout from corruption allegations by the Indian government against Denel regarding arms contracts, leading India to cancel all arms contracts with the firm.
• Industry respondents suggest that IBSA co-operation should focus on complementary niches and shared R&D rather than attempting to develop a new global low-cost aircraft engine manufacturer, which is deemed prohibitively expensive.

APA

Soko, M. (2006). The Aerospace Industry: Prospects for Strategic Co-operation among the IBSA Countries. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/06/13Trade-Report-No-13_Final.pdf.pdf

Chicago

Soko, Mills. The Aerospace Industry: Prospects for Strategic Co-operation among the IBSA Countries. South African Institute of International Affairs, 2006. https://saiia.org.za/wp-content/uploads/2013/06/13Trade-Report-No-13_Final.pdf.pdf.

Wikipedia

{{cite report |last1=Soko |first1=Mills |title=The Aerospace Industry: Prospects for Strategic Co-operation among the IBSA Countries |publisher=South African Institute of International Affairs |date=May 2006 |url=https://saiia.org.za/wp-content/uploads/2013/06/13Trade-Report-No-13_Final.pdf.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{soko2006aerospace, author = {Soko, Mills}, title = {{The Aerospace Industry: Prospects for Strategic Co-operation among the IBSA Countries}}, institution = {South African Institute of International Affairs}, year = {2006}, month = may, url = {https://saiia.org.za/wp-content/uploads/2013/06/13Trade-Report-No-13_Final.pdf.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }