Africa: investing in aviation infrastructure and harmonizing regulation to drive economic growth

When looking at the various regional aviation markets, each is characterized by its own unique set of opportunities and challenges.

The global aviation sector has largely recovered from the disruptions of the past few years, with many markets surpassing pre-pandemic levels of activity, yet in Africa the picture continues to be one of missed opportunity.

Most airports across the continent remain unable to accommodate increased demand from air travel from a growing middle class due to ageing infrastructure, limited financing for expansion, and regulatory hurdles. The lack of investment in airport infrastructure has left this market lagging behind other regions.

The case for increased investment to modernize airports is very simple; it helps facilitate job creation and economic growth. When looking at Europe for example, aviation supports close to 5 million jobs and contributes €300 billion to the EU economy.

The Middle East has established itself as a global aviation hub through massive investments in airport infrastructure and national carriers that connect continents, leveraging the region’s strategic geographical positioning.

However, with Africa it is important to highlight that investment alone will not be the panacea for this aviation market.

This market continues to be fragmented, with limited cooperation among countries due to inconsistent regulations and bureaucratic challenges which complicate operations. African airlines are being impacted by this lack of cooperation which is making it difficult for them to be competitive with the international players.

The EU has an agreement in place amongst member states as well as with the USA which has facilitated cooperation, leading to a significant increase in competition, lower fares, and expanded air services. This integration not only stimulated growth in the aviation sector but also contributed to overall economic growth in the region. This is something the African Union should be pursuing as a priority.

Closer to home, member states of the East African Community (EAC) have benefitted from liberalizing their air transport sector and are realizing gains in flights and reduced airfares, enhancing regional travel and economic integration.

African nations should work towards harmonising aviation regulations to simplify processes for airlines and foster a more integrated air transport network. While initiatives such as the African Continental Free Trade Area (AfCFTA) and the Single African Air Transport Market (SAATM) are helping to facilitate progress, more needs to be done to enhance connectivity and cooperation.

At Menzies Aviation, we see Africa as an exciting aviation market with so much potential and we will continue to advocate for its growth through investment and regulatory alignment.