NEPAD

Infrastructure Development and Aviation Industry in Africa

Infrastructure development is one of the major parameters of economic growth. The deficiency in infrastructure in Africa poses a great challenge to economic growth and poverty reduction within the continent. Improved infrastructure, including the cost and reliability of services, would benefit both Africa and the international community.

The Infrastructure Initiative under the New Partnership for Africa’s Development (NEPAD) comprises elements common to all the infrastructure sectors. It also includes elements that are sector-specific. The infrastructures considered include roads, highways,airports, seaports, railways, waterways, and telecommunications facilities.

The objectives of the Infrastructure Initiative are to:

• improve access to, and affordability and reliability of,infrastructure services;
• enhance regional cooperation and trade through expanded cross-border development of infrastructure;
• increase financial investments in infrastructure by lowering risks facing private investors, especially in the area of policy and regulatory frameworks;
• build adequate knowledge and skills in technology and engineering with a view to installing, operating and maintaining “hard” infrastructure networks in Africa;
• reduce delays in cross-border movement of people,goods and services;
• reduce waiting time at ports;
• promote economic activity and cross-border trade through improved land transport linkages;
• increase air passenger and freight linkages across Africa’s sub-regions.

Some specific activities have been identified to achieve the objectives of NEPAD Infrastructure Initiative. They include:

• Putting in place policy and legislative frameworks to encourage competition. At the same time,introducing new regulatory frameworks and building capacity for regulators, so as to promote policy and regulatory harmonisation in order to facilitate cross-border interaction and market enlargement;
• Increasing investment in infrastructure, especially refurbishment, and improve system maintenance practices that will sustain infrastructure;
• Initiating the development of training institutions and networks that can develop and produce highly skilled technicians and engineers in all infrastructure sectors;
• Promoting Public Private Partnerships (PPP's) as promising vehicle for attracting private investors

African Airport Infrastructure and the implementation of the Yamoussokro Decision

The Yamoussoukro Declaration on a new African civil aviation policy was adopted by African Ministers responsible for civil aviation in October 1988. The Declaration heralded a new era for African air transport. It has many innovative ideas on how to revamp the African airline industry.

A further important step forward in the move towards intra-African air transport liberalisation was taken in November 1999 at a conference of African Ministers responsible for Civil Aviation held under the auspices of the United Nations Economic Commission for Africa in Yamoussoukro, Cote d’Ivoire. After intensive discussions, the Ministers adopted the Yamoussoukro Decision relating to the Implementation of the Yamoussoukro Declaration concerning the Liberalisation of Access to Air Transport Markets in Africa. The Decision was subsequently endorsed by the Assembly of Heads of State and Government of the African Economic Community in July 2000 under Article 10 of the Abuja Treaty.

The Yamoussoukro Decision provides a framework for a continent-wide aviation agreement to liberalise the African skies. The Decision, when fully implemented, is expected to replace the current fragmented regulatory regime by a unified system that gives airlines commercial opportunities on an equal basis and ensures that their activities will be governed by a common body of aviation rules. It is worthy of note that some African countries are making efforts to implement the Yamoussoukro Decision.

However, there are still a number of outstanding issues for effective implementation of liberalisation process. Among the most important is the issue of infrastructure, safety and security.

The anticipated increase in air traffic that could result from liberalisation has to be accompanied by upgrading of the infrastructure and improvement of safety. Without a matching improvement in these areas, any gain from liberalisation will have little or no impact.

The Problems Facing the Aviation Industry in Africa

The Aviation Industry in Africa is currently neither efficient, reliable, nor globally competitive. The problems are numerous and multifaceted. I shall attempt to highlight some of them as follows:

• Ageing Fleet:The average fleet age of airplanes operating in Africa today has been put at 20 years.This generation of aircrafts do not comply with stage3 noise requirement of ICAO standard. As a result,most African airlines are disqualified from operating lucrative routes of Europe and North America. This directly transforms to low revenue and therefore weak performance.
• Ageing Navigational Equipment:The navigational equipment currently in use are getting too old and replacements are not in sight due to lack of funding.
• Inadequate Manpower:Lack of adequately trained personnel at almost all levels implies that management of our airport facilities; fleet and equipment are left in the hands of mediocre who cannot optimise the opportunities available to them due to ignorance.Poor Co-operation:Poor co-operation among some African airlines means that the lucrative Husband spoke system of operation cannot be employed by African Aviation Industries.
• Weak Infrastructure:African airports infrastructure are in very poor state. They include the runways,landing and traffic control systems, as well as terminal facilities.
• Slow Liberalisation Process:Although a lot of efforts have been made towards liberalising African Aviation Industries, implementation of all the Accords reached at various for a has been very slow.Lack of finance and political will seem to be the reason above Declarations, Resolutions and Decisions have been slow in implementation.
• Weak Foreign Partnership:Some African Airlines are unable to attract foreign partners due to poor financial performance.
• Arbitrary Tariffs:Most of the African Airlines do not bother to carry out good financial and operational analysis before determining its tariffs. The result is that income usually will not sustain outgoings let alone making profits.
• Shortage of Aircraft:There is general shortage of aircrafts and maintenance facilities. Prohibitive cost of aircrafts and equipment maintenance makes it difficult for African Airlines to acquire enough aircrafts in order to make their operations economically viable.
• Delays: Enormous delays and lack of services within and between African Countries erode consumers’ confidence. This negatively impacts on patronage.
• Poor Air Services Co-ordination:Air services and connections between sub-regions are inefficient and uncoordinated.
• Weak Insurance Policy:Due to prohibitive insurance costs, most African Airlines are not adequately insured. A crash usually means outright loss of aircrafts and personnel.

Creating Enabling Environment for Public Private Partnership

Establishing and nurturing Public Private Partnerships(PPP's) as well as granting concessions towards the construction, development and maintenance of airport infrastructure are very essential if African airports are going to be globally competitive. There is need for governments and the private sector to work together in this direction. But the governments have to create the enabling environment to attract the private sector both locally and internationally.

There is need to create enabling environment for potential investors. The elements for such conducive business climate include:

• Stable democratic government;
• Peace and security;
• Potentially popular tourist destinations, with adequate airport connections;
• Diversified economy;
• Diverse and rich cultural heritage;
• Good export potential;
• Government support for growth in aviation and tourism industries;
• Huge investment potentials; and Effective implementation of all government policies designed to attract the privates sector and foreign direct investments.

Investment opportunities abound in African Airports,for both local and foreign investors. Investment in aviation infrastructural facilities top the list of such opportunities. Areas for potential investments include construction of Hangers/Aircraft maintenance facilities and commercial warehouse (dry and cold) facilities to promote cargo traffic.

Human Resources Development

African Airport Authorities should be seriously committed to training and retraining of staff in order to optimise their skills and productivity. The trained staff should also be provided with the necessary tools to work with. In Africa such manpower development programmes could receive support/assistance from international organisations.

Human resources are greatest assets to airport management. Whether they are senior managers,engineers or flight attendants and announcers, they are crucial and critical to the smooth running of airports. Customer service centres must be manned by well-trained and courteous staff who are very willing and eager to attend to needs of the customers. In keeping with ICAO regulations and national aviation polices and laws, the security personnel needs to be properly trained and retrained as the case be, to cope with the demands of modern airport operations. There is need for staff to be more focused, dedicated and productive. They should be instrumental to the successful implementation of new management policies on airport management. Corruption is a bane of aviation industry in Africa. Corrupt practices should be discouraged at all levels. And corrupt officials should not be allowed in the industry

Recent Development in Aviation Industry in Nigeria

In Nigeria, two domestic fatal crashes occurred in October and December 2005. Sosoliso Airlines flightDC-91145 from Abuja to Port Harcourt crashed at Port Harcourt International Airport and killed 107 people. Majority of the passengers were pupils of Loyola Jesuit College, Abuja. This accident happened, barely six weeks after another carrier, Bell view Airline, crashed at Lisa in Ogun State, killing all 117 crew and passengers, on 22 October, 2005

These accidents have brought the Nigerian aviation industry into public scrutiny. The existing Civil Aviation Law in Nigeria is being reviewed by the National Assembly. Some aspects of the law will be amended to make it conform with current international laws and regulations. This will be ready by March 2006.

In the wake of air crashes in Nigeria, the President of Federal Republic of Nigeria, Chief Olusegun Obasanjo, conveyed a public forum with all air carriers and government regulators to discuss public concerns over Nigeria’s aviation industry. Some top government officials have been relieved of their duties.

Nigeria has been subjected to expanded universal safety audit programme's (USOAP) by the International Civil Aviation Organisation (ICAO). The country was audited once before in 2001, under the original USOAP procedures. The programme's now extends to checking oversight compliance with all the Chicago Convention Annexes. Nigeria did not request the audit nor did other States suggest it, but ICAO determines when and where to carry out safety audits according to general criteria, including the number of accidents suffered and the availability of audit resources

Presidential Task Force on Civil Aviation

A Presidential Task Force on Aviation was inaugurated recently. The ten-member Task Force is mandated to:

• identify the remote and immediate causes of dereliction in the Aviation Industry in Nigeria;
• critically examine the current states of the nations airports, facilities, equipment and associated infrastructure with a view to identifying those in need of repairs or replacement in accordance with ICAO standards and regulations;
• identify the equipment and services gaps in the airports, design remedial programme's required to address the identified equipment and service gaps and ascertain the resources required in ensuring that the industry is repositioned on the path of sustainable growth and development;
• identify the level of maintenance and the competence of both in-house and out-sourced maintenance of the facilities and equipment at the airports;
• prepare projects details specifying the scope of works, resources required and time needed to execute the projects on priority basis;
• examine the staffing, competency, professionalism and commitment of the staff of the regulatory bodies and ascertain whether or not laid down rules and procedures are strictly adhered to in the discharge of their statutory responsibilities;
• make appropriate recommendations in interim and final reports for action to immediately improve the security and safety in the Aviation Industry, the steps or measures to be adopted by the Federal Government in order to stop the dereliction and rebuild the confidence of the general public in the industry, forwarding the interim and final reports directly to the President;
• perform any other functions that are incidental to the above terms of reference

The terms of reference for the Presidential Task Force are quite comprehensive. It is hoped that the work of the Presidential Task Force will go a long way in improving aviation industry in Nigeria.

The future of Aviation industry in Africa

Concerted moves are now well underway across Africa to improve aviation facilities and services, enhance aviation safety and security, as well as to harness the full economic potential of air transport through liberalising domestic, regional and international aviation policies. But Africa will not achieve the magnitude of progress desired in its aviation industry until its economy starts to thrive and the political instability and civil strife in several parts of the continent are significantly minimised and controlled. There is need for all stakeholders to work together to support countries and regional organisations in their various endeavours to comply with international standards.

African airports need to be repositioned to meet the global standards and be able to face global competition.This can be achieved by embarking on vigorous reform programme's. Such reform programme's should include upgrading facilities and services to world-class standards, introducing effective and result-oriented manpower development programme's, and amending national aviation laws to be in conformity with international standards and regulations. And these must be accompanied by development of a good maintenance culture. The government and the private sector and all other stakeholders in the aviation industry must also work together to achieve a common goal of making African airports more reliable, efficient and globally competitive.

African governments should strife to meet the challenges of rapidly growing air transport system. They should establish agencies that will ensure effective and efficient provision and management of infrastructure in all aspects of the industry. But the activities of these organisations must be properly coordinated to avoid duplication of efforts.

The recent development in West Africa is heart-warming.As part of the efforts to improve air transport services in the sub-region, the annual summit of the Economic Community of West African States (ECOWAS) held in Niamey, Niger in January 2005, authorised the ECOWAS Secretariat to sign an agreement with the private sector to facilitate the creation of a regional airline in a bid to alleviate the great difficulties faced in the aviation industry in the region. This is welcome development. The action is in line with the Yamoussoukro Decision, and the principles and goals of NEPAD.