Executive-Led Trade Mission to Africa

August 6-15, 2023 | South Africa, Ghana, Nigeria

The U.S. Commercial Service is pleased to announce that U.S. Deputy Secretary of Commerce Don Graves will lead the Global Diversity ExportInitiative (GDEI) trade mission to South Africa,Ghana, and Nigeria. The Nigeriastop is optional.

If you area GDEI company in the automotive, consumer goods, ICT, or safety/ security industries, join us to gain market insights, make industry contacts, solidify business strategies, and advance your specific projects in Africa.

Participating in a trade mission led by a high-level federal government officialcan enhance a company's ability to secure meetings and gaingreater exposure in international markets.

Apply today! Space is limited & applications are being reviewed on a rolling basis.

Learn More & Apply for the Mission - Click Here

Not Sure Which African Market is Best for You??

Register for our 8-market webinar series “Access Africa Now.”

Every Second Wednesday, February to September 12:00 - 1:00 p.m. ET | Virtual

Learn More/Register for the Access Africa Webinar Series - Click Here

Sponsorships Are Available.Learn More

By Jack Bantock, CNN

Some 40 kilometers south of the Rwandan capital of Kigali in the Bugesera District, construction vehicles and high-visibility vests swarm across an arid expanse of land.

Here, two strips of tarmac are the cornerstone of a $2 billion airport, whose developers want it to be the jewel in the crown of Africa’s aviation industry.

Slatedforcompletionin2026,thenewfacilitywill boast a 130,000-square-meter main terminal building capable of accommodating 8 million passengers a year, a figure expected to rise to over 14 million in the following decades.Adjacent will be a dedicated cargo terminal, capable of accommodating 150,000 tons of cargo a year.

It’s a significant upgrade on the existing Kigali International Airport, which is set to remain operational for special arrivals, some chartered flights, and a pilot training school.

Pre-pandemic, the airport was shuttling close to 1 million passengers annually, but its geographic limitations – perched on top of a small hill and surrounded by human settlements – meant a move was necessary to allow expansion.

“I’m amazed, it’s like a dream come true to see the impact and magnitude of this project to the population,” said Jules Ndenga, CEO of Aviation Travel and Logistics Holding, the Rwandan government-owned company that is overseeing construction.

“We are really impassioned to see the efforts completed and starting operations.”

QatarAirways will have a 60% ownership of the new airport. The Middle Eastern airline will also acquire49%ofsharesintheAfricancountry’sflag carrier airline, Rwandair, offering access to over 65 locations around the world.

It is a partnership that intended to help Rwanda – landlocked in the center of Africa – achieve its aim of becoming the continent’s centerpiece for air travel. “The main objective of this effort is basically to make sure that Rwanda becomes an African hub where everyone will be transiting either for tourism, but also for business and different industries,” Ndenga added.

“The impact will be in terms of providing a platform for all the economic life of the country to develop sustainability. We see that as not only an impact on the economy but in the neighborhood … we know that this area will become a satellite city of the city center.”

Communication Complications

Yet benefits could spread far beyond Rwanda’s borders. The arrival of the new airport will help chip away at the critical problem of a fragmented network of routes that means passengers often havetotravelviaEuropeortheMiddleEastwhen flying betweenAfrican countries.

A lack of connections across the continent is grounding Africa’s untapped potential in the aviation business. Despite boasting 16.75% of the world’s population with 1.4 billion people, the continent has less than 4% of the global air market, according to a 2018 report by the Single AfricanAir Transport Market – an initiative set up by theAfrican Union.

For RwandAir CEO Yvonne Manzi Makolo, the problem of connectivity presents the “biggest challenge” to theAfrican aviation industry.

“The continent is huge, it’s vast, but it’s difficult and unpredictable traveling within it … and it’s extremely expensive,” Makolo said.

“What what’s making it more challenging is the conditions of operating within the African continent. The cost of operations is so much more, whether it’s airport fees, whether it’s ground handling, parking, overflight (flying from one country’s airspace to another’s) – everything is much more expensive. Sometimes up to 50% more than in the Middle East and Europe, which makestheticketpricesevenmoreexpensiveand makes (some) routes unviable.”

Solutions

But solutions are touching down, starting with the SingleAfricanAirTransport Market (SAATM)

Firstproposedin2018,ifimplementedthepolicy would create a single market forAfrican aviation, facilitating the free movement of people, goods, and services. The continent currently operates under bilateral air service agreements, a highly restrictive policy that makes it difficult to open new routes.

So far, just 35 of the 55 African states have signed up for SAATM. Secretary General of the AfricanAirlinesAssociationAbderahmaneBerthe, heavily involved in the policy’s implementation, believes more willfollow.

“Since 2018 all the stakeholders of the industry are working to make it happen,” Berthe said.

“Liberalization is not an easy subject – even in other regions, it took a lot of time. So, we are workingonit.Whatismissingisthewillingnessof states to really implement it.”

A new single market would dovetail with the African Continental Free Trade Area (AfCFTA). Coming into force in 2021, AfCFTA eliminates tariffs and other non-tariff barriers to allow easier movement of trade and people between the continent’s countries.

It is set to increase intra-African trade to an estimated 52%, according to Kenya Airways CEOAllan Kilavuka, whoplans to work with other African airlines – suchas SouthAfricanAirways –to unite a “fragmented” industry.

“Wehavesomanyairlinesinthecontinent.Most ofthemarenotviable,truthbetold,”Kilavukasaid.

“We need to consolidate, so that you create bigger entities which are more economical from a scale perspective, and they can respond to high costs. They can together talk to suppliers and get more bargains when it comes to purchases, bringingdowntheunit costof operation.Because of scale, they can then open up the African continent a lot more.

“The fragmented state which we are in is not going to make it.” https://edition.cnn.com/travel/article/rwandakigali-international-airport-africa-aviation-intl/ index.html

Image credit: Rambol, https://cnll.pt/portfolioitem/rwanda-airport

SouthAfrica’saircapacityhasrisenfollowing a bleak period for airports and airliners in the country.

During her speech on the latest tourism data from the Department of Tourism, Minister Patricia De Lille said that capacity has risen since last year, with a 56% increase in the first quarter of 2023 compared to the previous year.

“In 2023, we reached 1.8 million seats, and South Africa welcomed around 23 new routes,” said the minister.

The latest data from the department showed a promisingoutlookfortheindustry,withfirst-quarter data reflecting a total of 2.1 million visitors, with many coming from abroad through air channels.

According to De Lille, new flights include Cape Town to New York and Washington by United Airlines, and Air China’s resumed direct flight to SouthAfrica.

The upcoming LATAM flight from Brazil to OR Tambo International Airport has also increased the country’s flight capacity.

De Lille added that South African Airways’ expansion into various African markets has further boosted the country’s attractiveness.

“In terms of aviation supply, seats from the Americas doubled in Q1 2023, surpassing 2019 levels,” said De Lille.

“TheMiddleEasthasfullyrecoveredinoutbound travel,andEuropehasintroducedfivenewairlines and routes to SouthAfrica.”