The sky’s the limit: Boeing sees Africa’s increased integration as an opportunity for growth.
Boeing says Africa will not be able to integrate without the expansion of the aviation sector and the company is growing its business to take advantage of the demand for air travel and cargo movement on the continent.
There is a direct correlation between economic expansion and the growth of air travel globally, Boeing Africa managing director Henok Shawl said at the Africa CEO Forum held in Abidjan, Côte d’Ivoire, earlier this week.
“For us, it’s quite straightforward. This is a continent that is growing and growing very fast. And, in this respect, that translates directly to air travel growth that means more Boeing products and services will be sold into this continent,” Shawl told a session discussing “a new paradigm to United States business partnerships with Africa”.
This was why the company opened a new office in Addis Ababa, Ethiopia two weeks ago, he added.
“We foresee, over the next 20 years, that this continent will need 1 200 new commercial aircraft. That’s a lot of aircraft, and that’s a lot of US exports, and that’s also a lot of US and African jobs.
“So, it’s in the interest of Boeing, the US government and African governments to be realising its goal,” he said.
“We are very much bullish and that’s why we’ve opened an office in Africa. We have to be where the market is… We are in Abidjan, Kenya and Morocco. We’re everywhere because the market dictates.”
Shawl said the company was investing in science, technology, engineering and maths education; aerospace engineering development with African institutions, as well as in manufacturing in countries such as Morocco and Ethiopia.
“We want to grow together and enable this continent to connect itself. Because one thing that has to be said clearly — this content will not integrate without aviation. It’s just too big — 30-plus million square kilometres, which is bigger than the US, China, India and Japan combined. Geographically, you cannot integrate it on rail or roads,” he said.
“Integration, if it’s to happen, will happen by aviation and, essentially, passenger and cargo services.
“So, we are willing to obey that infrastructure, the aviation infrastructure, empowering Africa’s economic integration.”
Shawl said Boeing accounted for 70% of the aviation market in Africa “and we want to maintain that and even grow”.
“Africa is the place with opportunity and those that don’t come here are actually doing themselves a disservice. The population is growing very fast, so if you’re not here, then you will really miss it.”
US ambassador to Côte d’Ivoire Jessica Davis concurred, telling the forum that Africa was the region with the greatest unrealised potential in the world, largely thanks to the continent’s human resources.
The head of the US State Department’s Bureau of African Affairs, Troy Fitrell, said it had recently made a change to focus on commercial advocacy as the “top job” of its ambassadors on the continent.
“In addition to the commercial diplomacy, our embassies are now looking directly at the absolute overall business environment. What are the obstacles to trade? Let’s look at those policy decisions that need to be addressed,” Fitrell said.
“Every minister I met, and I probably met with 20 ministers of trade just in the last 24 hours here, every one of them wants more business. The question is, what is holding that back? Let’s address that, let’s work with it, with the countries, on what we can do to create the environment where companies can thrive.”
He said the US had financing tools meant to operate “in a place where no one else will operate” and the government’s participation of 20% had the effect of de-risking projects, allowing other financiers to invest.
“And, of course, we’re sitting on $30 trillion of investment funds in the United States. This is all the private sector. It’s the retirement funds, the equity funds, but getting access to that and demonstrating that there is tremendous opportunity on this continent, that is part of our job, and we’re on that as well,” Fitrell added.
The session was held against the backdrop of punitive tariffs levied by US President Donald Trump against countries — including some in Africa — he accuses of ripping off the US.
This has lowered hope of the extension of a trade pact under which African countries have had preferential export access to the US market under the African Growth and Opportunity Act. The pact expires in September.