Liberalisation: Nigeria, others to reap $1.3bn

Nigeria and 11 other African nations can generate 155,000 jobs and $1.3 billion in annual Gross Domestic Product (GDP) if air transport is liberalised, the International Air Transport Association (IATA) has said.

According to a report published by IATA, the 12 nations setting out the considerable social and economic benefits of intra-African air service liberalisation are Nigeria, Algeria, Ethiopia, Angola, Egypt, Ghana and Kenya.

Others are Namibia, Senegal, South Africa, Tunisia and Uganda. The study by the experienced independent economic consultants InterVISTAS outlined the benefits that would accrue if the 12 African nations were to implement the 1999 Yamoussoukro Decision.

The Yamoussoukro Decision committed 44 signatory countries to deregulating air services and to opening regional air markets to transnational competition. The implementation of this agreement, however, has been slow and the benefits have not been fully realised.

IATA’s outgoing Director General and CEO, Tony Tyler, said: “This report demonstrates beyond doubt the tremendous potential for African aviation if the shackles are taken off. The additional services generated by liberalisation between just 12 key markets will provide extra 155,000 jobs and $1.3 billion in annual GDP.

A potential five million passengers a year are being denied the chance to travel between these markets because of unnecessary restrictions on establishing air routes. “Furthermore, employment and economic growth are just the tip of the iceberg in terms of the benefits of connectivity.

Aviation is a force for good and plays a major role in helping to reach the African Union’s mission of an integrated, prosperous and peaceful Africa.” Aviation already supports 6.9 million jobs and over $80 billion in GDP across Africa.

The InterVISTAS research demonstrates that liberalisation will create opportunities for further significant employment growth and economic development. The jobs and GDP impact for the 12 countries in the study are as follows; Nigeria – 17,400 jobs ($128.2 million) in GDP; Algeria – 11,100 job creation ($123.6 million) GDP and Angola -15,300 job creation ($137.1million) GDP.

Also included are Egypt – 11,300 job creation ($114.2 million); Ethiopia 14,800 job creation ($59.8million), Ghana – 9,500 job creation and $46.8 million to accrue its GDP; Kenya, 15,900 jobs to be created, $76.9 million GDP.

Also, Namibia – 10, 600 jobs and $94.2 million to GDP; Senegal – 8,000 jobs and $40.5 million; South Africa – 14,500 jobs and $283.9 million in GDP; Tunisia – 8,100 job creation and $113.7 million in GDP and Uganda with 18,600 jobs with $77.6 million accruing to its GDP.

Speaking in the same vein, Vice President (Africa), IATA, Rapheal Kuuchi, told woleshadare.net that the study clearly highlights the crucial role air transport plays in driving economic and social development in Africa through enhanced connectivity.

He urged governments to support the growth of the industry by fully liberalising African skies as intended by the Yamoussoukro Decision, while providing other facilitator assistance such as implementing global standards in safety, security and regulations, reducing high charges, taxes and fees and removing visa requirements for ease of movement across the continent.

He disclosed that Africa represents a huge potential market for aviation, stressing that it is therefore unfortunate that African states are opening their aviation markets to third countries but not to each other, which does not promote the spirit of the Yamoussoukro Decision.

“This isn’t just holding back African aviation, but African economies. This important new report developed in collaboration with IATA, AFRAA and our key regional partners provides compelling facts and figures, which should send a powerful message to States and their key decision makers such as Finance, Tourism and Trade ministries across the continent to place aviation at the heart of their economic development and national planning growth strategies,” Kuuchi said.