The Badger is derived from Patria's AMV armored vehicle.
Under the arrangement, state-owned Denel will manufacture more than 200 vehicles, designed and customized for Africa's environment.
Sixteen of 238 vehicles will be made in Finland by Patria, but the rest will be assembled by Denel, Patria said.
"This agreement is a continuation of the good cooperation of the last several years," said Seppo Seppala, president of Patria Land Systems and Patria Land Services. "We have in Patria unique technology, know-how and a proven track record. We simply provide a vehicle with very high standards and we believe that Denel is the best partner to customize the vehicle to meet the unique needs of the South African National Defense Force."
Neither Patria nor Denel provided additional details on the arrangement.