Sudan Defence and Security Report 2015
BMI View: Sudan is the third largest arms manufacturer in Africa, capable of producing a range ofdifferent military products - particularly in the land industry segment. That said, the local defence industrialbase remains underdeveloped, and research and development (R&D) activities are limited. As such, thecountry will continue to rely on imports for procurement of more technologically advanced equipmentover our forecast period to 2019. We expect the persistent risk of war with South Sudan, as well as thethreats posed by the conflict in Darfur and insurgency in the South Kordofan and Blue Nile states to drivegrowth in military spending over the next few years; however, sanctions placed against the governmentcontinue to prevent most foreign companies from exporting to Sudan.
In 2015, BMI forecast the Sudanese defence budget to reach USD3.1bn. This represents an increase of16.5% and constitutes 4.3% of overall GDP, reflecting the continued demand for funding of militaryoffensives against rebels in Darfur and insurgents in southern states under Operation Decisive Summer 2, aswell as the persistent threat of an escalation of conflict with South Sudan. Enabling this budget expansion isa forecast 3.5% growth in the Sudanese economy this year, on the back of easing inflationary pressures,improved exchange rate stability and falling fuel costs, as well as strong growth in agricultural and goldproduction.
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