Armscor, government's arms procurement agency, is looking at ways to commercialise about 200 pieces of defence technology to be used for civilian purposes.

Armscor CEO Sipho Thomo said yesterday that Armscor had formed a firm the Technology Exploiting Company to lead the campaign to bring the technology to the commercial sector.

He was speaking in Pretoria during the signing of a facilitation agreement with Peoples Bank to assist the development of emerging small and medium business enterprises.

Among the contenders for the first equipment to be sold for commercial purposes are a portable x-ray machine that can fit into a small briefcase, and runflat inserts for tyres.

The X-ray machine can be used in sports to identify injuries and fractures in players in a matter of minutes, while a tyre fitted with run-flat inserts can run for another 80km after a tyre burst, Thomo said.

He said the seed for the idea to exploit the defence technology for commercial purposes was planted after a visit to the UK by SA defence officials last year.

"When we visited the UK last year, we found it interesting that they were taking military technology and commercialising it," Thomo said.

The UK, he said, is currently selling 4000 defence technological inventions to be used for purposes other than defence.

He said: "In SA, we have high unemployment of about 35% to 40%. Through exploitation of technology , we can help alleviate unemployment."

Said Thomo: "We have a bank of technology in the defence force that is just sitting there, and which we have now decided to commercialise."

The Council for Scientific and Industrial Research is helping Armscor to "exploit the technology" for commercial purposes.

He said: "People involved in the special defence packages have chosen to invest in this technological exploitation."

Lot Ndlovu, the Peoples Bank CEO, called for a ministry dedicated to small business if SA was to prosper in future.