© 2020 INDIRE Challenges and Opportunities Underlining Africa’s Aviation Land- scape: A Multiple Lenses Analysis * Samunderu, Eyden – International School of Management (ISM) Dortmund, Germany | ey-
[email protected] Njoroge, Simon Peter – Nairobi, Kenya |
[email protected] Aim/Purpose This study sought to apply the Structure Conduct Performance paradigm to Africa’s air transport landscape in general. To do that it examines the past, pre- sent and future expectations of four of Sub-Saharan Africa’s biggest aviation economies namely South Africa, Kenya, Ethiopia and Nigeria. Secondary data containing historical passenger traffic was analysed and predictions for growth in the next ten years proposed. Background There is consensus that overall the future of aviation in Africa has significant economic potential with significant other challenges needing to be overcome. The existence of a large land mass that requires connecting with itself, a grow- ing population and specifically a growing middle class with an appetite for air travel, an extensive extractives sector and a growing tourism sector can provide the necessary demand conditions. In support of this, regional economic com- munities have led the way in implementation of Yamoussoukro Declaration (YD). This is especially so in West Africa through the West African Economic and Monetary Union (WAEMU) and the Banjul Accord Group (BAG), which have facilitated the development of the most, liberalized air transport market in Afri- ca. At a higher level, the full implementation of YD requires that states disen- gage from the industry, liberalise access and facilitate the increased participation of the private sector. Some of the challenges that need to be actioned include high user charges and taxes, under-capitalization of African airlines and insuffi- cient management experience, which have contributed significantly to the low profitability of African airlines.