At the AFRAA conference in Cairo, International Air Transport Association, IATA’s Director General, Willie Walsh, reiterated the organization’s dedication to fostering the growth of the African aviation sector.
According to sustainabilityinthesky.com, Walsh highlighted IATA’s ongoing efforts to address challenges and unlock opportunities for the region’s air transport industry.
Walsh also took the opportunity to point out key issues which Africa must attend to.
“I don’t come here with any magic solutions, but as your global association I want to assure you that we work closely with AFRAA, we are focused on your needs, and we are looking at how we can support our members’ success even more effectively.” Walsh said.
POTENTIAL FOR AFRICAN AVIATION
There is enormous potential for growth in Africa’s aviation sector.
The continent is home to 18% of the world’s population but accounts for just 3% of global GDP.
Moreover, African aviation accounts for a very small share of global air transport, at just 2%.
“As Africa’s airline leaders, I know that you are ready to take advantage of this potential to grow your airlines and connect the continent. I also understand the enormous challenges you face—among these, high costs and taxes, including the highest into-wing jet fuel prices in the world, low adoption of global safety standards and airport infrastructure in need of investment.” Walsh said.
Walsh also pointed out that the sector needed to focus on three critical issues.
AFRICAN AVIATION SAFETY
Safety thrives with global standards. IATA sees this clearly in IOSA—a condition of membership for both AFRAA and IATA.
Airlines on the IOSA registry outperform those not on the registry. That is the case in Africa and globally.
Africa has made significant improvements in safety.
There were no hull losses or fatal accidents between 2020- and 2023. Even in 2023 the African turboprop hull loss rate was the highest in the world. Thus, there is still work to do on safety.
“Part of that work is safety culture. The IATA Safety Leadership Charter provides eight principles aimed to standardize a global approach for safety culture in each airline. Some 118 airline CEO’s have signed, fourteen of these are in Africa. While that is a significant number, with 37 IATA members and 65 IOSA airlines in the continent, there is scope for more to join. If you have not yet signed, I encourage you to do so.” Walsh said.
An increased willingness to share data is an important outcome of an effective safety culture.
The more data that is brought together, the more powerful the insights that are available.
“Along with encouraging you to sign the Safety Leadership Charter, I also ask that airlines not yet contributing their data to the Global Aviation Data Management (GADM) initiative to do so. GADM has become a powerful analytical tool to improve safety. And if you participate—at no cost—you will also get access to rich data that can enhance your safety performance.” He said.
BLOCKED FUNDS
The second issue Walsh emphasized is that of blocked funds.
African governments are notorious for blocking monies due to airlines.
Airlines deliver huge social and economic benefits to countries by providing their services.
“Globally, our tally shows $1.662 billion of airline money is blocked from repatriation—$950 million of which is in African countries. Within Africa, the largest amounts are in the XAF and XOF zone where over $300 million is being withheld. Working with your teams, progress has been made. But every success seems to be balanced by an increase somewhere else—the problem is persistent.” He said.
Walsh reminded countries that airlines are not charities and that blocked funds deter aviation growth and ultimately economic growth. If airlines cannot repatriate their revenues, they cannot be expected to provide service. Economies will suffer if connectivity collapses.
SUSTAINABILITY IN AVIATION
Thirdly, Walsh spoke about sustainability in the aviation space.
He emphasized the need for airlines to act now or risk being left behind.
“This is the biggest challenge we face. By 2050 we must be at net zero carbon emissions. This is existential to our future growth, the health of our planet and the prosperity of people everywhere who depend on aviation. There will be many political twists and turns on the way to 2050. But in 2021 we set the course to achieve net zero carbon emissions by 2050 and reversing course is not an option.”
For Africa, aviation’s energy transition is a big development opportunity.
SAF will contribute more than 60% of the mitigation needed for aviation’s decarbonization.
However, only a small percentage of aviation’s fuel needs can currently be met with SAF and there is no production in Africa.
“That must change and change quickly. Africa has the people and natural resources to develop a world-leading SAF sector, provided the financing and government incentives are available. This is a perfect example of “build it and they will come”. And along with SAF will come jobs, growth and progress towards energy independence.” Walsh said.
There is huge potential for SAF production in Africa.
This year several African states have begun carrying out feasibility studies for the production of SAF. One of the obstacles, however, is finance.
That said, Afreximbank has come forward with plans to support this.
“So finding ways to finance SAF production in Africa should fit nicely within the mission of our friends at Afreximbank who have a mission to support African trade development.” He said.
Leading sustainability initiatives, IATA has a team which shares developments with members.
“IATA is doing its part by strengthening its sustainability team. Among our top priorities are building a SAF registry that will be a foundation stone for a global SAF market, producing and updating roadmaps to net zero in the areas of technology, finance and policy, and freeing up the carbon credits that airlines will need to meet their CORSIA obligations. On this last point, last week we hosted an auction for airlines to purchase credits from the very limited stock available. As we move along the journey to net zero, you can count on IATA’s support—in the region and from our growing central sustainability team.” Walsh said.
