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Overhaul of regulatory environment critical

03 Aug 2023 - by Liesl Venter
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Af rica, home to about 15% of the world's population and covering approximately 20% of its landmass, faces a global air cargo industry disparity. Despite its vast geographic footprint and numerous landlocked countries, the continent accounts for a mere 2% of global air cargo volumes. This underwhelming figure has sparked concern among industry experts and policymakers, who believe that unlocking Africa's air cargo potential could catalyse the continent's economic growth and integration.According to Glyn Hughes, The International Air Cargo Association (Tiaca) director general, addressing the challenges hindering Africa's air cargo growth has become a priority for various stakeholders on the continent. Foremost among these challenges is the need to overhaul the regulatory environment. "The African Union has taken a significant step towards liberalising air transport through its f lagship project, the Single African Air Transport Market (SA AT M). By fostering cooperation and collaboration between African nations, SA ATM will facilitate more efficient and affordable air transport across the continent. This, in turn, will encourage increased trade and economic activity," he told Freight News. Another vital initiative from the African Union is the African Continental Free Trade Area (AfCFTA), designed to eliminate trade barriers and promote intra-African commerce. The AfCFTA has the potential to revolutionise Africa's economic landscape, leading to increased trade volumes and enhanced regional integration."Unfortunately, both these programmes will take years to implement fully, so in the meantime, states need to focus on their key exports and create new markets which air cargo can serve. Air cargo is a key driver of value creation regarding global connectivity and transportation of time- and condition-sensitive and valuable cargo."Hughes said on the positive side, several African countries were focused on developing their export markets, in addition to traditional and well-developed agricultural and f loral exports. "A notable example of this transformation is in Nigeria, where a burgeoning domestic demand for vehicles has spurred renewed investment in production, opening up export opportunities for vehicle components," said Hughes. "The e-commerce sector also provides some positive trends for imports and exports as global demand for African cultural products increases. We also see that Africa is starting to develop a strong drone sector, with many states actively supporting activity."

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