$38 billion, despite the total to developing countries falling by about 7%. The increasingly interdependent relationship between Asia and Africa has served as one catalyst for Africa to develop the necessary economic and homeland security infrastructure required for further investment and development. Africa is now the major centre of a global competition, with China and India at the forefront, all attracted by the mineral resources and investment opportunities available.
Just as Asian countries have done, it is expected that over the next few decades, African countries, fuelled by economic growth and compulsion to protect critical economic assets, will spend robustly on the development and
consolidation of their security
architecture and invest heavily in modernisation of their armed forces and law enforcement agencies.
According to the Israel Export and International Co-operation Institute, African homeland security spending is expected to reach $344.5 billion in 2022 up from $178 billion in 2010, with “significant growth in aviation security, communications, data and cyber security and counter terrorism”.
Opportunities for international companies to win contracts in Africa are now growing faster than ever before. The modernisation of existing security systems and defence in African inventories can be just as important as the procurement of complete new security systems. Modernisation is a key opportunity for African governments as they are constantly competing to attract more tourism, which includes securing infrastructures such as airports, hotels and embassies.
Currently, the urgent security issues which need facing across the continent are broadly similar to those facing Asian countries: critical infrastructure, including energy security as a focus; border security and crime control; and, thirdly, counter terror. Whilst militarised violence has decreased around Africa, criminality has increased. Africa has become a major transit hub for drugs trafficking across the continent and into Europe, commodity smuggling including oil bunkering and blood diamonds, and illegal weapons trade. Marine piracy has seen an overall decrease but it is still a critical security issue. International forces have been deployed extensively to counter
© CI TY S ECURI TY MAGAZ INE – AUTUMN 2013 World
this; however, they have been cut down substantially over the last few years. Therefore, there is an urgent need for localised forces to train and deploy homegrown trained forces.
North Africa
North Africa’s military expenditure increased more than any other region in the world (in terms of average annual expenditure) with approximately a 14% increase between 2009 and 2012. Algeria is the top spender on defence and homeland security in Africa; over the period 2003–12, spending increased by 189%, reaching approximately $10 billion in 2012. Such an increase has been linked to the terrorist threat by terrorist group AQIM, who target military and police in deadly attacks. This has caused the Algerian government to strengthen border cooperation with Mali and Libya. The government has increased military personnel to patrol borders in 2012 and increased surveillance and checkpoints to track drug trafficking, arms trading and militant groups.
imported security solutions from international companies. Like North Africa, West Africa supplies the global market with a large share of oil, gas and mineral resources. A threat to both domestic and international economies is “oil bunkering”, the illegal theft of oil.
On the coast, the Movement for the Emancipation of the Niger Delta has been targeting international oil companies from kidnappings to attacks on pipelines and thefts of millions of dollars’ worth of oil.
Like other West African nations, piracy is a serious issue, not only causing millions of dollars in theft and damage, but many fatalities every year. In the North, religious extremist and terrorist group, Boko Haram, is notorious for attacking civilians, police and government.
Nigeria is expected to invest heavily in surveillance and intelligence technologies such as electronic identification, e-passports, automated border crossing systems and CCTV systems.
Next Steps…
North Africa
Average annual changes in military expenditure average change 2009-2012
Average annual changes in military expenditure average change 2003-2009
0% 5% 10% 15%
An important way to navigate these markets is to find a partner, whether that be a governmental partner, local partner who is already manufacturing in the market, or an international partner to share contacts and experience. It is useful to mitigate genuine risks, to build real relationships on the ground, gain reputation and to have local people involved who understand domestic culture, who know the requirements.
Chart Showing the Average Annual Growth Military Expenditure for the World, compared to the Average Annual Growth in Military Expenditure in North Africa (data from SIPRI).
Opportunities in Energy Security
In 2013, terrorists called the Signatories in Blood attacked a BP plant in Algeria, which killed almost 80 people and is considered the worst attack in the oil and gas industry in modern history. This attack and many others have driven the government to invest in an even larger defence budget, and imports from global markets are increasing.
Increasing global energy demands and rising prices mean the necessity for increased exploration in high-risk areas, like North Africa. The global market for oil and gas infrastructure security is expected to be worth $28.44 billion, according to market analyst Visiongain. Thus, especially in North Africa, the market for security products and services, especially those aimed at protecting critical assets in Upstream, Midstream and Downstream industries, is displaying immense growth.
West African Security
West Africa also faces serious security issues, is continuously increasing its homeland security and defence budgets, and West African states have begun to increase
An important first step before considering entering these markets is to make the right contacts with key buyers and decision makers in the country, and find out if there is a market there for your product or service. Summits and exhibitions are growing every year in scale, as it is easier for buyers and suppliers to meet in one location rather than spend months travelling in search of business partnerships. According to Mr Jim Catchpole from Strongfield Technologies, the “prime benefit is networking, we have brand new companies, and we recommended they go to the conference. If you start thinking of the time and money, the 2-3 months you would need to get around a country like India to meet all of these people, you can meet them all in one place, which makes it worth the investment”.
Summits and conferences can provide an insight into the Asian and African markets and can offer talks, networking and exhibitions, bespoke matchmaking services, private meetings, and consultancy services.
Britt Titus Research and Marketing Executive Securing Asia
www.securingasia.com
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