Ghana’s defence spending is anticipated to reach $390.5m in 2023, registering a compound annual growth rate (CAGR) of 12.12% over the forecast period according to a report by Strategic Defence Intelligence (SDI).
Titled ‘Future of the Ghanaian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2023’, the report provides insights about the Ghanaian defence industry.
The country’s annual defence spending reached $223.6m in 2018, recording a CAGR of -0.83%.
Though the defence budget registered a steady growth in local currency terms, the significant decline in exchange rates resulted in the decrease of the budget.
Major factors that are expected to drive Ghana’s defence spending include efforts to counter emerging security threats and tackle piracy and drug smuggling, as well as its participation in peacekeeping missions.
It is estimated that the country will spend a total of $1.6bn on its armed forces during the forecast period, the report adds.
Allocation of capital expenditure is expected to increase to an average of 14.5% of the total defence budget over the forecast period, compared with 13.3% in 2018.
Ghanaian homeland security (HLS) spending is anticipated to reach $841.6m in 2023m, representing a CAGR of 10.72% compared with $560.1m in 2019.
The HLS budget increased from $340.8m in 2014 to $502.6m in 2018, reporting a CAGR of 10.20% during the period.
Defence imports are also anticipated to grow during the forecast period.