Africa’s aviation sector poised for growth despite challenges
The African aviation industry is showing signs of recovery with fleet size projected to grow by 25% to over 1,400 aircraft by 2034, according to Oliver Wyman's Global Fleet and MRO Market Forecast. This growth reflects increasing demand, with African passenger numbers expected to nearly double by 2035, as reported by the International Air Transport Association.
But the sector faces significant hurdles in its recovery. The Covid-19 pandemic caused a six-year setback in industry growth globally, with several African airlines folding and the continent's aviation sector losing $7.7bn in revenue in 2020 alone.
Investment challenges include inflation, skilled labour shortages, and rising costs. Despite these obstacles, experts remain cautiously optimistic. André Martins of Oliver Wyman notes that easing inflation and potential interest rate reductions could facilitate crucial investments in the future.
The industry must also focus on sustainability, particularly in sustainable aviation fuel. Experts suggest that by maximising opportunities such as infrastructure collaboration and airline investment, Africa's aviation sector can overcome current challenges and thrive in the coming years.
Source: Biz Community
