‘Offshoring’ Weapons Production and Implications for Export Controls: Lessons from South Africa

Abstract Large European arms companies increasingly own and control subsidiaries in other parts of the world. These subsidiaries operate hundreds of production sites used to manufacture and export weapons for the benefit of the parent company. Yet, they are bound by the legal framework in host countries. An important case study of this phenomenon is South Africa, which is now the site for numerous subsidiaries of large European arms manufacturers, including Rheinmetall and Hensoldt. Between 2018 and 2021, a Rheinmetall subsidiary in South Africa continued to export weapons to Saudi Arabia despite a German prohibition. This article uses South Africa as a case study to examine the potential consequences of the practice of offshoring in the context of weaknesses in South Africa’s arms export control framework and provides recommendations on how to improve scrutiny and reporting in South Africa’s system to better guard against this type of conduct.