Liberalising aviation policies, including easing outdated ownership and capitalisation regulations, would boost Africa’s growth
Recent media concerns about threats to local airlines stemming from ownership and capitalisation disputes and dysfunctions in the aviation sector, such as air traffic navigation services compliance-based suspensions, the lack of infrastructure and fuel shortages, highlight critical problems.
Pressing questions emerge that underscore the neglect of vital areas in the sector and the essential role of government in fostering a healthy domestic aviation industry. A thriving aviation sector catalyses economic development, enhances connectivity, supports related industries and creates jobs.
From a policy perspective, aviation presents both complex challenges and significant opportunities. With multiple government entities involved, the sector requires coordinated strategies to address its issues and unlock its potential for advancing national development goals.
As cities and metropolitan regions increasingly emerge as economic hubs, aviation will increasingly play a pivotal role in connecting people, driving commerce and facilitating the global movement of goods within the “just-in-time” logistics model. Smart airport cities, or aerotropoli, are set to become central drivers of local and regional economies, adapting to the demands of a fast-evolving, digital world. These hubs will not only link urban centres but also serve as catalysts for economic growth in an era defined by speed and interconnectivity.
A renewed focus on aviation is imperative, not just for South Africa, but for the African continent, particularly in the context of the Single African Air Transport Market (SAATM), a landmark initiative by the African Union endorsed by 23 African countries. Africa is poised to become the new growth frontier of the 21st century and, if leveraged effectively, aviation could transform the continent’s economic landscape.
By fostering a unified market for goods and services, the African Continental Free Trade Area (AfCFTA) can significantly enhance intra-African trade and attract substantial foreign direct investment. Realising these opportunities will require focusing on the following key pillars and strategic areas of engagement and promotion.
Improved regional connectivity and market integration
Aviation plays a vital role in connecting remote and underserved regions to urban centres, integrating marginalised areas into the national economy. It also facilitates the rapid transport of goods, particularly high-value, perishable and time-sensitive items supporting critical industries such as agriculture, e-commerce and manufacturing.
The growing demand for efficient transport of agricultural goods to urban markets as well as to international or regional destinations through air freight or refrigerated shipping underscores the importance of maintaining freshness and quality. Regional airlines, particularly those based in smaller or less connected countries, stand to benefit by expanding their networks and accessing more profitable routes.
This growth not only enhances financial stability but also attracts greater investment in the development of African airlines, fostering a stronger and more interconnected aviation sector across the continent.
Capacity building and job creation
One of the most promising opportunities lies in nurturing aviation, supporting domestic airlines and expanding international routes, airports and associated services. These include ground handling, cargo, catering, airport retail, passenger comfort facilities, accommodations and maintenance, all of which can generate substantial direct employment.
The aviation supply chain, including industries such as aircraft manufacturing, fuel supply and infrastructure development and construction will also see significant growth. If discussions about opening foreign investment in airline capitalisation and ownership proceed, prioritising job creation in line with local employment policies will take centre stage, ensuring broad economic benefits for the region.
The Aerotropolis Institute Africa (AIA) is now aligned with skills assessments to initiate programmes and postgraduate studies, spearheading efforts to build capacity. Its new offering, a master’s degree in aerotropolis management, is set to launch in 2026, providing advanced educationn and training to learners across the African continent.
Tourism and economic growth
Efficient domestic air networks play a crucial role in boosting tourism by making it easier for travellers to explore destinations within a country. The economic benefits of increased tourism extend beyond direct spending, creating a powerful, invisible and unseen multiplier effect that supports local businesses such as hotels, restaurants and tour operators, contributing to sustained growth and profitability over the medium to long term.
Enhanced aerial mobility also enables associated industries to expand their markets, optimise operations and reduce transportation costs.
Moreover, efficient air networks attract investment in logistics-intensive sectors and industries that depend on rapid movement for client interactions and supply chain management.
Together, these factors underscore the broader economic and social benefits of a well-developed domestic aviation sector.
Urbanisation and infrastructure for airports and aerotropoli
Airports act as hubs for new urbanisation, often sparking growth and driving the development corridors and infrastructure development such as roads, hotels and business parks. A prime example is the Durban Aerotropolis and its associated master plan, a cabinet-approved catalytic project led by the KwaZulu-Natal government. Closely linked with the AIA and implemented by the Dube TradePort, this initiative can serve as a model for other hubs and cities on the continent.
Integrated air transport infrastructure fosters modern, connected urban ecosystems, enabling efficient movement of people and goods. Advanced air transportation in major centres can significantly enhance public health responses by ensuring rapid delivery of medical supplies, transplant organs and medical personnel to underserved regions. Domestic aviation plays a critical role in emergency relief efforts during natural disasters, exemplified by the vital work of South Africa’s Air Mercy Services (AMS).
Innovation, technology transfer
The aviation sector fosters technological advancements, particularly in aeronautics and airport management systems. Airlines often spearhead innovations in customer service, logistics and data analytics.
Additionally, the increasing focus on sustainable aviation fuels (SAFs) and carbon-neutral initiatives promotes cleaner growth and aligns the industry with greener practices. The recent debates about aviation fuel supply at major airport hubs have highlighted the need for more robust systems and contingency planning.
A competitive landscape could encourage African airlines to invest in cutting-edge technologies, enhancing operational efficiency through tools such as digital booking systems and fuel-efficient aircraft while elevating passenger experiences.
Liberalising aviation policies, including adopting open-skies agreements and easing outdated ownership and capitalisation regulations, would reduce barriers to entry. This would encourage competition, lower ticket prices and support the growth of low-cost carriers. It would also enable the development of secondary routes, increasing connectivity to underserved regions and driving inclusive growth across the continent.
At the Aviation Africa Summit in September 2024, South Africa’s newly appointed transport minister, Barbara Creecy, underscored the importance of collaboration to align regulations, standardise procedures and enhance cooperation among aviation authorities.
“This approach will not only improve operational efficiency but also foster a more unified and effective aviation ecosystem throughout the continent,” she said.
She also highlighted the need for investment in green technologies to reduce the industry’s carbon footprint and the exploration of alternative fuels to enable aviation expansion while protecting the planet’s health.
This moment presents a timely opportunity for the transport department to consider developing a White Paper aimed at advancing the minister’s policy directives. Such a document could comprehensively review the strategic importance of aviation in South Africa, promoting the liberalisation of the sector and emphasising aviation’s role in supporting the state’s medium- and long-term developmental objectives. Furthermore, aligning these efforts with the objectives of the SAATM would help to strengthen South Africa’s position in improving and modernising the continent’s aviation industry.
Issues to overcome
Some countries may be reluctant to fully embrace open skies because of domestic political concerns or vested interests in protecting local airlines. But experts suggest that airline consolidation is essential for long-term profitability, although overcoming political and regulatory barriers, especially with state-owned carriers, remains a significant problem.
If fully implemented through the African Civil Aviation Commission, the SAATM could transform Africa’s aviation industry into a more interconnected, competitive and economically dynamic sector.
It would bring benefits not only to aviation but also to key sectors such as trade, tourism and overall economic growth across the continent, contributing to greater regional cooperation and prosperity.
Henry Wissink is an emeritus professor of public governance at the University of KwaZulu-Natal and is the research and postgraduate education coordinator at the Aerotropolis Institute Africa.