Page 16 - LUA Sep - October 2022 for Magzter

REPORT
Harmonized economic
REGULATION
IN AFRICA
How will AFCAC’s build-up of states’ economic regulation
capacity affect Africa’s air cargo? Roy Ezze finds out.
ir cargo in Africa would receive
unprecedented boost when
most or all African States adopt
Agrowth-friendly and harmonized
economic regulation of air transport as is
currently being advocated by the African
Civil Aviation Commission (AFCAC) in
close collaboration with the International
Civil Aviation Organization (ICAO).
AFCAC held vital workshops for
the Common Market for Eastern and
Southern Africa (COMESA) region in African States
Kigali, as well as for the North, West and
Central Africa Region (WACAF) in Dakar must adopt the
recently to re-orientate States’ civil aviation AFCAP, discontinue
authorities, ministries and Regional
Economic Communities (RECs) as well BASAs within the
as airports and airlines on the essentials continent and
of harmonized economic regulation in all
African States. embrace MASAs
As the continent continues its recovery and liberalization
from the Covid-19 pandemic, this is an of the air transport
essential step to ensure that harmonized
and growth-friendly regulation is applied industry on the
by States which is a pre-requisite in the continent. This
implementation of the Single African
Air Transport Market (SAATM) for the will create a level
liberalization of air transport in Africa. playing field
To effectively implement SAATM, States which will in turn
must ratify and domesticate the African
Civil Aviation Policy (AFCAP) which drive increased
was reviewed to largely address the air transport and
reservations of non-compliant States and
approved in July 2022 by the African air cargo traffic,
Union (AU). The AFCAP emphasizes the as well as reduce
harmonization and implementation of
growth-friendly economic regulation of cost of air services
Africa’s air transport industry ligning with including cargo.
the guidelines of the ICAO.
In line with efforts to reposition PETER ALAWANI
aviation and air cargo in Africa, Adefunke ICAO
14 LUA
Adeyemi, the new Secretary General of
AFCAC, who assumed office on September
1, 2022, said that “AFCAC, in collaboration
with its member States, RECs, stakeholders
and partners will be at the heart of
transforming air transport in Africa for the
benefit of its people and the world at large.”
The AFCAC is empowered, as the
Executing Agency (EA) of SAATM, to
monitor, evaluate and apply sanctions
while driving the effective implementation
of air transport liberalization in Africa
guided by the AFCAP.
HOW WILL HARMONIZED
REGULATION BOLSTER
SAATM?
A recent study by the African Union
Commission (AUC) through IATA
Consulting and InterVISTAS outlined
the economic benefits accruing to each
of Africa’s 55 States that implements
SAATM. According to Peter Alawani
of ICAO Air Transport Bureau (ATB),
African States need to harmonize their
policies by adopting the AFCAP and also
harmonsing their economic regulation.
The recommended growth-friendly
economic regulation must be consistent,
transparent, reduce burden on operators
and accommodate feedback from
operators for continued impact assessment
for needed adjustments.
Globally, economic regulation has
generated mixed reactions, since States
are allowed, by Article 1 of the Chicago
Convention, the sovereignty to regulate
civil aviation activities including
airports, air navigation services providers
(ANSPs), airlines and intermediaries
like ground handlers, freight forwarders,
SEPTEMBER - OCTOBER 2022