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Aviation sector issues President AkufoAddo face in his second term BY DOMINICK ANDOH (WHATSAPP +233 243376878)
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aving been declared victorious in the December 7 presidential elections by Chairperson of the Ghana’s Electoral Commission Mrs. Jean Mensa, President Nana Addo Dankwa Akufo-Addo, working through his appointees, must now tackle key issues in the aviation sector if the full benefits of air transport are to be realised in the next four years. Undoubtedly, the re-setting up of the Ministry of Aviation—which had been treated as an appendage of the Ministry of Transport-- as a stand-alone ministry has served the industry well. That decision and the ensuring appropriate budget allocation to the Ministry, has led to the mainstreaming of the sector. In 2018, the aviation sector contributed US$2.5billion to the country’s GDP. That notwithstanding, the following are the key issues that beg the attention of the President-elect: Struggling CAA & Airports Company The current pandemic has revealed in all it starkness the lack of financial buffer for the Ghana Airports Company Limited. The state-
owned limited liability company has had to turn to central government for financial assistance to be able to pay salaries due to the massive drop in its aeronautical revenue—Airport Passenger Service Tax, aircraft parking fees etc.
The COVID-19 induced closure of the Kotoka International Airport for scheduled flights from March to September led to a drop of about 80 percent of GACL’s revenue within the period. Since the re-opening of the airport for international flights
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Emirates supports efforts for safe return to golf
IATA wants aviation workers classified as essential in vaccine campaign
Dubai has yet again captured the attention of the golfing world with high profile competitions like the DP World Tour Championship and ‘Race to Dubai’, the European Tour’s season ending finales. Golf ’s very best players and rising stars convened in Dubai for one of the game’s most prestigious prizes.
The International Air Transport Association (IATA) has renewed its call on governments to ensure that employees in the aviation sector are considered as essential workers during the impending COVID-19 vaccine campaign, once health care workers and vulnerable groups have
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Aviation sector issues President Akufo-Addo face in his second term on September 1, airlines servicing the KIA have recorded low passenger throughput, with load factor ranging between 50-70 percent. Daily preCOVID-19 frequencies have now been reduced mostly from 7x per week to 4x per week. It is now clear that the GACL must be assisted to scale up non-aeronautical revenue while the state may possibly look at increasing its working capital. The aviation sector regulator, Ghana Civil Aviation Authority (GCAA), has also seen its major income source severely impacted by the pandemic. It has also received assistance from central government to help with its overheads. However, the financial challenge it faces now needs to be addressed. New ‘Ghana Airways’ It has been the aspiration of successive governments to reestablish a home-based carrier that
would once again fly the Ghanaian flag and give impetus to the aviation hub dream. Initial attempts at partnering some major international airlines did not work out. Currently, a Memorandum of Understanding (MoU) has been signed with EgyptAir to work with the Cairo-based airline in establishing the new airline. The immediate task at hand is to finalise the various shareholders agreements, approval by Cabinet and submission of the agreement to Parliament for scrutiny and approval before the 7th Parliament of the 4th Republic is dissolved in days. Review of US$150 COVID-19 test charge at Kotoka Airport Though the antigen test currently carried out on in-bound passengers has helped to contain the spread of the coronavirus in the country, it has greatly increased the cost of travel. As we approach the festive
season, a lot more Ghanaians living abroad are expected to return home for Christmas. Though the GACL recently waived the cost for children aged 5-12years, there have still been calls for a reduction in the cost. Indeed, organisations such as the Consumer Protection Agency, Ghana Tourism Federation have made several calls for a review to no avail. A review of the relatively expensive cost of the test should merit attention. Resourcing the AIB The work of the Accident Investigation Bureau will be imperative in reducing the annual accident costs attributed to general aviation in Ghana and the West Africa sub-region. In recent times there have been major initiatives, such as infrastructural projects and systems enhancements, which combined with this legislation are gradually positioning the country
at the heart of civil aviation in the subregion. The setting up of the bureau is also in readiness for Ghana’s upcoming International Civil Aviation Organisation (ICAO) audit in 2021. However, the AIB must be wellresourced to efficiently carry out its mandate. Completion of on-going airport projects Completion of the Kumasi, Sunyani, Tamale and Cape Coast airports would be keenly awaited by residents, traders and hospitality industry players. Though works on Kumasi and Sunyani airports are nearing completion, it must be completed on time to open up these two main midGhana cities. Tamale and Cape Coast airports should not escape attention.
IATA wants aviation workers classified as essential in vaccine campaign been protected.Alexandre de Juniac, IATA’s Director General and CEO said: “We are not asking for aviation workers to be on top of the list, but we need governments to ensure that transportation workers are considered as essential when vaccine roll-out plans are developed. “The transportation of the COVID-19 vaccines has already begun, and as calculations show, it will require the equivalent of 8,000 Boeing 747 freighter aircraft for global distribution. It is therefore essential that we have the qualified workforce in place to ensure a functioning logistics chain.” IATA’s 76th Annual General Meeting (AGM) had unanimously adopted a resolution to this effect. IATA’s call is aligned with the proposed Roadmap for Prioritizing
Uses of COVID-19 Vaccines by the World Health Organization’s Strategic Advisory Group of Experts on Immunization (SAGE). This recommends priority populations for vaccination based on the respective epidemiologic situation and vaccine supply scenarios. Within this framework, SAGE has included transportation workers alongside other essential sectors outside health and education sectors including police, for example. The AGM also reiterated the vital role of air transport in facilitating the global response to the pandemic, including the timely distribution of medicines, testing kits, protective equipment and eventually vaccines around the world.
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Emirates supports efforts for safe return to golf As Official Airline of the event, Emirates has been providing critical air transport links to support the players, organisers and the entire golfing community to safely resume international sports action on the ground, and cater to the millions watching the broadcasted event around the world. Dubai’s public and private sector stakeholders, including Emirates, have partnered to put in place the frameworks to resume leisure and sporting events and ensure the safest possible environments for participants and fans alike, because nothing can replace the excitement of experiencing live sports, music and cultural events. As a result, the DP World Tour Championship was the first attended international sporting event in Dubai, drawing in over 6,000 spectators. Over 40% of the event attendees came from outside of the UAE, the majority of whom chose to fly with Emirates to Dubai. The international attendance also demonstrates Dubai’s continued appeal in attracting visitors for major sporting events, as well as its status as one of the world’s most dynamic golf destinations.
Additionally, Emirates carried over 500 European Tour players, caddies, event organisers, international sports and golf media, and others directly involved in the running of the golfing finale. The airline also transported sporting and other equipment as well as PPE items for the event. Emirates Cabin Crew participated in the socially-distanced prize presentation with the winners, along with HH Sheikh Mansour bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai Sports Council and Patron of the DP World Tour Championship and European Tour. In addition to the DP World Tour Championship, every year, Emirates sponsors over 40 major sporting, music and cultural events that support Dubai’s economic and tourism growth goals, and drive its appeal as a worldclass event hub. The next events on Emirates’ busy calendar include the Emirates Airline Festival of Literature, the Dubai Duty Free Tennis Tournament, Emirates sponsored football club matches, Emirates Team New Zealand participations in Americas Cup World Series as well as the Dubai World
Cup, to name a few. On the golfing front, Emirates will also be supporting a number of international European Tour events set to take place in 2021 including the Hong Kong Open, Portugal Masters, Open de France, Scandinavian Mixed, Dubai Duty Free Irish Open, ASI Scottish Open, D+D Czech Masters, BMW PGA Championship, Italian Open and the Nedbank Golf Challenge.
The airline continues to work on growing its hard-earned relationship with sports fans. Earlier this year, when many countries were under strict lockdown, Emirates joined hands with its sponsorship partners to engage with communities around the world through campaigns and initiatives that let people know they are not alone, providing information, motivation, inspiration, and entertainment.
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Kick-Starting FDI in Africa BY CARL MANLAN AND EFOSA OJOMO
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n the United Nations’ 2020 World Investment Report, SecretaryGeneral António Guterres noted that global foreign direct investment (FDI) this year is “expected to fall sharply from 2019 levels of $1.5 trillion” to below the trough it hit during the global financial crisis. This decline will have a devastating effect on emerging economies, many of which are already in crisis as a result of the COVID-19 pandemic. Few regions will struggle more than Africa. Not only does the continent account for just 3% of global GDP, but it currently attracts less than 3% of global FDI, which has been a critical factor in propelling other regions to prosperity. To catalyze growth and potentially help to rid the continent of extreme poverty once and for all, African leaders must try to beat the odds and attract hundreds of billions of dollars in FDI. They should start by seeking investments from the 165 million members of the African diaspora. And they can draw inspiration from China’s meteoric rise to become the world’s second-largest FDI recipient, after the United States. Economists and policymakers are well aware of the economicdevelopment benefits at stake. In addition to providing emerging economies with a much-needed influx of capital, FDI is generally long term and drives local skills development and technology transfer. When international firms such as Apple or Tesla decide to build manufacturing facilities, distribution networks, retail stores, and service operations in China, for example, they provide employment, technology, and knowhow to local Chinese, as well as opportunities for smaller businesses to supply large factories. China’s path to attracting significant amounts of FDI began four decades ago, when Deng Xiaoping came to power and introduced market-based reforms. Some might assume that much of the country’s inward FDI has since come from non-Chinese investors and companies. In fact, according to Alan Smart of the University of Calgary and Jinn-yuh Hsu of National Taiwan University, Hong Kong accounted for half of the $307.6 billion in FDI that China received between 1979 and 1999, and Taiwan for roughly 8%. Overall, 77% of China’s total FDI inflows during this period came from Asia, while the US and European Union member
states were responsible for just 16% combined. As one commentator has noted, “From the outset of China’s economic reform era, diaspora Chinese have provided the lion’s share of inward foreign investment.” Early diaspora investors brought with them a unique set of strengths: close ties with the local population, an understanding of local customs, and, perhaps most important of all, a vested interest in China’s development. These advantages increased their projects’ success rate, which contributed to the country’s attractiveness to other investors. Soon, FDI skyrocketed: having contributed significantly to China’s rapid growth over the past four decades, and thus to lifting close to one billion Chinese out of poverty, $141 billion poured in during 2019, as foreign investors continued to bet on Chinese consumers’ growing demand for goods and services. African leaders should seek to emulate China’s example. Diaspora Africans sent home $48 billion in remittances in 2019. Although this year’s total will likely fall below $40 billion, owing to the pandemic, African governments, investors, and entrepreneurs can reap the long-term benefits of having a vast diaspora by developing a viable strategy to attract inflows that support long-term development projects. True, Africa will find it difficult to match China’s FDI totals. Global
supply chains have already been established, the pandemic has devastated many African economies, and Africa, unlike China, comprises 54 sovereign states. But the continent may yet succeed with the help of government policies that – as in China – encourage diaspora investments in productive enterprises. When it comes to increasing national prosperity, research shows that innovators are responsible for lighting the match, while governments fan the flame. Encouragingly, efforts to increase diaspora investment in innovative African projects are underway. One such initiative is Future Africa Collective (FAC), a membersonly crowdfunding investment platform founded in January 2020 by the veteran African entrepreneur Iyinoluwa Aboyeji. FAC aims to leverage the African diaspora’s financial, human, and social capital by connecting investors with Africa’s innovators. Specifically, the platform gives diaspora Africans and others an opportunity to invest a minimum of $5,000 in some of the continent’s most promising startups. So far, FAC has helped companies including Tambua Health, Evolve Credit, Bamboo, and Releaf to raise millions of dollars. Aboyeji’s platform is just one example of how crowdfunding from a diverse group of investors is quickly
gaining popularity in Africa. A recent report by AfricArena highlighted several startups that have successfully raised hundreds of thousands of dollars via similar platforms. China’s experience suggests that the key to jumpstarting FDI in Africa will be use these platforms to target diaspora Africans. With COVID-19 continuing to take its toll on Africa, the continent’s prospects increasingly depend on members of the diaspora pooling their resources. Opportunities for innovation abound because a growing number of Africans lack access to affordable products and services that could improve their lives. With their networks, local know-how, and deep desire to see Africa prosper, diaspora Africans can build a strong foundation of investment that enables the region to attract other new sources of FDI and accelerate its economic growth.
Carl Manlan, a 2016 New Voices Fellow at the Aspen Institute, is Chief Operating Officer at the Ecobank Foundation. Efosa Ojomo, Senior Research Fellow at the Clayton Christensen Institute, is a co-author of The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty. Copyright: Project Syndicate, 2020. www. project-syndicate.org
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Paris streets empty as COVID-19 curfew takes effect Boutiques in the centre of the French capital shut early and shoppers hurried home to meet a new 8:00 p.m. curfew that took effect on Tuesday to try to prevent a new spike in COVID-19 infections. “I completely lost track of time and didn’t realise it was so late,” said 40-year-old Paris resident Jun, who was in the Opera district just before curfew. “I’m going to head home.” Around the usually bustling shopping district, shop fronts were dark and of the few people on the streets, most were heading towards the metro station. Tuesday brought new freedoms for people in France because it was the end of a stay-at-home order. This had meant that, around the clock, people could only venture out for a limited time and for essential trips, to shop, or to exercise. But that was replaced instead with a nightly curfew. From 8:00 p.m until 6:00 a.m. people can only go out for work, on official business, or for medical reasons. Anyone breaking curfew is liable for a 135 euro ($164) fine. Officials have warned that they will
be strictly enforcing the new rules. Interior Minister Gerald Darmanin on Tuesday evening joined a police patrol in Yvelines, west of Paris, to check that people were complying.
“The government has decided to be particularly tough on unlawful parties,” the minister said. Infection rates in France have declined sharply since the peak of the
second wave last month. But scientists warn of the risk of a third wave of infection if people let down their guard during the Christmas and New Year holidays. (Reuters)
South Africa Limits Alcohol Sales, Closes Beaches to Curb COVID-19 outh Africa’s government will curb alcohol sales and close some of the nation’s beaches at the height of the summer-holiday season, among a series of new restrictions to rein in surging coronavirus infections. The government declared the start of a second wave of the Covid-19 pandemic on Dec. 10 as the number of daily new cases doubled this month. The country is fast-approaching 1 million infections, with 866,127 people having contracted the disease so far, President Cyril Ramaphosa said on Monday. “Given the rate at which new cases have grown over the last two weeks, there is every possibility that if we don’t act urgently and if we don’t act together, the second wave will be even more severe than the first wave,” Ramaphosa said in an address broadcast on state television. • Restricting alcohol sales to 10 a.m. to 6pm from Monday to Thursday • Declaring the districts of Garden Route and Sarah Baartman along the south coast coronavirus hotspots
• Closing beaches in the Eastern Cape province from Dec. 16 to Jan. 3 and in KwaZulu-Natal on the busiest days of the festive season • Extending the nationwide curfew to 11 p.m. to 4 a.m. • Further limiting the number of people attending public gatherings, with a maximum of 100 people allowed at indoor events, and 250 outdoors. The renewed efforts to curb the spread of the virus may hamper the recovery of an economy predicted to contract the most in almost nine decades The ban on large gatherings and limits on the sale of alcohol products are likely to weigh on jobs, particularly in the tourism and hospitality sectors that have been ravaged by restrictions on international travel. Businesses in coastal provinces have been counting on domestic tourism over the festive season, when trips by locals peak and tourists spend more than 25 billion rand ($1.66 billion) in December, according to statistics agency data. “Although sensible measures, the
new restrictions will still slice off a further layer of output, specifically from the alcoholic-beverage and tourism/hospitality industries,” said Elize Kruger, an independent economist. “Lower trading also equals lower tax revenue, while many seasonal jobs could also be in firing line.” The restrictions may also add pressure on the government to extend temporary relief programs for vulnerable households, increasing state spending. That’s even the government seeks to reduce expenditure by about 300 billion rand over the next three fiscal years. In determining its response to
the current wave of infections, the government sought to balance the need to save lives and to protect livelihoods, Ramaphosa said. While a strict lockdown imposed at the beginning of the pandemic in March was designed to delay the spread of the virus and prepare its health systems, South Africa is now better prepared to deal with the increase in infections, he said. “A full lockdown was absolutely necessary then to delay the pandemic, but would not serve the same purpose now and that is why we are not opting for that option,” Ramaphosa said. (Bloomberg)
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UNWTO and Google Host Tourism Acceleration Program in Middle East The United Nations World Tourism Organization (UNWTO) in partnership with Google hosted their second edition of the global Tourism Acceleration Program in the Middle East region, a program designed to boost innovation and digital transformation in the tourism sector in each of the UAE, Saudi Arabia, and Egypt by providing key insights and market intelligence for effective tourism planning. Held last Thursday, the online event was attended by UNWTO Member States’ tourism ministers, top travel associations, tourism boards and Destination Marketing Organizations from across the region. Participants gained first-hand access to UNWTO and Google’s insights of the tourism sector and developed new strategies for a more sustainable recovery. UNWTO Secretary-General Zurab Pololikashvili said: “UNWTO is proud to partner with Google to bring the power of innovation and digital transformation to tourism across the Middle East region. The effective use of data can help destinations of all sizes grow their tourism sectors, while at the same time providing key insights into how tourism can be managed responsibly and inclusively, with sustainability as the driving force.” Below are some of the regional travel
data insights shared with participants during the session: Top asked questions Google Search data shows that the top questions asked about the UAE, Saudi Arabia and Egypt are related to COVID-19 travel restrictions such as “is it safe to travel to Dubai right now?”, “is Mecca open for tourism?”, or “is Egypt on the quarantine list?”. Similarly, and on a global level, 45% of the top 100 questions related to travel also focused on the impact of COVID-19, the yearn to travel, and required safety measures. Trends on Google Search Since the recent announcement of the vaccine two weeks ago, queries related to air and accommodation to the UAE have picked up rapidly for the first time since the pandemic has started, compared to a slower growth in Saudi Arabia due to travel restrictions. In terms of outbound flights, the recent research shows that 33% of UAE travelers plan on taking a vacation abroad in the next 3-6 months compared to 25% in Saudi Arabia and 20% in Egypt. The pandemic has also shifted some travel interests towards the outdoors and nature destinations. For example, there has been an increase in online searches for eco & sustainable tourism in Saudi Arabia (90%), the UAE
(35%) and Egypt (20%) as people are looking to explore natural reservations compared to a decrease in queries about cruises, luxury travel and theme parks. Rising domestic destinations In November, search trends on top rising destinations across the region show that people are leaning towards traveling more within their residing countries and cities including Al Gharbia (Abu Dhabi) and Umm Al Quwain in the UAE, Dhahran (Al Dammam) and Al Khobar in Saudi Arabia, Mansheya El Bakry (Cairo), and Sidi Gaber (Alexandria) in Egypt. At the same time, there has been an increase in people looking for international flights to Saudi Arabia (52%) and Egypt (80%) in the last few weeks. Commenting on the program, Lino Cattaruzzi, Google’s Managing
Director in Middle East, said: “Digital skills are now more critical than ever and they will be vital in helping our region recover more quickly and more sustainably. Today’s acceleration program is an opportunity for tourism boards and businesses in Middle East to prepare and find new ways to engage with would-be travelers. We remain optimistic about the future of the travel and tourism sector, and about the role that Google and technology can play to help it recover faster.” The Acceleration Programme is part of the close partnership between UNWTO and Google. The first edition was held virtually and hosted by South Africa last September in an effort to accelerate the power of tourism, and drive sustainable growth for millions across the world.
UNWTO and Google Host Tourism Acceleration Program in Middle East After partnering back in May for a campaign asking the world to be patient, responsible and “travel tomorrow”, the World Tourism Organization and CNN International Commercial (CNNIC) have teamed up again to celebrate the transformative power being unleased as the restart of tourism gets underway. Centred around a 45-second film launched today and broadcast exclusively on CNN International until January 2021, this message will reach millions of households. The campaign affirms UNWTO as the unifying voice behind the global restart of tourism while harnessing the influence and prestige of the CNN brand to reach global audiences at scale. The #RestartTourism video highlights tourism’s unique ability to adapt and innovate and generate
opportunities for sustainable development. CNNlC has long committed to these same values and the partnership between UNWTO and CNN is further strengthened through this broadcast. UNWTO Secretary-General Zurab Pololikashvili said: “The restart of tourism brings new hope and new opportunity for millions around the world. We are proud to be working again with CNN to send such a positive and inspiring message. Tourism has the power to bring us back together, giving us unforgettable experiences while also supporting jobs, helping businesses and protecting culture and our natural heritage.” Rani Raad, President, CNN Worldwide Commercial, said: “As part of our long-standing partnership with the UNWTO, CNN is proud to
beam this message of travelling again and restarting tourism into over 300 million households around the world. Whilst Travel & Tourism has suffered an enormous impact in 2020, we are standing with our partners, providing counsel and supporting their efforts as they now plan ahead to welcoming travellers back in 2021 with a sense of hope, growth and reconstruction for the sector.”
Launched today, #RestartTourism will be aired regularly until 10 January 2021, bringing this message to more than 310 million households across CNN’s feeds to Asia, South Asia and EMEA (Europe, Middle East, Africa). It will also be amplified by UNWTO’s own media channels, as well as those of its Members in every global region, reinforcing a message of positivity at the end of a challenging year.
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