T he African air cargo market is well positioned to sustain its current growth momentum. According to Louise Wiggett, managing director of Global Trade Solution, while global air freight growth moderated in 2018 after unusually strong growth in 2017, African carriers continue to post the fastest growth of any region. In July, an increase in demand of 10.9%, compared to the same period a year earlier, was recorded by African carriers, while other regions around the world continued to see a drop in demand for air freight. “Air freight operators have benefited as a result of rising load factors and yields,” she said. However, added Wiggett, Africa currently faces serious capacity constraints. “It is no big surprise that we don’t have enough aircraft to service the demand at present,” she said. “With that in mind, the air freight fleet is expected to also show an upward growth trajectory.” She said that in Africa, five countries were dominating the air trade space. “South Africa, Egypt, Kenya, Nigeria and Ethiopia have all seen their international air cargo tonnages increase in recent years. “Kenya’s has slightly decreased because of low demand for agricultural produce from the European market.” Rwanda, she said, is working hard towards developing an air hub in the country and is fast becoming a major player on the continent in the air space. Wiggett said that with e-commerce becoming a growing trend in Africa, air freight would be boosted even further. “Generally, goods transported by air – such as time-sensitive perishables and high-value commodities, including computers, consumer electronics and pharmaceuticals – are also some of the fastestgrowing trade flows.” Asked about her outlook on road in comparison to air freight, she said the dominance of road would be difficult to break in Africa, especially from a cost perspective. “Africa is increasingly seeing a combination of road, rail and sea solutions, but considering the lack of capacity in the air space and the high demand, it will remain a competitive area.” Wiggett said indications are that prices for air freight will continue to rise and rates will remain high. “Forecasts are that the demand for freight transport in South Africa will grow by between 200% and 250% over the next 15 to 20 years. How we maintain roads under such circumstances is questionable.” She was making these remarks in highlighting the importance of finding a range of transport solutions for South Africa as well as the rest of the continent.
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It is no big surprise that we don’t have enough aircraft to service the demand at present. – Louise Wiggett