Network gaps shackle trade
WHILE the network
of African air
connections
available to South Africans is
adequate in our immediate
neighbourhood, there are
significant gaps further afield
that hamper travel and,
thereby, trade.
West and Central Africa are
two of the soft spots. SAA
serves some points directly
– namely Accra in Ghana,
Abidjan in the Ivory Coast,
Dakar in Senegal, Lagos
in Nigeria and Kinshasa in
the DRC, but there are few
reciprocal services.
Nigeria, despite being
one of the largest African
economies, has no national
carrier and few privately
owned carriers that operate
internationally. However,
Air Peace has announced
its intention to serve
Johannesburg in the future.
The DRC’s flag carrier,
Congo Airways, founded in
2015, has just commenced
operating outside its
domestic network, with
services from Kinshasa to
Johannesburg launched in
February. Senegal Airlines
ceased operations in 2016,
and a new airline established
that same year, Air Senegal,
is in the process of ordering
equipment that will facilitate
long-haul flights.
Ghana’s national carrier
ceased operations some
time ago, but the Ghanaian
government last year signed
an MOU with Air Mauritius for
assistance in establishing a
new carrier.
These regions are
particularly affected by the
critical challenge of city-to-city
connectivity across borders.
According to June Crawford,
ceo of the Board of Airline
Representatives of South
Africa (Barsa), lack of and
limited intra-African air
connectivity, especially
among smaller economies,
restricts businessrelated
travel and creates
inefficiencies.
There’s a paucity, too, of
flights to North Africa, where
EgyptAir has been the only
consistent airline between
Johannesburg and Cairo for
many years.
Recently there has been
a spate of new services
operated on a fifth freedom
rights basis – examples
being Kenya Airways’ NairobiLivingstone-Cape
Town route
and RwandAir’s Kigali-HarareCape
Town service.
Chris Zweigenthal, ceo
of the Airlines Association
of Southern Africa (Aasa),
believes this development
could be laying the
groundwork for the advent
of the Single African Air
Transport Market (SAATM)
launched in January.
At the time, 23 African
states committed to an openskies
policy.
But he cautions that fifth
freedom rights permitted
where third and fourth
freedom rights already exist
are counter-productive.
“Fifth freedom rights should
be granted in markets not
currently served and to
increase the number of city
pair connections,” he says.
Widely welcomed, SAATM
will create much-needed
efficiencies and expand
intra-continental connectivity.
“The SAATM provides for a
flexible air transport services
licensing regime that will
make it possible for airline
operators to invest in new
routes in Africa, without
the limitations of stringent
regulation,” says June.
Chris points out, however,
that signees must start
putting their money where
their mouths are, while Iata
has appealed for effective
implementation.
SADC and East Africa well served
IN SOUTHERN Africa, the
aviation experts agree
that South Africa’s air
connections to its largest
trading partners, the SADC
economies, are well served,
with the exception of a few
smaller ones that lack homebased
carriers.
Barsa’s June Crawford
says, with almost 90% of
total South African exports
into Africa going to the SADC
countries, most businessrelated
travel out of the
country is to neighbouring
and sub-Saharan states. The
dominant routes are Namibia,
Zimbabwe, Mozambique and
Angola.
Aasa’s Chris Zwiegenthal
says most capitals in the
region are adequately
served in terms of airlines
and frequencies, and even
countries that were a little
behind – such as Namibia,
Mozambique and Angola –
are opening up and enjoying
increased air links.
Further up into East Africa,
links with Kenya and Ethiopia
are good. “Both Kenya and
Ethiopia are home to most
UN-based Africa programmes,
with the latter being the
headquarters of the
African Union,” says June.
“Therefore, from a meetings
and conferences point of
view the East African region
also sees a lot of businessrelated
travel. Besides,
Kenya’s capital, Nairobi, is
a convenient major hub for
especially other African and
Asian markets.”
SAA has played a
significant role on all these
Southern and East African
routes. Kenya Airways has
long been a feature on
the East African network,
although in recent times it
has had financial troubles,
from which it is emerging.
Ethiopian Airlines is a
relatively new force that has
made its expansionist aims
obvious.
“RwandAir has also
introduced a dynamic
connection to the Great
Lakes region, also a
traditional, yet fast-growing
trade region for South Africa,”
says June.
She says the entry of lowcost
carriers on regional
routes benefits both leisure
and business-related travel.
as well.
Big hotel brands continue to eye Africa
WITH sub-Saharan Africa
attracting growing interest from
international hotel operators
in the last five years, there’s
increasing competition among
the world’s biggest brands, all
looking for a strong presence
in a market that is said to hold
nine of the world’s 20 fastest
growing economies.
Brands involved in this heavy
investment, expected to reach
US$1,9bn (R23,4bn) this year,
include Marriott International,
Four Seasons, Hilton and the
Radisson Group, says Christine
Davidson, vice president of
dmg Events MEA. Dmg Events
is managing The Hotel Show
and Hospitality Leadership
Forum, taking place from June
24-26 in Johannesburg as
part of Africa Hospitality Week
2018.
Christine says there is
currently pent-up demand as
investors seek to expand.
Hospitality investment is
considered low-risk by more
mature economies, and African
governments are supportive of
it because of its value to job
creation.
Countries benefiting most
from this interest are Nigeria,
with more than 30 projects
announced in the past year;
Kenya with 25, followed
by Ethiopia, with a similar
number. All three countries,
says Christine, have seen an
increasing number of flight
routes and frequencies, closely
linked to a requirement for
more beds.
It’s not just the international
chains that are investing.
Christine says Africa’s
homegrown brands are making
a huge impact, such as Guy
Stehlik’s BON Hotels, which
has a strong presence in
Nigeria and is further extending
its footprint into Central and
East Africa. She also names
Casablanca-based Onomo,
Malian Azalaï Hotels, and the
West African chain, Mangalis
Hotel Group, as being on the
expansion path.
Christine says investment
in the island paradises of
Mauritius and Zanzibar is
also huge, while successful
growth will also come from
those hoteliers who choose
to develop properties in
appropriate second or third
cities in key destinations – the
secondary city strategy.
“This has become its own
growth area and there are
people working for all the
major hotel groups whose job
is to identify new investment
districts,” she explains. Big
operators may open a midmarket
brand somewhere
completely new, set up services
for that hotel and establish it
as a place of work, and then
move bigger brands in.
“This secondary city strategy
can be applied across
Africa, offering investors
new destinations but, more
importantly, cheaper land and
start-up costs.”
Christine says the financing
of African hotels is increasingly
following the US model, where
management contracts and
franchise patterns dominate.
Investors, in partnership with
hotel operators, look for a
return from both the building
and hotel business, not solely
from the property.
Did you know?
Kampala Serena Hotel in the Ugandan capital has completed the first phase of a
refurbishment programme themed ‘Excellence Redefined’. It recently unveiled the remodelled
Pearl of Africa restaurant, which now includes a Champagne Bar. It is suitable for corporate
and special events and accommodates up to 40 people. The five-star property, a member of
the Leading Hotels of the World, has 186 rooms and suites, seven food and beverage outlets,
multiple conference rooms, and is set in seven hectares of lush garden
TMC expects business travel upturn
WITH a strong African
customer-base, TMC
Wings welcomes the
impending opening of air
traffic in Africa and the
jobs and economic activity
SAATM will trigger.
The company says the
current EU banned carrier
list restricts it to the use
of only 70% of African
carriers and an open-skies
policy will allow it to offer
its clients more options,
direct flights and budget
savings, while still sticking
to a ‘safety first’ policy.
Andre van Straaten,
regional manager
Business Development
Africa, says the oil and
gas industry is climbing
out of the recent energy
sector slump with an
anticipated upturn in
business travel. Airlines
that reduced schedules
are refilling them.
In general, travellers
in Africa suffer from
infrequent, expensive and
circuitous commercial
flights, legal barriers,
regulatory hurdles,
inadequate infrastructure
and high taxes.
