Creating Leeway For Private Sector Impact In Ghana - Hon. Mike Hammah

MicHammah_bHon. Mike Hammah is the Minister of Transport of the Republic of Ghana, now in his second year as Minister. In the unfolding context of air transport development in Africa where increased political will is increasingly sought and private sector input strongly embraced, he details how Ghana has responded to these key needs of the industry. He spoke to Aviation & Allied Business in Gaborone, Botswana, on the sidelines of the just-concluded 16th Aviation & Allied Business Leadership Conference.

Excerpts:


Q: Could you give an overview of the Ghana aviation industry in terms of its growth and what aviation has contributed to the overall economy of Ghana so far in the last two years?

A: The aviation sector the world over plays a very critical role in the economic development of a country as it is the catalyst for economic growth and it stimulates a lot of investments. Back home (in Ghana), the aviation sector is progressively being developed. What we did was to make sure that the policy directive was quite right. We started with a draft aviation policy which is being firmed up now; and in that policy there is a progressive effort to develop the aviation sector and to encourage a lot of domestic airlines to be able to operate efficiently in the Ghanaian aviation industry. But also quite frankly, it's not only the policy direction, but the institutional, legal, and regulatory capacity framework is very important to operationalize the policy. So, in Ghana, progressively over the years, we sought to separate the regulatory from the commercial aspect of aviation industry. Currently, we have the Ghana Civil Aviation Authority which has a mandate to regulate the aviation sector, and then also provide air navigational services.

Then, we have formed another company called the Ghana Airport Company Limited that has the mandate to plan, develop and manage airports and aerodromes throughout the country. In future, we are thinking of further decoupling the provision of air navigational functions from the regulatory aspect. We have another agency providing the air navigation functions. The idea is to improve on safety oversight and security of the airports. All these are in line with our vision policy of making Ghana the aviation hub in the sub-region. And currently, we are looking at improving on infrastructure. It is also important for government to establish the necessary aero-political legislation that will foster the growth of domestic airlines, because if you want the private sector to operate more efficiently, it is not government business to do business; government creates enabling environment for the private sector to operate efficiently.

But in so doing, it is also important that the private sector response is also developed to such extent that they can complement Government in the provision of aviation services. Kotoka International Airport, for instance, is going through a third stage of improvement where we expect to construct a new fire station; we also expect to improve the terminal building and there is going to be a new air traffic control system. We will also create an enabling environment where the private sector can establish aviation infrastructure including the MROs (maintenance, repair and overhaul). All these would help in achieving regional hub concept in Ghana.

Q: What areas do you see as difficult in terms of your efforts to develop the industry in Ghana?

A:
I think the difficulty for me now has been that Government resources are quite constrained given that revenues that we get from the aviation sector do not match the expected expenditure in terms of developing the infrastructure to be able to achieve our core objective of making Ghana the preferred aviation hub in the sub-region. So, the challenge is to find how we can create that synergy that will allow the private sector to come in handy and partner with us to be able to develop the infrastructure faster. The regional airports have to be developed; we expect that some of the infrastructure in Kotoka Accra Airport have to be improved; and all these demand a lot of money.

What is important is the legal and regulatory framework for the kind of public-private partnership arrangement that would easily entice the private sector to come in and invest, which is what we are working at. We are looking at the Tamale Airport as an alternative airport to existing Kotoka International Airport, and we have received some proposals from some interested investors. We are also looking at other regional airports where we think that the private sector can also partner government.

Q: Now, looking at the airline industry in Ghana, is there something you are doing to boost local airline operations in Ghana?

A
: I think that as a key objective of the aviation policy that we are currently firming up. There's a need for government to create the aero-political legislation that will foster the growth of domestic national flag carriers. Currently, the Ghana International Airlines is fraught with a lot of challenges.

As I speak to you now, they are not even able to meet their operational costs. So, Government intends to restructure the Ghana International Airlines. We also think that given the challenges that they have now, nothing stops us to have a second airline so that the two of them will go hand-in-hand; and if there is a need for them to merge in the future, so be it. Government is in the process of developing a roadmap for a new airline based on a public-private partnership.

We believe that with the induced demand for air travel as a result of the oil found in the western part of the country, there is a need for us to reap some benefits in the domestic economy; and without national, domestic carriers, it's very difficult to link that into our domestic economy. It's for this reason that I am particularly desirous of ensuring that we can build the capacity of the local private businessmen to partner Government to help the domestic airlines so that they can also take part in the business.

Q: How do you rate the present level of cooperation amongst African ministers and the strength of political will to boost air transport on the continent?

A:
I feel that the will is there, everybody understands the purpose of air transport; but when it comes to implementing the decisions that we take we realize that people back-track. I do not understand it; because about ten years ago when we signed MOU for the Yamoussoukro Decision the zeal with which the African ministers signed the MOU, I would have thought that by now we would have had a seamless and integrated African airspace. But ten years down the line, we still have some restrictive Bilateral Air Service Agreements. We have to be very committed to the Yamoussoukro Decision.

Once all African countries become committed to it and agree that the aviation industry must be market-driven, and then move away from the restrictive regulatory regime the aim of the Yamassoukro Decision can be achieved.

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