The African air cargo sector is undergoing transformational growth, suggesting that projections could reach $5 billion, totaling $5 billion by 2025, Gadia said in September. The address to representatives of Aviation Africa 2024 stated.
This growth is driven by increased trade volumes, particularly in Europe and Asia, and a significant improvement in logistics capacity across the continent. However, to realize this possibility, we must take advantage of the immeasurable opportunities ahead, while addressing some enduring challenges.
The African air freight industry offers enormous outlook, particularly in the transport of fresh food, e-commerce products, and medical products, including pharmaceuticals and vaccines. With the growing demand for fast and efficient logistics, Africa Airlines has a unique opportunity to expand its operations by investing in cargo ships and smart infrastructure. These advancements are essential to handling specialized cargo and ensuring seamless transcontinental transport.
Two key frameworks – the African Continental Free Trade Area (AFCFTA) and the Single African Air Transport Market (SAATM) could revolutionize in intra-African trade and air freight connectivity. Ratification of these frameworks will encourage liberalization and enable African Airlines to expand operations with improved connectivity, growth and collaboration within continental networks.
With the implementation of the SAATM, the role of the aviation sector as an economic driver is expected to stimulate trade, investment and employment and significantly expand. By promoting partnerships and cooperation between African airlines, SAATM is able to create an environment in which airlines work collectively to enhance trade and connectivity within Africa.
The challenges facing the industry
Despite the promising outlook, the African air cargo sector faces several barriers that it must overcome to unlock its maximum potential.
1. High operating costs:
Jet fuel prices, freight handling fees, freight taxes and royalties reduce costs and put African Airlines in a competitive disadvantage. 2. Regulatory constraints:
Protectionist policies, restrictions on transportation rights, and support for foreign airlines will curb the growth of African Airlines. These restrictions prevent the liberalization of air transport. This is important to unlock new opportunities. 3. Connection issues:
The lack of connectivity within Africa causes cargo to be routed through the Middle East and Europe, increasing shipping times and costs. Furthermore, inadequate collaboration between African Airlines is hindering network development. 4. Insufficient infrastructure:
Many African airports lack basic infrastructure such as modern terminals, parking lots, and air freight processing facilities. Encouraging private investment through public-private partnerships (PPPS) is essential to address these flaws. 5. Control of foreign airlines:
Foreign airlines control 80% of the African air freight market, are given favorable transportation rights, and often put African airlines aside. This dynamic limits the competitiveness of local players.
The road ahead
Aviation has great potential to drive economic growth and development in Africa. However, to fully exploit this possibility, we must accept liberalization through the SAATM and AFCFTA frameworks. By reducing costs, improving connectivity and promoting cooperation between African airlines, the continent can unlock new growth measures.
Collaboration is important. African Airlines must accept and collectively cooperate with partnerships to strengthen its presence in the global air freight market. Through coordinated efforts, infrastructure investments and regulatory reforms, Africa can establish itself as a terrifying player in the global logistics environment.
The future of Africa's air freight industry is bright, but its success relies on bold actions to overcome challenges and seize new opportunities. In doing so, the aviation sector can drive the continent towards greater economic integration and prosperity.
