SA is already one of the largest contributors to peace keeping missions on the African continent, and defence minister Mosiuoa Lekota fears that the defence force may have to stretch itself even further in coming years.
Lekota says SA's endeavour to establish peace and security on the continent has become a key element of the country's foreign policy, and the costs of these operations can no longer be regarded as incremental to his department's budget.
This year the defence department was allocated R904m, or 3% of its budget, for peacekeeping, up from R860m last year.
National treasury officials estimate that this could exceed R1bn by 2010/2011.
SA has missions in the Democratic Republic of Congo, Burundi, Sudan and Côte d'Ivoire. Technical staff are also part of the AU and UN operations in Somalia, Ethiopia, Eritrea, Nepal and Western Sahara.
This year the defence department will review its white paper on peacekeeping missions, more than seven years after its first operation on the continent.
The 2007 Defence Update gives specific attention to the significant changes since the formation of the AU and will strategically position the defence force to deal with peace and security on the continent.
Much of SA's future demands are expected to come from the Southern African Development Community's (SADC ) rapid reaction brigade, which was launched in Lusaka, Zambia last year.
SA is also one of the key movers behind the establishment of the Africa Standby Force, which is hoped will be operational within the year.
The defence force wants to have 3 084 members to be prepared annually for deployment and military exercises and wants to increase its diplomatic representation from 32 to 37 countries.
Peacekeeping operations will most likely move to the top of the agenda when SA assumes the presidency of the UN Security Council in April and takes the chair of the SADC in August.
The African Renaissance Fund, which falls under the department of foreign affairs, is the main vehicle through which bilateral support is granted directly from SA to other African countries.
The fund has been allocated about R1,3bn over the next three years, of which R117m has been earmarked for post conflict reconstruction in Africa.
The main source of money for the fund is the department of foreign affairs, which increased it from R50m in 2004/ 2005 to R150m in 2006/2007.
Transfers made by the fund increased from R54m in 2004/ 2005 to R392m in 2005/2006.
According to national treasury, transfers made by the fund were high in 2006/2007 due mainly to assistance provided during the elections in the DRC.
Over the medium-term expenditure framework period, transfers into the fund will increase from R300m in 2007/2008 to R465,7m in 2010/ 2011.