Future of the Ghanaian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

  • ID: 4496233
  • Report
  • Region: Ghana
  • 67 pages
  • Strategic Defence Intelligence
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Summary

The Ghanaian defense budget, valued at over US$223 million in 2018, registered a CAGR of -0.83% during the historic period. The decrease in budget during the historic period is primarily due to the decline in exchange rates. However, in local currency terms, the defense budget recorded steady growth. The country’s military is currently faced with the huge challenge of preventing the spread of pro-Islamic insurgent group Boko Haram within the country.

Although Ghana has not been subjected to violent attacks, the country is surrounded by nations such as Chad, Nigeria, and Niger, all of which have a significant presence of Islamic State (IS) militants, which poses a serious threat to the country’s security. In the aftermath of the fatal attacks in Ivory Coast, Ghana’s National Security Council released a confidential memo in March 2016, which further attested to the fact that the country faces significant threat from terrorist attacks.

Ghana is expected to spend a total of US$1.6 billion over the forecast period on its armed forces, and the country’s military expenditure is expected to increase at a CAGR of about 12% to cross US$390 million by 2023. The share of capital expenditure out of the total defense budget decreased from over 22% in 2014 to around 13.3% in 2018, but is expected to increase, to an average of 14.5%, over the forecast period. With Ghana’s Air Force and Navy designated to play a supportive role to the army, Ghana’s Army is expected to account for the majority of capital expenditure. Robust growth in defense budget is expected to increase per capita defense expenditure from around US$7.7 in 2018 to US$11.9 by 2023.

Ghanaian homeland security expenditure increased from over US$340 million in 2014 to over half a billion US$ in 2018, registering a CAGR of over 10% during the historic period. The Ghanaian homeland security budget is forecast to increase at a CAGR of about 10.7% over the forecast period, increasing from around US$560 million in 2019 to more than US$840 million by 2023.

The report "Future of the Ghanaian Defense Industry Market Attractiveness, Competitive Landscape and Forecasts to 2023" offers detailed analysis of the Ghananian 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 Ghana defense industry market size and drivers: detailed analysis of the Ghanaian defense industry during 2019-2023, 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
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Market opportunities: list of the top ten defense investment opportunities over the next 5 years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Ghanaiandefense industry

Companies mentioned in this report Pratt & Whitney., Embraer S.A., Harbin Aircraft Industry (Group) Co., Ltd. (HAIG), Defence Industrial Holding Company Limited (DIHOC)

Scope

  • The Ghanaian defense budget, valued at US$223.6 million in 2018, registered a CAGR of -0.83% during the historic period.
  • The decrease in budget during the historic period is primarily due to the decline in exchange rates.
  • However, in local currency terms, the defense budget recorded steady growth.
  • The country’s military is currently faced with the huge challenge of preventing the spread of pro-Islamic insurgent group Boko Haram within the country.

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, Key Trends , and latest industry contracts
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1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About the Publisher

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Military Fleet Size
3.1.2. Procurement Programs
3.1.3. Key Drivers and Challenges
3.2. Defense Market Size Historical and Forecast
3.2.1. Ghanaian defense expenditure is projected to grow at a CAGR of 12.12% over the forecast period
3.2.2. Insurgency, piracy, oil smuggling, and peacekeeping operations are expected to drive defense expenditure
3.2.3. Defense budget as a percentage of GDP expected to average 0.52% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Allocation for capital expenditure expected to average at 14.5% over the forecast period
3.3.2. Capital expenditure budget expected to increase over the forecast period
3.3.3. Per-capita defense expenditure expected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security budget projected to increase over the forecast period
3.4.2. The threat from Boko Haram, drug trafficking, cybercrime, and money laundering to drive spending in the homeland security market
3.4.3. Ghana falls under the ‘some risk category’ by terrorist attack
3.4.4. Ghana has a rank of 110 in the terrorism index
3.4.5. Ghana has a terrorism index score of 0.3
3.5. Benchmarking with Key Global Markets
3.5.1. The country’s defense budget is expected to increase during the forecast period
3.5.2. Ghanaian military expenditure is limited compared to the countries with the largest defense expenditure
3.5.3. The country allocates a lower percentage of GDP to defense
3.6. Market Opportunities: Key Trends
3.6.1. Top 10 Defense market sectors by value (US$ Million) - Projections over period 2018-2023

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Limited capability of the domestic defense market drives imports
4.1.2. China, Russia, Spain and Canada accounts for most of the country’s defense imports
4.1.3. Aircraft, Armored vehicles and Engines are the largest imported military hardware
4.2. Export Market Dynamics
4.2.1. Ghana does not export arms due to its underdeveloped domestic arms industry

5. Industry Dynamics
5.1. Market Regulation
5.1.1. Budgeting Process
5.1.2. Procurement Policy and Process
5.1.3. Ghana does not disclose any offset obligations imposed by the country
5.1.4. FDI in the defense sector prohibited by the Ghanaian government
5.2. Market Entry Route
5.2.1. Direct selling is the preferred market entry route for foreign OEMs

6. Competitive Landscape and Strategic Insights
6.1. Competitive Landscape Overview

7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. Gross Domestic Product Per Capita (US$)
7.1.2. Gross Domestic Product, current US$
7.1.8. Government cash surplus/deficit as % GDP (LCU)
7.1.9. Goods Exports as a % of GDP
7.1.10. Goods Imports as a % of GDP
7.1.11. Services Imports as a % of GDP
7.1.12. Net Foreign Direct Investment
7.1.13. Services Exports as a % of GDP
7.1.14. Net FDI as a percentage of GDP
7.1.15. Mining, Manufacturing, Utilities Output (LCU Billion)

8. Appendix
8.1. About Us
8.2. Disclaimer

List of Tables

Table 1: Ghana Army Strength
Table 2: Ghana Air Force Strength
Table 3: Ghana Navy Strength
Table 4: Ghana - Ongoing Development and Procurement Programs
Table 5: Ghana - Future Procurement Programs
Table 6: Ghanaian Defense Expenditure (GHS Million & US$ Million), 2014-2023
Table 7: Ghanaian GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2014-2023
Table 8: Ghanaian Defense Budget Split between Capital and Revenue Expenditure (%), 2014-2023
Table 9: Ghanaian Defense Capital Expenditure (GHS Million & US$ Million), 2014-2023
Table 10: Ghanaian Per-Capita Defense Expenditure (US$), 2014-2023
Table 11: Ghanaian Homeland Security Expenditure (GHS Billion & US$ Million), 2014-2023
Table 12: Terrorism Index, 2018
Table 13: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Table 14: Top 10 Ghanaian Defense Market Sectors by Value (US$ Million) - 2018-2023
Table 15: Ghana Budgeting Process
Table 16: Competitive Landscape of the Ghanaian Defense Industry

List of Figures

Figure 1: Ghanaian Defense Expenditure (in GHS Million), 2014-2023
Figure 2: Ghanaian Defense Expenditure (in US$ Million), 2014-2023
Figure 3: Ghanaian GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2014-2023
Figure 4: Ghanaian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Ghanaian Capital Budget Allocation (GHS Million), 2014-2023
Figure 6: Ghanaian Capital Budget Allocation (US$ Million), 2014-2023
Figure 7:Ghanaian Per-Capita Defense Expenditure (US$), 2014-2023
Figure 8: Ghanaian Homeland Security Budget (GHS Billion), 2014-2023
Figure 9: Ghanaian Homeland Security Budget (US$ Million), 2014-2023
Figure 10: Terrorism Heat Map, 2018
Figure 11: Terrorism Index, 2018
Figure 12: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Figure 13: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023
Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 15: Ghanaian Defense Import Trend, 2013-2017 (TIV values)
Figure 16: Ghanaian Defense Imports by Country (US$ Million), 2013-2017
Figure 17: Ghanaian Defense Imports by Weapon Category (%), 2013-2017
Figure 18: Ghana’s GDP per capita (US$), 2015-2025
Figure 19: Ghana’s Gross Domestic Product (current US$ Billion), 2015-2025
Figure 20: Ghana’s Exports of goods and services (LCU Billion), 2005-2014
Figure 21: Ghana’s Imports of goods and services (LCU Billion), 2005-2014
Figure 22: Ghana’s LCU per US$, 2015-2024
Figure 23: Ghana’s Market capitalization of listed companies (US$ Billion), 2005-2012
Figure 24: Ghana’s Market capitalization of listed companies (% GDP), 2005-2012
Figure 25: Ghanaian Government cash surplus/deficit as a % of GDP (LCU), 2005-2011
Figure 26: Ghana’s Goods Exports as a % of GDP, 2005-2013
Figure 27: Ghana’s Goods Imports as a % of GDP, 2005-2013
Figure 28: Ghana’s Services Imports as a % of GDP, 2005-2013
Figure 29: Ghana’s Net Foreign Direct Investment (BoP, current US$ Billion), 2005-2013
Figure 30: Ghana’s Services Exports as a % of GDP, 2005-2013
Figure 31: Ghana’s Net FDI as a percentage of GDP, 2005-2013
Figure 32: Ghana’s Mining, Manufacturing, Utilities Output (LCU Billion) 2005-2014

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  • Pratt & Whitney
  • Embraer S.A.
  • Harbin Aircraft Industry (Group) Co., Ltd. (HAIG)
  • Defence Industrial Holding Company Limited (DIHOC)
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