Government blocks R1-billion sale to bail out important South African company

• The R1-billion sale of Denel's non-core assets has been blocked by the Department of Defence due to concerns over their strategic importance for the South African National Defence Force.
• Denel is facing significant financial struggles, having seen its revenue plummet from R8.2 billion in 2016 to R1.3 billion in 2025, and relies heavily on government bailouts to survive.
• The blocked sale has left Denel with an estimated R900 million shortfall, which the company had hoped to make up through the sale of non-core assets.