COVID-19 update included
The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic

Summary
Ghanaian defense budget, valued at about US$188 Million in 2017, registered a CAGR of around -9% during the historic period. The decrease in budget during the historic period is primarily due to an about -50% decline in exchange rate. However, in local currency terms, it reflected a steady growth. The country’s military is currently faced with a huge challenge to prevent the spread of pro-Islamic insurgent group Boko Haram within the country.

Ghanaian homeland security expenditure decreased from over US$400 Million in 2013 to about US$360 Million in 2017, registering a CAGR of around -2.8% during the historic period. Threats from the increasing influence of terrorist groups such as Al-Qaeda in the Islamic Maghreb (AQIM), and Boko Haram, coupled with increased drug trafficking are expected to drive focus on homeland security expenditure over the forecast period.

Majority of the country’s imports consist of aircrafts and armored vehicles. In September 2015, Ghana’s Air Force took delivery of four units of Harbin Z-9EH utility helicopters from China and in December 2015, it decided to expand its fleet of Super Tucano A-29 turboprop trainer and multirole light attack aircraft by adding four more units.

Country is expected to allocate a relatively low of about US$230 Million to defense expenditure in 2018, which acts as a barrier to foreign operators aiming to supply defense equipment to Ghana’s Ministry of Defense (MoD). Corruption, which may result in the unfair allocation of contracts, can also limit market entry.

The report “Future of the Ghanaian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of the Ghanaian defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, it provides an in-depth analysis of the following -

  • The Ghanaian defense industry market size and drivers: Detailed analysis of the Ghana defense industry during 2018-2022, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns.
  • Budget allocation and key challenges: Insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country.
  • Porter’s Five Force analysis of the Ghanaian defense industry: Analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry.
  • Import and Export Dynamics: Analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Market opportunities: Details of the top five defense investment opportunities over the next 10 years.
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Ghanaian defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Companies mentioned in this report: Defence Industrial Holding Company Limited (DIHOC)

Scope

  • The Ghanaian defense budget stood at GHS821.8 million in 2017 and registered a CAGR of 9.31% during 2013-2017. During 2013-2017, an average of 21.9% of the country’s total defense budget was allocated to capital expenditure, while an average of 78.1% was reserved for revenue expenditure. Capital expenditure touched 14.8% of the defense budget in 2017, and is projected to decrease to an average of 14% during the forecast period.
  • This is primarily due to the country’s plans to replace its obsolete military equipment and procure Mi-35 attack helicopters, and four more Super Tucanos. The remaining defense budget is allocated to revenue expenditure, which includes personnel salaries, and the operation and maintenance costs of equipment and defense facilities.

Reasons To Buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Ghanaian defense industry market trends for the coming five years
  • The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
  • Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
  • A deep qualitative analysis of the Ghanaian defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts