5.4 Challenges The entity is facing the following challenges: . Competition from developed economies due to home-market defence cuts; . Alignment between military acquisitions and industrial strategy; . International clients seeking indigenous solutions; . Growing geo-political influences; and . There is lack of growth in the defence spend of the country. In order to address these challenges, the entity needs support from the South African National Defence Force (SANDF) with regard to development and production orders. The government should give political and diplomatic support for bilateral defence cooperation agreements. The entity required a proactive promotion of Denel business and implementation of the recommendations of the defence review.