During the 30e ordinary session of the Conference of Heads of State and Government in 2018, the African Union launched the pilot project to set up the single African air transport market (Mutaa). A continental “Open Sky” which, according to the Pan-African organization, should make it possible to liberalize and unify African airspace.
Launched in January 2018 in Addis Ababa, the single African air transport market should make it possible to liberalize the African skies and reduce the exorbitant prices of air tickets between the different countries of the continent.
More than five years later, where is this project?
First of all, we must start by recognizing that air transport in Africa remains a real headache. Expensive tickets, long distances, customs hassles, low profitability of airlines… So many factors that hinder the development of this strategic sector for African economies.
Objective: unify spaces african airlines
To deal with this, the African Union launched, on January 28, 2018 in Addis Ababa, during the 30e ordinary session of the Conference of Heads of State and Government, the pilot project for the establishment of the single African air transport market (Mutaa). A continental “Open Sky” which, according to the Pan-African organization, should make it possible to liberalize and unify African airspace.
Of the 35 nations that had solemnly adhered to its implementation, only 21 have signed the memorandum for the establishment of the common market.
“The Mutaa is only the continuity of a similar project which had started since the end of the 1990s, with the Yamoussoukro Declaration ratified by several States, which was supposed to give birth to an open market which would allow the development of air transport “, declares an expert in air transport has a site specialized in the business and the African economy.
More than five years later, where is this project? Apparently, he is moving slowly but surely. Recently, on November 14, 2022, 17 countries (including Morocco, Senegal and South Africa) had launched the pilot program for the implementation of this project. A meeting organized by the African Civil Aviation Commission (Cafac). The participation of leading countries in air transport in Africa, such as Ethiopia and Morocco, bodes well for the realization of this project.
Price impact plane tickets
A project that might not materialize, in particular “because of the reluctance of certain signatory States to open their lines to other companies on the continent. The Cafac had even created a follow-up committee for the execution of the Yamoussoukro agreements”, affirms the same expert. Indeed, passengers suffer enormously from the exorbitant prices of plane tickets, which contrast with the affordable prices offered on services between Africa and Europe.
According to several specialists, this high cost is due to the many taxes, fees and other charges applied to air tickets by African states. For example, taxes represent 40 to 50% of the total cost of airfare in West and Central Africa.
“This project will encourage the multiplication of flights, which will allow the continent to create a network of its various connections. And therefore, to offer a more diversified and larger offer. Healthy competition that will lead to lower fares to the delight of passengers,” explains the expert.
He also says the “Mutaa” will also be beneficial for airlines because “the more a plane flies, the more profitable it is”. This profitability is also lacking in several companies on the continent. The cases of Kenya Airways and South African Airways are quite illustrative. Stuck in financial difficulties, the two entities plan to create a pan-African company by 2024 to revive their activities.
According to the expert, the Mutaa project has a chance of succeeding. “There is a new dynamic with eighteen signatory countries. There is also a clear willingness of the Association of African Airlines (Afraa) and Cafac to implement this project. It is time for Africa to liberalize its skies in the image of European countries and the United States”, he underlines.
Six axes d’intervention
The liberalization of African skies is also the wish of the International Air Transport Association (Iata). This project is one of the six areas of intervention planned in its new Focus Africa program, launched on April 3, 2023. Its objective is to strengthen the contribution of aviation to the economic and social development of the continent, improve connectivity, safety and reliability for passengers and carriers. Air safety, aeronautical infrastructure and skills training are also included in this roadmap that the institution intends to implement, in collaboration with public and private partners. “Africa accounts for 18% of the world’s population, but only 2.1% of air transport activity (cargo and passengers combined). Closing this gap so that Africa can benefit from the connectivity, jobs and growth that aviation enables is the objective of Focus Africa,” said Willie Walsh, CEO of Iata, quoted by a statement from the organization.
The document states that Africa has a solid basis to foster the improvement of the contribution of aviation to its development. As proof, the pre-Covid aviation sector generated 7.7 million jobs and $63 billion to African economies.
Clearly, the acceleration of the establishment of the single air transport market, which is part of the AU’s Agenda 2063, will enable African companies to be more profitable and more resilient to exogenous crises. These companies are expected to lose $213 million in 2023, according to Iata, mainly due to high fuel costs, various taxes and infrastructure use fees and various statutory levies. The Mutaa might also stimulate the development of intra-African tourism weighed down by the high prices offered.
