Africa’s tourism industry on the rebound

Following the COVID-19 pandemic crisis that left the tourism industry across the continent on the brink of collapse, the sector is said to be on the rebound, according to the United Nations’ World Tourism Organization (UNWTO).

The latest UNWTO data shows international arrivals across Africa were back to 88% of pre-pandemic levels at the end of the first quarter of this year with North Africa performing particularly strongly. In this particular sub-region, arrivals were 4% higher than the pre-pandemic levels of 2019 in the same period.

At the global level, international tourism receipts reached US$1 billion in 2022, a 50% growth in real terms compared to 2021. Among African destinations with available data, Morocco and Mauritius notably exceeded their 2019 tourism receipts in the first quarter of 2023.

These findings were shared at a recent high-level meeting in Mauritius which was convened from July 26-28 by the UNWTO. The 66th regional meeting which was held under the theme: ‘Rethinking Tourism in Africa’ provided ministers and senior officials from the continent a platform to share knowledge, ideas, and good practices for building a resilient tourism sector.

The UNWTO welcomed delegations from 33 countries, including 22 tourism ministers, two deputy ministers and four ambassadors to the meeting, the most important annual event for the region’s member states.

Zurab Pololikashvili, the Secretary General of the UNWTO told high-ranking officials that there is need to rethink and re-align the sector’s role as a driver of development and opportunity across the continent.

“Our vision for African tourism is also one of strong governance, more education and more and better jobs. To achieve it, we aim to promote innovation, advocate for Brand Africa, facilitate travel, and unlock growth through investment and public-private partnerships,” he said.

Pololikashvili said the UNWTO continues to lead tourism’s shift to greater sustainability, recognizing the impact of extreme weather events, including the potential for heat waves to cut off the lifeline the sector offers for destinations worldwide.

At the same meeting, Patricia Scotland, the Secretary General of the Commonwealth, a voluntary association of 56 independent but, mainly former British colonies, called for more collaboration than ever before, if a resilient tourism sector that works for people, prosperity and the planet is to be harnessed. She highlighted the intricate vulnerability of the tourism industry and the collective action needed to address it.

The meeting in Mauritius comes at a time when the global tourism industry is on the path to recovery after suffering a crushing blow from the COVID-19 pandemic. In 2020 alone, the sector faced a severe setback with 1.1 billion fewer international tourist arrivals and the loss of over 100 million jobs worldwide.

“Despite a strong recovery in 2022, to almost two-thirds of pre-pandemic levels, the world today is tightly bound by a tangled knot of crises spanning global economic, environmental and security systems, which pose series threats to the tourism sector,” Scotland told the delegates.

She also highlighted the disproportionate impact on small island developing states (SIDS), which are heavily reliant on tourism. In 2020, the SIDS experienced a 9% decline in their gross domestic product, significantly higher than the global average of 3.4%

Given that two-thirds of the world’s small island developing states are part of the Commonwealth, Scotland emphasised the fact that sustainable tourism is a priority for the Commonwealth. She stressed the urgency of addressing these challenges collectively, adding: “We need to leave this meeting with a plan to deliver an inclusive, sustainable, and resilient tourism sector. This is imperative for the economy of each country which depends on it in Africa and beyond.”

Describing the meeting as a pivotal opportunity, Scotland invited countries to work together on an array of innovative legal and financial solutions for the tourism sector. “We already have the knowledge, the ideas, the innovation and the technology to develop and deliver these solutions… What we need is leadership and a shared commitment not to go alone, but to go together.”

Scotland said she has confidence in Commonwealth Africa’s ability to show that leadership and set the continent on a path of sustainable and resilient tourism industry.

In order to support this effort, she outlined how the Commonwealth’s work could assist countries in addressing tourism challenges through knowledge exchange, data-sharing and capacity-building. In particular, Scotland spoke about the Commonwealth’s ‘Their Future, Our Action’ project, which has been enhancing the economic resilience of small states.

She highlighted two tools developed through this project which can support the efforts of African countries. The first tool, the ‘Common Pool Asset Structuring Strategy,’ consolidates individual finance applications into country-wide opportunities, while the second tool, the Political-Economic Resilience Index, provides credible data on the economic and vulnerability levels of small states, making inward investments more attractive.

This work, she added, was backed by the Commonwealth’s ongoing advocacy on the reform of global financing rules to make development and climate finance more accessible to small states, enabling them to invest more in sustainable development, climate action and tourism resilience.

Source: Independent

KATA Members Empowerment at Africa Business Tourism and MICE Masterclass2023

We are thrilled to share the remarkable experience of KATA members at the Africa Business Tourism and MICE Masterclass 2023, a transformative event that resonates deeply with our association’s vision for growth and excellence. Spearheaded by our Chairman, Dr. Joseph Kithitu, this engagement showcased KATA’s commitment to empowering members and driving innovation within the tourism industry.

Why the Event Mattered

The Africa Business Tourism and MICE Masterclass has become an indispensable platform for KATA members to thrive amidst industry challenges. KATA’s presence at this year’s sixth edition of the event was a testament to our dedication to advocating for our members’ interests and fostering their professional development.

Impactful Training Sessions

Africa Tourism Partners enlisted seasoned experts like Nkululeko Ndumiso Nkosi, an influential entrepreneur and technology innovator, and Mamello Mofokeng, a qualified data scientist and cybersecurity professional, to deliver engaging training sessions. These experts covered crucial topics, including artificial intelligence integration, data analytics, and event management platforms.

The masterclass empowers MICE professionals and practitioners to analyze clients’ preferences and behavior, customize event content, and make targeted marketing and sales recommendations, all while building meaningful connections.

Collaborating for Success

During the event, Dr. Joseph Kithitu held side meeting the Africa Tourism Partners CEO Mr. Donkor Kwakye to discuss closer collaboartion in promotion of MICE Tourism training for KATA members. These meaningful encounters further strengthened KATA’s network, opening doors for potential collaborations that benefit our members.

Networking and Building Relationships

Beyond the enriching training, the masterclass provided KATA members with invaluable networking opportunities. Our delegates fostered meaningful connections with industry leaders, facilitating future collaborations and partnerships that will shape the future of the travel and tourism landscape in Kenya and beyond.

Conclusion

KATA’s involvement in the Africa Business Tourism and MICE Masterclass 2023 underscores our commitment to empowering our members. By offering training spaces, advocating for their interests, and facilitating networking opportunities, we ensure that our members stay at the forefront of the dynamic travel industry.

At KATA, we are dedicated to promoting growth and excellence within the travel sector, and the participation of our esteemed members in this masterclass reinforces our commitment to their success. Let us continue to soar together as we embrace digital transformation and innovation in the tourism industry.

#KATA #AfricaBusinessTourism #MICE #Masterclass2023 #Empowerment #DigitalInnovation #NetworkingOpportunities #TravelIndustry #InnovateWithKATA

Source: KATA Media Desk.

Addis Ababa dangles Ethiopian stake to Eritrea – report

Landlocked Ethiopia may use Ethiopian Airlines (ET, Addis Ababa) as a bargaining chip with reports that Prime Minister Abiy Ahmed is suggesting to sell 30% of the flagship airline to the Eritrean government in exchange for port access for the country, reports the Amharic language Amba online newspaper.

Ethiopian Airlines was not immediately available for comment.

Abiy reportedly made the remarks in a meeting with investors and business people in Addis Ababa recently, but this could not be verified independently.

According to Amba, the prime minister said the Ethiopian government was exploring all options to secure a port for the country through negotiations with Eritrea, Djibouti, and Somaliland. “In the case of Eritrea, the government has proposed to give 30% of Ethiopian Airlines to the Eritrean government in exchange for port access [presumably Massawa],” the report said. Amba Digital said Eritrea had rejected the offer in the first round of talks. The portal said it had verified the information with three people who had attended the meeting.

Abiy also said the government would consider using force to secure a port, but this would be a last resort. “We want to get a port through peaceful means, but if that fails, we will use force,” he was quoted by Addis Insight.

Under Abiy, a peace agreement was forged with Eritrea, and ties between the neighbouring countries were re-established on July 9, 2018, ending hostilities over international borders created when Eritrea gained independence from Ethiopia in 1993. However, Ethiopia sees the lack of a port as a major obstacle to its economic development. It currently relies on Djibouti and Somaliland to import and export goods.

Source: Ch-aviation

FlyNamibia and Airlink make booking easier for travellers

FlyNamibia is partnering with Airlink to promote its flights and services to travel agents worldwide. Through the Global Distribution System (GDS), Airlink has global reach and the ability to display and sell its inventory in many markets.

FlyNamibia will enjoy the same global access through this partnership. Simultaneously, FlyNamibia will launch a new website co-branded with Airlink. This website will be linked directly to the Amadeus Altea reservation portal, making the booking process simpler and more user-friendly.

This partnership will allow FlyNamibia to expand its reach and grow its business. It will also make it easier for travellers to book flights with FlyNamibia.

FlyNamibia CEO, Andre Compion says: “Joining the GDS is a major milestone for our growing airline and it will be a boost for Namibia because it makes our flights, network and schedule visible to customers in parts of the world that, until now, we have been unable to access. It also lets us provide customers with a convenient, user-friendly and seamless booking platform.”

“This is one of the logical progressions we envisaged when Airlink invested in FlyNamibia last September. It will help us strengthen air services within Namibia and support the Namibia Airports Company in positioning Windhoek’s Hosea Kutako International Airport as an alternative SADC region gateway hub.

“By building connectivity and extending FlyNamibia’s reach, we will unlock new markets and efficiencies for Namibia’s business, trade, travel and tourism sectors,” explains Rodger Foster, Airlink CEO and managing director.

Last September Airlink acquired a 40% stake in FlyNamibia in an investment that signaled its confidence and faith in Namibia and its bright economic prospects.

“Namibia’s economic expansion is stimulating demand for travel to and from the country. FlyNamibia’s access to the GDS exponentially enhances and increases our ability to tap into this and open new markets. Whilst we are moving closer and deepening our relationship with Airlink, FlyNamibia will continue to operate its own flights and retain its own unique brand and image.

“This dovetails neatly with Namibia’s Harambee Prosperity Plan II and the National Transport Policy vision for efficient, world-class air transport services,” explains Compion.

Although FlyNamibia’s inventory will be displayed on the GDS, all bookings for flights taking place up to and including 28 August, will be managed on FlyNamibia’s current reservation system.

Reservations for FlyNamibia flights from 29 August onwards will be processed on the GDS with customers able to follow instructions on the website which will be linked to the new booking portal.

FlyNamibia will maintain parallel systems for six weeks to ensure a smooth transition.

Source: Zawya

The $2 billion Rwandan airport that could help African aviation take off

CNN — Some 40 kilometers south of the Rwandan capital of Kigali in the Bugesera District, construction vehicles and high-visibility vests swarm across an arid expanse of land.

Here, two strips of tarmac are the cornerstone of a $2 billion airport, whose developers want it to be the jewel in the crown of Africa’s aviation industry.

Slated for completion in 2026, the new facility will boast a 130,000-square-meter main terminal building capable of accommodating 8 million passengers a year, a figure expected to rise to over 14 million in the following decades. Adjacent will be a dedicated cargo terminal, capable of accommodating 150,000 tons of cargo a year.

It’s a significant upgrade on the existing Kigali International Airport, which is set to remain operational for special arrivals, some chartered flights, and a pilot training school.

Pre-pandemic, the airport was shuttling close to 1 million passengers annually, but its geographic limitations – perched on top of a small hill and surrounded by human settlements – meant a move was necessary to allow expansion.

“I’m amazed, it’s like a dream come true to see the impact and magnitude of this project to the population,” said Jules Ndenga, CEO of Aviation Travel and Logistics Holding, the Rwandan government-owned company that is overseeing construction.

“We are really impassioned to see the efforts completed and starting operations.”

Qatar Airways will have a 60% ownership of the new airport. The Middle Eastern airline will also acquire 49% of shares in the African country’s flag carrier airline, Rwandair, offering access to over 65 locations around the world.

It is a partnership that intended to help Rwanda – landlocked in the center of Africa – achieve its aim of becoming the continent’s centerpiece for air travel. “The main objective of this effort is basically to make sure that Rwanda becomes an African hub where everyone will be transiting either for tourism, but also for business and different industries,” Ndenga added.

“The impact will be in terms of providing a platform for all the economic life of the country to develop sustainability. We see that as not only an impact on the economy but in the neighborhood … we know that this area will become a satellite city of the city center.”

Connection complications

Yet benefits could spread far beyond Rwanda’s borders. The arrival of the new airport will help chip away at the critical problem of a fragmented network of routes that means passengers often have to travel via Europe or the Middle East when flying between African countries.

A lack of connections across the continent is grounding Africa’s untapped potential in the aviation business. Despite boasting 16.75% of the world’s population with 1.4 billion people, the continent has less than 4% of the global air market, according to a 2018 report by the Single African Air Transport Market – an initiative set up by the African Union.

For RwandAir CEO Yvonne Manzi Makolo, the problem of connectivity presents the “biggest challenge” to the African aviation industry.

“The continent is huge, it’s vast, but it’s difficult and unpredictable traveling within it … and it’s extremely expensive,” Makolo said.

“What what’s making it more challenging is the conditions of operating within the African continent. The cost of operations is so much more, whether it’s airport fees, whether it’s ground handling, parking, overflight (flying from one country’s airspace to another’s) – everything is much more expensive. Sometimes up to 50% more than in the Middle East and Europe, which makes the ticket prices even more expensive and makes (some) routes unviable.”

Solutions

But solutions are touching down, starting with the Single African Air Transport Market (SAATM).

First proposed in 2018, if implemented the policy would create a single market for African aviation, facilitating the free movement of people, goods, and services. The continent currently operates under bilateral air service agreements, a highly restrictive policy that makes it difficult to open new routes.

So far, just 35 of the 55 African states have signed up for SAATM. Secretary General of the African Airlines Association Abderahmane Berthe, heavily involved in the policy’s implementation, believes more will follow.

“Since 2018 all the stakeholders of the industry are working to make it happen,” Berthe said.

“Liberalization is not an easy subject – even in other regions, it took a lot of time. So, we are working on it. What is missing is the willingness of states to really implement it.”

A new single market would dovetail with the African Continental Free Trade Area (AfCFTA). Coming into force in 2021, AfCFTA eliminates tariffs and other non-tariff barriers to allow easier movement of trade and people between the continent’s countries.

It is set to increase intra-African trade to an estimated 52%, according to Kenya Airways CEO Allan Kilavuka, who plans to work with other African airlines – such as South African Airways – to unite a “fragmented” industry.

“We have so many airlines in the continent. Most of them are not viable, truth be told,” Kilavuka said.

“We need to consolidate, so that you create bigger entities which are more economical from a scale perspective, and they can respond to high costs. They can together talk to suppliers and get more bargains when it comes to purchases, bringing down the unit cost of operation. Because of scale, they can then open up the African continent a lot more.

“The fragmented state which we are in is not going to make it.”

Source: CNN

DET launches ‘Dubai Sustainable Tourism Stamp’ to recognize hotels with the highest adherence to sustainability standards

Dubai’s Department of Economy and Tourism (DET) has announced the launch of the ‘Dubai Sustainable Tourism Stamp’, a new sustainability initiative that seeks to recognize hotels with the highest adherence to DET’s 19 ‘Sustainability Requirements’. The initiative, launched in line with the UAE Year of Sustainability, is part of DET’s commitment to strengthening Dubai’s position as a leading sustainable tourism destination.

Developed in collaboration with Dubai’s hospitality sector, the new stamp is designed to accelerate efforts towards empowering the tourism sector to achieve its sustainability goals and support the UAE’s NetZero 2050 initiative. As Dubai continually strives to achieve the objectives outlined in the Dubai Economic Agenda, D33, the initiative will contribute to further consolidating the city’s status as one of the top three global destinations.

The Dubai Sustainable Tourism Stamp will serve as a validation of the hotel’s dedication to sustainability and showcase its sustainable practices. To obtain the stamp, hotels of all classifications must meet the highest standards of DET’s 19 Sustainability requirements, which include criteria such as energy and water efficiency, waste management programs, and staff education and engagement initiatives. The accreditation process will be overseen by a committee of senior industry professionals to ensure integrity and independence, with the initiative designed based on global best practices.

The stamp will feature a three-tier scheme with categories ranging from Gold, Silver and Bronze. Nominations for hotel establishments to obtain the Dubai Sustainable Tourism Stamp will begin on 3 August, 2023 and end on 31 August, 2023.

Yousuf Lootah, Acting CEO of Corporate Strategy and Performance sector, Dubai’s Department of Economy and Tourism stated: “As part of our efforts to transform Dubai into a leading sustainable tourism destination in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make our city the best place in the world to visit, live and work in, the Dubai Sustainable Tourism Stamp champions sustainable practices while setting a benchmark for excellence in environmental stewardship, aligned with the goals of the Dubai Economic Agenda 2033.

We have carefully curated a set of high standard criteria that will reward hotels that go above and beyond in their sustainable practices. By recognizing these exemplary establishments, we are encouraging others to follow suit and embrace sustainable initiatives that not only benefit their businesses but also contribute to the collective well-being of our city and the world at large.

“Supported by Dubai’s vibrant hotel industry, this initiative is a strategic step towards achieving our goal of making Dubai a leading destination for global travellers seeking the ultimate sustainability experience. By supporting businesses and encouraging them to adopt eco-friendly practices and reducing their carbon footprint, we are not only safeguarding the environment but also promoting sustainable growth. As Dubai prepares to host the 28th Conference of the Parties (COP28), the UN Climate Change Conference from 30 November to 12 December this year, the launch of the Dubai Sustainable Tourism Stamp also demonstrates the tourism industry’s foresight and determination to foster an eco-friendly sector that is both economically prosperous and environmentally responsible.”

DET’s sustainability strategy has paved the way for innovative initiatives including the Carbon Calculator, a mechanism to help stakeholders and partners identify cost saving opportunities and manage the transition to sustainable practices, in line with the ‘Sustainability Requirements’.

Dubai Can, a citywide sustainability initiative, focuses on promoting the use of reusable bottles and encouraging people to refill.  Since its inception in February 2022, Dubai Can has successfully reduced the use of an equivalent of more than 10 million 500 ml single-use plastic water bottles and led to the installation of 50 water fountains throughout the city since its inception.

Source: Dubai Tourism

Biometrics promises to shorten waiting times at airports

As summer travel picks up, the pressing need to reduce waiting times for services like security and immigration checks at airports or even when picking up rental cars comes into focus. Undoubtedly, waiting in long queues for any procedure is one of the most frustrating moments for travellers.

The COVID-19 pandemic has also contributed to accelerating the adoption of contactless systems at airports, including biometric processing at key touchpoints such as immigration, security control, and check-in. This transition to touchless technology aims to minimize queuing and reduce overall airport wait times while ensuring a safer and more efficient travel experience.

According to IATA’s 2022 Global Passenger Survey (GPS), biometrics has established itself as a groundbreaking innovation in the travel industry, offering a promising solution to the perennial problem of long queues at airports. With an impressive 88% of passengers, who have used this service, expressing satisfaction with the overall biometric process, this technology has the potential to revolutionize the way we travel.

The survey also reveals that 75% of passengers are willing to use technologies employing biometrics as an alternative to conventional passports or boarding passes. This growing preference for biometric identification is driven by the desire to save time and avoid the hassle of queuing. In fact, 33% of passengers would prefer to complete immigration procedures before arriving at the airport, while 44% would like to expedite the check-in process.

Imaginable are situations where a simple identification document is presented at a terminal, and the system automatically verifies all the data. The necessary information is then made available to security personnel, and the journey can continue. This significantly speeds up the process and is also applicable in other areas, such as picking up a rental car or a key for a vacation rental.

At the forefront of this technological revolution is Signicat, a leading provider of digital identity. Their years of expertise in the field enable the optimization of processes such as identity verification and authentication. This, in turn, means faster, smoother, and safer services for both travellers and airports themselves.

Another notable advancement in biometric technology is video identification. Traditionally, the verification of passports was manually carried out by security personnel or immigration officers at airports, who checked the authenticity of the document. Biometrics improves this process, making it both safer and more efficient. The technology precisely verifies the authenticity of a passport, detects manipulations or forgeries, and significantly reduces processing time without compromising security.

Despite all the benefits, passengers have legitimate concerns regarding the use of biometric data. According to the survey, the biggest concerns are data loss due to security breaches, who has access to the data, and general apprehensions regarding the handling and storage of personal information. Demands for continuously improved measures to protect data and its access are a direct response from passengers.

The fear of data and information security is not unique to the travel industry but is a common concern among consumers. Signicat’s annual “Battle to Onboard” report discovered that 92% of respondents are worried about the amount of data they share with their bank when completing an application.

It is crucial to continue educating users about how these new technologies work and why they are important, both through local legislation in each country and at a global level. In Europe, for example, the protection of personal information and data privacy will always remain a high priority, regardless of the industry.

With the growing acceptance of biometric technology, airports have the opportunity to enhance the entire travel experience, leading to increased comfort and security. With companies like Signicat and other industry leaders driving innovations in this area, the times of never-ending queues and frustrating identity verification processes could soon become a thing of the past.

Source: Travel Daily Media

Two thirds of travellers say sustainability is key in leisure tourism decision

Egypt ranked 4th for sustainability performance compared to competing destinations, report by Bain & Company finds

The market for sustainable tourism is set to boom, with two-thirds of travellers saying sustainability is an important factor when choosing leisure holidays, a new survey showed.

The focus on green travel comes as tourism is bouncing back strongly from the coronavirus pandemic, with the sector expected to reach $17 trillion by 2027, compared with $11 trillion before the pandemic that damaged the industry, a July report by Bain & Company said.

About 64 per cent of the survey respondents said that sustainability considerations influence their choices.

The report said 66 per cent are willing to pay extra for more sustainable offerings and 57 per cent would recommend a holiday destination based on sustainability considerations.

Looking ahead, 73 per cent of consumers surveyed expect sustainability to become more important over the next five years.

“The uptake in sustainable tourism is driven by an appetite to travel sustainably and make more responsible choices,” Karim Henain, partner at Bain & Company Middle East, said.

Bain has developed a framework defining the components of sustainable tourism: environmental impact (eco-friendly transport and accommodation), social responsibility (diversity, equity, and inclusion standards), and community engagement (contract with locals), he said.

The global travel and tourism industry is facing increasing pressure from environmental campaigners to reduce its carbon emissions given concerns about the impact of billions of passengers who are expected to take to the skies in the coming years.

The Bain study aimed to better understand the behaviour and preferences of travellers interested in the Middle East and North Africa (Mena) as a destination. The research covered consumers from Germany, Italy, France, the UK, Saudi Arabia and China.

The research found that there is a “significant opportunity” among the “sustainability enthusiasts” segment of travellers interested in visiting the Mena region.

Bain defined sustainability enthusiasts as those who consider sustainability “extremely important,” both in their daily life and when travelling for leisure.

Sustainability enthusiasts were found in all markets surveyed, but their demographics varied by country, the report said.

For example, those from China and Saudi Arabia were mainly highly educated millennials, whereas their European peers were almost equally spread across age groups, income and education levels.

Sustainability enthusiasts represent an important market of untapped growth for the green travel and tourism industry, according to Bain.

For example, compared to other survey respondents, they are four times more likely to consider sustainability aspects as “extremely important” when choosing a holiday destination and seven times more likely to recommend a holiday destination driven by sustainability.

They are also 1.6 times more willing to pay for more sustainable choices, at a premium of 15 to 20 percentage points compared to non-enthusiasts, the Bain study showed.

“While we recognize that there is a ‘say versus do’ gap in terms of what consumers actually choose and how much more they are willing to pay for more sustainable choices, sustainability enthusiasts remain a significant segment that countries can tackle through different sustainability offerings,” the report said.

Egypt has launched several initiatives to improve the sustainability performance of its travel and tourism sector.

The North African tourism-dependent country aims to provide continuous support to eco-certified tourism establishments and businesses, increase sectoral awareness of sustainable operations and reduce the negative impact of harmful tourism development and practices.

Overall, Greece ranked first as the holiday destination perceived to be most sustainable, while Egypt ranked fourth.

However, the perception of Egypt significantly improved among sustainability enthusiasts, who ranked it second after Greece.

“Egypt has a significant opportunity to develop its sustainable tourism industry. If developed and positioned well, this will allow Egypt to tap into new tourist segments, expand the network of promoters for tourism in Egypt, and get a higher share of wallet,” the report said.

“A concerted effort and mobilisation from all players in the tourism ecosystem in Egypt is required to capitalise on this opportunity.”

Source: The National News

Kenya Airways re-assesses pan-African alliance with SAA

Kenya Airways (KQ, Nairobi Jomo Kenyatta) is re-assessing its plans for a pan-African alliance with South African Airways (SA, Johannesburg O.R. Tambo) , the critical issue being getting strategic investors, according to The Africa Report.

Asked for clarification, Kenya Airways Group Chief Executive Officer Allan Kilavuka explained to ch-aviation: “It is simply a matter of sequencing events. Making sure we have the priorities of strengthening the anchor airlines before we pull the trigger”.

SAA was not immediately available for comment.

According to The Africa Report, the search for a new strategic partner for Kenya Airways, negotiation terms, an evaluation of the airline, and the amount of capital needed are all factors that could delay the proposed alliance with SAA. The government intends to end Kenya Airways’ reliance on state support by the end of December 2023.

The proposed alliance with SAA has been the brainchild of Kilavuka’s who sees consolidation as the answer to Africa’s fragmented airline industry by exploiting greater economies of scale.

As the anchoring members, Kenya Airways and SAA set an initial target of establishing the structure of a new group holding company by the end of 2023. In November, they signed a Strategic Partnership Framework. Still, both airlines have rejected merger suggestions, saying the partnership would be commercial, involving coordinated networks and schedules around their respective hubs at Nairobi Jomo Kenyatta and Johannesburg O.R. Tambo, code-sharing, combined pricing, and reducing operating costs through bulk aircraft procurement and groundhandling services.

However, the finalisation of the deal depends on how quickly Kenya Airways and SAA can strengthen internally through their respective privatisation efforts. Kenya Airways is restructuring with state loans that must be repaid, while SAA is yet to finalise a three-year semi-privatisation process with preferred strategic equity partner Takatso Aviation.

The deal is currently pending a decision from South Africa’s Competition Tribunal following a hearing on June 20. It was greenlighted by its advisory body, the Competition Commission, on the condition that Takatso’s minority partners, Global Aviation Operations (GE, Johannesburg O.R. Tambo) and Syranix, withdraw from the consortium over antitrust concerns. The minority group agreed to bow out last month after previously having dug in its heels. An international investment bank has been appointed to investigate potential buyers and evaluate SAA’s assets, even though the government plans to sell 51% of SAA for a nominal ZAR51 rand (USD2.84) in exchange for an investment of ZAR3 billion rand (USD167 million) in operational capital. Under the privatisation transaction, the government must cover SAA’s legacy debt, which reportedly still sits at ZAR1.5 billion (USD83.5 million).

Source: Ch-aviation

Flutterwave Joins IATA to Enhance Travel Payments in Sub-Saharan Africa

Flutterwave, a leading fintech company, has teamed up with the International Air Transport Association (IATA) to enhance travel to sub-Saharan Africa. By integrating with IATA’s payment platform, Flutterwave enables airlines to process customer payments through various methods, including cards, bank transfers, and mobile money, providing a seamless payment experience for travelers.

Flutterwave is renowned for its payment infrastructure that serves global merchants and payment service providers across Africa. With over 400 million transactions processed, totaling above $25 billion, and catering to more than one million businesses, including notable clients like Uber, Airpeace, Bamboo, and Piggyvest, Flutterwave has solidified its position in the fintech industry.

The recent partnership with IATA Financial Gateway (IFG) offers airlines the capability to receive local payments from African markets through all their distribution channels. IATA, which represents around 290 international airlines, sees this collaboration as a means to enhance operations in Africa while providing customers with convenient local and international payment options.

Flutterwave’s CEO and founder, Olugbenga Agboola, highlights the potential for accelerated growth in Africa’s aviation sector, projected to be one of the fastest-growing regions over the next two decades. Simplifying payment processes for global airlines entering the African market is expected to encourage further expansion and investment in the continent’s aviation industry.

Muhammad Albakri, IATA’s Senior Vice President of financial settlement and distribution services, expresses excitement over Flutterwave’s participation in bringing secure and innovative payment methods to airlines, travel resellers, and the traveling public in Africa. The collaboration between Flutterwave and IATA aims to enhance the overall travel experience for passengers while boosting economic growth in the African aviation sector.

Source: techafricanews