Aviation sector a growth leader in Africa?

The International Air Transport Association (IATA) has called on African governments to leverage the continent’s growing aviation sector to drive broader economic and social development.

According to the organisation, which represents some 330 airlines, African airlines are expected to earn total net profit in 2024 will amount to approximately USD 100 millionWhile this translates to just 90 cents per passenger (below the global average of $6.14), it can be considered a success in light of the post-Covid environment and the global instability that has impacted the operating environment over the past few years.

“African airlines are making a collective profit. That’s good news. But it’s very small and well below the global benchmark. And there are big differences across the continent, with many individual airlines still struggling with losses,” he commented Kamil Al-Awadhi, IATA Regional Vice President for Africa and the Middle East. “The demand for travel is there. To meet it, the African aviation sector must overcome many challenges, not least of which are infrastructure shortages, high costs, burdensome taxation and the lack of broad implementation of a multilateral traffic rights regime across the continent. The challenges facing African aviation are significant but not insurmountable.”

To help the continent achieve this and realise the enormous potential of aviation, IATA has developed Focus Africa Initiative – a collaborative strategy that combines assets across the aviation value chain and builds partnerships across countries to achieve clear and measurable goals. It focuses on addressing key challenges and opportunities in the continent’s aviation sector, with an emphasis on six priority areas of safety, infrastructure, connectivity, finance and distribution, sustainability and future skills.

“IATA’s Focus Africa initiative is by no means a panacea, but it provides a framework to build a stronger aviation sector that will provide even better support for economic growth and social development,” explained Al-Awadhi. “The potential for aviation in Africa is enormous. It is home to 17% of the world’s population, yet it only contributes to about 2% of total global travel. While there are obstacles to overcome, through collaborative initiatives such as Focus Africa with our partners, including AFCAC, AFRAA and AASA We are addressing the critical challenges hindering aviation development across Africa. Our goal is a safer, more efficient and better connected continent, powered by a diverse, skilled workforce to unleash the potential of aviation and unlock economic and social opportunities.”

Opportunity for SAF in South Africa

IATA supported the development of the aviation industry across the continent and at the same time recognized decision-makers in South Africa who saw an opportunity that only exists in this country.

When representatives of government and industry gathered in Johannesburg, IATA Wings of Change Focus Africa conference, the organization called on the country to accelerate development Sustainable aviation fuel (SAF) production.

“South Africa has huge potential to become a leading SAF manufacturer in the region. And there is a waiting market for SAF as airlines work towards achieving net zero carbon dioxide emissions by 2050,” he said. Marie Owens Thomsen, Senior Vice President, Sustainability and Chief Economist, IATA. “This is more than a strategy to support the decarbonisation of aviation, it is an economic development strategy and should be a top priority for the new South African government. There are new jobs and industries waiting to be created in agriculture, energy and transport that will not only help fight poverty but also contribute to greater energy independence.

“Airlines are ready and waiting to buy SAF, as evidenced by the fact that every drop of SAF produced has been purchased and used. However, production volumes are a tiny fraction of what aviation needs. That is why it is so important for governments in manufacturing countries like South Africa to seize this unique opportunity that is mutually beneficial. economic development, energy transformation and zero-emission air transport.”

IATA is not the only organisation calling on policymakers on the continent to prepare for the coming increase in passenger flights within the Schengen Area; Omar Ali Adib from Rolls-Royce also made this point in a recent article in Africa Review. Find out why the Senior Vice President believes Africa could become home to a “world-leading” biofuel sector at: https://africanreview.com/transport-a-logistics/africa-s-sustainable-aviation-fuel-opportunity