Algeria

For 2016, the National Defence budget is expected to remain the same as for 2015, i.e. at some US $ 10.2 billion (€9.02 billion), constituting the 23% of the overall Budget allocated for the year. In comparison, the second largest amount allocated by Algeria in its 2016 Budget in a ‘specific’ direction –namely some €6.16 billion- are to be spent on Education.

The Algerian Armed Forces, consist of Land Forces (People’s National Army - ANP), the Air Force (Algerian Air Force - QJJ), Naval Forces (Algerian National Navy - ANN), Air Territory Defence Forces (DAT), the Special Intervention Group (GIS) and the Algerian Security Forces (National Gendarmerie and the Republican Guard). According to the European Union of Institute for Security Studies, the Armed Forces, include some 130,000 personnel, constituting the strongest force in the African continent.

Since the fall of the Qaddafi regime in the neighbouring Libya, resulting in an extended disruption to the area and a significant increase of suicide attacks against its national security forces, Algeria was obliged to confront a new reality regarding terrorism. As a direct repercussion, from 2012 onwards, Algeria has taken actions to restructure and strengthen its national defence and security forces; under the sad ending of the hostage situation at a natural gas facility of the country (by terrorists and al-Qaeda) in early 2013, as well as the assassination of a French tourist in Algeria by the ISIL, these changes have been accelerated, reflecting into a significant military expenditure increase in absolute figures, as well as a percentage of the GDP of the country.

It is worth noting that Algeria since 2005, increased its Defence budget (in terms of constant US (2014) $ billions), by some 219%. Investments in the modernization of the Forces equipment accounts for much of this increase in spending. Moreover, forecasts for the future, project a continuous increase that will elevate defence expenditure to about US $16 billion, in 2020.

For 2016, the National Defence budget is expected to remain the same as for 2015, i.e. at some US $ 10.2 billion (€9.02 billion), constituting the 23% of the overall Budget allocated for the year. In comparison, the second largest amount allocated by Algeria in its 2016 Budget in a ‘specific’ direction –namely some €6.16 billion- are to be spent on Education.

According to the Sipri database, arms imports by African nations have increased by 19% between the 2006-2010 and 2011-2015 periods. Of these nations, Algeria was still the largest importer (30%) –despite the overall decrease of imports by the country, by 18%-, followed by Morocco (26%) and Uganda (6.2%). It seems that Algeria and Morocco compete with each other in an “unofficial” arms acquisition race, without so far creating military tensions in the region.

During the last decade, the main arms suppliers to Algeria were predominantly Russia (84.3%) – Algeria being overall one of the top three importers of Russian arms for the period, along with India and China-, followed by China (5.1%), Italy (3.2%) and France (2%).

The main associated procurements for the period, included aircraft, armoured vehicles, missiles and ships (See chart below).

In detail, in 2006, Algeria signed an arms deal with Russia (historically providing the 90% of the country’s weaponry), of a value of US $7.5 billion, that included various types of aircraft (40 MiG, 20 Sukhoi fighters and 16 Yak jet trainers), attack helicopters (Mi-28), submarines (Project 636, Improved Kilo class submarines), tanks and air-defence systems (40 T-90 tanks and 8 S-300 missile systems).

Moreover, in the 2010-2014 period, China exported 3 corvettes to Algeria (C82A), as well as an estimated 50 self-propelled guns (PLZ 45). Regarding its European suppliers, in 2014, the country received an amphibious landing platform dock (LPD) vessel -143 metres long, of 8,800 tons load displacement, and capable of carrying 600 people - from the Italian Fincantieri. In the same year (2014), Germany was awarded a contract to provide 926 Fuchs (Fox) 2 armoured personnel carriers (APCs) to Algeria; further, the first of the two multi-mission MEKO A-200AN frigates, were delivered by the German TKMS (ThyssenKrupp Marine Systems), in April 2016.

Finally, in 2015, Algeria signed a contract with IAPO (Irkut Corporation), for the provision of a further 16 Sukhoi Su-30MKA fighters, to be delivered in 2016 and 2017 –this batch will bring the total number of delivered aircraft for the country to 60. However, it should be noted that the country already has several outstanding orders and many weaponry deals have been “put on ice”, affected by the unexpected drop in oil prices.

It is worth noting though that presently, Algeria is particularly interested in drones, helicopters, self-propelled artillery, amphibious vessels and armoured vehicles. In complement to these, the Ministry of Defence is focusing on the acquisition of military equipment for the support of counter-terrorism (CT) operations, coastal surveillance, Search and Rescue (SAR), as well as anti-trafficking operations and cryptographic software.

However, there are still plenty of issues to be addressed with regards to related procurements; first of all, tenders related to national defence/security are restricted. Moreover, technology transfer should be placed at the forefront of associated procurement processes, by appropriate actions on the part of the government. Finally, related bureaucracy affecting the defence sector, delaying associated procedures, even with regards to the simplest decisions, should be eliminated.

Following a policy of amnesty and reconciliation and despite the several successful operations against Jihadism, Algeria has realized that its armed forces cannot defeat alone this belligerence, as well as other unpredictable risks. Therefore, Algeria has been an active member of the Global Counterterrorism Forum (GCTF) and a partner for Cooperation with the Organization for Security and Cooperation in Europe. Moreover, the country has been cooperating since 2010 towards the creation of a Joint Operational Army Staffs Committee (CEMOC) with Mali, Niger and Mauritania, against AQIM (al-Qaeda in the Islamic Maghreb). Finally, in 2013, Algeria and Tunisia formed a military cooperation committee to share intelligence regarding criminality and terrorist networks, as well as coordinate on border operations, training and security; this initiative has been viewed with some concern by Morocco.