Turkish Defense & Aerospace Industry Starts 2022 with Record Increase in Exports! Turkey’s Arms Sales to Africa Continues Upward Trend in January 2022

According to the January 2022 figures released by the Turkish Exporters Assembly (TIM) on February 2, 2022, Turkish Defense and Aerospace Industry exports increased by 84.2% in January and hit an all-time high with US$306 million (this figure does not cover automotive industry related defense exports valued at approximate US$27.844) compared to the same month last year (US$165.540 million), despite the negative effects of the COVID-19 pandemic. Export revenues are expected to increase further in the coming months and will finally exceed the annual export target of US$4 billion that was recently defined for the year 2022.

In his interview with Yeni Şafak newspaper published on January 6, 2022, author Mehmet ACET stated that President of Turkish Defense Industries (SSB) İsmail DEMİR said that the export target for 2022 was at least US$4 billion. “I can say that we are looking forward to over US$4 billion for 2022. We should not stay below US$4 billion. I can say that it is an absolute limit for us. We expect to go much higher than that. Let's say over US$4 billion, we'll see how much the performance will be,” DEMİR said. In January 2021 speaking at an event jointly organized by the Istanbul Defense and Aerospace Cluster Association and Istanbul Chamber of Industry, the SSB’s İsmail DEMİR had disclosed that Turkey’s 2023 targets for the defense industry were US$27 billion in revenue, US$10 billion in exports and 80,000 employees. 

In parallel to the steady, even sharp, increase in export revenues, the total weight of products exported by the Turkish Defense & Aerospace Industry is also demonstrating an upward trend. According to data released by TIM, during January 1st – 31st of 2022 the Turkish Defense & Aerospace Industry exported around 4.755 tons weight in defense and aerospace equipment, which represents an increase of approximately 19.3% compared to the same month last year (3.985 tons). So as of the end of January 2022, Turkish Defense & Aerospace Industry exports produced an added value of US$64.5 per kilogram. According to TIM’s January 2022 figures Turkey’s unit export value increased by 9% compared to the same period of the previous year and rose to US$1.35. The sectors demonstrating the highest increase in unit export value in January 2022 were; Electric-Electronics at 83%, Turkish Defense and Aerospace at 58%, and Steel with an increase of 49%. As the Turkish Defense and Aerospace Industry’s value-added and branded exports increase, the value of defense and aerospace products will increase even more.”

On January 31, 2022, speaking at the press conference where he announced their 2022 goals at the headquarters of the Turkish defense contractor HAVELSAN in Ankara, President DEMİR said, “Today, the Turkish Defense & Aerospace Industry has become one of the sectors that make the highest contribution to our country’s economy, with over 1,600 companies and 80,000 employees. As a result of more than 750 projects and other related activities carried out within this scope, an annual revenue of US$10 billion and record export figures totaling US$3.224 billion have been reached.” “The whole world is our target,” DEMİR said when asked which countries/regions are Turkey’s main defense export markets. “As the quality and performance of our products are seen, demand is increasing" DEMİR added.

Turkey’s Arms Sales to Africa Continues Upward Trend in January 2022

In parallel to the developments of a local defense industry and the creation of new domestic capabilities, Turkey’s dependence on foreign suppliers has been decreasing gradually for the last 10 years. However, thanks to its developing defense industry and the high number of countries constituting a potential market for Turkey’s target defense export, Turkey has become an attractive destination for arms manufacturers, who wish to establish strategic partnerships with Turkish companies for both local and international markets. Emerging as a new arms exporter that can provide more efficient, low cost, combat proven, and less problematic products for arms buyers, Turkey has managed to quadruple its defense and aerospace exports in the last 10 years and is currently exporting 228 different types of defense industry products to 170 countries around the world.

Considering Africa as a new investment opportunity, Turkey has been looking for new markets in the African continent for its defense and aerospace industry, in which it has invested heavily in recent years. According to Turkey’s January 2022 defense and aerospace export figures announced by TIM on February 2, 2022, Turkey’s arms sales in January reached a record level, with the biggest increase to African countries. Compared to the same month last year, in January 2022, the Turkish Defense & Aerospace Industry increased its defense exports to the African continent by 12,070.1%, from US$943.9 thousand to around US$114.776 million. Africa, thus, ranked 1st in terms of both proportional and value increase in Turkey’s defense exports during January 2022. In terms of proportional increase, Africa was followed by Turkish exports to the other Asian countries with around 4.561%, Far East countries with 912.2%, Oceania countries with 223.7% and Middle East countries with 116%. In January 2022 the US lost its place as Turkey’s top export market for defense and aerospace industry products, as Africa took the lead with around US$63.435 million, which represents a 25.3% decrease compared to the same month last year. Experts predict that Africa may become one of the top three largest markets for Turkey’s arms sales in the near future.

According to data released by TIM, in 2021 the Turkish Defense & Aerospace Industry increased its defense exports to the African continent by 455.1% percent, from US$82.981 million to around US$460.643 million. With this record increase Africa ranked 1st in terms of proportional increases and ranked 2nd in terms of value increase in Turkey’s defense exports during 2021. The US continued to be Turkey’s top export market for defense and aerospace industry products with US$1.155 billion, up 43.7% year-on-year. In terms of proportional increases, Africa was followed by Turkish exports to the Other Countries with 275.4%, the US with 43.7%, Commonwealth of Independent States with 41.2%, and other European countries with 32%.

According to TIM figures the list of the top 15 countries that imported defense and aerospace products from Turkey during January 2022 is composed of; Burkina Faso, the U.S.A., India, Tunisia, Qatar, Rwanda, Germany, Ethiopia, Indonesia, Bangladesh, Azerbaijan, the UK, France, South Korea and Italy. The total value of 4 African countries on top 15 importers list is US$113.061 million, more than one third (3/1) of the total exports achieved in January 2022.

Contrary to previous periods Burkina Faso ranked first in the defense and aerospace industry exports in January 2022. Turkish Defense & Aerospace Industry has exported US$66.924 million in defense and aerospace equipment to Burkina Faso in January 2022. Since no sales were made in the same month last year TIM did not share any data on the increase rate. In July 2021 Turkish state-owned defense firm ASFAT secured a contract to export 4 MEMATT (Mechanical Mine Clearing Equipment) minesweeping vehicles to Burkina Faso. During the then Burkina Faso President Roch Marc Christian KABORE’s official visit to Turkey on April 11, 2019 Defense Industry Cooperation Agreement was signed between Turkey and Burkina Faso and in September 2019 the Burkinabe Government adopted a bill authorizing the ratification of this cooperation agreement. Afterwards Turkey’s defense exports to Burkina Faso has increased and diversified. Burkina Faso has been also in a rush to purchase BAYRAKTAR TB2 Armed UAVs from Turkey. Though it was not officially disclosed officially, it may be the contract that was awarded during the second half of 2021. The US ranked the second in defense and aerospace industry exports during January 2022. Exports to this country, however, decreased by 25.2% to US$62.307 million (mainly military and civil helicopter and aircraft parts, and component sales realized under offset commitments). With around US$53.719 million (represents a 13.755.5% increase compared to the same month last year) India was the third largest recipient/importer. In February 2020 TAIS and Hindustan Shipyard Limited (HSL) signed a contract for the construction of five 45,000-ton fleet support ships (FSS) for the Indian Navy after obtaining the necessary permits from the Ministry of Defense of India. The project has a 9-year schedule and a volume of US$2.3 billion. Tunisia with around US$22.928 million (represents the most significant proportional increase with 3.261.522% compared to 2021 and mainly stems from a US$150 million contract awarded during the second half of 2020 and covers the deliveries of 5 Turkish Defense & Aerospace Industry companies’ products including 3 TUSAŞ ANKA-S Armed UAV Systems (with 3 Ground Control Stations and valued at around US$80 million) along with ROKETSAN’s MAM-L and MAM-C smart munitions, NUROL MAKINA’s EJDER YALÇIN 4x4 wheeled armored vehicles and ASELSAN’s electro-optic systems). Qatar with US$18.331 million (this represents a 2,035.4% increase compared to January 2021 and is believed to stem from wheeled armored vehicles, 2 OPV Class 2,150-ton Cadet Training Ships, LCT, LCVP, 2 LCM40s and 4 fast intervention boats sales/deliveries to the Qatar Armed Forces) ranked 5th on the list and was followed by Rwanda with US$12.442 million (believed to mainly stem from the sale of BAYKAR DEFENSE’s BAYRAKTAR TB2 Armed UAV Systems and KATMERCILER’s 4x4 HIZIR, ATEŞ and KHAN wheeled armored vehicles ordered under a Euro39.450 million contract disclosed on February 1, 2021), Germany with US$11.973 million, Ethiopia with US$10.767 million (represents one of the most significant proportional increases with 305,791.5% and is believed to stem from BAYRAKTAR TB2 Armed UAV deliveries), Indonesia with US$10.660 million, Bangladesh with around US$7 million, Azerbaijan with US$5.103 million, the UK with US$3.660 million, France with US$1.974 million, South Korea with US$1.258 million and Italy with around US$1.162 million. 

According to open sources in June 2021, Rwanda President Paul KAGEME placed an order for 4 BAYRAKTAR TB2 Armed UAV Systems and 2 of them were delivered in November 2021, while the remaining are reported to be delivered in 2022. In January 2021, 10 military personnel from the Rwandan Presidential Guard were sent to Turkey for advanced training in drone control and aerial surveillance. These military personnel finished their course in November 2021, and returned back to Rwanda. The two BAYRAKTAR TB2 Armed UAV Systems are reported to be controlled/operated by these military personnel. Meanwhile, in May 2021 it was reported that the undisclosed African country, which placed a US$110 Million contract in October 2020 to OTOKAR for the procurement of 100 wheeled armored vehicles including ARMA 8x8 and COBRA IIs, was Uganda. Prior to signing of this contract, Uganda was already operated COBRA 4x4 Armored Vehicles within the Presidential Guard.  

According to TIM’s figures during January 2022, the Turkish Defense & Aerospace Industry exported US$114.776 million in defense and aerospace equipment to African countries, around US$63.435 million to the US around US$61.693 million to other Asian countries, US$20.645 million to EU Member Countries, US$18.514 million to Middle East countries, US$13.148 million to countries in the Far East and around US$7.734 million to the Commonwealth of Independent States (CIS)