AM EDITORIAL: Impact Of Africa’s Air Transport Sector On Economy
Africa’s air transport sector has the capacity to drive and promote the continent’s social, economic and political integration and boost trade and tourism.
The African Union is counting on air transportation for faster, easier, more economically viable trade networks, expediting the movement of people and goods to actualize its Agenda 2063, anticipated to help the integration of African regional markets, stimulate growth and support the welfare of its people.
34 African countries have signed up to the Single African Air Transport Market (SAATM) which has capacity to harmonize Africa’s airspace, improve air traffic management, and increase intra-African air connectivity. As governments in the continent fully embrace airspace liberalization, trade and development will be spurred to deliver improved connectivity within Africa and between the continent and rest of the world.
Most African leaders and elites have the culture of frequent country-to-country movements under the umbrella of official visits, tourism and business trips. A bulk of such VIP movements involve entourages and yield benefits for both the air transport sector and the hospitality industry.
Better air transport connectivity will facilitate the realization of the projected tourism numbers for Africa. The total contribution of travel and tourism to Africa’s GDP was USD191 billion in 2023 and is forecasted to rise by 4.4% annually from 2024 to 2034. This is a huge impact on the workforce in Africa as the World Travel and Tourism Council (WTTC) research has shown that by 2034, travel and tourism would support 38,760,000 jobs representing 6.0% of total employment, an increase of 3.9% per annum since 2024.
Prospects are huge as the International Air Transport Association (IATA) and the world’s major aircraft manufacturers, Boeing and Airbus, forecast that Africa is the only airline market that will grow significantly over the next 20 years even as the continent hosts 18% of the global population, makes up 2% of global air traffic, and 2% of international trade.
Air Transport is helping to develop human capital across Africa with numerous career opportunities for young people in fields such as cabin services, cargo and airport operations, customer services, engineering, flight operations as well as retail and hospitality services.
The air transport sector makes huge impact in infrastructure development, economic growth and tourism, generating $6 in economic activity for every $1 spent. According to a 2020 study conducted by the Air Transport Action Group, airlines, airport operators, retailers and other aviation related businesses supported 7.7 million jobs across Africa, generating a $63 billion contribution to GDP. Business and its associated fall-outs such as employment are always given speed and thrive where there is dependable, safe, and competitively priced air transport network.
In view of the huge potentials and benefits that are already emerging with better air connectivity in Africa, it is important for political and air transport authorities in the continent to work together to maximize developmental benefits of aviation and the impact it is making on the economy.AM
