By Hassan El-Houry, Group CEO, National Aviation Services (NAS)
Learn more about this timely topic at the upcoming
18th International Economic Forum on Africa
Check out the 30 October 2018 OECD EMnet Meeting on Africa’s
“Infrastructure and Regional Connectivity”
Africans make up 12% of the world’s population but only 2.5% of the world’s passengers. Why the gap?
Africa has 731 airports and 419 airlines with an aviation industry that supports around 6.9 million jobs and USD 80 billion in economic activity. According to the International Air Transport Association (IATA), Africa is set to become one of the fastest growing aviation regions in the next 20 years with an annual expansion of nearly 5%. While it is evident that aviation in Africa has the potential to fuel economic growth, several barriers exist. Weak infrastructure, high ticket prices, poor connectivity and lack of liberalisation rank amongst the many challenges.
Consider the reality: Airport infrastructure in most African countries is outdated and not built to serve the growing volume of passengers or cargo. Airlines and airports are often managed by government entities or regulatory bodies. Foreign investment is discouraged. In Malawi, for example, it’s illegal for a foreign airline or private investor to own more than 49% of a national airline. So, this prevented Ethiopian Airlines from purchasing more than a 49% stake in Malawian Airlines. Continue reading