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A 1bn rand missile deal has been signed between South Africa and Brazil, the Denel Group said on Wednesday.

Spokesman Joe Makhafola said Denel Dynamics - a subsidiary of Denel - launched the latest generation of the A-Darter air-to-air missile programme developed for the South African National Defence (SANDF) and the Brazilian Air Force.

"The co-development of the missile not only brings much-needed skills, training and technology transfer to the country, but also reinforces the South-South cooperation initiated by President [Thabo] Mbeki and his counterpart," said Makhafola.

The launch took place during the Latin American aerospace and defence exhibition, which ended on the 20 April in Brazil.

"The A-Darter missile is vitally important to the aerospace cluster in equipping the aircraft of both air forces," said Makhafola.

The missile would also guarantee a credible deterrent for the SA Air force and would maintain and expand the local capabilities in the field over the next 15 years.

He said the contract would have "a very positive spin-off" for local defence companies.

"One of Denel's macro strategies is to secure privileged access to a guaranteed minimum portion of South Africa's defence development and procurement spend."

At least 200 engineers would be employed over the duration of the contract with a focus on increasing the number of young engineers being attracted to Denel.

Makhafola said 10 Brazilian Air Force members had begun work on the programme at the Denel Dynamics plant.

"They will be supplemented by a further 20 people from the Brazilian defence companies," he said.

He said future export contracts of another R2bn were expected in the next 15-year period.

Acting on behalf of the SANDF, a contract was signed by Armscor on the co-development of the missile, he said.

Denel Dynamics is the missile and unmanned aerial vehicle division of Denel (Pty) Ltd.