African Sky's Brimming Opportunities

Air cargo in africa still is an untapped sub-sector, which the african airports, airlines and businesses must proactively exploit. The potential is huge because of the rise of middle class in the continent which is estimated to be around 300 million people, resulting in an increase in consumer spending and e-commerce opportunities.

- Shreya Bhattacharya

There is no denying the fact that Africa’s economic lions continue to move forward despite the collapse of global commodity prices and political shocks in the region. The continent’s growth story has inspired much optimism about the region's prospects and one of the main drivers that contributed to it is the air cargo sector that has been instrumental in boosting the global as well as intra Africa trade.

“African carriers saw freight demand increase by 12.7 percent in September 2016 compared to the same month last year – the fastest rate in nearly two years. Capacity surged year-on-year by 34 percent on the back of long-haul expansion in particular by Ethiopian Airlines and North African carriers,” says IATA in a report.

Major players, however, suggest air cargo still is an untapped sub-sector in Africa, which the African airports, airlines and businesses should more proactively exploit. The potential is huge because of the rise of middle class in the continent which is estimated to be around 300 million people, resulting in an increase in consumer spending and e-commerce opportunities.

“Africa continues to be a net-importer. With a population in excess of 1.2 billion people comprising of 40 percent below the age of 15, the future looks very promising,” says Sanjeev Gadhia, CEO, Astral Aviation. Also the lack of adequate infrastructure in certain regions in Africa hampers the movement of goods and thus increases the dependency on air-freight, he adds.