Thread by @DisasterKenya

@AfricanUpdates That aviation is an important fully unexploited contributor to economic growth & development within Africa. Can open & connect markets, facilitating trade & enabling linkage into global supply chains. Is in no doubt, but our protectionist Govts & myopic thinking?

https://twitter.com/africaupdates/status/1393065503963353090

Whereas, enhancing air connectivity can help raise productivity, by encouraging investment & innovation; improving business operations & efficiency. The protectionism current is a bane, many continue to ignore.

Air transport is indispensable for tourism for example, where convenient air service facilitates the arrival of larger numbers of tourists to a region or country. But our stagnated thinking, poor leadership & acumen lack especially where changes can tilt the status quo ?

While many air markets between Africa & countries outside of Africa have been liberalised to a significant extent, most intra-African aviation markets remain largely closed, subject to restrictive bilateral agreements which limit the growth & development of air services.

This has limited the potential for aviation to be an engine of growth & development Recognizing that restrictive arrangement were limiting growth, many African nations supposedly adopted the Yamoussoukro Decision in 1999. But 22 years on, how many have implemented it ?

Yet the agreement committed signatory countries to deregulating air services & to promoting regional air markets opening to transnational competition. Why has its implementation been slow & limited, rendering the potential benefits of liberalising air markets largely unrealised?

To me, liberalisation can lead to increased air service levels & lower fares, which in turn stimulates additional traffic volumes, facilitates tourism, trade, investment & other economic sectors. It can bring about enhanced productivity, economic growth & increased employment.

There is considerable evidence that liberalisation of international air markets has provided substantial benefits for passengers & for the wider economy. But our protectionism in African, still stands a barrier to any such advancements.

Where African nations have liberalised their air markets, either within Africa or with the rest of the world, there have been substantial positive benefits, Something clearly echoed by the good example of Ethiopia her pursuit of liberal bilaterals (on a reciprocal basis).

This has contributed to Ethiopian Airlines becoming one of the largest & most profitable airlines in Africa.
Fare savings: passengers travelling between under such bilaterals benefit from fare reductions of 25-35%, providing a saving billions per annum.

Time savings: new routes & greater frequencies shorten the flying time between many cities. For example, in 2013 there was no direct service between Algeria & Nigeria. The most convenient routing available was via Morocco (Algiers-Casablanca-Lagos).

The minimum journey time for this routing is 9 hours, but depending on connecting times could be as much as 17 hours. A direct service would reduce the travel time between Algiers & Lagos to approximately 4.5 hours.

The impacts of liberalisation extend beyond the benefits to passengers & cargo shippers . The increased air service levels, stimulate employment in the aviation industry to handle passengers, their baggage, to operate, service, & maintain aircraft. Why then are we still lagging ?

There would be concern that liberalisation would harm profitability & viability of existing carriers, especially those limping so called National Carriers like KQ. Indeed, a common result is that liberalisation leads to loss of market share as new competitors enter the market.

However, the stimulatory impact of liberalisation also means that the incumbent National or home carrier often still experiences a growth in traffic volumes despite this loss of market share.

Liberalization offers efficient, competitive carriers an opportunity to enhance profitability by expanding into new markets, accessing a wider pool of investment & through consolidation.

The example of Ethiopian Airlines demonstrates that African carriers can thrive in a more liberalised environment. All that needs doing, is cleaning house, embracing challenges, & stopping kleptocracy, in the case of Kenya Airways for instance.

To me, whether the incumbent carriers prosper or suffer under liberalisation depends in greater part on the quality of management of the carriers & how the carriers choose to respond to liberalisation. Period !

For Africa to succeed we need to eradicate-:
Protectionist policies that obstruct liberalisation.
Discriminatory practices that hamper the pace of liberalisation.
Counter restrictions imposed by regulators outside Africa such as the EU.

Eradicate the inefficient utilization of infrastructure currently hindered by non-physical barriers. To traffic flow, for example severe shortages of foreign exchange, burdensome documentation procedures. Visa requirements which tend to be unnecessarily onerous, expensive

We must develop the sixth freedom traffic fostered by the liberalisation of third and fourth freedom capacities within Africa, fully, & in some cases with the intercontinental counterpart countries. Only then can we begin to look like we are heading somewhere.

We can do it Africa, yes we can. we just need to stop being myopic & foolish. We have all it takes. @AfricanUpdates @Afcac_Cafac @AfricanUnion @Anon1KENYA @mlimakenya @VictorMwambacha @threadreaderapp unroll.