AFRAA
 

AFRAA SG deliberates on Air Transport and Economic Development at AFI Week and meets Afrijet CEO

 

Mr Abderahmane Berthé – AFRAA Secretary General, made an intervention on Air Transport and Economic Development at the 9th ICAO-AFI Aviation Week on 18 July 2024 in Libreville, Gabon.

In his intervention, Mr Berthé discussed in detail the current trends in air transport concerning traffic and connectivity. For recovery and growth, Mr Berthé reported that since the fourth quarter of 2023, Africa exceeded the pre-Covid traffic levels. “According to AFRAA data, we expect to attain 98 million passengers in 2024, above the 96 million reached in 2019.” He said.

On cargo, he highlighted: “We saw a boom in cargo volumes across the continent during the Covid. Today, cargo has returned to the aircraft’s belly. 30% Market Share is carried by African Airlines. The AU AfCFTA project and the growth trend of e-commerce are critical for cargo development,”

On intra-Africa connectivity, on average, the level of connectivity has improved. At major hubs like Addis and Lomé, the level of connectivity is double the level we had before COVID-19. “However, we notice that while the intra-region connectivity is strong, the inter-region is challenging. Connectivity depends on market opportunities. The economic relations within a region are higher than those with other regions. Developing intra-Africa trade and tourism is critical to improving the situation.” He added.

With regards to the challenges impacting the air transport industry in Africa, he highlighted: high cost of operations, market access restrictions, visa restrictions and industry fragmentation and lack of airline cooperation as the main hurdles on the road to success of the airline industry.

“AFRAA has in place various initiatives and collaborating with industry stakeholders on measures to support African airlines address the challenges. Some of AFRAA initiatives include: Joint procurement projects and the Route Network and Cargo Coordination Committee.” He reiterated.

So how do fees and charges slow down the development of air transport in the region? “Mr Berthé stated that Taxes, charges, and fees are components of the ticket fare structure. Compared to other regions, taxes, charges, and fees are higher in Africa with West and Central Africa having the highest level. The negative impact of TCF in Africa highlights the critical need to balance revenue generation with fostering a competitive and sustainable aviation Industry and developing adequate infrastructure.” he observed.

“We need to address the tickets affordability for African citizens noting that GDP per capita still low in Africa. Some of AFRAA actions on place to address this are on advocacy, sensitization of relevant decision makes and States and joint cost-saving projects for airlines to attain cost effective operations.” Mr Berthé said.

With regards to the status of the implementation of SAATM, Mr Berthé reported that there are 37 SAATM States in Africa, including 24 states in western and central Africa. The 37 SAATM States Constitute 67% of the AU member States. These 37 states account for 77% of the population on the African continent. Their combined GDP represents approximately 79.9% of Africa’s GDP.

“However, some signatory countries still do not fully comply with the YD provisions. The operationalization of the Dispute Settlement Mechanism (DSM) Administrative Council will be a critical step in enforcing SAATM if its decisions are binding on parties.” He underscored.

Whilst in Libreville – Gabon, Mr Berthé, paid a courtesy visit to Afrijet CEO – Mr Marc Gaffajoli. The meeting discussed areas of support on advocacy on airport taxes, value-driven AFRAA projects and work groups such as the AFRAA Fuel Purchase Programme, AFRAA Distribution Committee, AFRAA Technical Operations & Training Committee, AFRAA Route Network and Cargo Committee, AFRAA Aeropolitical Committee, AFRAA SAF Task Force, AFRAA Blocked Funds Task Force and AFRAA consulting and training activities. Afrijet is a member of AFRAA since 2022.