17th Aviation & Allied Business Leadership Conference: The Reality Of Regional Integration, Liberalization In Africa

In Dar es Salaam last August, government representatives from African countries and the United States together with private sector air transport development experts put regional integration, liberalization and the need for closer collaboration in the fore of development objectives for the African continent. The uniqueness of this positioning for air transport in Africa may lie in the fact that the US, private sector and several African government representatives spoke with one voice, for instance, on the need to break down the hindrances to the full implementation of the Yamoussoukro Decision (YD), regional integration in Africa as well as intra-Africa partnership as well as Africa's collaboration with external aviation development partners.

By this very Conference recommendations, the YD stands rekindled in Africa; and States evinced commitment to go back to build-up synergy of interconnectivity guided by openness, positive disposition and vision of good for the continent of Africa. In fine-tuning the instruments and strategies to cause effective liberalization within and among the regions, the Conference reminds States and regions to exscind such provisions that self-serving be, which are exclusive or prohibitive of other States or regions. This connotes that States play down on bilateral (air services) agreements which now have become rather anachronistic and constraining in the context of the more beneficial Africa-wide YD. In its stead, the watchword for States and regions working on any form of integration on the continent as

strongly endorsed at the Conference is multi-State and cross-regional agreements cum policy harmonization. Almost like magic, this will expand air transport network in Africa over the short-term, and in the medium- to longer-terms would consolidate air transport growth and development in Africa. The benefits may not be uniform for all States, but in a win-win pattern, all States would experience remarkable growth and development, and some say more affordable air transport services.

And for the reason that about 20 years ago States and governments originated the noble idea of the YD - which is synonymous with positive-transformation-in-air-transport-to-benefit-all-African States - the Conference deems it important that States should lead YD's implementation, from the realignment of enabling policy frameworks with current market realities to the creation of conducive environments for private investors to key in strongly.

Though the African Civil Aviation Commission (AFCAC) is the current Executing Agency for the YD, the slow pace of implementation of the YD among States whipped up opinions that the Executing Agency be given to a more vibrant body. But this may not be more effective than giving AFCAC massive support to be able to carry out its EA mandate for the YD, among other vital functions. The President of AFCAC, Mr. Ceubah Guelpina's call for more support to AFCAC is not out of season and deserves stronger political support by States. International and regional groupings need also to work closely with AFCAC. It is past time for vacillating over the implementation of the framework for air transport transformation in Africa. Now renewed discussions are on-going, and the industry expects to see a groundswell of interconnectivity in Africa.

The trend of development in Africa's air transport industry tends to lack adequate political support; and it was remarkable that at the Conference a number of African Transport Ministers strongly canvassed the breaking down of barriers to air transport network and regional economic integration in Africa.

The most resounding of calls and commitments at the Conference perhaps could be that of President Jakaya Kikwete of the United Republic of Tanzania who seeks sustained regional approach in tackling the challenges facing aviation development in Africa, reminding African leaders of the essence of air transport as a tool for economic development. As President of one of Africa's States where air transport is needed to boost tourism and economic development, in addition to supporting land-locked neighbours, President Kikwete saw by opportunity of the Conference the needs of the air transport industry in Africa. This gives hope that he would influence greater support at the Heads of State level for air transport in Africa. This would be most gratifying for the industry and President Kikwete as the continent earnestly needs to break away from the old way of running the industry (i.e. without adequate government support for the most part).

The Publisher of Aviation & Allied Business Journal, Captain Edward Boyo, who speaks the minds of most experts at the Conference, believes that the presence of President Kikwete at the Conference provides opportunity for understanding of the aviation industry by government.

It is exhilarating that government representatives and industry regulators now want measurable and practical effects of liberalization/YD implementation on the continent. Hon. Frank Ramsden of Botswana says, "we are encouraged by what we see," referring to the need for practical approach to air transport development; while Dr. Harold Demuren, the Director General of Nigerian Civil Aviation Authority, says "we want to see the numbers" (of more airlines flying on the basis of the Yamoussoukro Decision (YD)).

The renewed confidence among industry observers, players and regulators must have been boosted by the unanimity of opinions from public and private sector partners especially on the urgent need to improve market access in all parts of Africa.

Some query why African countries denied other States assess while opening to Europe and Middle East airlines.

Some of the US representatives visiting Africa for the first time appreciated first-hand the progress made in the areas of safety and security in Africa, and the urgent needs for government to drive air transport liberalization in all parts of Africa. Ms. Susan Kurland, Asst. Sec. for Aviation/Int'l Affairs, US DOT, requested African leaders to spearhead the on-going transformation process realizing that foreign partners are ready on the sideline to prop up their efforts.

The Conference as a crucial interface between the private and public sectors of the aviation industry in Africa brought both sides on the same page regarding challenges facing the industry. And of crucial importance to the industry is that both sides are abreast of (the enormity of) their separate responsibilities.

Technical Perspectives

While States have been given the task of coming up with effective policy and regulatory frameworks to pave way for accelerated liberalization of African air transport markets, industry experts and leaders think continuity in culture of effective leadership is vital to transform the industry on the back of an integrated air transport regions within Africa.

Besides, aspects of the industry currently receiving inadequate attention namely small airports and cargo airlines were brought to relevance, by highlighting the need to improve safety at small airports given their supportive role to industry growth, as well exploring the hidden untapped benefits of air cargo market in Africa.

This means that airlines must become innovative and adaptable to new revenue-yielding opportunities.

Regional safety oversight agencies as crucial change agents also require improved funding and other support to meet the needs of the expected growth in Africa's aviation industry and in line with expected new wave of political support for the industry. While market demand is strongly expected to grow steadily, as Boeing says Africa would require about 800 new airplanes in the next 20 years, regional aircraft manufacturer, ATR, reminds of the need to make the most of the emerging regional integration and regional markets by utilizing more efficient regional airplanes to drive growth and airline regional market leadership.

In addition, insurance capacity for aviation in Africa cannot be ignored as a support device for operators and users in the industry. And the Conference states the need to bolster local insurance through policy actions and awareness creation among insurance practitioners.

Besides, several side-meetings took place at the Conference on cross-regional and inter-continental bases the fruits of which are expected in the near-term and beyond.

Positive Outlook

As observed in many spheres, lack of understanding of the abstruse aviation industry denies it the needed support from government. But now, that is expected to change, and government at the highest level must continue to interact with the industry to stay up-to-speed with industry needs and respond effectively. Now President Kikwete assures that Africa is ready to take aviation to the next level of development.

This is the most important need of the industry - transformation spurred by political will and positive collaborative efforts. The next one year will show if the 17th Leadership Conference has broken the jinx on accelerated air transport liberalization and YD implementation in Africa. All partners must now evince the characters of real revolutionaries.

 

 

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