Rapid economic growth
The World Bank forecasts that the economies of sub-Saharan Africa will grow 5.3 percent this year and 5.5 percent in 2012. North African and the Middle East economies will grow 4.3 percent this year and 4.4 percent in 2012. Commodity markets account for much of this growth, as manufacturing countries, particularly China, seek to hedge against volatility by negotiating long-term contracts with African producers of raw materials. Direct foreign investment, growing urbanization, and rising incomes will spur higher domestic demand for consumer goods and transportation. The International Monetary Fund predicts that over the next 5 years, seven of the world's 10 fastest growing economies will be in Africa.
Air transport poised for expansion
Africans are turning increasingly to air travel, as road and rail infrastructure remains underdeveloped. The resulting boost in demand for airplanes has generated firm orders for jet and turboprop airframes and created a favorable climate for aircraft leasing companies. The average age of the African fleet has declined as established airlines modernize for fuel efficiency and higher capacity. More developed nations such as Nigeria and South Africa have undertaken ambitious airport infrastructure projects to alleviate congestion and address safety concerns. The Yamoussoukro Decision on the Liberalization of Air Transport Markets in Africa, which set out in 1999 to create a single African sky by 2002, has languished in recent years, but is now receiving renewed attention.
Meeting greater competition
Many state-run airlines in Africa have given way to privately owned entities that are better able to compete with the foreign operators currently predominant in intercontinental routes. Competition has markedly increased in recent years as Middle Eastern airlines have introduced larger capacity airplanes, higher frequencies, and lower fares to markets traditionally dominated by European carriers.
African airlines have responded by forming code-share agreements with foreign carriers, particularly with Asian airlines. The entry of African carriers as full or associate members into the three global airline alliances, Star Alliance, SkyTeam, and oneworld, signals even more significant progress in African aviation. The additional market reach that these alliances afford is expected to foster competition on intra-Africa routes and create opportunities for emerging unaffiliated carriers.
