AFRICA
prospects Bright
Africa’s growth potential is staggering, and barriers preventing expansion are beginning to fall
ByBOB PAPWORTH
Development Bank (AfDB), Ghana’s economy is expected to grow 8.5 per cent, Cote d’Ivoire’s by 7.9 per cent and Senegal’s by 7.0 per cent. Meanwhile, buoyed by higher prices for gold and cotton, Burkina Faso is expected to see economic growth of 6.6 per cent in 2018. Increasing trade in everything from
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oil to peanuts and phosphates to cocoa inevitably means more business travellers journeying to, from and within Africa. That, in turn, accelerates supplier investment in and beyond the continent. Marriott International, for
ACK IN MARCH, PricewaterhouseCoopers forecast the UK’s GDP to grow by 1.5 per cent this year. According to the African
In Europe, Lufthansa-owned Brussels Airlines has one of the most extensive African networks, serving 24 destinations; Eurowings serves Windhoek from Cologne- Bonn; Air France launched a new Paris CDG-Nairobi service in March, offering three flights a week; and low-cost carrier Joon introduced a thrice-weekly service from CDG to Cape Town in April. Air France KLM now serves more than 20 African destinations, while subsidiary Transavia operates to around 15 points. British Airways serves ten sub-Saharan destinations. According to IATA, although African
airlines traffic increased by 7.5 per cent in 2017 compared to 2016, capacity rose at
“Every ‘open’ air service arrangement has boosted traffic, lifted economies and created jobs, and we expect no less in Africa on the back of the SAATM agreement. “An IATA survey suggests that if just 12
key African countries opened their markets and increased connectivity, an extra 155,000 jobs and US$1.3 billion in annual GDP would be created in those countries.” Kuuchi went on to warn: “The benefits
“Governments must act on their
example, has this year opened a 200-room property in Malian capital Bamako and a Marriott-branded hotel in Accra, Ghana, while Hyatt has announced plans to double its presence in Africa by 2020. Radisson has signed a new hotel in Zambian capital Lusaka; there is a new Crowne Plaza in Nairobi; Melia is opening in Maputo, Mozambique. Ethiopian Airlines, which is rapidly turning Addis Ababa into a hub to rival the Middle Eastern gateways – a four-a- week service from Manchester starts in December – now serves 58 destinations within Africa and has recently forged a codeshare agreement with Air Cote d’Ivoire to provide seamless connections with its Abidjan services to Newark Liberty.
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less than half the rate of demand (3.6 per cent), and intra-African air travel is beset by protectionism and infrastructure failings.
OPENING UP However, progress is being made with the African Union’s plans for a Single African Air Transport Market (SAATM) gradually gaining support. So far, 23 African states have signed up to the initiative, but “signing up” is not the same as implementation. “The SAATM has the potential for remarkable transformation that will build prosperity while connecting the African continent,” Raphael Kuuchi, IATA’s vice- president for Africa, said earlier this year.
commitments and allow economies to fly high on the wings of aviation”
of a connected continent will only be realised through effective implementation of SAATM – first by the countries already committed and also by the remaining 32 AU member nations still to come on board. “SAATM is a decisive step towards greater intra-African connectivity and delivers the framework on which to achieve it. Now it’s time to get down to the work of implementation. Connectivity will lead to greater prosperity. Governments must act on their
commitments and allow economies to fly high on the wings of aviation.” There have been some very positive
developments. In Cote d’Ivoire, discussions on the benefits of connectivity in Africa, blocked funds, taxes on passengers and fuel, and capacity building and safety took place during a recent meeting between an IATA delegation and chief executive of Air Cote d’Ivoire, Rene Decurey. The IATA delegates also met with the newly appointed chief executive of NAS Ivoire Hassan El-Houry, and toured the airport terminal facilities in Abidjan to see the recent investment made. However, travel challenges are not restricted to the aviation sector – ground
BBT July/August 2018 87
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