CEO Proposes Redirecting Military Funds to Tourism

Hendrik du Toit suggests South Africa follow Costa Rica's model by reallocating defence spending towards infrastructure.

Updated on Oct. 20, 2026 in Central America

Bold flat-color editorial illustration showing a stone bridge, representing the transition from defense spending to tourism and infrastructure development. — Ninety One CEO Hendrik du Toit has proposed reallocating South African military funding toward tourism and national infrastructure development. AI Illustration. Upload story photo >

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Should a country prioritize civilian infrastructure investment over its military budget?

Ninety One CEO Hendrik du Toit has proposed that South Africa divert military funding to boost tourism and infrastructure development, citing Costa Rica's 1948 decision to abolish its standing army as a primary model. Du Toit argues that the nation faces no immediate threat of war and should prioritise economic growth.

Why it matters

The proposal has sparked intense debate over the role of the South African National Defence Force in addressing internal crime. Critics contend that the military currently fills critical policing gaps that the South African Police Service is struggling to manage alone.

Costa Rica generates $5.5 billion annually from tourism, representing 6.3% of its total GDP. In contrast, the South African Police Service received an allocation of R127.072 billion for the 2026/27 financial year.

The players

Hendrik du Toit

He is the CEO of the global asset manager Ninety One who has publicly advocated for structural changes to South African national spending priorities.

Ricardo Teixeira

He is a critic who challenged the statistical validity of claims made regarding the annual expenditure of the South African National Defence Force.

South African National Defence Force

This is the primary military organisation responsible for defending the country and assisting in civil operations including anti-crime efforts.

South African Police Service

This is the national police agency tasked with maintaining law and order, which is currently managing a budget allocation of over R127 billion.

The details

Although Hendrik du Toit admitted to misreporting SANDF spending, he maintains that the military should not be utilised for anti-crime operations or illegal mining sweeps. Ricardo Teixeira has formally disputed the accuracy of du Toit's claims, arguing that the military's current involvement in law enforcement is a necessary response to current internal security failures.

1948: Costa Rica officially abolished its military establishment.
June 2026: Hendrik du Toit addressed attendees at the Hortgro Technical Symposium.
2026/27 financial year: The South African Police Service was allocated R127.072 billion.
2027: Planned budget adjustments for the SANDF and the South African Police Service take effect.

Travel Outlook

The proposal mirrors the framework established by Article 12 of the Constitution of Costa Rica, which formally abolished the standing army to focus resources on civil development. It marks a significant departure from South Africa's current reliance on the military for internal security tasks.

Should the proposal influence future government spending, domestic tourism infrastructure in South Africa could see significant development or shifts in funding priority. Travellers should remain aware that internal security arrangements currently involve both the police and the military.

The takeaway

The debate highlights a fundamental disagreement over whether military resources should be reserved strictly for national defence or utilised to support civilian policing. Residents and taxpayers face an ongoing discussion regarding how national funds are balanced between security costs and economic expansion.