Press Release

Contact: Thalif Deen, Middle East/Africa Analyst

Phone: (718) 667-3984

Web site: www.forecast1.com

E-mail: thalifdeen@aol.com

Forecast International, Inc.

22 Commerce Rd. Newtown, CT  06470 USA

 

FOR IMMEDIATE RELEASE

 

Military Spending Remains Low in Crisis-Stricken Africa

NEWTOWN, Conn. (December 2, 2003) - The cash-strapped African continent, battling a rash of political, economic and military problems, will remain a relatively small arms market compared with Asia, the Middle East or Latin America, according to Forecast International's latest Africa market analysis.

 

Total military spending in Africa is expected to reach about $9.5 billion annually by 2007, up from $8.8 billion in 2003. Africa's projected spending contrasts sharply with overall defense expenditure for the Middle East which is estimated at about $55 billion annually by 2007.

 

"Despite ongoing civil wars and ethnic conflicts, sub-Saharan Africa continues to spend less on its military primarily because of financial constraints," said Thalif Deen, Forecast International's senior analyst for Middle East/Africa.  ''The fragile economies of most African nations have been devastated by endless military conflicts, droughts, low commodity prices and the spreading HIV/AIDS epidemic."

 

South Africa is the only country with a relatively big military budget averaging about $2.0 billion annually compared with countries such as Mali ($40 million), Niger ($30 million) or Ghana ($45 million).

 

In North Africa, however, Algeria and Morocco, whose economies are on the upswing, will continue to sustain their current spending through 2007.  Algeria is estimated to spend over $2.3 billion on defense annually by 2007, up from $2.1 billion in 2003. Morocco's defense spending is expected to reach over $1.4 billion in 2007, rising from $1.3 billion in 2003.

 

At least 12 countries in sub-Saharan Africa – Angola, Democratic Republic of Congo, Sierra Leone, Burundi, Liberia, Guinea, Ivory Coast, Sudan, Somalia, Zimbabwe and Ethiopia and Eritrea – are either embroiled in domestic insurrections, civil strife or border disputes.

 

Although the need for arms may be greater in Africa than in Asia or Latin America, most African countries do not have the means to pay for them.  Since African nations depend on the World Bank and the International Monetary Fund for financial assistance, defense spending in Africa is at a minimum and monitored by the two international financial institutions.

 

Currently, the U.S. provides military grants and training to over 40 countries in North and sub-Saharan Africa. But the funding is meager compared to the Middle East.  Total U.S. grants to Africa average about $35 million annually while Middle Eastern nations receive over $3.7 billion every year, mostly channeled to Israel and Egypt.

 

Forecast International, Inc. is a leading provider of Market Intelligence and Analyses in the areas of aerospace, defense, power systems and military electronics.  Based in Newtown, CT, USA, Forecast International specializes in long-range industry forecasts and innovative marketing presentations, including regular 10-year forecasts.  To arrange an interview with one of Forecast International's analysts, please contact Monty Nebinger (203-426-0800, monty.nebinger@forecast1.com).