• African Airlines revenues for January 2024 were $ 1.83 billion compared to $1.56 billion in November 2023
• Available seats per kilometre (ASKs) also exceeded the level of March 2019 by 7.7 per cent.
• Open skies will boost intra-African connectivity and drive down airfares.

Investments among the continent’s carriers have begun to pay off as African Airlines Revenues and seat numbers hit a record high, a new report by African Airline Association (AFRAA) has shown.

The number of airline seats offered in the region has increased by 12.6 per cent to 16.1 million in March 2024, thanks to new routes and flight frequencies.

For the first time in four years, the industry surpassed pre-COVID-19 monthly figures of 14.3 million, recorded in March 2019.

The year 2024 is shaping up to be a significant year of recovery for the aviation industry. Airlines have regained their pre-Covid levels of capacity and traffic and …

• Non-tariff trade barriers are restrictions trade blocs impose to further their political and economic goals.
• Kenya and Tanzania are working on resolving non-tariff trade barriers that have stifled business between East Africa’s largest economies.
• Kenya is a crucial partner for Tanzania and is the largest source of African Foreign Direct Investment in Tanzania.

The East African Community

Countries have adopted regional trading blocs as a strategy to increase global competitiveness. The East African Community (EAC) member states are dedicated to enhancing economic efficiency and fostering regional integration through strategic investments using established industries.

EAC aims to position the Community as a single investment area, harmonising trade policies, investment incentives, and product standards.

At the beginning of its operations, EAC ended non-trade barriers (NTB) between member countries intending to liberalise trade. However, this affected the NTB imposed by the members, especially Kenya and Tanzania, who are critical traders in the market.…

• Tourism in Kenya is the third-biggest foreign exchange earner after remittances and agricultural exports.
• The tourism sector’s performance has been impressive, with earnings reaching $ 2.7 billion in 2023, a 32 per cent growth from $1.8 billion recorded in 2022.
• In 2024, the sector is projected to recover to pre-pandemic levels per the strategy for tourism in Kenya 2021-2025.

Tourism in Kenya

Tourism is Kenya’s third-highest foreign exchange earner after remittances and agricultural exports.

According to the Tourism Research Institute, the industry accounts for about 10 per cent of Kenya’s gross domestic product and about 5 per cent of its formal employment.

Kenya has been a significant tourist destination in East Africa, attracting visitors worldwide to its wildlife parks, sandy beaches at the coast, diverse flora and fauna, cultural heritage, and scenic landscapes, to name a few.

However, the outbreak of COVID-19 sent shockwaves to the tourism sector, bringing it …

• Kenyan businesses in the hospitality and tourism sector are the most confident they will post growth in Q2
• Businesses in the energy sector are also optimistic of better Q2 despite challenges in the first quarter.
• The education sector reflects a balanced sentiment, with 33 per cent expressing extreme, moderate, and slight confidence in revenue growth.

Kenyan businesses in the hospitality and tourism sector are the most confident that they will grow their revenues in the second quarter of 2024 according to a new survey by Kenya National Chamber of Commerce and Industry (KNCCI).

Compared to other sectors, the hospitality and tourism sector exhibits a stronger sense of optimism, with 41 per cent extremely confident, 29 per cent moderately confident, 18 per cent slightly confident, and 12 per cent not confident of increasing their revenues.

In the agriculture sector, results indicate a mixed outlook, with 17 per cent of Kenyan businesses …

• New hotel room developments in Kenya have dropped.
• With continued signing activity (19 hotels with about 5,200 rooms in 2023) Egypt now accounts for 28 per cent of the total pipeline.
• When it comes to hotels under construction, Marriott International leads the way, with 138 hotels (15,011 rooms) currently being built.

Kenya has ranked seventh in Africa among the countries with the highest number of hotel room developments by international hotel chains, a drop from position five in 2022.

This is according to the latest survey by Lagos-based W Hospitality Group, in association with the Africa Hospitality Investment Forum (AHIF). From the survey, Kenya has 31 hotels with a total of 4,268 rooms on the pipeline with an average room size in these hotels is approximately 138 square feet.

North Africa continues to dominate the planned supply, with Morocco and Egypt together comprising almost 31 per cent of the …

• Across Ghana and Ivory Coast, climate change, illegal mining, cocoa industry woes, and a devastating disease known as swollen shoot have conspired to end West Africa’s cocoa supremacy.
• In Ivory Coast, 30% of cocoa plantations are infected by swollen shoot disease. Upto 600,000 hectares under Cocoa in Ghana are infected, too.
• The crisis in West Africa is offering opportunity to Ecuador, Brazil and Peru to become global cocoa production titans.

A double whammy of a devastating disease coupled with unchecked gold mining activities has set up a storm that is fast threatening to kill West Africa’s Cocoa supremacy.

For decades, Ghana and the Ivory Coast have held the mantle of titans in the cocoa world, jointly supplying over 60 per cent of the beans’ global demand. However, this year’s poor harvest as noted by an exclusive piece by Reuters, could spark a seismic shift in the cocoa production industry, …