The dispute centers on a clause in export documents that requires foreign customers to pledge not to transfer weapons to third parties and to allow South African officials to inspect their facilities to verify compliance, according to the four officials as well as letters obtained by Reuters.
Officials at major South African defense groups Denel and Rheinmetall Denel Munition (RDM) said the dispute was holding up their exports, as did a third big defense company which asked not to be named. RDM said some of its exports to the Middle East had not been approved since March.
Saudi Arabia and the United Arab Emirates, which account for at least a third of South Africa’s arms exports and are engaged in a war in Yemen, have rejected the inspections which they consider a violation of their sovereignty, the sources said.
Oman and Algeria have also refused inspections and seen their imports from South Africa blocked, the industry officials added.