Boom Time for Africa's Aviation Industry
Africa’s aviation industry is experiencing a boom time as the continent continues to increase airline frequency to the GCC and other destinations around the world.
Undoubtedly, the potential for the aviation sector in Africa is immense as the African aviation industry continues to provide new opportunities for growth and expansion. The International Air Transport Association (IATA) projects that the African continent will become one of the fastest growing aviation regions within the next 20 years, with an average annual expansion rate of almost 5%.
IATA predicts that Africa will become one of the fastest growing aviation regions in the world by 2040.
Currently, there are 731 airports and 419 airlines on the African continent, with the aviation sector supporting around 7 million jobs and generating $80 billion in economic activity. In terms of passenger numbers, 47 million passengers departed from Africa’s top five airports, which included Cairo, Addis Ababa and Marrakesh in 2018, according to the latest ANKER report.
“Emirates and Saudia were only responsible for 8 million of those passengers, highlighting the potential for new routes throughout the continent and between the Middle East and Africa.
Furthermore, IATA reckons if just 12 key Africa countries opened their markets and increased connectivity, an extra 155,000 jobs and US$1.3 billion in annual GDP would be created in those countries.
The international aviation industry has been monitoring developments in Africa closely, especially since the Single African Air Transport Market (SAATM) agreement was drawn up in January 2018. The aim of SAATM is to open up Africa’s skies, allowing airlines to fly between any two African cities without having to do so via their home hub airport, boosting intra-Africa trade and tourism as a result. To date, 28 countries out of 55 member states have signed up to SAATM representing over 80% of the existing aviation market in Africa.
However, despite its rosy outlook, the sector still faces significant challenges, indeed, protectionist trends have resulted in a rather lacklustre response from many members, concerning competition rules, ownership and control, consumer rights, taxes and commercial viability.
“These mechanics are integral to an open sky treaty and necessary to resolve existing differences between airlines and provide an equitable way forward. Sixteen countries in Africa are landlocked, so the pent-up demand for affordable air transport must be considerable,” said Karin Butot, CEO, The Airport Agency
“These, as well as other salient issues, will no doubt be discussed at length between senior network planning teams and high-level executives representing the aviation and tourism industries, in Africa’s as well as the Middle East & Asia, through unlimited one-to-one pre-scheduled networking appointments,” added Butot.
