North Africa defense spending to continue to riseStaff writer ▼ | October 10, 2015
Defense spending by the five countries in North Africa (Algeria, Egypt, Morocco, Libya and Tunisia) will grow by 15 percent in real terms over the next five years to reach $31 billion by 2020.
Report According to IHS:
Despite consisting of only five markets, North African defense spending is about 30 percent greater than Sub-Saharan spending and accounts for 57 percent of the total African market.
Defense budgets in the region have expanded by more than a third since 2010 and IHS expects growth to continue to 2020 despite a lower oil price with growth in the smaller markets countering a slowing Algerian market.
With almost 50 percent of the entire North African market, movements in the Algerian defense budget continue to dominate the overall trend.
Real annual defense budget growth of 15 percent between 2010 and 2014 effectively doubled the defense budget and cemented Algeria’s position as the biggest spender in Africa, having overtaken Egypt in 2009. ■