Page 18 - LUA July - August 2023 Magterz and Online
P. 18

INTERVIEW




           With a continued reliance on
         international travel, Africa continues to
         be vulnerable to external shocks. The
         domestic traffic in Africa will recover to
         the 2019 level as from this year whereas
         for the international traffic to reach the
         level of 2019, we need to wait until 2024.

         ?   What is the potential of private
             sector development and
         management of African airports, given
         the urgent need to transform the Africa’s
         airports industry and economy?
         The private sector involvement in African
         airports remains very low, with the
         distribution of passenger traffic held by
         privately managed or owned airports
         standing currently at 11%, compared to
         Asia-Pacific at 47%, Latin America at
         66% and Europe at 75%, and with the
         world averaging 43%. The global airport
         operators, currently having a stake in the
         management or ownership of African
         airports, are Egis, TAV, ADP, VINCI,
         Limak and Summa. And, there are
         potential African airports privatisation                            costs of airports are largely fixed, due to
         presently under way in Nigeria, Angola,      At ACI Africa,         investments in infrastructure but also
         Rwanda, Cameroon and Burkina Faso.           we are totally         due to the associated operating costs,
           The potential to increase private                                 including those relating to safety and
         sector participation in the financing   convinced that the          security, which vary little with the volume
         of airport operations and development   SAATM is the way            of traffic. Secondly, the cost of operating
         exists. What is required to enable private                          airports in Africa is high and this is
         sector participation on the continent   forward if Africa wants     often linked with the need to pre-finance
         are reliable regulatory frameworks, a   a full reform of its air    investment projects. Airports with very
         move toward well-crafted economic                                   low traffic therefore face unfavorable
         incentives, and a move from single till   transport industry and    credit and financing conditions vis-à-
         regimes to dual and hybrid tills, which   to unite its fragmented   vis funding agencies. Thirdly, airport
         induces cost efficiencies and innovations                           infrastructure is a key component of air
         on the commercial side of the airport   air transport market,       connectivity and naturally, increasing
         business to reduce the over-reliance on   in order to bring about   traffic allows airports to invest in
         aeronautical revenues.                                              adequate airport infrastructure to meet
           At ACI Africa, we do not prescribe   the air liberalization       capacity demands.
         any specific ownership or management   revolution, and                 Unfortunately, Africa has a poor track
         model of airports as each case is unique                            record in liberalising air transport, which
         and has to be examined on its merits and   enhance the air          significantly hinders connectivity and
         derived benefits for both parties, i.e. the   connectivity, we have   competition. Air transport liberalisation
         government and the private operator.                                benefits airports of all sizes, as a more
                                              all been craving for.          liberalised environment allows airlines
         ?   Would you say infrastructure has                                to fly to secondary airports and capture
             remarkably improved among
                                                                             untapped markets.
         African airports, and what is ACI Africa   hence boost air traffic, and be financially
         doing to encourage infrastructure   viable and sustainable going forward.  ?  Africa has renewed efforts to
         improvement at Africa’s airports?   There are, however, a number        create easy access for African
         African airports do not have the choice   of crucial elements related to the   airlines to markets around the
         if they are to improve their safety and   development of airport infrastructure   continent under the Single African Air
         security, the quality of services offered to   in Africa that needs to be taken into   Transport Market (SAATM), while
         passengers, to attract more airlines and   consideration. First of all, the operating   promoting easy movement of goods

       16 LUA                                                                                  JULY - AUGUST 2023
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