- EAC Partner States need to fast-track implementation regulations on the liberalisation of air transport
- An extra 155,000 jobs and US$1.3 billion in annual GDP would be created if 12 countries opened their skies.
- Africa has formed the Single African Air Transport Market (SAATM) to spearhead a single unified air transport market to advance the liberalization of civil aviation in Africa.
In the spirit of creating a single market and increased integration of Africa’s 54 nations, stakeholders want airlines operating within the continent to lower fares.
Recent research by the International Air Transport Association (IATA) showed that ‘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.’
These are significant figures by any measure and IATA, the trade association for the world’s airlines, representing some 260 members, maintains that lowering flight prices in Africa is the best way forward for all countries involved.
Also Read: African aviation has potential to rake in $29 billion
Africa has the Single African Air Transport Market (SAATM) which to date, has 34 countries already signed up.
The 34 countries represent over 80% of Africa’s existing aviation market which in turn represent the needed ‘logistic infrastructure for the successful operation of the Africa Continental Free Trade Area.’
When you couple the SAATM and the protocol on the Free Movement of People and goods and the African Passport then you get the big picture; a one market Africa enjoying free movement of people and goods and affordable airline prices.
EAC region
To this effect, the East African Business Council (EABC) is now calling on governments of the East Africa Community (EAC) partner states to play their part and approve a single air transport services agreement.
When complete, this pact will serve to ensure lower flight prices in Africa for both passengers and cargo, furthering the Africa free market agenda.
“The EAC should consider replacing the existing bilateral air services agreements with a single air transport services agreement for EAC to lower the cost of air transport in the region,” suggested the EABC Chief Executive Officer John Bosco Kalisa.
Addressing a meeting on air transport services liberalisation in the East African Community (EAC), Kalisa called on the EAC Heads of State to consider preferential and national airline fares for their own airlines.
The point was brought up to counter the current state of affairs where foreign airlines enjoy favourable rates within the EAC air space. Kalisa was emphatic on his call for the EAC Partner States to fast-track implementation of EAC regulations on the liberalisation of air transport which when completed would line up with the basic goal of the EAC Common Market Protocol.
Backing this view was the TMEA Head of Public-Private Dialogue and Export Capability, Paveen Mbeda who said; “liberalisation of air transport services will contribute to our greatest desire of growing intra-EAC trade.”
Mbeda underscored TMEA’s commitment to partner with both public and private sectors to unlock bottlenecks and facilitate trade in the EAC and the continent.
She emphasized the fact that air transport fares can be an enabling or detrimental factor for key sectors like tourism and export which would bring about a significant impact on EAC’s Gross Domestic Products as well as the region’s foreign reserves.
The Principal Economist-Investment & Private Sector Promotion of the East African Community Secretariat Mr Charles Omusana said liberalizing air transport in the EAC unequivocally point to huge percentage increase in passenger traffic particularly in tourism receipts.
“The same goes for freight carriers which will mean increased trade and GDP for all countries concerned.”
Impact of cheaper flights
As for GDP increase, the study points to a percentage 0.05 per cent in Gross Domestic Product with increase in air passenger traffic that can only be achieved if the flight fares are lowered and standardized across the region.
Also Read: Single air transport market for Africa in pipeline
“Air transport liberalisation in the EAC countries could result in an additional 46,320 jobs and 202.1 million US dollars per annum in GDP,” local media quotes the report.
The webinar on the study of air transport liberalisation in EAC was attended by over 70 stakeholders who validated the study findings.
Towards this end, Africa has formed the Single African Air Transport Market (SAATM), a flagship project of the African Union Agenda 2063. The SAATM is spearheaded by the African Union and is meant to create ‘a single unified air transport market to advance the liberalization of civil aviation in Africa.’
It goes without saying that realization of the SAATM will result in fast tracking the continent’s economic integration agenda. Through the SAATM, Africa will bring aviation to the centre stage of its development.
SAATM will serve a major role in connecting the continents millions of traders and patrons. It will in effect promote Africa’s social, economic and political integration leading to achieving the ambitious Agenda 2063.
Since 2006, EAC Partner States agreed on liberalisation of air transport finally following through with the Yamoussoukro Decision of 1999.The Yamoussoukro Decision was an agreement adopted by the African Union seeking to establish a framework from which the continent would achieve liberalization of air transport across the continent.
Since its conception in 1999, the pact was inked by 44 African states but to date, many regional blocs across the continent are yet to meet its ambitious vision. Now, the Single African Air Transport Market (SAATM) stands as the continent’s flagship project towards liberalization of Africa airspace for its own domestic airlines.
Also Read: EABC push for ‘Open Skies Policy’ to boost trade, tourism
Launched during the 30th Ordinary Session of the AU Assembly on 28th January 2018, in Addis Ababa, Ethiopia, SAATM is the steering wheel that will drive Africa’s integration agenda. The ambition remains the same as its predecessor; to realize improved logistic infrastructure that is necessary if the Africa Continental Free Trade Area is to yield the desired fruits.
SAATM is meant to enhance air connectivity across Africa so much so, it is expected to cut travel and wait time by more than 20%. It is also the instrument by which Africa hopes to catalyze competition of airline services and competition is in turn expected to result in reduced flight prices for Africa.
As matters stand, Africa accounts for a mere 4% of global aviation traffic however, should this sector become affordable, then Africa’s billion plus people form the world’s biggest domestic airline market.
