African aviation has potential to rake in $29 billion

It has been by AviaDev event, in conjunction with partners, MIDAS Aviation and Futureneers Advisors, that the estimated potential revenue from new African aviation routes could yield $29 billion in direct revenue.

This revenue, which is more than the individual GDP’s of 70% of the countries in Africa, could be realized if the largest airports in each African country are connected with one another. Currently, only 33.7% of this huge market is served, meaning that there is over $19 billion in untapped annual revenue.

Now in its fourth year, AviaDev, brings together airports, airlines, tourism bodies, and suppliers and customizes one-to-one meetings so that new partnerships and routes can be created. AviaDev’s managing director, Jon Howell, unveiled the event’s mission: to connect the largest airports in each African country with one another. He stated: “AviaDev aims to challenge the status quo through encouraging disruptive thinking. We believe our new mission crystallizes the opportunity that African aviation presents, and we look forward to driving the industry forward and measuring the progress made. We are encouraged by the drive on the continent towards partnership and collaboration”

Rebecca Rowland, Partner at Midas Aviation, who estimated the current aviation services said: “We’ve looked at how well-connected Africa is in terms of the flights between the largest airports in every country, which mostly means the capital cities. Only a third of these routes currently have regular air services. We know that connectivity is vital for economic growth and trade, so the potential is huge. As the visa regimes become more open and regulatory constraints looser, we should see many more of Africa’s capitals connected to each other and, with that, we’ll see more of the opportunities realized.”

Martin Jansen van Vuuren, founder of Futureneer Advisors, quantified the potential revenue from the new aviation routes. He indicated that the potential aviation growth could result in additional hotel growth, which will further add revenue to the destination.  He said: “Considering the anticipated increase in air connectivity, estimations on the number of room nights and expenditure per person can be made.  With this is mind, it is fair to say that anticipated investment of US$194 billion could be made in new and existing hotels across the continent in the coming years, further showcasing the untapped potential of Africa.”

Africa also has plans underway to establish a Single African Air Transport Market (SAATM) as was discussed at the recently concluded Second Ordinary Session of the African Union Specialised Technical Committee in Transport, Transcontinental and Interregional Infrastructure, Energy and Tourism in Cairo Egypt. The SAATM is aimed at promoting intra-regional connectivity between the capital cities of Africa by creating a single unified air transport market in Africa, as an impetus to the continent’s economic integration and growth agenda.

African Union (AU) member states that have subscribed to the solemn commitment of establishing SAATM  are: Benin, Burkina Faso, Botswana, Capo Verde, Central African Republic, Chad, Congo, Côte d’Ivoire, Egypt, Ethiopia, and Gabon. Others are Gambia, Ghana, Guinea, Kenya, Liberia, Mali, Mozambique, Niger, Nigeria, Rwanda, Sierra Leone, South Africa, Swaziland, Togo and Zimbabwe.

Read Also: Single air transport market for Africa in pipeline

Single air transport market for Africa in pipeline

Nigeria’s Minister of State for Aviation, Hadi Sirika, and other Africa transport ministers have rallied other countries on the continent behind the Single African Air Transport Market (SAATM).

Sirika, at the ongoing Second Ordinary Session of the African Union Specialised Technical Committee in Transport, Transcontinental and Inter-regional Infrastructure, Energy and Tourism in Cairo Egypt, made the resolution of the ministers known via his twitter handle.

The ministers, in the resolution concerning transport in Africa, “urge all remaining member states to join the Single African Air Transport Market (SAATM), ratify the African Road Safety Charter, the Revised Maritime Transport Charter and the Africa Civil Aviation Commission (AFCAC) Constitution.” Presently, only 28 African  countries have so far shown interest in the SAATM, even as the African Union awaits the decision of others to join the train.

According to African Union, SAATM is “Promoting intra-regional connectivity between the capital cities of Africa by creating a single unified air transport market in Africa, as an impetus to the continent’s economic integration and growth agenda. “In Cairo, the ministers unanimously agreed to strategies that would boost infrastructures in Africa. “We, the Ministers in charge of Transport Transcontinental and Inter-regional Infrastructure, Energy and Tourism meeting in Cairo, Arab Republic of Egypt on 16 and 17 April 2019, in the Second Session of the Specialised Technical Committee on Transport, Transcontinental and Inter-regional Infrastructure, Energy and Tourism , organised by the African Union Commission (AUC) in collaboration with the Government of the Arab Republic of Egypt to consider strategies for developing smart infrastructure to boost Africa’s continental transformation and integration,” said the ministers in Cairo.

We, the ministers, reiterating our commitment to develop Transport, Transcontinental and Inter-regional Infrastructure, Energy and Tourism sectors and our strong will to implement the outcome of the meeting as we have agreed.”

The committee of ministers requested the African Union Commission (AUC), to take the appropriate measures to accelerate the development of the African integrated High Speed Railway Network (AIHSRN) flagship project, revitalisation of the Union of Africa Railways (UAR) and speed up operationalisation of SAATM.

They also called upon the African Development Bank (AfDB) to continue providing support and mobilise more financial resources for priority intercontinental transport sector programmes such as SAATM and implementation of African Plan of Action for Road Safety.

The committee appealed to member states to speed up signing and or ratification of pending legal instrument related to infrastructure, notably Maritime Charter, Yamoussoukro Declaration (YD), SAATM, AFREC Convention and Road Safety Charter.

Member states that have subscribed to the solemn commitment are: Benin, Burkina Faso, Botswana, Capo Verde, Central African Republic, Chad, Congo, Côte d’Ivoire, Egypt, Ethiopia, and Gabon. Others are Gambia, Ghana, Guinea, Kenya, Liberia, Mali, Mozambique, Niger, Nigeria, Rwanda, Sierra Leone, South Africa, Swaziland, Togo and Zimbabwe.

The second Ordinary Session of the African Union was a meeting of the African Union (AU) Specialized Technical Committee on Transport, Transcontinental and Interregional Infrastructure, Energy and Tourism (STC-TTIET) with a theme: Developing SMART Infrastructure to Boost Africa’s Continental Transformation and Integration. The meeting occurred during 16th and 17th April of 2019, organized by the African Union Commission; through the Department of Infrastructure and Energy; in collaboration with the Government of the Arab Republic of Egypt, the African Development Bank (AfDB), the United Nations Economic Commission for Africa (UNECA) and the African Union Development Agency (AUDA-NEPAD).

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