The African air cargo industry faces trade barriers, infrastructure deficits, and aging fleets. Collaborative efforts are key to unlocking its growth potential.
Africa’s air cargo industry holds immense potential for economic growth and regional integration. However, it continues to grapple with significant challenges that hinder its full development, according to industry leaders attending Air Cargo Africa in Nairobi last month. Trade barriers, inadequate infrastructure, and aging fleets are among the primary obstacles that need to be addressed to unlock the continent’s airfreight capabilities.
Trade Barriers and Fragmentation
Racheal Ndegwa, CEO of Swissport Kenya, emphasized that Africa’s air cargo market faces significant challenges due to trade barriers and economic fragmentation. She underscored the need for African nations to pool resources and work together to strengthen trade and economic growth, which would, in turn, improve airfreight operations across the continent.
The implementation of the Single African Air Transport Market (SAATM) aims to address these challenges by creating a unified air transport market across the continent. Launched in 2018, SAATM seeks to liberalize air services and enhance connectivity among African countries. As of 2022, 34 countries have joined the initiative, reflecting a collective effort to reduce trade barriers and promote seamless air travel.
Infrastructure and Connectivity
Inadequate infrastructure and limited connectivity further constrain the efficiency of Africa’s air cargo industry. Grant Kemp, Regional General Manager at Etihad Cargo, highlighted that Africa should focus on manufacturing and utilizing its own resources rather than merely exporting raw materials. He pointed out that infrastructure development is critical to supporting intra-continental trade and strengthening the air cargo industry.
Efforts are underway to enhance infrastructure and connectivity. Eric Wilson, Senior Vice President of Cargo Sales at Qatar Airways Cargo, noted that Qatar Airways has expanded its reach in Africa, now serving 28 cities with belly capacity and four markets with freighters. He acknowledged that international carriers are increasingly recognizing Africa’s growing demand for air cargo capacity, demonstrating the continent’s rising significance in global trade.
Wilson Kwong, CEO of Hong Kong Air Cargo Terminals Limited (Hactl), stressed that Africa needs to boost its export volume and improve collaboration among its nations. He suggested that better coordination across the continent would help consolidate ideas and resources, ultimately strengthening its trade position.
Peter Musola, Head of Cargo Commercial at Kenya Airways, pointed to geopolitical constraints, such as conflicts in Sudan and West Africa, as ongoing obstacles for airlines. He explained that flight diversions on Kenya-Europe routes add time and cost to cargo operations, particularly for perishables. Additionally, he warned that the inability to repatriate blocked airline funds presents a looming crisis for the industry if not resolved.
Aging Fleet and Capacity Constraints
The aging fleet of aircraft operating within Africa poses another significant challenge. Many freighters, such as the Boeing 737 classics, have an average age exceeding 30 years, with some aircraft pushing 50 years old. This aging fleet leads to capacity constraints and reliability issues, affecting the overall efficiency of air cargo operations.
Positive Developments and Future Outlook
Despite these challenges, there are positive signs of progress in Africa’s air cargo industry. The revival of airlines has added capacity, offering more connectivity across the continent. Offering an optimistic perspective, Boeing’s Regional Director of Market Analysis, Aaron Tayler, highlighted that nine of the world’s fastest-growing economies are in Africa, including Kenya, Ethiopia, Rwanda, and Senegal. He stated that as these economies expand, they will drive both trade demand and the need for increased air cargo services, presenting significant opportunities for the industry.
The full implementation of initiatives like SAATM could significantly enhance intra-African connectivity, reduce trade barriers, and promote economic integration. By addressing infrastructure deficits, modernizing fleets, and fostering collaboration among nations, Africa’s air cargo industry can unlock its full potential, contributing to the continent’s economic development and integration into the global economy.
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