Share

Why African governments must stop seeing aviation as an elite sector - report

As the economy across much of Africa improves, governments on the continent must alter their historical view of aviation as a specialised or elite sector and begin to see it as a strategic asset, according to a new report by the Air Transport Action Group (ATAG).

The report, entitled Aviation: Benefit beyond Borders, was commissioned by the International Air Transport Association (IATA) and released at the ATAG Global Sustainable Aviation Summit in Geneva on Tuesday.

Air travel in Africa is expected to continue to grow at about 4.9% per year over the next two decades. This increase will, in turn, drive growth in the economic output and jobs that are supported by the air transport industry over the next 20 years, according to the report.

Oxford Economics forecasts that by 2036 the impact of air transport and the tourism it facilitates in Africa will have grown to support 9.8 million jobs - 60% more than in 2016 - and a $159bn contribution to gross domestic product (GDP) - a 184% increase.

The report cautions, however, that high taxes and charges, inadequate infrastructure, capacity and skills gaps, and, most notably, a lack of connectivity across the continent, have created a less than ideal growth environment.

At the same time, it points out, that since 2014, there has been a renewed drive by African leaders and policymakers to improve socio-economic prospects through improving connectivity across the continent.

Research shows that if 12 key markets in Africa had open air services with each other, an additional $1.3bn would be added to the GDP of those countries, creating an additional 155 000 jobs, saving travel times and making air travel more convenient and affordable for travellers.
 
In January 2018, African Union heads of state launched the Single African Air Transport Market, and its implementation is now being rolled out across the continent, with 26 countries so far joining the initiative and up to 40 expected by the end of 2018.

According to the report, this project, along with the Continental Free Trade Area in Africa and the visa facilitation initiative, are three African Union Agenda 2063 flagship projects that will accelerate aviation growth across the continent and have the potential to provide better than forecast economic growth.

However, the report emphasises that this project relies on effective implementation from governments, working with the industry, to succeed.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.80
+1.1%
Rand - Pound
23.49
+1.3%
Rand - Euro
20.10
+1.5%
Rand - Aus dollar
12.28
+1.0%
Rand - Yen
0.12
+2.8%
Platinum
923.40
-0.2%
Palladium
957.50
-3.3%
Gold
2,336.75
+0.2%
Silver
27.20
-0.9%
Brent Crude
89.01
+1.1%
Top 40
69,358
+1.3%
All Share
75,371
+1.4%
Resource 10
62,363
+0.4%
Industrial 25
103,903
+1.3%
Financial 15
16,161
+2.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders