African Nations to Earn $20bn from Aviation Sector

So far, the government has spent N32.08 billion without any tangible result.

Nigerian Ports Authority (NPA) had on May 25, 2012 entered into a joint venture agreement with the Niger Global Engineering and Technical Services. This gave birth to the Calabar Channel Management Limited (CCM).

As was the case with Lagos channel where the management of Lagos Channel Management Limited (LCM) and Bonny channel where the Bonny Channel Management Limited (BCC) hold sway respectively, CCM is expected to dredge and maintain the Calabar navigational channel.

The dredging of the Calabar port channel has been mired in controversy as the jostling for the contract by those close to the corridor of power intensified.

The contract to dredge the 84-nautical mile Calabar port access channel dates back to 1996 when the late Head of State, General Sani Abacha, awarded the first contract for N3 billion. However, the contract was not executed, a clear indication that the beneficiary were close to the late general.

Chinedu Eze

The aviation market in Africa could yield revenue of over $20 billion in the next 10 years if African states deploy more funds to develop air transport sector in their countries through the modernisation of airport infrastructure, the implementation of open skies for Africa, an off shoot of Yamoussoukro Declaration, and manpower development.

This, according to aviation experts is because Africa is like a beautiful bride to the world in terms of economic development; it is described as the last frontier and the continent that has the highest economic growth rate with great potential of higher growth in the coming years.

Their position was made known at the African Aviation Summit 2015, Air Finance for Africa organised by African Aviation Services Limited with a theme: Open Skies Africa: New Alliance Strategies and Funding Solutions, in Johannesburg, South Africa.

The CEO of African Aviation Services Limited and the former Secretary-General of African Airlines Association (AFRAA), Nick Fadugba said Africa has been losing huge market to foreign operators because of the failure of African states to embrace and implement the Yamoussoukro Declaration with open skies for Africa which will enable African airlines to operate to any country in the continent without bilateral restrictions.

In his presentation, the Chief Executive of Airlines Association of South Africa, Chris Zweigenthal, said Africa is a continent of opportunities which has not utilised these opportunities to develop itself, so for the region to benefit from these opportunities it has to be focused; African nations must be united and take strong, political decision on how to move forward with the determination to develop business opportunities by creating enabling environment for investment.

One way of achieving this objective is for African countries to liberalise its skies for the continent’s airlines.

“We have to make every effort to make Yamoussoukro Declaration a reality. A free market creates huge passenger and cargo traffic, but some people consider YD as a threat to their operations; the African Civil Aviation Commission (AFCAC) should consider it a priority to ensure the implementation of open skies policy,” he said.

The coordinator for the Presidential Infrastructure Champion Initiative, New Partnership for African Development (NEPAD), Dr John Tambi said African nations must demystify aviation in Africa so that the private sector can participate.

“We should have to make aviation open like ICT and the energy industry; if we do this we need not beg the banks to invest in aviation if we make it open. Africa has sustained six per cent growth rate while the rest of the world is struggling. We have a population of 1.1 billion now; in the next 15 years we are going to have 1.6 billion people in Africa, so the continent is a large market. Africa is indeed a frontier for growth”, Tambi said.

He identified four key areas of growth in Africa to include infrastructure, investment, innovation and institution and noted that Africa aviation is part and parcel of infrastructure development in Africa.

“Aviation should not be seen as special industry, so we need to create the system whereby aviation should be made open for investment. We need to harness innovation ideas; we need to work together. Not every country should have an airline but we need to tap into sovereign wealth fund or pension fund to develop aviation in the continent,” Tambi also said.