How Africa’s Governments Can Help Airlines Contribute More To Economy, By WTO DG
The Director General of World Trade Organization, Dr. Ngozi Okonjo-Iweala has said that the huge opportunities for aviation sector in Africa to increase contributions to economic development can be maximized if existing structure constraints are removed.
Speaking via a zoom link at the Nigerian Aircraft Acquisition and Investment Summit (NAAIS) held in Lagos, Okonjo-Iweala noted that African airlines were earning less than expected in global average in terms of traffic and revenue and urged governments to support infrastructure investments in underlying ecosystem, sustained airport infrastructure, air navigation services and other essentials.
“Governments must maintain a fair and predictable tax regime and remove bilateral restrictions to enable African airlines fly,” she said, adding that when government gets it right, connectivity will grow and air fares will fall.”
On Nigeria, she said: “The aspiration of transforming Nigeria into a high value trading economy and a gateway between West Africa and global market cannot be achieved without investing in the underlying aviation ecosystem.”
She further said existing airlines need to upgrade their fleet to scale up competitiveness. According to her, aviation does not move bulk commodities but moves most sensitive goods and “when air cargo functions well, it does not only complement trade. It enables it.”
