Sweden has taken a major step toward expanding its defence industry presence in Latin America by formally requesting parliamentary approval for a government-to-government sale of up to 12 Saab JAS 39 Gripen E/F multi-role fighter jets to Peru.

This proposed package, valued at approximately $2 billion, also includes unspecified air defence systems and is designed to address Peru’s urgent need to modernise its ageing air force, which currently relies on outdated Mirage 2000 and MiG-29 aircraft.

The Swedish government’s proposal, submitted as part of its 2025 supplementary budget, aligns with Peru’s preference for a direct state-backed procurement process. If approved by the Swedish Parliament—a move widely expected given Sweden’s robust support for defence exports—the deal would enable a formal intergovernmental agreement, with Sweden overseeing procurement and delivery, and the costs covered by sale revenues.

The Peruvian government has already allocated $2 billion through its Public Debt Law for the first batch of 12 aircraft, as part of a broader $3.42 billion program to acquire a total of 24 new fighter jets, with a second phase planned for 2026.

The Gripen E/F stands out for its advanced avionics, AESA radar, electronic warfare capabilities, and cost-effective operation. Its adaptability to harsh environments and ability to operate from short or improvised runways make it particularly suitable for Peru’s diverse geography. The aircraft is positioned as a top contender against rivals such as the U.S.-made F-16 Block 70 and France’s Rafale, which were also shortlisted by the Peruvian Air Force.

Sweden’s offer goes beyond just aircraft, incorporating technology transfer and potential local co-production, similar to the model used in Brazil’s Gripen program. This could provide a significant boost to Peru’s domestic defence industry by creating jobs and building technical expertise. If the deal proceeds, initial deliveries could begin between 2028 and 2030, with primary production in Sweden and possible assembly or maintenance support from Brazil’s Embraer-Saab hub, fostering regional cooperation among Gripen operators.

Geopolitically, the proposed sale signals a shift in Latin America’s defence procurement landscape, which has traditionally favoured U.S.-sourced aircraft. With Brazil and Colombia already selecting the Gripen, Peru’s move could further solidify Saab’s dominance in the region and enhance interoperability among allied air forces.

However, the deal also faces potential obstacles, such as U.S. export controls related to the Gripen’s GE engine and possible reactions from other global actors with interests in Peru.

Sweden’s proposed Gripen sale to Peru is a strategic initiative that promises to modernize Peru’s air force, strengthen Sweden’s defence export footprint, and reshape regional security dynamics. It reflects both countries’ ambitions: for Sweden, to expand its influence and industrial partnerships in Latin America; for Peru, to secure advanced air combat capabilities and greater autonomy in defence procurement.

Agencies