Moroccan defence spending will increase from a $3.5 billion budget in 2018 to a peak of $3.9 billion by 2022, reflecting a Compound Annual Growth Rate (CAGR) of 2.8% as the country doubles up the importation of arms and ammunition, including fighter and trainer jets, helicopters, ships, missiles, tanks and frigates to strengthen its armed forces.
In a new report entitled ‘Future of the Moroccan defence industry: Market Attractiveness, Competitive Landscape and Forecasts to 2022’, the Strategic Defense Intelligence (SDI) group said despite inflationary pressures which slashed defence spending from $3.8 billion in 2013 to $3.4 billion in 2017, Morocco would push ahead with an armed forces modernization programme aimed at containing the regional military influence of neighbouring Algeria.
“Morocco’s future military procurement plan includes warplanes, helicopters, submarines, radar systems and naval vessels. On a cumulative basis, the country is expected to invest $18.6 billion for defence purposes, of which $5.7 billion is earmarked for capital expenditure to fund defence procurements.
“The government’s well-defined military modernization plan to counter influence of Algeria is expected to corner a significant part of this investment. The Ministry of Defence is also expected to invest in fighters and diesel-electric submarines, Military-IT (Information Technology)and Networking and anti-tank missiles over the coming years,” the SDI report said.
In the past few years, Morocco, Egypt and Algeria have pushed massive military modernisation programmes with the acquisition of new helicopters, fighter jets, missile systems and air defence systems.
The three North African military giants have also acquired submarines, coastal defence systems and helicopter-dock landing ships to beef up their arsenals.