Air treaty: Nigeria, 22 others to double GDP by $300bn
- Nation’s carrier pleads for time
As Nigeria and 23 other African nations converged on Addis Ababa, Ethiopia, last weekend, to ratify the Single African Air Transport Market (SAATM), there are indications that the policy could exponentially increase the countries’ Gross Domestic Product (GDP) by $300 billion, Woleshadarenews has learnt.
Besides, the policy is expected to lead to catalytic benefits to every other sector such as increased choice of carriers, convenience and ease of travel, better connectivity and time saving.
For instance, there is currently no direct service between Algeria and Nigeria. The most convenient routing available is via Morocco (Algiers-Casablanca-Lagos). The minimum journey time for this routing is nine hours, but depending on connecting times, it could be as much as 17 hours.
A direct service would reduce the travel time between Algiers and Lagos to approximately 4.5 hours.
Other benefits are more commercial freedom to wider route network, more frequencies, hence economies of scale and density, better aircraft utilisation, flexibility and reduced cost of operations. Others are creation of a larger market for African carriers and improved access to capital, more flexible commercial agreements such as alliances, code shares, franchises, interlining, mergers and acquisitions among African carriers.
These were disclosed to our correspondent by the Secretary-General of African Civil Aviation Commission (AFCAC), Ms. Iyabo Sosina, in Lagos, at the sensitization workshop on the commencement of SAATM.
Sosina disclosed that the 23 countries that have declared for single air transport market have a combined population of roughly 670 million, over half of the population (57 per cent) of the continent in 2015, stressing that their combined GDP amounted to $150 billion in 2015.
She noted that this could double to $300 billion because of the enormous benefits it would bring to the continent.
The AFCAC scribe stated in 2015, 63.5 million international tourists were recorded in the continent and the 23 countries accounted for over 54 per cent of international visitors, hinting that the number of countries that have signed the solemn commitment offer significant single air transport market space in terms of traffic volumes and airport infrastructure.
In 2015, Africa was reported to have handled 180 million passengers with over 56 per cent passing through airports within the current single market area, whilst airlines within the 23 countries accounts for over 80 per cent of the intra-African traffic.
She listed the 23 countries that have signed the solemn commitment that has increased from 11 as Nigeria, Benin, Burkina Faso, Botswana, Cape Verde, Republic of Congo and Cote d’Ivoire. Others are Egypt, Ethiopia, Gabon, Ghana, Guinea Conakry, Kenya, Liberia, Mali, Mozambique, Niger, Rwanda, Sierra Leone, South Africa, Swaziland, Togo and Zimbabwe.
She explained that the Africa Union vision as codified in the Yamoussoukro Decision of 1999 is for full liberalisation of air transport in Africa and the relaxation of non-physical barriers to the movement of persons, goods and services.
“Her words: “With the proposed launch of SAATM this week (last week) and the next in Addis Ababa by the AU Heads of State and government, we expect this number to increase substantially as more and more countries are undergoing various processes in their respective countries to commit to the immediate implementation of SAATM.
“The members states that have signed up to the solemn commitment are also expected to implement a number of key steps towards ensuring the full implementation of the Yamoussoukro Decision that is the initial condition for the establishment of the single market.”
The greater benefits according to her, is its ability to unlock the economic and social benefits that air transport can deliver through the mobility of people and goods to the travelling public, air carriers, airports, other allied service providers, the economy of member states and the continent as a whole.
She reiterated that African Open Skies creates much more opportunities and economies of scale, stating that when African airlines are empowered by this realisation, economic development on the continent will be accelerated, thousands of more jobs will be created and the movement of people within the continent would be improved.
Meanwhile, while many African countries are excited with the enormous opportunities it would bring to Africa, Nigerian carriers are seeking for the slow-down of the process, maintaining that they are not ready for it.
President, Airline Operators of Nigeria (AON), Capt. Noggie Meggison stated that while the idea may be noble on paper, there is a need for the government not to lose sight of the facts and the dangers of the direct impact of the decision on the Nigerian economy and Nigeria as a whole and the future of our youths.
