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President Ramaphosa visits Denel as turnaround plan takes root
Source: SAnews.gov.zaView Original Source
Denel is showing signs of recovery with increased revenue and a major international contract, but cash flow constraints persist. The presidential visit underscores government backing, which may translate into more defence tenders and subcontracting opportunities. Bidders should weigh the potential for new work against the risk of payment delays.
This could lead to increased defence procurement and subcontracting opportunities, but suppliers must assess Denel's payment reliability and cash flow issues.
Denel's financial performance improved and it secured a major international contract, with presidential endorsement of its turnaround.
Denel's recovery could strengthen the local defence industrial base, creating a ripple effect for SMEs and subcontractors, while also highlighting the need for robust financial due diligence when dealing with SOEs.
Suppliers in defence manufacturing, engineering, and related services should monitor Denel's tender pipeline and subcontracting opportunities, especially for the G6 contract and potential new orders.
Suppliers must ensure compliance with defence procurement regulations and be aware of potential delays in payments due to Denel's cash flow constraints.
Excerpt reproduced for context. Tenders SA analysis is based on this public source. Read the full article at SAnews.gov.za.
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