GlobalData, a leading information consultancy, has published a country report titled Ghana Defense Market, 2024-2029in which the company predicts that Ghana’s defense spending will grow steadily over the next five years.
The West African country’s defense budget was $317 million in 2024 and recorded a 3.5% decline over the historical period 2020β2024.
However, the defense budget is down from $343.9 million in 2023, showing negative annual growth of 7.8% in 2024.
Now, Ghana’s defense spending is expected to grow at a compound annual growth rate of 11.3% over 2025β29 and reach $509.6 million by 2029.
The republic’s procurement budget, which includes research and development funding, is also expected to see significant growth. It is projected to reach $119.5 million in 2029, up from $30 million in 2025.
Responding to instability in the Sahel region
Ghana’s security is exposed to worsening instability in the overall Sahel region in Northwest Africa.
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From GlobalData
In the area overview at Armed Conflict Survey 2023the International Institute for Strategic Studies (IISS) considers sub-Saharan Africa “the world’s most conflict-affected region”, where there is a “move towards military authoritarianism across the Sahel”.
GlobalData notes the possibility of cross-border infiltration, with real prospects of violence spilling over Ghana’s northern border and disrupting security.
The country has secured an aid package from the EU that includes a fleet of 100 armored vehicles by 2023, and GlobalData projects that over the next five years security and border control are likely to emerge as key drivers of Ghana’s defense spending.
Beyond that, the military coup in Niger prompted a response from the Economic Community of West African States (ECOWAS), which issued an ultimatum to the military junta on July 30, 2023, to restore the democratically elected Bazum administration within a week. Otherwise, international sanctions will be imposed on Niger and the possible use of force to force out the military junta is also being considered.
Although ECOWAS has not announced plans for possible military intervention, escalating violence and growing anarchy may force ECOWAS to take a stand. In such a scenario, Ghana, as a member of the ECOWAS community, is expected to send a contingent of armed forces for peacekeeping operations, which will fuel defense spending over the forecast period.
Apart from armored vehicles, Ghana’s biggest defense item by value β about $132 million between 2023-26 β will be light attack aircraft to support its ground forces.
Combating piracy in the Gulf of Guinea
Similarly, increasing incidents of maritime piracy and armed attacks against merchant shipping in the Gulf of Guinea pose a serious problem for Ghana’s security and economic stability.
In October 2023, a report published by the International Maritime Bureau (IMB) identified the Gulf of Guinea as a key area of ββconcern, with a marked increase in the number of incidents between January 2023 and September 2023.
This has prompted the Government of Ghana to consider the light combat craft division to be a top priority and the third highest value division. Spending is expected to increase from $6.8 million to $8.3 million in this segment over the next three years according to GlobalData.