Africa: political and economic problems in sub-Saharan Africa have created an increasingly awkward defence market. Conflicts and insurgencies encourage high defence spending, but international pressure is seeking to reduce these conflicts. (Complete Guide).

The potential end of the Unita insurgency in Angola should see a reduction of defence expenditure in that country, a process that could be enhanced if Angola was able to withdraw from the Congo. On the other hand, increasing oil revenues in the Sudan will allow that country to increase spending to fight its war in Southern Sudan.

It is these wars and insurgencies that encourage unsustainable levels of defence spending. Uganda is embroiled in the Congo conflict, but also finds itself defending its northern borders from incursions by Sudan. Ethiopia has fought Eritrea over a border dispute, Rwandan forces are deployed in the Congo and Nigeria has found its forces increasingly deployed on peacekeeping missions in areas such as Sierra Leone.

The failure of many African states in the post-colonial period and their continuing instability--Zimbabwe provides the most recent example--do not create an environment where the major nations are comfortable supplying equipment. Often the equipment supplied to these more unstable nations consists of small arms and consumables, primarily from the large stockpiles in Eastern Europe.

As a contrast, South Africa remains the only sub-Saharan state that has a functioning defence industry and the ability to meet legitimate defence needs. The government has contracted for a major defence modernisation programme, including the acquisition of four Meko corvettes from Blohm+Voss, Saab BAE Systems Gripen fighters, BAE Systems Hawk trainers and AgustaWestland A-109LUH helicopters. Despite the controversy that eventually surrounded the programme in domestic political circles, it will have significant benefits for South African industry, as well as upgrading the capabilities of the South African National Defence Force (SANDF). These contracts formed the major part of an eleven-year defence acquisition programme, but the domestic defence industry will have a role to play. South African industry will look to the export market, with India as a key area.

Other sub-Saharan nations exhibit relatively rational procurement behaviour. Botswana has cleverly used the availability of surplus equipment in Nato and European nations to upgrade its defensive capabilities. It acquired 50 surplus Steyr SK-105 Kuerassier light tanks from Austria between 1997 and 2000, as well as 13 surplus Canadian Forces CF-5A/B fighter aircraft. Botswana may only have a small military, 9000-strong, but is steadily becoming a well-equipped force.