The African continent has enormous potential and remains an attractive destination for investors, despite complex national contexts and geopolitical changes, say experts attending the Africa Investment Forum 2022 Market Days.
Africa is facing external shocks that negatively impact its growth and socioeconomic development. The Covid-19 pandemic has compromised the sustained growth that the continent has enjoyed for the last 25 years, and the Russian-Ukraine war is threatening populations with a severe food crisis.
Panelists raised these points on Thursday, 3 November 2022, during the Forum held from 2-4 November in Abidjan, Côte d’Ivoire.
During the session titled “Trade and Investment: How can Africa be more competitive in the world context?” Souleymane Diarrassouba, Ivorian minister for Trade, Crafts, and Small and Medium Enterprises; Benedict Okey Oramah, African Import-Export Bank (Afreximbank) President; and Wamkele Mene, Secretary General of the African Continental Free Trade Area Secretariat, made opening remarks.
Other speakers were Admassu Tadesse, President of the Eastern and Southern Africa Trade and Development Bank; Rajakumari Jandhyala, President of YAATRA Ventures (a platform offering investors a specific approach for deploying capital in energy, infrastructure and added-value opportunities in Africa and emerging markets); Mohan Vivekanandan, Director of the Development Bank of Southern Africa; and Bernard Ayitée, President and Director General of Obara Capital (an investment fund offering solutions and alternative financing to enterprises and African countries).
Africa’s potential in the world economy is growing. Most of its population is young people; a quarter of the world’s population is likely to live in Africa between now and 2050, and the African Free Trade Zone is making progress. Nearly two-thirds (65%) of unused arable land is found in Africa, which is also rich in minerals (including cobalt, lithium that are essential for producing batters, and Africa is the world leader in such agricultural products as cacao, coffee, cotton, essential oils, mahogany).
Minister Diarrassouba emphasized Africa’s relatively low production costs: “Africa is the world’s most profitable region, according to the OECD. Investors from the continent and elsewhere ought to seize its enormous investment opportunities”.
Benedict Oramah called on African countries to redouble their efforts to make the free-trade zone fully operational so that Africa no longer lags behind other regions in regional integration.
Wamkele Mene argued that the free-trade zone, representing a market of 1.3 billion consumers, will increase Africa’s global competitiveness for direct foreign investments and free up commercial flows.
He said certain transaction costs had already dropped since the agreement took effect and urged countries to develop their value chains in productive sectors, including agriculture, mines, and energy. Mene also announced the Third Inter-African Trade Fair this November in Abidjan.
The session outlined ways the continent can take advantage of ambitious trade policies and innovations in financial services to facilitate capital flows toward development projects. Delegates pointed to the significant progress banking institutions have made in infrastructure investment.
“We can be hopeful. The levels of collaboration and co-financing are high,” Tadesse said, citing investments in gas projects in Mozambique and thermal energy in Tanzania.
YAATRA Ventures gave the example of its investments in energy security in Uganda, emphasizing that African investors’ perception of risk differs from that of Western investors.
Panelists agreed that if African financial institutions have a fundamental role to play for long-term investors in the continent, it’s up to the African countries to create an environment that is promising for attracting national and international investors.
Africa Investment Forum 2022 – PLENARY SESSION, Trade & Investment – How can Africa be More Competitive in a Global Context
Source: afdb.org
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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
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The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
