In September 2006, BAE Systems Land Systems OMC unveiled a new upgrade for the Ratel (6 × 6) IFV called Iklwa (named after the Zulu short stabbing spear).

The first prototype is armed with a South African RDL Rogue overhead weapon station armed with a 12.7 mm M2 MG.

For this upgrade a new powerpack consisting of a Cummins ISL 336 kW diesel coupled to the Renk HCV106 transmission has been developed and installed to the left rear of the driver's position. The door in the right side has been retained and the left one gives access to the powerpack.

The central driver's position at the front of the hull has been retained but has been improved and now includes a new wrap round instrument panel. The driver also has a reversing camera.

This has freed up considerable space in the rear of the vehicle and the infantry can now enter and leave the vehicle via a power-operated ramp in the hull rear rather that the normal single door in either side of the hull and a small door in the hull rear. There are a total of eight roof hatches, four each side that can be locked in the vertical position.

The roof section comprises three bolt on sections that allows different variants to be developed, for example a higher roof line for use in the command post or electronic warfare roles.

The number of infantry carried depends on the mission but can be up to 12 or 13 with each of these being provided with a new seat suspended from the vehicle roof. An appliqué armour package is available for a higher level of protection.

The MAN beam axles have been retained with selectable differential locks. Suspension comprises longitudinal arms and wishbones with progressive rate coil springs and double acting hydraulic shock absorbers. The wheels have been fitted with Michelin 16.00 R 20 21 tyres.

In addition to the basic APC a wide range of other versions have been proposed including ambulance, direct fire, logistic support, missile carrier, mortar, and repair and recovery.

According to the manufacturer, the upgraded Ratel vehicle has an unloaded weight of 14.5 tonnes and a maximum gross vehicle weight of 23.5 tonnes. Maximum road speed is 110 km/h.

As of late 2007 this upgrade remained at the prototype stage.