High costs have replaced poor infrastructure as the biggest obstacle to growth in the African aviation industry.
That’s the view of Pierre Guislain, vice president of private sector, infrastructure and industrialisation at the African Development Bank (AfDB), who believes that sustained growth of the sector would require a tough look at ways to cut costs related to high taxes, fees and charges, and airport levies.
The International Air Transport Association (Iata) recently pointed to a global “infrastructure crisis” – citing how cash-strapped governments were selling airport assets to make short-term cash injections. Regional aviation industry players however say airport infrastructure is no longer considered the main barrier to growth and development on the continent. Guislain pointed out that over the past decade the bank had provided about US$1 billion in funding to the African aviation sector.
“We have invested in airport construction or expansion in Morocco, Tunisia, Cape Verde, Ghana and Kenya, and in the improvement of air safety and navigation in the Democratic Republic of Congo (DRC) and West and Central Africa,” he said, conceding however that a lack of aviation hubs was an obstacle to growth. Chris Zwiegenthal, chief executive officer at Airlines Association of Southern Africa, said airport authorities in southern Africa were “in general” responding to increased demand and new airport infrastructure had been and was being built in Zambia, Zimbabwe and Senegal – with a new development planned for Addis Ababa.
”Hence airport infrastructure is not necessarily considered a barrier to growth and development as much as it was in the past – especially in the larger centres.” he said, Where new demand was created, governments recognised the need to invest in new or upgraded airports, he added. Agness Chaila, director Airport Services for Zambia Airports Corporation, commented that airports needed to operate like a business just as airlines did, noting that the Zambian government was looking at various models to modernise.
Although funding for infrastructure upgrades is limited, Iata suggests more public private partnerships, something Kenya Airways group MD and CEO, Sebastian Mikosz, doesn’t believe is an option in Africa yet.
“I don’t think the continent, at this stage, is prepared for a massive privatisation or even privatisation as such. The continent wants more traffic – and public support is seen as one of the elements to get this traffic,” he commented.
Kenya’s Jomo Kenyatta Airport … the African Development Bank has provided around US$1 billion in funding to the African aviation sector, investing in airport construction and expansion.
