AFRICA
THE ABSENCE OF OPEN SKIES IS A BIG HURDLE WHEN COUPLED WITH LACK OF DEMAND FROM LOCAL PASSENGERS
countries can mean using less familiar carriers. “Not all intra-Africa carriers meet or adhere to international aviation standards, but sometimes air connectivity is the only means of getting from one country to another,” says Frank Palapies, chief operating officer – Africa and Middle East, Wings Travel Management. “Corporates understand this and some of them make concessions for travel on African airlines. Whereas normally they wouldn’t allow travel on certain carriers as they don’t meet US or European standards, clients have to relax their rules as there is no alternative.” It’s a risk that has to be weighed up, more so now Africa is a centre of investment. Kelly names East Africa as a key area. He mentions Nissan’s proposed plant in Kenya as well as commitments by Volkswagen, Peugeot and commercial vehicle specialist CNH Industrial. “Numerous companies have also relocated their manufacturing plants from countries such as Turkey, India and China to Ethiopia over the past decade,” he adds, citing foreign investment in Ethiopia’s textile industry, mushrooming from US$166.5 million in 2013/14 to US$36.8 billion in 2016/17, accord- ing to the Ethiopian Investment Commission.
$36.8 $166.5
billion
industry was worth in 2016/17, up from
Ethiopia’s textile the amount million in 2013/14 SOURCE: Ethiopian Investment Commission
buyingbusinesstravel.com
INVESTMENT SCENE Mozambique is another growth area following the discovery of offshore gas a decade ago. The 75 trillion cubic feet of gas is enough for 120 years’ production and prompted Wings to establish an office there in 2017. “We have seen increased traffic of 35 per cent over the last 12 months,” says Palapies. “The major investment in the market by energy sector companies has prompted mo- bilisation of employees to Mozambique from other countries, for example, Ghana.” Kagiso Dumasi, BCD’s Johannesburg-based commercial manager, sub-Saharan Africa, adds: “It almost feels like there is a new scramble for Africa in terms of manufactur- ing, infrastructure and tourism.” She says the motor industry and China are key investors. “The African economy flatlined two to three years ago, but now we have quite a big pick-up because there is a huge infrastructure investment and countries are looking beyond mining and resources. They are looking to reopen railways and infrastructure left behind by former powers. Many countries realise agriculture is one way to export and diversify; also call centres are opening in South Africa because of the accent and time zone.” A glance at major hotel pipelines also gives a clue as to where the action is. Africa is cur- rently the largest investment centre globally
2019 JULY/AUGUST 87
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