"One finger cannot lift a pebble"- African Proverb
An efficient means of transport established between two points, as many a case study has shown, increases commercial activities between the two points and leads to a relatively improved standard of living for people living within these two points.
Such a laudable approach -- widely touted by African governments as the best way to open up inaccessible parts of their respective countries for development -- has not been applied to the aviation industry.
While acknowledging the contribution of aviation to their local economies, African governments have adopted a subtle protectionist approach in granting permits for carriers outside their own country. The situation has made intra-Africa travel very difficult -- a true reflection of poor intra-Africa trade.
Aviation and trade are closely linked. Airlines thrive where there is trade or commence. The flow of commercial activities in a particular region is carefully taken into account in the planning of routes by airlines.
Currently, intra-African trade accounts for only 10 percent of total Africa trade volumes as compared to rates of 40 percent for intra-North American trade and about 60 percent of trade among Western European countries.
Though efforts have been made over the years to integrate African economies, a number of people are becoming frustrated at the slow pace of the integration process -- and this has affected intra-Africa trade positions.
The sentiments expressed by African-unity groups about the slow pace of African integration are loudly echoed by aviation experts on the continent.
Non-adherence to regional and continental agreements for the liberalisation of Africa's airspace and the general protectionist posture has not only made air travel on the continent cumbersome, but has hindered economic and social development.
Benefits of liberalisation
A recent study by InterVISTAS, an experienced independent economic consultants, about the potential benefits that would accrue if the12 African countries covered in the report were to fully implement the 1999 Yamoussoukro Decision (see figure 1). Aviation already supports 6.9 million jobs and generates more than US$80billion in GDP across Africa
The study found that additional services generated by liberalisation among the12 key markets or countries covered in the report will provide an extra 155,000 jobs and US$1.3billion in annual Gross Domestic Product (GDP).
Tony Tyler, IATA’s Director General and CEO, aptly notes that a potential five million passengers a year are being denied the chance to travel between these markets because of unnecessary restrictions on establishing air routes.
"Employment and economic growth are just the tip of the iceberg in terms of the benefits from connectivity. Aviation is a force for good, and plays a major role in helping to reach the African Union’s mission of an integrated, prosperous and peaceful Africa,†said the CEO of IATA, which represents 240 airlines comprising 84% of global air traffic.
Ghana's aviation industry, according to the study, can add an additional US$47million to the country’s Gross Domestic Product (GDP) and create 9,500 additional jobs if government fully commits to liberalising the industry.
The aviation sector contributes about 6 percent to Gross Domestic Product (GDP) globally. There is no official figure of the sector’s contribution to the country’s GDP. In 2013, the country’s real GDP was estimated at GHȻ32,332million.
In 2012 about GH¢57million was realised in airport taxes, which went to support the national budget. About GH¢37million and GH¢47million in airport taxes were also paid to the Ghana Revenue Authority (GRA) in 2010 and 2011 respectively
Yamoussoukro Decision
The 1999 Yamoussoukro Decision committed 44 signatory countries to deregulating air services and to opening regional air markets to transnational competition. The implementation of this agreement has however been slow, and the benefits have not been realised.
Article three of the Yamoussoukro agreement provides that "State parties grant to each other the free exercise of the rights of the first, second, third, fourth and fifth freedoms of the air on scheduled and non-scheduled passenger, cargo and/or mail flights performed by an Eligible Airlines to/from their respective territories".
Article 6 also provides that "Each State Party shall have the right to designate in writing at least one airline to operate the intra-Africa air transport services in accordance with this Decision. Such designation shall be notified to the other State Party in writing through diplomatic channels"
However, insistence on these provisions by member-countries has had very little success.
Ms. Iyabo Sosina, Secretary-General of the African Civil Aviation Commission, concurred with Tyler. She said: “Africa represents a huge potential market for aviation. It is therefore unfortunate that African states are opening their aviation markets to third countries but not to each other, which does not promote the spirit of the Yamoussoukro Decision. This isn’t just holding back African aviation, but also African economies.â€Â
Almost all domestic airlines in Ghana have expressed interest in flying certain West Coast routes but have faced difficulties in obtaining the relevant permits to ply those routes. For instance, Africa World Airlines (AWA) is currently the only Ghanaian airline plying the Accra-Lagos route.
The other Ghanaian operators are known to have also submitted the relevant documents to fly to the West African country, but the bureaucratic process has tamed their expectations and disrupted their plans.
It has been mooted in certain quarters that the delay in issuing permits by West African countries with established home-grown carriers is meant to protect their airlines from competition.
Ghana has been at the forefront of championing the liberalisation of African skies.With just one main domestic operator and a dozen international carriers flying to Ghana in 2009, the GCAA management over the last decade has successively encouraged the growth of indigenous carriers and attracted strategic international airlines into the country.
There are now about 42 scheduled flights servicing the Kotoka International Airport, including three major domestic airlines -- Antrak, Starbow and Africa World Airlines.
What needs to be done?
Kevin Markette, Country Manager for Lufthansa believes that it is imperative for countries on the continent, especially signatories of the Yamoussoukro agreement to liberalise their air space.
“I think liberalisation can only help growth. There are many air routes in Africa where the easiest and quickest way is to travel via Europe.
“I think we need to have more liberalisation and easier access to these air routes within West and East Africa. Why should a passenger going from let’s say Abidjan to Malabu, fly via Europe? Why not have a bilateral agreement and an airline to offer a direct service at competitive prices.â€Â
He acknowledges the subtle protectionism in place and believes that it will require “a lot of flexibility on the part of governments and some level of quality-standard in terms of airlines flying these routesâ€Â.
James Eric Antwi, the Accountable Manager and Chief Executive Officer of Ghana-based Starbow airlines said: “It is true, Ghana has been very liberal in this issue; a lot of companies come in, they get the chance to come in but in other countries, before you get approval, it will take a very long, long time. They put a lot of impediments in the way.
“If other countries on the continent can also behave the same way as we have being doing and be more liberal, going to those places will be easier. There are some countries, when you put in an application to fly there, you have to keep pushing and pushing.
“Aviation is growing; I think it’s a matter of time for countries on the continent to start opening up. Currently, most of the countries in the sub-region are trying to do some kind of protectionism. They are trying to protect their national airlines to avoid people from coming in, but I think competition is healthy.â€Â
As the African proverb stated at the beginning of the article said, “One finger cannot lift a pebbleâ€Â. It takes all countries of the continent to wholly liberalise their air space if we truly want to address the unemployment bedevilling the continent and improve the living standards of its people.
Nation Additional Employment Additional GDP (US$)
Algeria 11,100 123.6 million
Angola 15,300 137.1 million
Egypt 11,300 114.2 million
Ethiopia 14,800 59.8 million
Ghana 9,500 46.8 million
Kenya 15,900 76.9 million
Namibia 10,600 94.2 million
Nigeria. 17,400 128.2 million
Senegal 8,000 40.5 million
South Africa 14,500 283.9 million
Tunisia 8,100 113.7 million
Uganda 18,600 77.6 million
By: Dominick Andoh/thebftonline.com
Facebook
Twitter
Pinterest
Instagram
Google+
YouTube
LinkedIn
RSS