Page 6 - World Airnews Magazine March 2021

HELICOPTERS

AFRICA ATTACK

HELICOPTERS

DEMAND LOW

By Derek Nseko

the board. The sector is facing a significant slow-down

and has shrunk by up to 10% as a result of the current

ith the aviation sector facing the worst of demand environment.
Wti mes, every related sector and sub-sector The helicopter market is dominated by a few global-
has had to deal with varying degrees crisis. Spending in ly established players such as Airbus Helicopters SAS

the military helicopter market has always been tied to the (France), Bell Helicopters (US), the Boeing Company (US),

size of defence budgets in Africa and beyond. Leonardo (Italy), Sirkorsky-Lockheed Martin (US), Russian
Africa’s military expenditure is significantly dwarfed Helicopters (Russia), and Kawasaki Heavy Industries
by the rest of the world. In 2019, Africa accounted for (Japan), among others. These players have global opera-

just over two percent of total global military spend at tions spanning across the world and including the African

approximately (US) $14.2 billion according to the Stock- continent. It is estimated that the market will recover
holm International Peace Research institute (SIPRI). In fully by 2023.
fact, Africa’s total military budget had been on the slide Defence budgets of developed countries have gradually

for close to five years until the year ending 2019 which declined due to budget sequestration in the defence sector

saw a rise of 3.6%. during the last five years. But with national priorities shift-

According to SIPI, armed conflict and regional tensions ing in no small part to the public health sector this trend
are the main drivers of a rather inconsistent military could only be accelerated and in Africa, largely a develop-
expenditure across Africa with the North spending sig- ing world hit just as much by covid19. Defence spend will

nificantly more at 57% compared to sub-Saharan Africa. no doubt also take a relatively large hit.

Algeria has the honour of being the biggest spender in Already some of the biggest military powers and spend-

Africa and additionally has a budget with the biggest bur- ers, countries such as the USA, Germany, the UK, Spain,

den of GDP in Africa at 6%. In comparison, global spending Italy, Ireland, Belgium have already showed an inclination
accounted for 2.2% of the world’s GDP before the pan- towards reducing overall defence spending in the past few
demic. The list of the biggest military budgets in Africa also years. A few developed countries are expected to under-

includes, South Africa, Angola, Nigeria and Kenya. take further reductions to help optimise their defence
The global pandemic has spared no one and has led budgets as we emerge from the global pandemic and this

to a significant drop in demand for helicopters globally, will be no doubt the same case for Africa.
this leading to a reduction in revenues for helicopter Combat helicopter manufacturers are expected to face

manufacturers, suppliers and service providers across tough market conditions during the next few years owing
World Airnews | March 2021
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