62 | http://www.nomadafricamag.com | ...Celebrating the world’s richest continent | Issue 11
Many African countries are not yet reaping the
economic rewards from tourism. Of course, political and
economic challenges are hurdles, including mismanaged
heavily state-controlled national carriers. Lack of funding has
resulted in many airlines accruing huge debt, when
considering the high cost of purchasing and maintaining
aircraft and airports.1Time; Nationwide Airlines; Velvet Sky and
Skywise have all ceased operations in re-
cent years. Volatile exchange rates, incur-
ring debt and capital deficiencies are a
serious concern for airline companies.
Nigeria recently came out of a recession
and the South African economy was rated
at junk status by global ratings agency
S&P global in 2017. A report by the World
Economic Forum shows that although
South Africa ranks first in transport infra-
structure, it was ranked 17th in the air
transport industry cost competitiveness.
Out of 37 African countries, South Africa
performed poorly in terms of air ticket
taxes, airport charges and value-added
tax. The country scored in 19th place in
visa openness.
IATA reports that the contribution of avi-
ation to the South African economy gen-
erates $12 billion, or 3.5% of the national
GDP, while sustaining approximately
490 000 jobs, including the tourism sec-
tor. Annually, 390 000 aeroplanes take off
and land from South Africa’s major air-
ports including OR Tambo, which saw
more than 18.5 million passengers passing
through in 2014. Air transport in South
Africa is responsible for facilitating over
$140 billion in foreign investment, $10 bil-lion in exports and around $9.2 billion in
inbound leisure and business tourism.Africa’s Future Aviation Sector
Despite challenges, there are positive
signs for African aviation. Developing
countries foster economic growth and in-
frastructure development, injected by the
influx of tourists and foreign investment.
According to IATA, airline safety in Africa
has improved tremendously during the
period of 2017. It was the second succes-
sive year that the African continent re-
ported zero fatal accidents and no jet hull
losses. In a global market, it is vital for