This archive report was first published on 9 September 2019.
Published on September 9, 2019, the aviation industry in Africa is on the cusp of a major boom. With the continent accounting for only 2.2% of the world's air transport, despite making up 12% of the global population and 15% of the world's mass, the potential for growth is vast.
The International Air Transport Association (IATA) forecasts that the industry will expand by 5.1% annually over the next 20 years, reaching a total market size of over 300 million passengers annually. This presents a significant opportunity for airlines, service providers, and other stakeholders in the industry.
Liberalization Efforts ¶
Historically, the industry has faced numerous challenges, including inadequate infrastructure, operational disruptions, poor airline management, and restrictive regulatory frameworks. However, efforts to liberalize the industry have led to improved connectivity across Africa, with the 1999 Yamoussoukro Declaration playing a key role in this process.
The Single African Air Transport Market (SAATM), launched as part of the Africa Agenda 2063, aims to create an open skies framework in Africa, enabling airlines to operate with a unified regulatory environment.
Benefits of Open Skies ¶
Enhanced air connectivity can have a significant impact on trade, enabling organizations to tap into global supply chains and facilitating the transportation of fresh produce to global markets. The tourism sector also stands to benefit, with aviation supporting over 6.8 million jobs and contributing more than $46 billion to GDP in Africa.
Increased air connectivity can also stimulate innovation and investment, attracting global companies to the continent and driving economic growth.
Preparing for Growth ¶
As the industry expands, there will be a need for more aircraft, with Airbus estimating that over 1,000 new planes will be required over the next 20 years. This presents an opportunity for manufacturers like Rolls-Royce, which has seen a significant uptake of its engines by African operators.
With fuel prices in Africa averaging 20% higher than elsewhere in the world, the need for more efficient engines is pressing. Companies like Rolls-Royce are well-positioned to meet this demand, with their Trent Family of engines already powering aircraft operated by African airlines.
