Egyptian MoD has apparently cancelled its contract with Denel Dynamics for Umkhonto surface-to-air missiles after Denel failed to provide guarantees for the R4.5 billion (US$265M) contract due to its financial problems.
This is according to the Mail & Guardian, which reported on Saturday that the contract was cancelled by Egypt in late 2019. Denel usually receives bank or insurance guarantees from financial institutions, but banks have been reluctant to have any dealings with the loss-making Denel for some time now.
Egypt had been looking at buying up to 96 Umkhonto surface-to-air missiles in a potential R4.5 billion deal for its new Meko A200 frigates, which are being built by ThyssenKrupp Marine Systems (TKMS). Denel was also hoping to sell 32 infrared-guided versions of its Umkhonto missile to Egypt.