Tempting freight...

The air cargo sector in Africa is poised for transformative growth, with projections suggesting it could reach a total value of $5 billion by 2025, said Gadhia, during his address to delegates at Aviation Africa 2024 in Johannesburg in September.

This growth is driven by rising trade volumes, particularly with Europe and Asia, and significant improvements in logistics capabilities across the continent. However, realising this potential requires addressing several persistent challenges while capitalising on the immense opportunities that lie ahead.

The African air cargo industry presents immense prospects, particularly in the transportation of perishables, e-commerce goods, and medical products, including pharmaceuticals and vaccines. With a growing demand for rapid and efficient logistics, African airlines have a unique opportunity to expand their operations by investing in freighters and smart infrastructure. These advancements are essential for handling specialised cargo and ensuring seamless transportation across the continent.

Two key frameworks — the African Continental Free Trade Area (AfCFTA) and the Single African Air Transport Market (SAATM) — have the potential to revolutionise intra-African trade and air cargo connectivity. Ratification of these frameworks will foster liberalisation, enabling African airlines to scale up their operations through improved connectivity, growth, and collaboration within the continent's network.

With the implementation of SAATM, the aviation sector's role as an economic driver is expected to expand significantly, stimulating trade, investment, and employment. By fostering partnerships and cooperation among African carriers, SAATM can create an environment where airlines work collectively to strengthen intra-African trade and connectivity.

Challenges Confronting the Industry

Despite its promising outlook, Africa’s air cargo sector faces several barriers that must be overcome to unlock its full potential:

1. 1. High Operational Costs:
   Jet fuel prices, cargo handling fees, freight taxes, and royalties drive up costs, placing African airlines at a competitive disadvantage.
2. 2. Regulatory Constraints:
   Protectionist policies, restrictions on traffic rights, and favouritism towards foreign carriers stifle the growth of African airlines. These limitations hinder the liberalisation of air transport, which is crucial for unlocking new opportunities.
3. 3. Connectivity Issues:
   A lack of intra-African connectivity forces cargo to be routed through the Middle East and Europe, increasing transit times and costs. Furthermore, insufficient collaboration among African airlines hampers network development.
4. 4. Inadequate Infrastructure:
   Many African airports lack basic infrastructure such as modern terminals, parking, and air cargo handling facilities. Encouraging private-sector investments through public-private partnerships (PPPs) is essential to address these deficiencies.
5. 5. Dominance of Foreign Carriers:
   Foreign airlines dominate 80 per cent of Africa’s air cargo market and are granted favourable traffic rights, often sidelining African carriers. This dynamic limits the competitiveness of local players.

The Path Forward

Aviation holds immense potential to drive Africa's economic growth and development. However, fully leveraging this potential requires embracing liberalisation through the SAATM and AfCFTA frameworks. By reducing costs, improving connectivity, and fostering cooperation among African carriers, the continent can unlock new growth avenues.

Collaboration is key. African airlines must embrace partnerships and work collectively to strengthen their presence in the global air cargo market. Through coordinated efforts, investment in infrastructure, and regulatory reform, Africa can establish itself as a formidable player in the global logistics landscape.

The future of Africa’s air cargo industry is bright, but its success depends on bold actions to overcome challenges and seize emerging opportunities. In doing so, the aviation sector can propel the continent towards greater economic integration and prosperity.