Protectionist measures

There are many reasons that the Yamoussoukro Decision (YD) hasn’t advanced as hoped in the best part of two decades.

The potential dominance of some carriers is a common concern for certain governments. Throughout Africa, a number of countries continue to restrict market access under the pretext that their national airline is not ready to compete in a liberalised market.

Discriminatory practices have also hampered the pace of liberalisation. Some African countries have opened up to intercontinental traffic despite refusing access to their neighbours in Africa. This is particularly apparent in West Africa, where non-African airlines tend to be given more third/fourth and sometimes fifth freedom traffic rights while Africa carriers are denied.

As a result, often the best connection between two African cities can be via Europe or the Gulf.

Vice-President, International Air Transport Association (IATA), Raphael Kuuchi told Woleshare.net at the just concluded IATA 73rd AGM in Cancun, Mexico, that it is absurd that it is possible to travel 13 times a week from Nairobi to London yet impossible to travel directly from Nairobi to Dakar.

He said a potential five million passengers a year are being denied the opportunity to travel, trade and spread economic and social development.

The problem is exacerbated by the European Union’s (EU’s) ban on several airlines for safety reasons. A lack of confidence in safety oversight has resulted in some airlines with good safety records being put on the list. Not surprisingly, about 80 per cent of intercontinental traffic to and from Africa is carried by non-African airlines.

A host of other difficulties exist, ranging from severe shortages in foreign exchange to bewildering documentation procedures. Onerous visa requirements in terms of time and cost for Africans travelling within Africa dampen demand. And another layer of deterrence is added when countries such as South Africa require transit visas as well— requirements that are not necessarily imposed on visitors from non-African countries.

Expert’s view

Kuuchi noted that all they want to see is a multilateral arrangement that all countries, all operators in the continent can benefit, but regretted that is not happening yet.

His words, “Now, fortunately, following the AU Heads of States summit of 2015 where they decided that we need to come up with a solemn declaration and get states that are willing and ready to open up their markets unconditionally to sign this declaration. To date, we have got 21 countries that have actually signed the solemn declaration. As we speak, we have 21 out of the 54 countries in Africa that have said we are prepared to open up their market.

“The thing is for the AU and its agencies to fast-track the process of actually actualising this. It is one thing for states to say that they want to open up but what is the process? What do I need to do to show that I have opened up for an airline who wants to fly into my country? What should that airline do? Should it just start up one day and start flying there? There should be some minimum requirement. In addition, because airlines are in competitive environment, you need to have competition regulations.

The IATA chief stated that most countries feel that allowing market access is to allow stronger airlines dominate their carrier.

He said: “If you have not signed the solemn declaration, I will understand your point and after due consideration of all these elements that you are ready to open up unconditionally that my country is ready to open up to any African country that is ready, then, what is the problem?

Last line
There is one overriding argument for tackling these issues with all possible haste. Liberalisation in Africa would be enormously beneficial to the region.

An IATA study conducted by InterVISTAS-The Economic Impact of Intra-African Air Services Liberalisation uses 12 countries to show that if these countries were to sign open skies bilateral agreements with each other in accordance with the principles of Yamoussoukro Decision, it would be different.

The report establishes that the liberalisation of air services across the 12 countries of Algeria, Angola, Egypt, Ethiopia, Kenya, Ghana, Namibia, Senegal, Nigeria, South Africa, Tunisia and Uganda would create thousands of new jobs and boost the Gross Domestic Product (GDP) by $1.5billion.