Ekelem Airhihen, an accredited mediator, has an MBA from the Lagos Business School. He is a member, ACI Airport Non-aeronautical Revenue Activities Committee; his interests are in market research, customer experience and performance measurement, negotiation, strategy and data and business analytics. He can be reached on ekyair@yahoo.com and +2348023125396 (WhatsApp only).
It has been said that Africans should tell their story so they can be heard and acknowledged. There are, of course, many challenges that aviation in Africa seeks to grapple with. These range from that which globally all members of the aviation community have to contend with, such as, economic developments across the globe with the attendant cost of living crisis as well as the war to contain inflation, war first in Europe and now in the Middle East, supply chain disruptions, and regulatory risks. Added to these are the peculiarities of the African environment including the socio-political environment of business which impacts infrastructure in aviation and regulatory processes in the industry.
Tanzania presents us with a lesson that will encourage other African countries to think more about innovation. This initiative takes cognizance of the peculiarities of the environment. In the report by Tanzania Daily News, Dar Es Salaam, the year 2023 will remain in the memories of the Tanzanians. Those who will be most impacted by this initiative will be importers and exporters of perishable goods.Â
Across Africa, post-harvest losses by farmers remain a challenge. The outcome of the new initiative has been that it has become easier and more convenient for traders to transport their products while also diversifying the economy of Tanzania. Air Tanzania Limited acquired its first ever cargo plane – a Boeing 767-300.
This plane is reported to have a capacity for carrying 54 tonnes of cargo and comes as a solution to cargo transportation not only in Tanzania, but also in Africa. This points to the fact that assets are not just acquired but there must be a business case for asset acquisition. Airports which are unable to break even from aeronautical revenues should look around for other sources of non-aeronautical revenues. Today, there are solar powered storage facilities that may help solve the problem of transporting agricultural produce. Making airports relevant to farmers may bring in needed cash flows as they do so by drawing on other innovations in the African environment.
The Ministry of Transport in Tanzania has restated her commitment to cooperating with the private sector so that cargo airlifted from the country arrives at its destination on time. The result will be that those involved in the business of moving cargo make profits. This synergy between the public and private sectors is very important for economic development and also for the growth and development of the aviation and transport sectors of the economies of Africa.Â
The acquisition of the plane presents the Tanzanians with an opportunity to transport their goods abroad for economic gains. Exporters will no longer need to transport their goods through long routes to outside markets. The new cargo plane which is a Boeing 767-300F, will bring about a significant reduction in cost for exporting cargo, especially for agricultural, fisheries and livestock products. The plane is said to have a range of 11070 kilometres and is fuel efficient. Where there is a good business model, aviation and its other transport counterparts can collaborate to grow revenue for all participants as well as the economy. So, with this new initiative, perishable agricultural produce like avocados will reach markets as far as India and China while still fresh.Â
This innovation is part of a holistic plan which has resulted in the continuing improvements to other means of transportation such as road, rail and the maritime sector. Advice has also been given to small farmers so that they are able to take advantage of the cargo plane. They are to organise themselves in groups or companies so that they can leverage on their new size to collect their produce as well as raise money for airlifting to the international markets. The co-operative societies that have been a part of our African culture are levers we need to explore for the Single African Air Transport Market. They will also be useful in growing non-aeronautical revenues in airports that seem to be remote and hence unviable.
As the global aviation industry contends with its challenges, aviation in Africa will need to think innovatively on how to remain viable and grow its contribution to the GDP of the continent with the levers in its environment.
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