The International Air Transport Association (Iata) says more jobs could be generated and additional economic growth achieved in Namibia if intra-African markets were opened up to permit greater airline transport connectivity.
This was the major finding of a Value of Aviation for Africa econometric report commissioned by Iata and undertaken by independent economic consultants InterVISTAS to examine the impact of liberalised air transport for Namibia and 11 other major African economies.
It found that Namibia stood to benefit from an additional 10 600 jobs and US$94.2 million (approx. N$1.17 billion at current exchange rates) additional GDP per year if just the countries in the study were to implement the 1999 Yamoussoukro Decision to open Africa’s skies to African airlines.
“This report demonstrates beyond doubt the tremendous potential for Namibia if the shackles on aviation are taken off. But for the full benefits to be realised, Namibia should work to encourage all African states to embrace the Yamoussoukro agenda. A potential five million passengers a year are being denied the chance to travel within Africa because of unnecessary restrictions on establishing air routes,” said Raphael Kuuchi, Iata’s vice president for Africa.
The 12 nations studied in the report were: Algeria, Angola, Egypt, Ethiopia, Ghana, Kenya, Namibia, Nigeria, Senegal, South Africa, Tunisia and Uganda.
“African airlines are expected to return a profit of just $100 million in 2015, on a net profit margin of 0.8%, the thinnest of all aviation regions. While other regions are experiencing robust growth this year, demand for air travel within the regulatory-constrained intra-African market is only expected to grow by 3.2% this year. Smarter regulation, giving African carriers greater access to all intra-African markets, would stimulate competition and with it demand for travel as businesses and traders would be able to expand into those markets. The net result would be much stronger growth not only for the airlines, but for the economies of those countries that embrace the “open skies” framework,” Kuuchi added.
New report quantifies benefits of open skies for Africa
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