Colombian Markets

The defense expenditure of Colombia recorded a record high of $14 Billion dollars in 2015. The defense expenditure of Colombia is primarily driven by external factors such as the threat and impressive military buildup of Venezuela, internal factors such as the threat from rebel / terrorist groups, i.e., the Revolutionary Armed Forces of Colombia or FARC’s and the National Liberation Army (ELN) and the fight against drug trafficking and related crime. Simultaneously, the government’s military modernization program (designed to upgrade their conventional warfare capabilities) which is now underway, has also dramatically increased (overnight) the defense expenditure of Colombia. Despite the financial constraints associated with economic recession, and with an active duty force of more than 600,000 men in combat… they continue to buy.

The country allocates a major portion of its defense budget for land forces mobility, tactical weapon systems and fire support. Colombia’s defense expenditure also funds the police force. During the review period, police force received, on average, a 30% share of the defense budget. ($4 Billion dollars in acquisitions per year.) MILGROUP market research estimates that Colombia’s defense expenditure will rise from $14 Billion in 2015 to $16 Billion in 2017-18. This translates into a new “package” of conventional warfare equipment acquisitions to achieve new combat capabilities. (i.e; a wide variety of weapons and support systems for mechanized brigades) and the need for the re-training and modernization of more than 300,000 men in the next 24 months.