Protectionism: Barrier to Africa’s air transport liberalisation

Despite very strong protectionism, we are all witnesses to the short life span of most of the African national carriers with an average life cycle of about 15 years maximum. WOLE SHADAREwrites that protectionism as much as it can be defended may have backfired on the continent’s air transport growth

Key factor

One key component of unlocking air transport connectivity in Africa is through the Single Africa Air Transport Market (SAATM) otherwise known as Africa’s ‘Open Skies’.

It takes its initiative from the single European air transport market where the whole of Europe is seen as a single airspace or the popular American air transport policy known as the “Open Skies’ policy that breaks the barriers associated with Bilateral Air Services Agreements (BASA) which is not flexible for air transport growth of reciprocity and restrictive market.

Not a few believe that what Africa and indeed African carriers need now more than ever before is air transport liberalization that would make fares cheaper and lead to high connectivity. Africa is poorly connected leading to airlines outside the continent taking greater advantage of the inability of the African government to follow through on their solemn declaration of ensuring that SAATM works.

Solemn declaration

A greater number of African governments including Nigeria have signed the declaration and to be fair, Nigeria has greatly abide by the SAATM tenets by encouraging airlines from the continent to operate freely despite criticisms from some quarters for throwing the country open for carriers from other African nations to reap ‘abundantly’.

What critics of the policy fail to understand is that Nigeria plays a big role in the affairs of the continent and is expected to show greater examples coupled with the fact that the country is the biggest market in Africa.

Aside from that, many see it as an opportunity for Nigerian carriers to rise to the situation to take advantage of its market rather than allow ‘outsiders’ to be the biggest beneficiary of the African Union (AU) air transport policy.

All eligible Nigerian airlines are encouraged to take advantage of SAATM to expand their operations across Africa and invest in infrastructure to ensure safe, secure, efficient, sustainable and competitive operational environments that promote easy connectivity, business growth, and job creation across the African continent.

The SAATM-PIP Cluster 1 Coalition Roadshow which is the first of its kind in Africa for States identified to proceed with the accelerated implementation of SAATM held between April 18^th and 19^th, 2023.

To accelerate the implementation of the Yamoussoukro Decision (YD) leading to the full and sustainable implementation of SAATM, the project was launched on November 14th, 2023 by the African Civil Aviation Commission (AFCAC) in collaboration with States and partners under the theme “Acceleration of Air Transport Liberalisation in Africa to Improve Continental Connectivity and Integration”.

Twenty ready states under SAATM PIP are Cape Verde, Cameroon, Central African Republic, Cote d Ivoire, Congo, Ethiopia, Gambia, Ghana, Gabon, Kenya, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, South Africa, Togo, and Zambia.

Restrictive BASA

Not too long ago, the Chief Executive Officer of RwandAir, Yvonne Manzi Makolo said the only way to grow the airline business in Africa is to do away with restrictive BASA, stressing that doing so would amount to lip services by African governments in the liberalization of air transport in the continent.

She called for the continent’s political leaders to speed the implementation of the Single Africa Air Transport Market (SAATM), a project of the African Union.

Once completely in force, the single market is expected to allow significant freedom of air transport in Africa, advancing the AU’s Agenda 2063.

She further stated that protectionism is the core of the problem that has seriously slowed down the implementation of SAATM in spite signing of the agreement by 35 African countries including Nigeria.

Aviation protectionism is simply preventing other airlines from operating in a country principally because governments want to protect their national carriers.

This doesn’t give room to competition; a variety of products and is against the open skies principles. It rather breeds inefficiency, monopolies, and outright failure to provide the consumer (travellers) with various choices to decide.

Makolo frowned at the long period it is taking the continent to harmonise its air transport policy, saying the topic had been on since she joined the industry many years ago with the slow implementation.

She said, “SAATM is a no-brainer when you say that you want to grow aviation within the continent, there is no way that can happen with restrictions in terms of who is restricting BASAs like the type of aircraft you are going to use, whether they give you Fifth Freedom or not, frequencies that you are going to operate.”

“That just won’t work. We have been talking about SAATM for a very long time since I joined the industry that has been the number one topic. What I am happy about is the fact that the decision has been made to start with pilot countries: the ones that are ready because right now, we have about 35 countries that are signatories. Even the ones that have signed up for it are not necessarily implementing it. The ones who are ready to implement can start and hopefully, when other countries see the benefits, they can come on board.”

Beyond SAATM, RwandAir’s chief equally pointed to the difficult visa regime in the continent and what makes it so difficult for people to move in the continent. To her, it is one of the biggest barriers to allowing free trade and movement of people within the continent and one that hurts SAATM.

Visa hiccups

Africa’s richest man Aliko Dangote 2018 said he needed 38 visas to travel within the continent on his Nigerian passport. Many European nationals, meanwhile, waltz into most African countries visa-free.

The Agenda 2063 flagship project, “The African Passport and Free Movement of People” aims to remove restrictions on Africans’ ability to travel, work and live within their continent.

Views

Nigeria’s Minister of Aviation Minister and Aerospace Development, Festus Keyamo Wings of Change Focus Africa 2024” conference held last week in Johannesburg, South Africa said SAATM provides the opportunity for the African aviation industry to enhance connectivity, improve safety standards, and boost economic growth.

He however lamented that that few governments have taken the steps needed for its implementation. He also called for a concerted effort to address the challenges facing the African aviation industry, such as high operational costs, restrictive bilateral agreements, and limited access to financing.

He noted that overcoming these obstacles is essential to unlocking the full potential of SAATM and achieving broader economic benefits for the continent.

Chairman of Air Peace Airlines, Mr. Allen Onyema has never been a fan of SAATM. At many fora, airline owners have spoken against stating that the reason for the promotion of the liberalisation of air transport in Africa was simply because many African airlines have their eyes on the huge Nigeria aviation market.

He further stated that SAATM implementation was worrisome because some African countries do not cooperate or stifle competition against Nigerian carriers, adding, “Nigerian airlines can never support SAATM because of the half-baked implementation. Some countries are not allowing it to work. Whatever Air Peace makes on the domestic market, it squanders on West Coast operations”.

Last line

Africa is considered a growing aviation market with the International Air Transport Association (IATA) forecasting a 5.9% year-on-year growth in African aviation over the next 20 years, with passenger numbers expected to increase from 100m to more than 300m by 2026 and SAATM is a way to tap into this market.

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